CHRISTIAN AID is to end its dealings with Barclays Bank — Europe’s largest fossil-fuel investor — after a campaign led by Christian Climate Action.
Christian Aid has been banking solely with Barclays for eight years. On Tuesday, it was announced that the charity would be switching to Lloyds. A spokesman for Christian Aid said that the decision had been in the works for about a year, but that “one of the issues was that we needed a bank that could get money to difficult-to- reach countries; but we can do that with Lloyds.”
The switch is under way and will be completed within two months.
Since 2016, Barclays has invested an estimated £150 billion in fossil-fuel companies, despite having set targets to reduce global emissions by 40 per cent by 2030, Christian Climate Action says. That the bank continues, on a large scale, to fund causes of climate change — a “major driver of poverty around the world” — was the final straw for Christian Aid, the spokesman said.
The Chief Operating Officer for Christian Aid, Martin Birch, said: “Whilst Barclays was able to provide banking services to fragile contexts, their record on fossil-fuel finance, and their weak commitment to future improvements in this area meant that we had to seek a more suitable provider. Christian Aid has ambitious environmental commitments over the next few years, as set out in our recently launched Environmental Policy.”
He said later on Tuesday: “With Lloyds, we will continue to be able transfer funds to high-risk countries such as Syria, Myanmar, and Afghanistan, as we currently do with Barclays. This global banking network is essential for Christian Aid to continue to support those people who are the hardest to reach.”
In a press release announcing the decision, Christian Climate Action called on Barclays to establish a “coherent policy” to “stop extending all types of financing (loans and underwriting) to coal, oil, and gas clients that are still exploring and developing new fossil fuels”.
The campaign group has also criticised Barclays for “sportswashing” tournaments such as Wimbledon by using large-scale sponsorship deals “to cover up its harmful activities by buying access to popular and sustainable brands”.
A member of Christian Climate Action, the Revd Helen Burnett, who is also a volunteer fundraiser for Christian Aid, said: “There are many other charities still banking with Barclays. It’s untenable that charities can say that they stand against climate change, and the suffering it means for vulnerable people around the world, while at the same time banking with the biggest funder of fossil fuels in Europe. . . Charities and other organisations that choose Barclays are choosing to fund suffering.”
She continued: “Christian Aid has acknowledged this and has taken the active step to move away from Barclays and this deserves celebration. As more charities decide to take the same step, those dragging their heels will come under increasing public scrutiny.”
The former Archbishop of Canterbury Lord Williams, who used to chair Christian Aid, also welcomed the decision. “It is essential that banks like all public and corporate bodies be held accountable for the use of their resources in the context of our global emergency, and I welcome the clear stand that has been made by Christian Aid on this matter,” he said.
A spokesperson for Barclays pointed to its investments in green energy, saying that the bank had “set 2030 targets to reduce the emissions that we finance in five high emitting sectors in our financing portfolio, including energy”, and had achieved a 32 per cent reduction in its financed emissions since 2020.
“As one of the first banks to set an ambition to become net zero by 2050, we are clear that addressing climate change is an urgent and complex challenge. We are using our entire franchise to support new green technologies and infrastructure projects that will build up low-carbon capacity and capability, having provided over £87bn of green finance since 2018.”
The spokesperson continued: “We believe that Barclays can make the greatest difference as a bank by working with customers and clients as they transition to a low-carbon business model, focussing on facilitating the finance needed to change business practices and scale new green technologies. This includes many oil and gas companies that are critical to the transition, and have committed significant resources and expertise to renewable energy.
“Where companies are unwilling to reduce their emissions consistent with internationally accepted pathways, they may find it difficult to access financing, including from Barclays.”