Cambridge University reportedly looking to drop Barclays for ‘greener’ bank
Cambridge University is reportedly considering ending its more than 200-year relationship with Barclays due to the bank’s financing of fossil fuels.
Following demands from students and staff for a greener lender, the university is looking to switch to a bank with robust climate policies to manage “several hundred million pounds” in cash and money market funds, according to the Financial Times.
A new bank’s mandate would likely cover more than £200m in assets and earn up to £10m in fees per year, two unnamed sources told the newspaper.
Cambridge said it was “exploring opportunities to find financial products that do not finance fossil fuel expansion” as part of a “net zero engagement strategy with the banking sector”.
It is understood that the university and most of its 31 colleges bank with either Barclays or Lloyds.
According to a report by the Rainforest Action Network, Barclays was the top European financer of fossil fuels from 2016 to 2022.
The bank has differed from many of its peers in refusing to stop financing new oil and gas projects, leading to clashes with organisations like the National Trust.
Charity Christian Aid switched to rival Lloyds in July over Barclays’ “weak commitment”, while Leeds University also switched to Lloyds in September as it had “the lowest fossil fuel investments of any of the major UK banks”.
Cambridge has pledged to divest its £3.5bn endowment from all fossil fuel investments by 2030.
“We’re dealing with people who are likely going to be leaders of tomorrow,” a college bursar told the FT. “And the biggest of their concerns is climate change.”
“We are committed to financing the energy transition, investing in the climate technologies required to build low-carbon capacity as we support those clients investing to achieve net zero,” a Barclays spokesperson told City PM
“It is our privilege to bank and support Cambridge University.”
Updated to include commentary from Barclays