Texas Comptroller Identifies NatWest As Energy Boycotter

Texas authorities have placed NatWest Group on an increasing list of financial institutions believed to be involved in a “boycott” of energy firms. This move could potentially restrict the UK bank’s operations in the oil-rich US state.

The high street bank is the latest firm to come under scrutiny by Texas Comptroller Glenn Hegar, who has been listing companies that cut ties with fossil fuel companies that harm the climate.

Texas Is Fighting Against ESG Measures And Global Schemes To Reduce Emissions

NatWest announced that by 2026, it will stop renewing, refinancing, or extending current reserve-based loans specifically used to fund oil and gas discovery, drilling, and production.

The bank’s website stated that the sustainability guidelines were part of its work to stop the most damaging actions driving the climate crisis. This position places NatWest on the Texas comptroller’s list for divestment, alongside other financial companies like Société Générale, UBS, HSBC, and BlackRock

The list, called “financial companies that avoid energy companies,” came from a 2021 law created to defend the state’s oil and gas industry. The legislation mandates that Texas authorities must either stop working with companies pulling out of the oil and gas business or justify why the agencies keep working with those companies.

NatWest is known to have minimal involvement in Texas. The bank, previously called Royal Bank of Scotland, chose not to comment.

Hegar’s choice is part of a broader effort by the oil-friendly state to tighten control over firms’ environmental, social and governance (ESG) policies. This includes pressuring financial firms to withdraw from global programs that encourage reducing greenhouse gas emissions.

In February, Hegar praised the announcement that State Street Global Advisors and JP Morgan had withdrawn from Climate Action 100+. He also criticized the ESG movement for fostering an environment that prioritized politics over profits and caused several financial firms to neglect their responsibility to clients.

NatWest Has Warned Customers Of Scam Emails Pretending To Be The Bank

The Texas policies are opposed to the movement happening in mainland Europe and the United Kingdom. These regions are demanding that financial institutions follow more environmentally friendly practices as governments work to restrict global warming to 2 degrees beyond preindustrial levels.

Last week, NatWest advised its customers to be cautious of emails from fraudsters pretending to be the bank, as there has been a rise in such scams.

The UK’s fraud reporting hub, Action Fraud, has recorded 151 complaints about scam emails pretending to be from NatWest within two weeks. These fake emails falsely state that the victim’s bank account details have been updated, urging them to click on a dangerous link to reverse the change