Banking On Climate Chaos 2024 Coalition statement response to Barclays

Following the 15th annual publication of Banking on Climate Chaos (BOCC), Barclays issued a response to the report. As authors of the BOCC report, we wanted to note important clarifications with regard to the BOCC methodology and approach:

BOCC authors repeatedly responded to Barclays to provide detailed explanations of the full methodology weeks before the report publication.

  • Eight weeks before publication, banks were provided several opportunities to review information on the deals attributed to them.
  • As part of this process, the BOCC research team shared a methodology backgrounder with all banks and exchanged dozens of emails with banks, including Barclays. In addition, the Methodology FAQ from previous years’ report was available on the website.
  • Bank comments were extensively reviewed. Bank feedback was incorporated into the research when it was consistent with the report methodology. Researchers hand reviewed annual reports, disclosures, and other data on specific companies when concerns were raised.

As in previous years, to address the fact that some companies have comparatively small fossil exposure, adjusters are applied to the deal value. Each transaction is adjusted based on the particular company’s involvement in the fossil fuel sector. For a full explanation of which fossil fuel activities are in scope and how BOCC adjusts transactions, refer to the BOCC Methodology FAQ. While some aspects of the BOCC methodology changed for the 2024 report, the approach to adjusters did not fundamentally change.

While both Barclays and the BOCC findings indicate increased financing for fossil fuels in 2023, the difference in the percentage of increase noted by the BOCC report stems from a methodological difference.1 BOCC applies a more comprehensive and rigorous approach to accounting for fossil finance transactions, especially for diversified companies.

  • The reporting on fossil fuel companies is not solely based not on the industry classification of a company or transaction, but based on data related to the company’s activities, usually derived from company Annual Reports or Bloomberg.
  • We recognize that Barclays has taken first steps towards better disclosure of its fossil fuel financing, and welcome increased disclosure by banks across the board. That said, the 2024 Banking on Climate Chaos report offers a comprehensive, independent view of bank financing for fossil fuels that is vital information for greater transparency and accountability in the sector.
  1. Barclays’ 2023 annual report shows a 2% increase in wholesale credit to the Oil and Gas industry between 2022 and 2023, which includes a concerning 41% increase in credit to the midstream oil and gas sector between 2022 and 2023. Barclays PLC Annual Report 2023, p 287,