* Follows investor push to cut fossil fuel lending
* Bank says will provide targets, report on them regularly
* Investor response mixed to 'ambition' not 'commitment'
(Adds LAPFF comment, Rainforest Action Network data,
background)
By Simon Jessop and Iain Withers
LONDON, March 30 (Reuters) - Barclays, one of the
biggest lenders in Europe to the fossil fuel industry, on Monday
set itself a target to reach "net zero" for its own carbon
emissions and the activities it finances by 2050.
The British bank's action follows pressure from a group of
investors, coordinated by campaign group ShareAction, which in
January filed a resolution for the lender's shareholder meeting
urging it to phase out fossil fuel lending.
While Barclays stopped short of committing to that aim,
calling its net zero target an "ambition", it said it was
nevertheless committed to aligning financing activities with the
goals and timelines of the Paris Agreement on climate.
As part of that, Barclays said it would provide targets to
judge its progress and report on them regularly, starting in
2021, and would also continue to engage with investors as it
develops the strategy.
Given that, Barclays said it expected investors to back its
own resolution. The bank did not comment on whether it
recommended backing ShareAction's resolution.
Investors, politicians and activists have turned their focus
towards the role the banking system plays in financing fossil
fuels as a way to accelerate the transition to a low-carbon
economy.
Barclays is seventh in a list of lenders to the fossil fuel
industry, with nearly $120 billion lent between 2016-2019, the
most for any European bank, data from U.S. pressure group
Rainforest Action Network showed.
"We wanted to see leadership from Barclays on this critical
issue and their proposed ambition is a significant first step,"
said Diandra Soobiah, Head of Responsible Investment at pension
investor NEST.
NEST, which manages UK corporate pension scheme money, said
it would support both the resolution from ShareAction and that
put forward by Barclays.
"It’s important that more details follow quickly on how
Barclays will deliver these ambitious climate targets,
particularly their pledge to reach net zero carbon emissions by
2050," Soobiah said.
Lankelly Chase, a charitable foundation which co-filed the
ShareAction resolution, said by proposing an ambition of
becoming net zero rather than committing to it, Barclays was
"asking permission to fall short of its own obligations."
"We need commitment not just ambition from a bank that only
last year increased financing for oil, gas and coal companies by
2.9 billion pounds," Dominic Burke, Investment Director of
Lankelly Chase, said.
"If a net-zero ambition does not involve phasing out fossil
fuel financing, then what does it mean?"
The Local Authority Pension Fund Forum, a voluntary
association of 82 public sector pension funds based in the UK
with combined assets of approximately 300 billion pounds
($372.03 billion), said it supported the bank's efforts.
"We are pleased to see the outcome and LAPFF has undertaken
to continue to work with the company and other investors to
ensure a robust plan is executed and delivered," chairman Doug
McMurdo said.
Wolfgang Kuhn, ShareAction's Director of Finance Sector
Strategies, said voting for both resolutions would cement
Barclays new climate commitment while also 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," he said.
($1 = 0.8064 pounds)
(Editing by Huw Jones/Alexander Smith/Jane Merriman)
Barclays (BARC)