On the go: Two Local Government Pension Scheme investors are to back a shareholder resolution aimed at forcing Barclays into line with the Paris Climate Agreement targets.
The resolution, filed by pressure group ShareAction, is thought to be the first example of its type ever to be filed at a major European bank, and calls on Barclays to “phase out the provision of financial services – including project finance, corporate finance and underwriting – to companies in the energy sector, as well to gas and electric utilities that are not aligned with the climate accord”.
The bank, which has invested $85bn (£68.4bn) in fossil fuel companies since the Paris Agreement was signed in 2015, had attempted to head off ShareAction’s resolution by publishing its own resolution.
This states that Barclays “will now have an ambition to become a net zero bank by 2050, and a commitment to align all of its financing activities with the goals and timelines of the Paris Agreement”.
Barclays’ resolution had been criticised as being comparatively weak, and now investors have had their say, with UK asset owners Brunel Pension Partnership and Merseyside Pension Fund set to support both resolutions in a bid to turn the bank’s ambition into action.
Laura Chappell, chief executive of Brunel, said: “We believe that it is crucial for banks to set targets to translate ambitions into action. The current lending practices of many banks, including Barclays, pose a serious threat to the goals of the Paris Agreement.
“The shareholder proposal’s targeted approach and short-term targets will equip the bank to deliver on its long-term ambition and bring it in line with commitments already made by other banks.”
