We are pleased to announce the decision to withdraw the resolution that we co-filed at Barclays with ShareAction and a large group of investors on financing new oil and gas infrastructure. The decision follows constructive and fruitful discussions with Barclays over the last few months, and progress by the bank on the majority of investor asks, in the form of an updated energy policy.
Brunel expects banks to address transition risks within their client portfolios, improve target-setting, and better define financing policies in alignment with their Net Zero commitments. Brunel has identified the banking sector as a key player in tackling climate change, due to its crucial role in financing the low-carbon transition.
We have already told Barclays the specific areas where the updated policy needs to be strengthened in future iterations, and we welcome Barclays’ willingness to continue to engage with us on implementation, and on furthering its commitments in this crucial area. We would also like to thank the investor group and ShareAction for all the work so far to ensure an impactful collaboration.
Together with our partners, Brunel has been talking to Barclays for several years on climate change, using voting and engagement to push for progress, such as via resolutions on Net Zero. According to S&P Global, Barclays is one of Europe’s five-largest banks. The Financial Stability Board, an international body, considers it to be one of the world’s 29 systemically important banks. Barclays has been a major fossil fuel financier in recent years.
Brunel has also engaged extensively in the past with HSBC, Europe’s largest bank, with tangible results.
But engagement is always a long-term process, and progress usually comes in steps. We are committed to long-term engagement in order to maximise our impact.