Barclays to cut fossil fuel lending under investor pressure
By Sean Farrell
Date: Monday 30 Mar 2020
(Sharecast News) - Barclays said it would align all its financing activities with the goals and schedule of the Paris agreement on climate change to have net zero emissions by 2050.
Responding to pressure from investors and campaigners, the bank said it would start with the energy and power sectors and cover all industries over time. It said it would provide transparent targets and report on them regularly from 2021.
Barclays said it would put a resolution setting out its plans to its annual general meeting in May. As Europe's biggest financier of fossil fuel companies, the bank has faced calls from pension funds and campaigners to change its policies.
Backed by investors, campaign group ShareAction put forward a resolution in January calling on Barclays to phase out its financing of carbon-polluting companies. The bank has provided more than ?100bn of financing to the fossil fuel industry since the Paris agreement was signed in 2015, according to the Rainforest Action Network.
ShareAction called on investors to vote for its more detailed resolution and Barclays' at the AGM. The group has recruited high-profile investors to support its resolution, including the Church of England, Amundi, Nest and Jupiter Asset Management.
ShareAction said: "This is a milestone announcement reflecting the positive pressure of shareholders and other stakeholders, and the bank's willingness to listen. Nevertheless, the bank has urgent work to do this year to significantly curb its financing of fossil fuel companies in the short-term."
Barclays said it had talked to shareholders and other groups from across society to come up with its plan. The FTSE 100 company said it would consult these groups in the coming months to develop its strategy and targets and would provide more detail by the end of 2020.
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