A UK bank, with operations in more than 60 countries around the world. It is the world’s fourth largest financial services provider.
Barclays is a truly international bank with operations all around the world. Like other banks, it has made an effort in recent years to calculate the emissions from its branches, offices and travel and, through reductions and offsetting, it is seeking to make its UK operations 'carbon neutral'.
However, like its competitors, Barclays' disclosure says nothing about the emissions resulting from their loans and investment. Christian Aid estimates that this figure is 500 times more than the emissions Barclays currently publish.
We believe that lending money is central to what banks do and, if we are to understand Barclays' true carbon footprint, we need to know about the emissions that result from its lending.
‘The direct environmental impact of financial services is relatively small compared, say, to mining or oil or gas, but we are doing what we can to reduce it further.’ Responsible Banking, corporate social responsibility report, Barclays, 2005
What are its emissions?
Barclays says its carbon emissions total 255,030 tonnes a year – but only include emissions from offices, branches and staff travel.
By Christian Aid’s estimates, including emissions as a result of its loans produces a figure in excess of 146.4 million tonnes.
How we reached this estimate
Christian Aid has estimated the carbon intensity (tonnes of carbon dioxide per £1 million lent) of the lending of three of the UK's leading financial institutions, HSBC, Royal Bank of Scotland and Barclays.
While Barclays is the smallest of the three:
the carbon intensity of its loans appears greater at 440 tonnes per £1m of lending
the total value of Barclays lending is in excess of £272 billion (US$535 billion)
the estimated carbon emissions from the bank's lending portfolio can therefore be calculated at 119.6 million tonnes.
Does it have reduction targets?
Barclays aims to make all its UK operations 'carbon neutral' in 2007. It also says it is seeking to include more of its international operations, as well as looking at emissions resulting from its supply chain.
However, it does not report emissions resulting from its loans and investment – and nor does it have targets for reducing them.
Campaign update, June 2007
Christian Aid was recently invited to meet Barclays to discuss our campaign. We are encouraged by Barclays agreeing to talk to us and by the possibility of future cooperation, especially with regard to Barclays supporting one or more of Christian Aid’s suggested amendments to the Climate Change Bill.
Act now
Ask John Varley, Barclays' group chief executive, to publish the emissions that result from the company's lending and investment activities and publish a full account of Barclays' carbon footprint, and to commit to a 5% reduction each year in its emissions. Email him now.