Barclays has stated its ambition to become a net-zero bank, covering its scope 1, 2 and 3 emissions by 2050. The announcement follows pressure from investors, including co-filers of a shareholder resolution organised by ShareAction.

Barclays has committed to “set, disclose and implement a strategy, with targets, to transition its provision of financial services across all sectors (starting with, but not limited to, the energy and power sectors) to align with the goals and timelines of the Paris Agreement.”

In an unusual move, the bank’s board is putting this proposal to a formal vote by investors at the company’s AGM on 7 May. Barclays’ AGM will therefore see two climate resolutions put to a vote. ShareAction recommends shareholders vote for both. The resolution filed in January by 11 institutional investors, 130 individual investors and co-ordinated by ShareAction is more detailed and targeted in nature, calling for phase-out of financing activities to the most carbon-intensive energy companies.

Wolfgang Kuhn, director of finance sector strategies at ShareAction said: “Voting for both these resolutions will cement the bank’s new high-level climate commitment while at the same time insisting on the near-term ambition needed to deliver the results everyone wants. A climate strategy cannot be considered complete without recognising that transition necessarily means phase-out when it comes to fossil fuels, particularly the highest carbon fuels where Barclays has significant exposure.”

Since January, several high-profile investors have publicly committed support for ShareAction’s resolution, helping create the context for the commitment announced today by Barclays. These include Amundi; the Church of England Pensions Board and the Church Commissioners; Nest and Jupiter Asset Management.

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