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Barclays generates 500 million pounds of revenue from sustainable finance

Barclays' sustainability chief said on Tuesday that the bank expects to increase its efforts in climate planning with clients and has made 500 million pounds ($666.20 millions) from transition finance and sustainable low-carbon financing by 2024.

The bank stated that it would adhere to its target of net-zero emission by mid-century - despite the political backlash in the United States against climate-related measures - but the pace of the change in the economy is being tested by diverging policies, the continued reliance on conventional energy by many economies, and other factors.

Daniel Hanna said that Barclays was committed to the transition, as it provided a great commercial opportunity.

He said: "This is not only something we do because it is important for our clients, but it's also an opportunity we believe we are well-positioned to capture on behalf our shareholders. It's also a risk that we have to manage."

Hanna stated that lending to customers who use sustainable products generated higher than average returns for the bank.

Barclays said that its profits in the first six months of this year were higher than expected by 23%, mainly due to its investment banking division.

The bank has set an ambitious target of lending $1 trillion for sustainable and related finance by 2030. It has already facilitated more than a quarter trillion dollars of sustainable and transitional finance since 2020. The bank had also invested 239 million pounds in equity into nascent technology needed to help achieve the climate goals of the world.

Hanna stated that there is a great opportunity to scale up climate technology. It creates new job opportunities and growth areas but is also challenging.

Hanna explained that the bank already works with clients in a variety of industries. It will now expand its coverage to include listed companies from the commercial real-estate and mining sectors.

Hanna explained that the bank uses this framework to understand better how clients intend to move to a future with lower carbon emissions and then offer them guidance and finance to help them achieve their goals.

He said that the tool is a great way to engage people, spot opportunities and also identify where portfolios are headed. Over the past few years, our understanding of the transition has really improved. Reporting by Simon Jessop, Editing by Alexandra Hudson. $1 = 0.7505 pound

(source: Reuters)