Investors press banks to set clear renewables financing targets

Investors worth trillions are urging Barclays and Standard Chartered to set clear targets to support the energy transition at their AGMs this week.

Groups of shareholders led by ShareAction are planning to read public statements at Barclays’ annual general meeting (AGM) today and at Standard Chartered’s AGM tomorrow asking them to set targets around renewable energy financing.

Barclays: Disclose the methodology behind US$1 trillion transition finance goal

For Barclays, the group includes 31 shareholders representing US$1.61 trillion in assets under management, all asking the bank to publish “a more detailed methodology explaining exactly how it has quantified its sustainable finance targets and to set a target for the renewable power sector”.

Barclays – which recently lost its Head of Sustainability Laura Barlow – has a commitment to facilitate US$1 trillion of sustainable and transition financing by the end of 2030. But the investors argue that the bank needs to be more transparent around the methodology it uses to calculate this – an ask that is particularly relevant considering recent controversies surrounding the lack of a common ‘sustainable finance’ definition.

“Barclays does not break out sectors that will play a non-negotiable and large-scale role in the transition from its US$1 trillion commitment. Without clarity on how much of this high-level target the bank aims to allocate towards critical areas such as renewable energy, it is difficult for stakeholders to assess whether the bank’s strategy is truly aligned with stable climate scenarios,” the group notes.

Standard Chartered: Set renewable financing targets in emerging economies

For Standard Chartered, 21 investors managing £863 million in assets are asking for “a strategy and target for financing more renewable power in emerging markets and developing economies”. 

Arguing that these economies are under-financed and that Standard Chartered has significant exposure to them, the investors point out that the bank could secure a competitive position in crucial areas of the transition and help close the gap in renewable energy financing costs compared to developed markets by outlining a clear strategy for renewables financing in emerging countries.

Standard Chartered saw income from its sustainable finance activities rise by 36% in 2024, and the bank has commented on the opportunity to finance the low-carbon transition in Asia, Africa and the Middle East before.

Broad targets but no clear strategy

Commenting on the statements, Kelly Shields, Senior Campaign Manager at ShareAction, noted: “Banks have taken positive steps forward in setting broad targets around sustainable finance. However, they are not yet providing a clear strategy on how they will specifically finance the sectors and technologies most needed for the clean energy transition and limiting the harshest effects of global heating.

“This is why investors are calling for Barclays to set a funding target for the renewable energy sector, and for Standard Chartered to publish a plan on how it will finance more renewable power in markets in the Global South, where the need for scaling up sustainable investment is urgent.”

ShareAction also led another investor call for HSBC to renew its climate commitments at last week’s AGM.