CAMPAIGNERS are calling on Barclays to close what they see as a “loophole” in its energy policy that allows the financing of fracking companies.
Britain’s biggest bank amended its climate change statement in February, pledging to focus capital on supporting energy companies to decarbonise.
It said it would no longer finance new oil and gas projects and would restrict its financing of “pureplay” companies, those that focus exclusively on fossil-fuel extraction and exploration.
But ShareAction, which campaigns for responsible investment, argued that pureplay companies working on short-term extraction projects are exempted from this commitment.
The charity added that activities involving fracking, a controversial process that involves making large cracks in underground rocks to extract oil and gas, are typically short-term.
ShareAction also found that companies specialising in fracking on average made up the majority share of Barclays’ financing to pureplay firms during this period, at 57 per cent.
The share was 80 per cent for fracking firms in the most recent year of 2022, it added.
ShareAction pointed out that Barclays has committed to restrict fracking financing in Britain and Europe, where the practice is mostly banned or suspended, while the bank’s fracking client base is largely located in the US.
The charity said many of Barclays’ peers such as HSBC and BNP Paribas have applied restrictions to financing for fracking in North America as well as Britain and Europe.
ShareAction campaign manager Kelly Shields said: “Barclays’ energy policy contains loopholes that allow the bank to continue to financially support fracking — a risky activity that contributes to climate change and can destroy habitats and contaminate water supplies.
“Barclays’ stance on fracking leaves it out of step with other large banks that have listened to the concerns of investors and customers and started taking steps to cut off support for this fossil fuel.
“We’re calling on Barclays’ shareholders to ask the bank to close these loopholes and rule out financing for all pureplay oil and gas companies, including fracking clients, wherever they are in the world.”
Barclays said its financed emissions for the energy sector reduced by 44 per cent since 2020, exceeding its 2030 target.
