Barclays Share Discussion Threads

[johnwise] 16/5/2018 14:02

Media Spreading FAKE NEWS by Calling Palestinian Violence “Protest”

[manics] 16/5/2018 10:20

Challenger banks like OneSavings, Virgin Money and Metro Bank have been able to thrive in recent years, but the traditional big banks have still remained dominant. So, where’s the challenge from the challenger banks?

[bernie37] 15/5/2018 18:15

Barclays Declares “No Appetite” For Thermal Coal Mining, Oil, & Gas, Moves To Protect World Heritage Sites
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May 15th, 2018 by Joshua S Hill

Barclays, one of the four “Big Banks” in the UK, has silently made big news last month, shifting its policies regarding financing coal mining and coal-fired power plants, as well as declaring “no appetite” for projects in World Heritage Sites or Ramsar Wetlands locations.

Barclays, a leading British multinational investment bank and financial services company headquartered in London, issued two policy statements in April to key external stakeholders that modified the bank’s position on financing mining, oil, gas, and power projects, and thermal coal mining operations, effectively halting all such operations in some situations and committing to divest entirely from fossil fuel projects over the near-term.

The bank declared in the first of two policy statements (PDF) it had “no appetite” for project financing that supports development or expansion of projects in World Heritage Sites and Ramsar Wetlands locations unless in both cases there is prior consensus that such development will not adversely affect the site.

All Corporate Banking and Investment Banking client activities will be subject to the new policy guidelines, focusing specifically on the mining, oil and gas, and major infrastructure industries. All project finance transactions are subject to screening by Barclays’ Environmental Risk Management (ERM) team which will check the project or asset in question against the World Heritage Sites list (1,073 sites worldwide) and the List of Wetlands of International Importance (2,306 sites worldwide). If a project or asset is found to be linked to such a site, Barclays declaration of “no appetite” for such projects will apply, unless mitigating factors are found, at which point the issue will be elevated to enhanced due diligence.

This move has been long in the making, according to Vicky McAllister, Director of Sustainability at Barclays.


Ramsar Site: Elephant Marsh
Image Credit: Ramsar
“We have been in dialogue with WWF on this topic for a couple of years and participated in their research,” she told me via email. “It’s an issue that we did already consider in our due diligence processes but had not formalised in an external commitment. As part of on-going efforts to improve our transparency on [Environmental Social Governance (ESG)], we decided to publish this statement along with our position on the coal mining and coal power industry. We hope to publish more over the coming months on additional industries/themes.”

“The World Heritage Centre welcomes Barclays’ statement on World Heritage and Ramsar Wetlands,” proclaimed Mechtild Rössler, Director of the UNESCO World Heritage Centre. “While currently restricted to project finance transactions, the Centre believes this is an important step towards ensuring that Barclays capital is not funding activities which could impact World Heritage sites. We appreciate the intention of Barclays to further broaden the scope of the statement beyond project finance in the future and look forward to seeing an even stronger policy in the coming year.”

And, in fact, Barclays will be continuing its exploration of these sites and, as Vicky McAllister explained to be, Barclays “will investigate over the coming months expanding the scope of this statement to include other, project-linked financial services.”

“Barclays is committed to minimising environmental and social impacts occurring as a result of client activities. As outlined in the Statement, we will no longer provide project finance to activities occurring in or around WHS or RW sites. If we become aware of a client with operations in either of these sites, we will engage directly with the company on this issue, even if we are not being asked to finance the project in question.”

In addition to its commitment to protecting the Ramsar Wetlands, Barclays also published a lengthier, more in-depth policy statement regarding how it will do business with Corporate Banking and Investment Banking clients involved in the coal mining and coal-fired power sector. All such clients and their specific individual transactions will be reviewed on a case-by-case basis against a wide array of considerations ranging from adherence to the Equator Principles, use of efficient technology, and a client’s potential for stranded asset risk.

Unlike Barclays’ policies regarding World Heritage Sites and Ramsar Wetlands, its coal policy (PDF) is much more nuanced and detailed, describing specific policies for specific aspects of the coal industry.

For example, Barclays declared simply that it “has no appetite for project finance transactions for the development of greenfield thermal coal mines anywhere in the world” but had a much more detailed policy for mountaintop removal coal mining (MTR) given its legal recognition in the United States but the bank’s acknowledgement that this mining method “is also one that has been subject to intense political, judicial, and regulatory debate over the last decade.” As such, Barclays will “not directly finance MTR projects or developments” and will “apply enhanced due diligence to all credit and capital markets facilities involving clients which practice MTR.” Further, financing for companies which are significant producers of MTR-sourced coal will be provided “by exception only.”

Barclays also declared “no appetite” for project financing supporting the construction or material expansion of coal-fired power stations in high-income OECD countries (though such power plants utilizing carbon capture storage or sequestration technology will be considered on a case-by-case basis) or the construction or material expansion of coal-fired power stations in non-high-income OECD countries unless they use super-critical or ultra-critical technology — and such transactions will be subject to enhanced due diligence on a case-by-case basis.

Additionally, while Barclays will continue to provide general corporate financing for existing corporate clients that own and operate existing coal-fired power stations, the bank will review each of these arrangements on a case-by-case basis and, in instances where a company generates over 50% of its power from coal, Barclays will “engage with the client to understand its plans for transitioning to a lower carbon energy mix over the medium term.” Specifically, Barclays “expect such companies to manage environmental impacts in line with national, regulatory, requirements; use the best available technology appropriate to and available at the site location and demonstrate how the continued operation of such power stations aligns with host country NDCs.”

Finally, “Barclays will continue to reduce credit exposure to clients that derive the majority of their revenue from thermal coal mining and power generation clients where more than 50% of their power generation mix is coal-fired.” Barclays’ aim is to reduce its lending exposure over the medium term “as thermal coal declines in proportion to other power generation fuel sources globally.” However, as Barclays goes on to say, “If a client is involved in both thermal coal mining and power generation, the combined revenue of both activities would be considered and if it constituted the majority of total revenue, it would fall into this category.”

There are those who disagree with the decisions of banks and investment institutions that fail to cut-and-run from any and all coal mining and power generation — and, as I have said in the past, it’s a valid strategy and complaint. However, as I have also said in the past there are two options at hand, and Barclays has taken an active hand in the second of these options.

“We believe that engagement with clients on their own transition to a low carbon economy is preferable to simply exiting relationships,”; Vicky McAllister said via email. “Barclays would like to help finance this transition and explore commercial opportunities in the green finance space.”

Additionally, Barclays will be actively seeking to better its coal policy in the next few months. “We welcome feedback on our statement and consider this the first stage in a longer journey,” Vicky McAllister explained to me. “We aim to collate feedback from stakeholders and will incorporate this into a review of the Statement over the coming months.”

Barclays has been working hard of late to modify its green offerings and policies, supported by its Green Product Framework which was developed in partnership with Sustainalytics, a leading environmental social governance (ESG) research and ratings company. Barclays has also launched a first-to-market green mortgage product and was the UK’s first bank to issue its own green bond.

[johnwise] 15/5/2018 11:49

The world’s biggest investor $6.3 trillion fund manager


Blackrock income team buys Barclays

Blackrock UK equity income duo Adam Avigdori and David Goldman have introduced Barclays to their Income and Growth investment trust, taking the total allocation to banks to 9.9%.

In fund update for the period ended 30 April, the pair said Barclays was trading at a large discount to book value with improvements in cash generation and its capital position.

[johnwise] 15/5/2018 08:49

The USA has given $5.4 Billion to Palestine in aid under the Oslo accord and yet the USA is hated and any opportunity to burn the US flag is readily taken to show their anger. Trump this year has with held $65 Million back and quite rightly so because in his speech he said the $350 Million annually was given to the the people in Palestine and yet America is looked upon as the enemy.

Donald Trump says US has a 'great' Palestine-Israel peace proposal
Video

[manics] 15/5/2018 08:16

...or there's nothing to say because they only regurgitated what's already in the pubic domain. Waving around a reportable share certificate doesn't necessarily get you special treatment -just ask Neil Woodford.

[portside1] 15/5/2018 07:58

why have we had no news on the meeting with bramson surely it must be told to investors what is going on , surely it is against the market rules to keep investors in the dark while giving another investor information ,

[diku] 14/5/2018 18:51

Barc just struggles to go beyond 216 - 217p...

[kenbachelor] 14/5/2018 09:34

Diku - As I said it was a good, solid investment 25 years ago. It's only cost me about £189k in capital so far and just think of the all the dividends I've had.

Still Lloyds have fared a lot worse!

[diku] 14/5/2018 09:09

ken..more than £7.57 in divis...

[portside1] 14/5/2018 09:02

ken all will be good we are on the way back . and divs going up on the way . I am very happy with my holding good luck

[kenbachelor] 14/5/2018 08:59

Portside - It's a good job I took the cautious view all those years ago and decided to put my retirement money into good solid banks, that pay me reliable dividend income.

My average is only 357.57 and I've collected more than £7.57 in dividends so if you're right I'll soon be in pocket.

[portside1] 14/5/2018 08:13

the share price will now slowly but surely go up till next feb and then a bounce to 350p

[diku] 14/5/2018 08:06

Think that activist investor could well have taken a stake in Barc as a facilitator for a US bank....

[action] 14/5/2018 07:57

Only bright side is activist investor.

[manics] 13/5/2018 21:15

portside1: Ken is living proof you might have ten years yet posting here.350p? In 10 years? That would still be some 50% lower than the highs and 35 years later.I would say, allowing for 35 years inflationary adjustment, and under the right conditions, yeah, OK, 350p not impossible.A woeful investment (in real terms and indeed nominal) for anyone who got in at 350p or above all those years ago.Potentially a 50% nominal loss, after 35 years. This stock has trapped many a Boomer. Madness imo.

[diku] 13/5/2018 20:06

I will take 350p anytime...big banking merger deal would be nice to lift the share price...take a leaf out of the Sbry book...

[bernie37] 13/5/2018 19:56

Portside1 good luck in your wellbeing,were all getting on in life,can't believe I'm 65 been retired 9 years now,I would love to see the share price at350p have 182447 shares in this bank.

[bernie37] 13/5/2018 19:52

Possible up tick in share price tomorrow morning, after recommendation in the telegraph

[portside1] 13/5/2018 11:30

bernie nice to see a good article thanks , myself and ken could do with a good rise we are getting on and I would love to see them above 350p before I pass on



had my op and other problems now getting back to normal so looking to get trading ever day

[lifeofpiotr] 13/5/2018 09:49

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