Texas Adds NatWest to List of Banks Boycotting Fossil Fuels

Texas officials have officially added NatWest Group to a list of financial firms accused of participating in a “boycott” against energy companies, potentially impacting the UK bank's operations in the oil-rich state. This designation comes from Texas Comptroller Glenn Hegar, who has been identifying companies that limit their business with fossil fuel firms, citing their policies as detrimental to the state's energy sector. NatWest has committed to not renewing or extending existing reserve-based lending for oil and gas exploration by 2026, a move it claims is part of its broader sustainability efforts to combat climate change. This policy aligns NatWest with other financial institutions on the Texas comptroller’s divestment list, which includes major players like BlackRock and HSBC. The list stems from a 2021 law aimed at safeguarding Texas's oil and gas industry, mandating that state agencies cease business with firms that divest from fossil fuels. Despite being added to this list, NatWest reportedly has limited exposure to Texas. The bank, previously known as the Royal Bank of Scotland, has chosen not to comment on the situation. Hegar's actions reflect a larger trend in Texas, where officials are increasingly scrutinizing companies' environmental, social, and governance (ESG) policies, urging them to withdraw from international initiatives aimed at reducing greenhouse gas emissions. In a related development, Hegar has expressed approval for JP Morgan and State Street Global Advisors' recent exits from Climate Action 100+, criticizing the ESG movement for prioritizing political agendas over financial responsibilities.