British bank NatWest has softened its fossil fuel lending policy following a review, prompting criticism from activist group ShareAction. The change comes as the bank released its full-year results and follows a trend of major banks scaling back fossil fuel restrictions amid global political instability and prioritisation of energy security. NatWest is a major financial institution that provides a range of banking and financial services to personal and business customers. The bank operates primarily in the United Kingdom and offers services including current accounts, loans, mortgages, and investment products.
Specifically, NatWest has removed bans on renewing or refinancing reserve-based lending for oil and gas exploration, extraction, and production. It will also offer reserve-based lending to new oil and gas customers. Further revisions include removing the ban on dealing with oil and gas majors lacking climate-aligned transition plans, as well as upstream companies with most assets outside the UK.
According to Kirsty Britz, Head of Group Sustainability at NatWest, the energy system review reflects the complexity of the economic transition and broader national policy agenda. Britz noted that while oil and gas exposure represents less than 1% of the bank’s balance sheet, the sector plays an important, albeit declining, role in the UK’s transition. The bank still aims to at least halve the climate impact of its financing by 2030.
ShareAction has responded by announcing it will call on investors to oppose the re-election of Chair Richard Haythornethwaite at the upcoming annual meeting in late April. Kelly Shields, ShareAction’s senior campaign manager, stated that NatWest’s retreat from restricting financing for large fossil fuel firms expanding oil and gas extraction is a serious concern, given the bank’s prior positioning as a climate leader.
