Local government pension scheme (LGPS) investors, Brunel Pension Partnership (BPP) and Merseyside Pension Fund (MPF), have urged Barclays to ‘firm up’ on its climate commitments ahead of the bank’s AGM.

The investors confirmed that they will be voting in favour of Barclays’ proposal to have the “ambition to become a net zero bank by 2050 and a commitment to align all of its financing activities with the goals and timelines of the Paris Agreement”.

BPP and MPF described the board’s proposal as “a significant step forward for the bank reflecting the positive pressure of shareholders and stakeholders” and applauded Barclays’ “commitment to transition its provision of financial services across all sectors to align with the goals and timelines of the Paris Agreement”.

However, they also stated that they would be voting for the resolution previously filed by ShareAction to bring the bank’s energy financing in line with the goals of the Paris Agreement.

BPP and MPF said that the ShareAction resolution would “complement and strengthen Barclays’ commitments”, as the resolution would boost Barclays’ “ambition” to become a net-zero bank to a “commitment”.

The ShareAction proposal, co-filed by 11 institutional investors, including BPP and MPF, directs the bank to set and disclose targets to phase out its financing of fossil fuel companies within the energy and power sector that are not aligned with the goals of the Paris climate agreement.

They added that the ShareAction resolution would ensure a greater focus on short- and medium-term actions needed in order to achieve the 2050 goal.

Commenting, BPP CEO, Laura Chappell, said: “We believe that it is crucial for banks to set targets to translate ambitions into action. The current lending practices of many banks, including Barclays, poses a serious threat to the goals to the Paris Agreement.

“The shareholder proposal’s targeted approach and short-term targets will equip the bank to deliver on its long-term ambition and bring it in line with commitments already made by other banks.”

MPF chair, Pat Cleary, added: “We are supporting resolutions 29 and 30 at the Barclays AGM to hold the company accountable for following through on its declared climate ambition.

“We see the two resolutions as being complementary. Near-term target setting aligned to the Paris goals can provide necessary clarity, which may be to the benefit of all Barclays’ stakeholders.”

The LGPS investors also queried the transparency of Barclays’ planned virtual AGM, which would not allow investors to ask questions on the day, with questions submitted in advance and the ‘appropriateness’ and responses determined by Barclays.

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