The University of Cambridge is considering cutting ties with Barclays and Lloyds over the banks' fossil fuel links.
Leaked documents are said to reveal that Cambridge could ditch the banks 'as part of a concerted effort... [of] putting pressure on the major UK banks to improve their practices'.
The minutes from a council meeting at the university's King's College, obtained by The Telegraph and student newspaper Varsity, revealed it is looking to identify potential alternatives by the start of the next academic year.
The revelation means Barclays' prestigious position as the university's bank of more than 200 years could come to an end.
It comes afterBarclays announced last week it would not sponsor Latitude, Download and Isle of Wight festivals after multiple acts dropped out in protest to the bank's links to defence companies supplying Israel.
The University of Cambridge is considering cutting ties with Barclays and Lloyds over the banks' fossil fuel links
The revelation means Barclays' prestigious position as the university's bank of more than 200 years could come to an end
The Telegraph reported there had been 24 respondents and 14 proposals that are 'able to move forward to the next stage of evaluation' after Cambridge made a call-out to find alternatives to Barclays and Lloyds.
The document claimed that 'the focus of the tender was on bank financing of fossil fuels in particular – but was a more general warning to the major banks that many institutions might withdraw their business if a more ethical approach was not adopted'.
The University of Leeds switched to Lloyds bank in September 2023, saying it had the 'lowest fossil fuel investments of any of the major UK banks'.
A Which? report in October 2023 found is 'exposure to fossil fuels is minor compared with' other banks.
Anthony Odgers, Cambridge's chief financial officer, said on the university's Banking Engagement Forum website: 'What we and our partners are focused on with this mandate is finding financial services products that do not contribute to the expansion offossil fuels– in particular, new coal- and gas-fired plants which lock in demand for decades.'
It was revealed by the Financial Times in December that Cambridge was eyeing up a new bank to manage'several hundred million pounds' of its cash and money market funds amid staff and students lobbying for a greener lender.
The newspaper reported the mandate would cover £200million in assets and generate about £10million in fees a year.
Students have been piling pressure on to campus bosses for them to axe their ties with the bank with a slew of sit-in protests outside King's College
In May, they set up tents, gazebos and sleeping bags on the front lawn in protest against 'Israel's genocide of Palestinians in Gaza'
Protesters paint signs as they stage demonstrations on their university lawns, echoing similar encampments seen in the US
Students have been piling pressure on to campus bosses for them to axe their ties with the bank with a slew of sit-in protests outside King's College.
In May, they set up tents, gazebos and sleeping bags on the front lawn in protest against 'Israel's genocide of Palestinians in Gaza'.
Cambridge for Palestine said it will 'not move' from the encampment until the university agrees to four demands including disclosing financial ties with complicit organisations and protecting students at risk.
Last week, Barclays sponsorship was suspended for all Live Nation music festivals in 2024 amid a growing boycott of the banks.
Bands Boycott Barclays (BBB), the group behind the protest, has claimed it has 700 artists and industry professionals behind it, including country singer CMAT, metal band Ithaca and comedian Joanne McNally.
Last month, Barclay's annual shareholders' meeting was disrupted by activists protesting against its alleged indirect links to violence in Gaza.
The bank had said the week before that it did not invest its own money in companies that supply weapons used by Israel in Gaza.
And earlier this month pro-Palestine protesters targeted Barclays banks across the country, smashing windows and hurling red paint.
Up to 20 branches were hit in an organised attack by Palestine Action and Shut The System – an underground climate movement.
A branch in Bristol was left with all its windows shattered and red paint splashed over the Barclays sign.
Last week, all the windows of the Barclays branch in the centre of Bristol were smashed and graffiti sprayed over them in a co-ordinated attack by a group targeting the bank
'The protestors' agenda is to have Barclays debank defence companies which is a sector we remain committed to as an essential part of keeping this country and our allies safe,' said the bank's spokesperson
Barclays sponsorship was suspended for all Live Nation music festivals in 2024 amid a growing boycott of the banks
Barlcays will not sponsor Latitude, Download and Isle of Wight festivals after multiple acts dropped out in protest to the bank's links to defence companies supplying Israel
Rocks inscribed with the names of Palestinians killed in the conflict between Israel and Hamas were thrown at windows in Edinburgh.
A spokesman for King's College said: 'We do not comment on draft internal documents.
'We remain firmly committed to ensuring the college's continued financial stability in support of our outstanding environment for teaching and research, and will announce any new developments in due course.'
A Barclays spokesman said: 'Barclays is committed to financing an energy sector in transition.
'Alongside financing current energy needs, we are working with energy companies to build the clean energy system of tomorrow, with a target to provide $1 trillion of sustainable and transition finance by 2030. Since 2020, our financed emissions for the energy sector have reduced by 44 per cent, exceeding our 2030 target.
'Recently named as Education Investor’s Best Bank of the Year 2024, it is our privilege to support and bank UK universities, and we welcome their engagement on this topic.'
A Lloyds Banking Group spokesman told MailOnline: 'We are an established lender to the higher education sector and know that clear sustainability goals continue to be important to many of our clients, including universities.
'We are proud that every university that switched accounts last year decided to switch to Lloyds.'
MailOnline has contacted University of Cambridge for further comment.
