National Trust to Seek New Banking Partner Over Barclays Fossil Funding

Members push for change at the National Trust AGM

On Saturday the charity’s annual general meeting saw a decisive vote by members to start a competitive tender for a new banking partner. The resolution passed with overwhelming support from the board of trustees and reflected years of campaigning by members who argued that the Trust’s relationship with its current bank conflicted with its mission to protect historic sites and natural landscapes.

Background on the Trust’s banking relationship

The National Trust has relied on Barclays for its primary banking services for more than a decade. The arrangement includes cash management, credit facilities and investment of surplus funds. While the partnership has provided stability, critics have highlighted that Barclays continues to finance companies involved in coal mining, oil extraction and other high‑carbon activities. Those concerns grew louder after several high‑profile reports linked the bank to projects that contribute to global warming.

Barclays’ fossil fuel financing and the criticism it attracted

Barclays publicly reports its approach to sustainable finance on its sustainability page. Nevertheless, independent analyses have shown that the bank still provides billions of pounds in financing to oil and gas producers. A 2023 study by the Climate Charity Alliance found that Barclays ranked among the top financiers of coal‑related projects in the United Kingdom. The findings sparked a wave of criticism from environmental groups and Trust members who feared that the charity’s own credibility could be undermined.

Key reports and public pressure

In addition to the Climate Charity Alliance report, a BBC report on charities and fossil fuel financing highlighted the growing tension between heritage organisations and banks that fund carbon‑intensive industries. The article quoted several trustees who said the Trust could not endorse a bank whose portfolio includes projects that damage the very environment the Trust strives to protect.

The resolution and its implications

The AGM resolution instructs the National Trust to begin a transparent tendering process. It requires the charity to assess potential partners against a set of environmental criteria, including the extent of fossil fuel financing, commitment to net‑zero targets and the ability to support the Trust’s extensive property portfolio. The move is being hailed as a victory for member activism and a signal that large charities are taking climate responsibility seriously.

What the tender process will involve

According to the Trust’s statement, the tender will be overseen by an independent advisory panel. The panel will evaluate proposals based on:

• Alignment with the Trust’s climate ambition to achieve net zero by 2030.
• Transparency of the bank’s investment portfolio.
• Ability to provide specialised services for heritage and land management.
• Track record of supporting sustainable projects.
• Financial stability and cost‑effectiveness.

The Trust plans to publish the criteria and shortlist of bidders within six months, allowing members to review the process.

Potential new banking partners and criteria

While the Trust has not named any prospective banks, several UK institutions have positioned themselves as climate‑focused. For example, Triodos Bank markets itself as a pioneer in ethical banking, and its portfolio excludes fossil fuel extraction. Another contender could be the cooperative bank, which has pledged to align all its lending with the Paris Agreement. The final decision will hinge on how well a candidate meets the Trust’s environmental standards while delivering the financial services required for a charity of its size.

How other charities have switched banks

Recent years have seen a number of prominent charities move away from traditional banks. The Wildlife Trusts, for instance, announced a switch to a green‑focused lender after a member survey highlighted concerns over carbon‑intensive financing. Their experience shows that a well‑managed transition can maintain service continuity and even unlock new funding opportunities for sustainability projects.

Broader impact on the UK charitable sector

The National Trust’s decision is likely to ripple across the charitable landscape. As one of the country’s largest landowners, its stance puts pressure on other organisations to examine their own financial relationships. The UK government’s climate‑change policy framework encourages public bodies and charities to adopt low‑carbon practices, and the Trust’s move aligns with that broader agenda.

Experts suggest that the shift could accelerate the development of a green banking market in the United Kingdom. By creating demand for banks with robust climate policies, charities may help drive industry‑wide changes in lending practices.

Members of the National Trust have expressed optimism that the new partnership will reinforce the charity’s credibility and strengthen its ability to fund conservation projects. As the tender process unfolds, the Trust will continue to engage its supporters, ensuring that the final choice reflects the values that underpin its historic mission.