Investors with over $1.24trn in assets under management have called on UK bank Barclays to stop financing fracking and place restrictions on “controversial fuel” as its Annual General Meeting (AGM) kicks off.
In a letter published today, coordinated by the non-governmental organisation ShareAction, a group of 24 investors urged Barclays to commit to two specific actions: implementing restrictions on financing for companies exclusively focused on fossil fuel extraction, and expanding its fracking policy to include North America, where the majority of its fracking clients are based.
The letter was addressed to Barclays' CEO and chair as well as signed by investors including NEST, Cardano, the Church of England Pension Board, Brunel Pension Partnership, AkademikerPension and Local Authority Pension Fund Forum.
This comes as £35bn Local Government Pension Scheme investment pool Brunel withdrew a resolution, co-filed with Share Action, urging Barclays to scale back on fossil fuel lending. It withdrew following the UK bank’s commitment to cease directly lending to new oil and gas projects.
However, ShareAction argues that pureplay companies working on short-term extraction projects are exempt from Barclay’s new pledge on oil and gas financing, with fracking activities typically being short-term.
Kelly Shields, campaign manager at ShareAction, said: “It is now up to Barclays to close the loopholes in its energy policy, moving away from financing companies that exclusively work on extracting fossil fuels and especially fracking companies, which are putting people and the planet at risk.
“Despite progress on its oil and gas policy, Barclays continues to leave the door open to pour millions into polluting fossil fuel finance, and particularly worryingly, fracking.”
ShareAction stated that Tina Rothery, a member of Nanas Against Fracking, will hand in a petition on behalf of over 3,500 members of the public reiterating the demands to end fracking finance at Barclay’s AGM today.
This also comes as global investors have been hardening their engagement with banks over climate, with the £3.3bn Church of England Pensions Board backing clean energy resolution at three US banks AGMs.
Shareholder victory: Barclays pledges to cease funding new fossil fuel projects
