Barclays PLC

Barclays represents the highest-value financial sector target in the UK due to its dual role as both a retail bank with consumer visibility and a major financier of defence companies whose weapons have been documented in attacks on civilian infrastructure. The combination of £8+ billion in defence sector exposure, Israeli government bond dealing, and Section 172 legal obligations creates unprecedented leverage for sustained pressure campaigns.

Key Leverage Points

• Section 172 Legal Exposure: UK Companies Act 2006 requires directors to maintain 'reputation for high standards of business conduct.' Financing companies whose weapons are used in what the ICJ terms a 'plausible genocide' creates documented legal exposure. Shareholder resolutions can cite specific Section 172 obligations.
• Consumer Retail Vulnerability: Unlike pure investment banks, Barclays has 24+ million UK customers who can close accounts. Thousands of account closures reported during 2024 PSC campaign days demonstrate consumer switching willingness. Easy alternatives exist.
• Institutional Shareholder Pressure: Pension funds and institutional investors face their own ESG mandates. Risk Committee members can be targeted with 'vote against' campaigns citing fiduciary duty concerns around defence portfolio concentration.
• Leadership Instability: Sustainability head departure in January 2025 signals internal ESG function stress. New Head of Sustainable Finance Daniel Hanna faces immediate pressure on human rights policy coherence.
• Historical Precedent: Barclays was successfully pressured to divest from South African apartheid in 1986. This precedent weakens 'commercial neutrality' arguments and demonstrates vulnerability to sustained campaigns.

Evidence Summary

War on Want and Palestine Solidarity Campaign reports document £2 billion in shareholdings and £6.1 billion in loans/underwriting to nine defence contractors including Elbit Systems (now divested), RTX/Raytheon, Caterpillar, BAE Systems, Boeing, and General Dynamics. Defence investments have increased 55% since 2022 despite genocide determinations from ICJ and UN Special Rapporteurs. Barclays serves as 3rd most active primary dealer in Israeli government bond auctions among 12 international banks, directly financing Israel's war deficit which exceeded $8 billion in 2024. The bank's own Human Rights Statement claims adherence to UN Guiding Principles, creating a documented 'hypocrisy gap' between policy and practice.

Engagement Strategy

Pursue a three-track strategy: (1) Consumer pressure through coordinated account closure campaigns and branch visibility actions to demonstrate retail banking vulnerability; (2) Institutional shareholder revolt targeting pension funds and asset managers with 'vote against' Risk Committee campaigns citing ESG mandate violations and Section 172 non-compliance; (3) Shadow Section 172 Statement producing annual counter-reports documenting how defence financing violates statutory duty to maintain 'reputation for high standards of business conduct.' Frame messaging around the distinction between legitimate 'national defence' (NATO, UK forces) and 'genocide financing' (weapons documented in ICJ plausible genocide finding). Emphasise 1986 apartheid divestment precedent to counter 'commercial neutrality' objections.