PRESSURE mounted on Barclays to sever its ties with Israeli arms firms today, as growing numbers of customers joined calls to boycott the bank.
More than 1,500 people closed their accounts in protest against the bank’s “bankrolling of Israel’s genocidal attack on Palestinians,” on a boycott day spearheaded by the Palestine Solidarity Campaign (PSC).
According to PSC, Barclays has invested over £1 billion in companies supplying weapons and military technology to Israel and provides nine firms with over £3bn in loans and underwriting.
The companies include General Dynamics, which produces the gun systems that arm fighter jets used by Israel to bombard Gaza, and Elbit Systems, which produces armoured drones, munitions and artillery weapons used by the Israeli military.
The bank previously faced a similar boycott campaign over its financial support for South African apartheid. It was eventually forced to divest in 1986.
Climate activists glued shut doors at nearly 50 Barclays branches across the United Kingdom on November 27, 2023. (Photo: Extinction Rebellion)
“The inconvenience we’ve caused this morning is small in comparison to the catastrophic events already happening due to Barclays’ financing of fossil fuels,” said one campaigner.
“We have closed this bank today.”
That’s the opening line on an explanatory poster, plastered on dozens of Barclays branches across the United Kingdom on Monday.
“Barclays has been on the wrong side of history for centuries,” the poster continues. “Financing the Atlantic slave trade, apartheid in South Africa, weapons, and fossil fuels. $190 billion in finance for fossil fuels since 2015. Time to change.”
“Barclays are choosing short-term profits over a livable future and a lot of us are sick of the measly progress they’re making.”
The posters were left overnight by activists with Extinction Rebellion (XR), sister organization Money Rebellion, and allied groups, who superglued the doors shut at nearly 50 branches—inspired by a 2020 Greenpeace action targeting the bank.
“We’re responding to public attitudes and targeting the perpetrators of climate breakdown, not ordinary people, and we apologize for any inconvenience caused to staff and customers,” said an XR campaigner in a statement. “The inconvenience we’ve caused this morning is small in comparison to the catastrophic events already happening due to Barclays’ financing of fossil fuels.”
The climate groups pointed to this year’s annual Banking on Climate Chaos report, which shows that Barclays has poured $190.58 billion into the fossil fuel industry since 2015, when world leaders finalized the Paris agreement. Parties to that deal aim to keep global temperature rise this century “well below” 2°C, with an ultimate goal of limiting it to 1.5°C.
Already, “human activities, principally through emissions of greenhouse gases, have unequivocally caused global warming, with global surface temperature reaching 1.1°C,” relative to preindustrial levels, according to a March Intergovernmental Panel on Climate Change (IPCC) report.
A United Nations analysis published last week ahead of the upcoming COP28 U.N. climate talks projects that currently implemented policies put the world on track for 3°C of warming by 2100.
Responding to the Monday action, a Barclays spokesperson toldITV that “aligned to our ambition to be a net-zero bank by 2050, we believe we can make the greatest difference by working with our clients as they transition to a low-carbon business model, reducing their carbon-intensive activity whilst scaling low-carbon technologies, infrastructure, and capacity.”
“We have set 2030 targets to reduce the emissions we finance in five high emitting sectors, including the energy sector, where we have achieved a 32% reduction since 2020,” the spokesperson added. “In addition, to scale the needed technologies and infrastructure, we have provided £99 billion of green finance since 2018, and have a target to facilitate $1 trillion in sustainable and transition financing between 2023 and 2030.”
Climate campaigners argue that such policies are far from enough, given that the bank continues to finance fossil fuel projects.
“Barclays are pumping billions into the fossil fuel industry, completely at odds with advice from the International Energy Agency, United Nations, and IPCC,” said a Money Rebellion activist who took part in the action. “Barclays are choosing short-term profits over a livable future and a lot of us are sick of the measly progress they’re making, as they hide behind their lies and greenwash.”
Almost 100 universities that have pledged to shed ties to the fossil fuel industry still bank with financial institutions that have collectively provided $419 billion (£345 billion) to polluting interests between 2016 and 2022.
The new research, conducted by campaign group Make My Money Matter and obtained using Freedom of Information requests, shows that 95 universities still hold a bank account with one of five leading global fossil fuel funders: Barclays, HSBC, Santander, NatWest, and Lloyds.
These banks have supplied billions in financing to Shell and BP, which this year scaled back their climate targets, as well as to other oil and gas firms such as ExxonMobil and TotalEnergies. Barclays was the bank of choice, used by nearly three quarters (73 percent) of the universities.
Barclays was the largest European financier of fossil fuels between the signing of the Paris Agreement in 2016, which set a goal of limiting global warming to 1.5C, and 2022. The British bank propped up the oil and industry with $190.5 billion (£157 billion) in funding during this time, according to the annual Banking on Climate Chaos report from the climate campaign group Rainforest Action Network (RAN).
This story comes after DeSmog revealed earlier this month that UK universities have accepted £40.4 million in funding from fossil fuel companies since 2022. Students across Europe have protested at schools and universities since returning for the new academic year. In the UK, activists from Just Stop Oil have renewed their campaigning on campuses, targeting University College London, Birmingham, Sussex, Falmouth, and Exeter.
Over 100 universities across the UK, representing 65 percent of the higher education sector, have pledged to divest from the fossil fuel industry since 2014. Over 50 are yet to make any public commitments.
Make My Money Matter says that it will be writing to universities and calling on them to ensure that their divestment commitments are not being undone by their banking choices.
“Divesting from fossil fuels while banking with Barclays is hypocritical and performative,” said Jo Campling, welfare and sustainability officer at Sheffield University Students’ Union. “Universities claim they are striving for a better future by educating their students yet they continue to provide legitimacy to the financial institutions ignoring universities’ own scientists and driving us ever closer to irreversible climate breakdown.”
‘More Needs to be Done’
The universities that have held accounts with Barclays include Bristol, one of the “greenest universities in the UK”, University College London (UCL), the UK’s largest higher education institution by student population, and the University of Glasgow, the first UK university to commit to fossil fuel divestment.
Researchers analysed the period between April 2021 and April 2023. The threshold for a ‘banking relationship’ includes a current or deposit account held within the period, but excludes other services such as loans, credit facilities, or currency exchanges.
In 2022, Barclays was a major backer of unconventional oil projects, such as Arctic extraction and extraction from tar sands. The latter emits up to three times more global warming pollution than producing the same quantity of crude oil.
As of late 2022, following pressure from investors, Barclays has agreed to scale down its financing of oil sands operations. However, the new research shows both Barclays and HSBC remained among the top 10 (seven and eight respectively) global financiers of new fossil fuel expansion projects.
Barclays is facing heavy criticism for its ongoing role in facilitating climate breakdown, and its annual general meeting in May was disrupted by climate activists from Extinction Rebellion.
A spokesperson for Barclays told DeSmog: “Aligned to our ambition to be a net zero bank by 2050, we believe we can make the greatest difference by working with our clients as they transition to a low-carbon business model, reducing their carbon-intensive activity whilst scaling low-carbon technologies, infrastructure and capacity.
“We have set 2030 targets to reduce the emissions we finance in five high-emitting sectors, including the energy sector, where we have achieved a 32 percent reduction since 2020. In addition, to scale the needed technologies and infrastructure, we have provided £99 billion of green finance since 2018, and have a target to facilitate $1 trillion in sustainable and transition financing between 2023 and 2030.”
Peter Vermeulen, chief financial officer at the University of Bristol told DeSmog that the university takes its “climate commitments seriously” and engages with major suppliers, including banks, “to see where positive improvements and changes can be made”.
Vermeulen added that, “I, like many others, am disappointed in Barclays’s climate performance, and that they only put a serious climate plan in place in 2020. In my previous role I actively engaged with Barclays on their lack of progress in this area and witnessed improvement. More needs to be done and for that reason, since joining the University of Bristol this summer, I will step that up even further, with university, staff, and student representatives involved in this.”
Rainforest Action Network has calculated that the world’s biggest banks poured $673 billion (£554 million) into fossil fuels in 2022, while DeSmog revealed in May that four in five bank directors at the six largest banks in the U.S. have ties to polluting companies and organisations, including major fossil fuel firms.
Commenting on the findings of the Make My Money Matter report, Nat Gorodnitski from Students Organising for Sustainability said: “If we want to stop the worst effects of climate change, we need to end fossil fuel funding. Banks are the biggest funders by a long way and rely heavily on the higher education sector for recruitment, reputation, and business, while their fossil fuel financing contradicts academic research, university policies, and students’ needs.
“This gives students and universities the unique power to pressure banks to end their fossil fuel financing in a meaningful way, and call for a shift to funding sustainable energy.”
A spokesperson for HSBC said: “Supporting the transition to net zero and engaging with clients to help them diversify and decarbonise is critically important to us. We are committed to aligning our financed emissions to net zero by 2050.”
A University of Glasgow spokesperson that the university “is committed to doing our part to tackle the climate emergency. In 2014, we pledged to divest our holdings in companies involved in the oil and gas sectors over a 10 year period, and have already achieved this. We have also set an ambitious target to achieve net zero greenhouse gas emissions by 2030. Our socially responsible investment policy is regularly reviewed.”
ActionAid found that since the Paris agreement, banks have funded the largest Big Ag companies doing business in the Global South to the tune of $370 billion and the fossil fuel sector to the tune of $3.2 trillion.
Since the international community promised to limit global heating to 1.5°C above preindustrial levels, the world’s major banks have funneled 20 times more money to climate-polluting industries in the Global South than Global North governments have given those same countries to address the climate emergency.
That’s just one of the findings of How the Finance Flows: The Banks Fueling the Climate Crisis, an ActionAid report released Monday.
“This report names the biggest offenders in the banking world and calls on them to see that they are destroying the planet, while harming the present and future for their children,” Ugandan climate activist Vanessa Nakate wrote in the foreword. “It’s time to hold financial institutions to account, and demand that they end their funding of destructive activity.”
The lack of action from world leaders and major polluters is infuriating. Funds are funnelled into destructive activities that jeopardise our planet's future. The latest @ActionAid report is crystal clear on this. Find out more 👇 https://t.co/Hzth207khO
The report focuses on the financing of two major climate-heating industries in the 134 nations of the Global South: fossil fuels and industrial agriculture.
“People generally know that fossil fuels are the number one cause of greenhouse gas emissions. But what is less understood is that industrial agriculture is actually the second biggest cause of climate emissions,” Teresa Anderson, the global lead on climate justice at ActionAid International, said during a press briefing ahead of the report’s release.
This is because of the sector’s link to deforestation, as well as the emissions required to produce industrial fertilizers, she added.
In total, since the 2015 Paris agreement, banks have funded the largest Big Ag companies doing business in the Global South to the tune of $370 billion and the oil, gas, and coal sectors to the tune of $3.2 trillion.
“Global banks often make public declarations that they are addressing climate change, but the scale of their continued support of fossil fuels and industrial agriculture is simply staggering.”
The top three banks that invested the most in these sectors were the Industrial and Commercial Bank of China at $154.3 billion, China CITIC Bank at $134.7 billion, and the Bank of China at $125.9 billion. Citigroup came in fourth at $104.5 billion, followed by HSBC at $80.8 billion.
While China features prominently in the report as the world’s largest economy, Anderson noted that much of what it produces ends up purchased by consumers in the Global North.
The top three banks in the Americas funding big agriculture and fossil fuels were Citigroup, JPMorgan Chase, and Bank of America. While Citigroup was the leading regional funder of fossil fuels, JP Morgan Chase gave the most to industrial agriculture.
In Europe, the top funders after HSBC were BNP Paribas, Société Générale, and Barclays, while Mitsubishi UFJ Financial rounded out the top Asian funders.
Where is all that money going? When it comes to agriculture, the leading recipient was Bayer, which bought out Monsanto in 2018. Banks have given it $20.6 billion to do business in the Global South since 2016.
Much of the fossil fuel money went to China’s State Power Investment Corporation and other Chinese companies; commodities trader Trafigura; and the usual fossil fuel suspects like ExxonMobil, BP, Shell, Saudi Aramco, and Petrobras.
“This is absurd,” Anderson said of the findings. “Global banks often make public declarations that they are addressing climate change, but the scale of their continued support of fossil fuels and industrial agriculture is simply staggering.”
ActionAid called the report the “flagship” document of its Fund Our Future campaign to redirect global money from climate crisis causes to climate solutions. The report calls on banks to make good on their climate promises and stop funding fossil fuels and deforestation, as well as to put additional safeguards in place to protect the rights of local communities, raise the ambition of their goals to reach “real zero” emissions, and improve transparency and other measures to make sure the projects they fund are behaving ethically.
“This can be stopped,” Farah Kabir, the country director of ActionAid Bangladesh, said during the press briefing. “The banks cannot continue to fund fossil fuel industries and industrial agriculture.”
In addition, the report offers recommendations to Global North governments to ensure a just transition to a sustainable future for everyone. These included setting stricter regulations for the banking, fossil fuel, and agricultural industries as well as ending public subsidies for these sectors and channeling the money to positive solutions like renewable energy and agroecology.
However, the form that funds take when sent to the Global South makes a big difference, said ActionAid USA executive director Niranjali Amerasinghe. Instead of coming in the form of private loans, it needs to be in the form of public money.
“Providing more loans to countries that are already in significant debt distress is not going to support their transition to a climate-compatible future,” she said.
One reason that loans are counterproductive is that nations that accept them are forced to provide a return on investment, and currently the main industries that offer this are in fact fossil fuels and industrial agriculture.
In addition to public funds, debt forgiveness or restructuring and new taxes could also help these countries with their green transition. If companies like Exxon or Bayer doing business in the Global South “were taxed in an equitable way, that would allow those governments to raise public revenue that can then be used to support climate action,” Amerasinghe said.
In particular, the report emphasizes agroecology as a climate solution that should be funded in Global South countries.
“Climate change is real in Zambia.”
Mary Sakala, a frontline smallholder farmer from Zambia, spoke at the press briefing about how the climate crisis and current agricultural policy put a strain on her community.
“Climate change is real in Zambia,” she said, adding that it had brought flooding, droughts, pests, and diseases that meant that “families currently, as I’m speaking right now, sleep on an empty stomach.”
Sakala saw hope in agroecology, which would help with food security and resilience, and make farmers less dependent on the government and large companies.
“We need policies to allow [us] to conserve our environment in a cultural way, to help us eat our food,” Sakala said. “We want… every seed to be utilized and saved and shared in solidarity.”
And she said that the companies and governments of the Global North have a duty to help them get there.
“Those people who are continuing to pollute and let the climate change increase, those people need to pay us, because we are suffering from the things that others are doing,” she said.
Fossil Free London climate protestors protest Barclays sponsorship of the arts at Saddlers Wells.
A ballet performance of Romeo and Juliet at Sadlers Wells faced significant disruption on Thursday evening after climate activists stormed the stage to protest the theatre’s Barclays sponsorship.
Five member of the campaign organisation Fossil Free London hijacked the stage after the interval holding a banner that read “Drop Barclays Sponsorship”, whilst two others held placards and chanted “oily money out” from the wings.
Sadlers Wells includes Barclays bank as one of its sponsors. Barclays has continued to fund new oil and gas projects, investing over $190 billion in fossil fuels since 2016.
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BREAKING: We’ve just disrupted a performance of Romeo and Juliet at Sadler’s Wells theatre, telling them to drop @Barclays dirty oil sponsorship! It’s time to get #OilyMoneyOut of our arts, our city and our futures 🚫 pic.twitter.com/NU9hQjUpou
Barclays also invests in the oil company Equinor who are pushing forward controversial plans for the Rosebank oil and gas field in the North Sea. They are currently waiting on the approval of their environmental report by the government, due in October.
