Barclays Sustainability Chief Laura Barlow Steps Down
The banking industry is witnessing significant shifts, particularly at Barclays, one of Britain's foremost banks. Laura Barlow, the bank's Group Head of Sustainability, recently announced her departure.
A Barclays spokesperson confirmed that Laura stepped down at the end of 2024 to explore a portfolio career, although she will continue to assist the bank as a senior advisor.
This change occurs amid increasing demands on global banks to align their operations with climate targets and ensure substantial progress toward sustainable finance.
Additionally, Laura's exit reflects a broader change affecting the sector, symbolised by the departure of HSBC's Chief Sustainability Officer (CSO), Celine Herweijer, after her role was discontinued in the executive committee. This move sparked debates about the permanence of the bank's environmental commitments.
A reshuffle in sustainability leadership
At Barclays, Laura was instrumental in steering the bank's efforts to meet international climate goals, which included initiatives to restrict lending to energy firms that expand fossil fuel production.
Notably, these restrictions have placed Barclays among the top financiers of the fossil fuel industry, highlighting the ongoing challenge of balancing economic interests with environmental responsibilities.
Laura remarked in 2024: "Addressing climate change is a critical and complex challenge. We continue to work with our energy clients as they decarbonise and support their efforts to transition in a manner that is just, orderly and addresses energy security."
Following Laura's exit, Barclays has appointed Daniel Hanna as the new Group Head of Sustainable and Transition Finance.
Formerly the Head of Sustainable Finance for Barclays' corporate and investment bank, Daniel's qualifications in the sustainability and finance sector are well established.
"Capital is critical to the energy transition, to decarbonise hard-to-abate sectors for the world to reach net zero emissions and create a resilient economy," he stated in 2024.
Located in London, Daniel now reports to several senior executives, including Matt Hammerstein, Head of Public Policy and Corporate Responsibility, Cathal Deasy, Co-Head of Investment Banking, and Adeel Khan, Head of Global Markets.
His role expansion underscores a growing focus on transition strategies as financial institutions strive toward greener practices.
The political nature of corporate sustainability
Barclays has set an ambitious target to facilitate US$1tn in sustainable finance and transition initiatives by 2030, a goal that has received both shareholder and activist support. However, this ambition is not without its challenges, especially in the US where political opposition has sometimes complicated these goals.
In 2023, Texas' Attorney General Ken Paxton prohibited Barclays from underwriting municipal bonds in the state following the bank’s unclear climate strategies.
Despite these hurdles, the US market is decidedly vital for Barclays, which saw its revenue contribution from the region grow significantly in 2023, largely driven by its trading operations and credit card businesses. The bank was quick to clarify that political conflicts in the US had no influence on Barlow's decision to resign.
A shifting landscape in corporate responsibility
The recent changes at Barclays reflect a critical period in the banking sector. Financial institutions are increasingly caught between the demands of stakeholders for more aggressive climate action and the practical realities of maintaining profitable operations in diverse political and economic climates.
During Laura's tenure, Barclays made strides in its approach to sustainability by attempting to limit funding for the expansion of fossil fuel production.
Despite these efforts, the bank is still ranked as one of the top global financiers in the fossil fuel sector, which continues to attract both praise and criticism for its policies on environmental sustainability.
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