Daily Management Review

Top Barclays Shareholder Supports Climate Risk Resolution


Investors push Barclays towards phasing out of financing into fossil fuel industry.

Source: flickr.com; (CC BY 2.0) ©Money Bright;  www.moneybright.co.uk
Source: flickr.com; (CC BY 2.0) ©Money Bright; www.moneybright.co.uk
Jupiter Asset Management is among the top twenty five investors of Barclays which has revealed its plans of supporting Barclays “shareholder resolution” which aims to cut the bank’s investments into the “fossil fuel industry”.Policymakers as well as investors are putting more and more pressure on the banks to participate in the transition towards “a low-carbon economy”.
The said resolution urging the phase out of financing fossil fuel companies and “utilities sectors”, those not in line with Paris climate goal, will be presented at the annual meeting of Barclays which is scheduled to take place on May 7, 2020.ShareAction, “responsible investment lobby group” coordinated with an investors’ group, as thelatter made an announcement of the “planned resolution in January”. Following the announcement, many other investors like Amundi, the “biggest asset manager” of Europe, have shown their support.
This is for the first time that any European bank had to face such “shareholder action on fossil fuel financing”. The resolution pushes Barclays to go beyond its “previous public commitments” in the battle against climate change. In the words of a spokesperson from Barclays:
“We continue to engage with ShareAction and other shareholders on this issue and will make a further statement at the appropriate time.”
As per Reuters’ sources, Barclays could announce before the scheduled meeting for avoiding “a showdown vote with investors”.At present, Jupiter has a “1.15%” shares of Barclays, show data from Refinitiv.Furthermore, Reuters reported:
“In a statement issued by ShareAction, Jupiter’s head of governance and sustainability Ashish Ray said the company expected all company boards to appropriately manage long-term risks to their business, such as climate change, and the resolution was ‘entirely consistent’ with that approach”.
Ray from Jupiter stated:
“We firmly support the recommendations of TCFD, which recognizes climate change as a board-level issue and seeks disclosure of strategic planning in relation to climate risks, including practical responses to both physical and transition risks.”