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New Pressure on Barclays Over Fossil Fuel Loans

barclays-bank

A shareholder vote pushing for Barclays to stop providing funds to fossil fuel companies is now being backed by Amundi, the largest asset manager in Europe with a portfolio worth over £1.4tn.

The resolution calls on Barclays to start phasing out their services to companies that do not align with the goals outlined in the 2015 Paris agreement. It was filed last month by a group of investment and pension funds overseeing over £130bn in assets.

Campaign group ShareAction is handling the campaign, with the Church of England also backing the resolution, which is also the first of its kind to be brought against a bank in the UK.

Barclays has its annual investor meeting coming up in May. Speaking to the Guardian, an Amundi spokesperson said that the firm intends to vote in favour of the resolution.

The spokesperson said: “According to its voting policy for 2020, Amundi reiterates its priority on the question of the energy transition and the decarbonisation of the economy. And as such, we are favourable to any resolutions from shareholders that ask issuers to be more transparent around environmental and social factors. Therefore, the resolution of ShareAction is perfectly in line with our policy”.

Amundi has a minor stake in Barclays - around 0.02%. However, the outfit’s public support of the resolution could inspire other companies to do the same.

Despite BlackRock’s chairman and chief executive Larry Fink pledging In January to increase the firm’s “commitment to sustainability and transparency in our investment stewardship activities,” BlackRock have not divulged their voting intentions for the upcoming meeting in May. BlackRock will disclose key votes after the ballot has been cast.

Legal & General Investment Management, along with some of Barclays’ largest shareholders, has also refused to reveal their voting intention ahead of the ballot.

Jeanne Martin, campaign manager for ShareAction, welcomed the support from Amundi. “It’s further proof that the most powerful investors are dissatisfied with Barclays’ financing of extreme fossil fuels such as coal, tar sands and fracking, and failure to keep pace with its competitors,” Martin said.

A recent study revealed Barclays to be Europe’s largest fossil fuel financier. The study, commissioned by Rainforest Action Network amongst other groups, showed that between 2015 and 2018, Barclays had projects totalling £64bn in the sector.

A spokesperson for Barclays said: “We continue to engage with ShareAction and other stakeholders on this issue and will make a further statement at the appropriate time”.

The bank is expected to reveal its position on the resolution in March.

Harry Pererra
Harry Pererra

Harry turns on his experience in journalism and programming to write about the latest news in the world of tech and the environemtn. When he isn’t writing for usave he is working towards his Blue Belt in Brazilian Jiu Jitsu, and prefers dogs to cats.

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