Barclays has announced a new policy that will substantially limit its financing activities for a range of emissions-intensive energy sectors.
According to ESG Today, some of these limits including ending financing for oil sands firms and projects as well as speeding up its phase out of financing for coal-powered generation for clients in OECD economies.
The policy – released as part of the bank’s 2022 ESG investor presentation – forms part of the company’s plans to reduce its financed emissions. The bank had previously committed to align its financing with the timelines and goals of the Paris Agreement from 2015.
Barclays said that as of July 2023, it will not provide financing to companies generating more than 10% of revenues from oil sands exploration, production or processing assets, or from the construction of new oil sands exploration, production or processing assets. The bank will also not provide financing for the construction of pipelines whose primary use is for the transportation of crude oil extracted from oil sands.
In regard to coal, Barclays previously committed to phasing out financing for clients engaged in coal-fired power generation in the EU and UK by 2030, and by 2035 for the rest of the world. Under the new policy, all OECD clients, including the US will now be included in the 2030 target.
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The Securities and Exchange Commission (SEC) previously slapped Barclays and Barclays Bank with a total fine of $361m for controls failures.
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