INSIGHT by investESG
Today’s announcement and release of Barclays’ energy policy, which follows engagement discussions with ShareAction and investors like Brunel Pension Partnership, is the culmination of several years of dialogue with Barclays on climate change. While this marks a significant success in engagement, showcasing the effectiveness of long-term stewardship efforts, and is welcomed by investors and ShareAction, there is still room for further policy improvements.
“The strategy could have gone so much further. Barclays’ intention to request decarbonisation plans from its oil and gas clients is the right one. But for it to have teeth, the bank must demand clients stop engaging in activities that increase the climate crisis such as oil and gas exploration.
“Barclays is wrong not to have ruled out financing companies that focus exclusively on fossil fuel extraction. This should include fracking, which is causing so much environmental and social harm and is an activity the bank is heavily exposed to.
“We should expect the banks’ shareholders to hold them to account on this policy and make significant efforts to close the loopholes in this strategy.”
-Kelly Shields, Campaign Manager at ShareAction
Vaishnavi Ravishankar, Head of Stewardship at Brunel Pension Partnership, emphasizes that “engagement is always a long-term process, and progress usually comes in steps.” Meanwhile, Brunel Pension Partnership, which has also engaged extensively in the past with HSBC, Europe’s largest bank, underscores the importance of sustained dialogue in achieving meaningful change. Additionally, the resolution co-filed at Barclays by a large group of investors with ShareAction regarding financing new oil and gas infrastructure has been withdrawn.
| All opinions expressed are those of the author and/or quoted sources. investESG.eu is an independent and neutral platform dedicated to generating debate around ESG investing topics.
