The environment

Climate change is one of the biggest challenges confronting the world. We must make our own contribution to managing this risk and we are stepping up our efforts to reduce both our direct and indirect impacts on the environment.

Through our climate action strategy, we achieved carbon neutral status in our UK and European operations for 2007. Our strategy includes reducing CO₂ emissions by improving energy efficiency, buying renewable energy where available, and offering products and services that help customers tackle their carbon emissions. Throughout 2007, Group Chief Executive John Varley and Group Chairman Marcus Agius have contributed to the climate change debate.

One of 2007's most visible symbols of our commitment to reduce our carbon footprint is the new Absa Capital building in South Africa. Andrew Flett, Global Head of Environmental Sustainability, says: "The design and planning for this building has been a genuine Group-wide effort involving the Capital Projects, Engineering and Environmental teams, and it will set a new standard for sustainable building for the Group." Measures such as rainwater harvesting, solar heating, natural cooling, lighting sensors and recycled materials, will make the complex at Sandton Court, Johannesburg 34.2% more energy-efficient than a traditional office.

We've also developed a number of products and services to help clients in the institutional, commercial and retail markets manage their energy use and reduce their carbon footprints.

New environmental products

In July, we launched Barclaycard Breathe, a credit card that incentivises consumers to buy greener products and donates half its profits to carbon reduction projects. We guaranteed that in the first year we will make a minimum donation of £1million to environmental projects. Our corporate card equivalent is Barclaycard Business Sustain, originally developed for consultancy Deloitte, but since November available to all our corporate customers. It’s the first business card designed to help companies offset the carbon emissions of business air travel.

We're also making the carbon trading and risk management expertise of Barclays Capital available to our larger commercial clients. Barclays Capital is a leader in the EU emissions trading market, trading more than 600 million tonnes since 2005. We're now working with the UK government on improving Africa's access to global carbon finance and sitting on an expert government group on the future of London's carbon market. We are also investing in projects that reduce carbon emissions globally.

Barclays Commercial Bank is building its reputation in the renewable energy market. With colleagues in Spain, we are providing long-term finance for more than 2,700MW of renewable generating capacity, enough to supply electricity to more than 1.45 million homes for a year. Schemes range from small-scale hydroelectric projects to onshore wind farms.