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15/05/2012
ECPI ESG Profile
Barclays demonstrates a poor ESG performance with a final ECPI ESG rating of "F", which means it is a company displaying poor long-term strategic attitude, weak operational management and ineffective/negative contribution towards society and the environment.
The non-financial drivers of competitive advantage in the banking sector include: adherence to international best practices in corporate governance, risk management and compliance standards; product innovation; talent attraction and retention and fair sale practices.
The company has reported adequately upon all the three aspects - environment, social and governance, and follows GRI sustainability reporting guidelines.
The company has adopted a formalized environmental strategy towards mitigating climate change risks, and offers a variety of environmental driven financial products. However, it lacks a structured policy towards implementing its environmental strategy and has not reported upon percentage of ISO 14001 certified operations.
On social front, the company is a formal signatory to United Nations Global Compact (UNGC), which ensures respect of human and labor rights in the organization. Further, the company ensures timely and transparent disclosure of its operational and financial performance to the investor community and follows sound corporate governance practices in line with UK Combined Code on Corporate Governance.
However the company is facing a significant number of relevant litigations and accusations for incorrect accounting practices, not providing the necessary level of information to stakeholders, anti-competitive practices, corruption incidences, incorrect practices against the customers, incorrect practices against suppliers, and human right violations.
Click here to read the full ECPI ESG profile