What Led to the Departure of Barclays Group's CSO?

The departure of Laura Barlow, Group Head of Sustainability at Barclays, marks a notable shift in the upper echelons of one of Britain's largest banks as the financial sector faces heightened scrutiny over its commitment to the climate crisis.
A spokesperson for Barclays confirmed Barlow stepped down at the end of 2024 to pursue a portfolio career but will remain as a senior advisor to the bank.
Laura's resignation comes at a time when global banks are under mounting pressure to align their operations with climate targets and demonstrate meaningful progress in transitioning to sustainable finance.
Her exit also mirrors broader sectoral changes, including the departure of HSBC's CSO, Celine Herweijer, last year after the role was removed from the bank's executive committee — a move that raised questions about the durability of its climate pledges.
A reshuffle in sustainability leadership
Laura's role at Barclays involved steering the bank's alignment with international climate goals, including commitments to mitigate climate change.
During her tenure, Barclays introduced restrictions on lending to energy companies engaged in the expansion of fossil fuel production.
However, campaigners have consistently placed Barclays among the top 10 financiers of the fossil fuel industry, underscoring the challenges of balancing business interests with sustainability objectives.
“Addressing climate change is a critical and complex challenge," Laura said in 2024.
"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."
To replace Laura's leadership, Barclays has expanded the role of Daniel Hanna, previously Head of Sustainable Finance for its corporate and investment bank.
Daniel's sustainable credentials are to lead at the nexus of sustainability and finance are undeniable. “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 said in 2024.
As the new Group Head of Sustainable and Transition Finance, Daniel's remit reflects a growing emphasis on transition strategies as financial institutions navigate a pathway toward greener operations.
Daniel is based in London and now reports to 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.
The political nature of corporate sustainability
Barclays has set an ambitious target to facilitate US$1tn in sustainable finance and transition by 2030, a goal that has garnered approval from shareholders and climate activists alike.
Yet, such commitments are not without contention, particularly in key markets like the US, where political resistance has complicated the narrative.
In 2023, Texas Attorney General Ken Paxton barred Barclays from underwriting municipal bonds in the state after the bank failed to clarify its climate strategy.
Despite these challenges, Barclays' US market remains critical to its growth strategy, contributing 31% of total revenue in 2023, up from 25% the previous year.
Much of this growth stems from the bank's trading business and credit card operations. A Barclays spokesperson clarified that the political backlash in the US played no role in Barlow's decision to step down.
A shifting landscape in corporate responsibility
Laura's departure and the broader reshuffling at Barclays speak to a pivotal moment for the banking sector.
Financial institutions increasingly find themselves at the nexus of stakeholder demands for climate action and the practical realities of managing profitable operations in politically and economically diverse markets.
Barclays has previously drawn both praise and criticism for its approach to sustainability, particularly its financing policies.
Under Laura's stewardship, Barclays' sustainability team sought to restrict lending to energy companies expanding fossil fuel production, yet it remains one of the world's largest financiers of the fossil fuel industry.
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