A group of 24 institutional investors with a combined $1.2 trillion of assets wants Barclays Plc to stop financing fracking, and argued a recent pledge by the British bank to restrict financing for companies that focus exclusively on fossil-fuel exploration and extraction doesn't go far enough.
The Church of England Pensions Board, Cardano and AkademikerPension are among investors that signed a letter sent to the bank's board and senior executives laying out the demands. The letter, which was coordinated by the London-based nonprofit
"Investors, the public and people whose lives have been impacted by fracking are making it clear to Barclays they must stop funding this damaging and dangerous fuel," said Kelly Shields, campaign manager at ShareAction. "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."
A spokesperson for Barclays said the bank thanks ShareAction for its "ongoing engagement." Barclays also recognizes the importance of meeting current energy needs, while financing the scaling of clean power to ensure energy is secure, affordable and reliable, the spokesperson said.
Pureplay fracking companies "impose significant risks on the environment, society and the financial system," the investors wrote in their letter. Barclays should "explicitly exclude financing" to this industry, they said.
Earlier this year, Barclays pledged to halt the direct financing of new oil and gas projects, and to restrict financing for companies that focus exclusively on fossil-fuel exploration and extraction.
And there are signs the bank is already making adjustments around fracking. Last year, Barclays pulled out of a $325 million loan to ProFrac Holdings, a fracking company. (Bank of America, JPMorgan Chase and Fifth Third Bancorp replaced Barclays on that deal.)
ShareAction says Barclays' restrictions don't go far enough, pointing to exemptions for short-term projects and for North American clients.
Barclays' revised energy policy is "unlikely to meaningfully address the bank's role as Europe's largest financier of fracking," according to ShareAction.
Shareholders focused on the climate are using this round of annual meetings to step up pressure on banks. Last week, HSBC Holdings Plc was asked by a group of investors representing more than $890 billion to set a funding target for renewable energy.
Standard Chartered Plc, which has faced similar pressure from shareholders, has said it will set a science-based reduction target for the methane emissions of its oil and gas clients by next year. Its annual shareholder meeting is scheduled for Friday.
