Climate: Engaging Barclays

In February 2023, Brunel and our partners withdrew a resolution tabled at Barclays’ 2024 AGM on financing of new oil and gas infrastructure.

The withdrawal came on the back of extensive engagement which led to the publication of a new Climate Change Statement.

Banks are systemic actors that can alter the flow of capital, with enormous implications for transition.

Through this update, Barclays has taken significant steps to reduce its exposure to fossil fuels – for instance, by ceasing direct financing of new oil and gas projects and introducing restrictions on pureplay companies engaging in long-lead expansion. Barclays has also set out clear expectations for energy sector clients on decarbonisation progress – with consequences for continued financing.

While we recognise that Barclays has further to go, the collaborative efforts of like-minded investors has led to meaningful, tangible progress from a bank under pressure from different stakeholders.

Brunel has always placed a strong emphasis on engaging with the sector to bring change. We began engaging with Barclays in 2019, leading the bank to make a Net Zero commitment in 2020.

Engagement is a gradual process that often brings about incremental progress. We remain committed to long-term and consistent engagement to maximise our impact.

Despite the progress, Barclays remains one of the major financiers of fossil fuels. Brunel is now focused on the effectiveness of Barclay’s climate transition reviews and broadening its restrictions on fracking.