By Simon Jessop LONDON, Feb 13 (Reuters) - British bank NatWest softened its fossil fuel lending policy on Friday as it released full-year results, prompting activist ShareAction to call on investors
NatWest Adjusts Fossil Fuel Lending Policies Amid Climate Concerns
NatWest's New Lending Policy
By Simon Jessop
Changes to Lending Rules
LONDON, Feb 13 (Reuters) - British bank NatWest softened its fossil fuel lending policy on Friday as it released full-year results, prompting activist ShareAction to call on investors to oppose re-election of the company's chair at its forthcoming annual meeting.
Reactions from Activists
NatWest becomes the latest major bank to scale back fossil fuel rules as the world struggles to keep on track to meet emission-cut targets, and as more countries prioritise energy security in the shorter term amid global political instability.
Investor Concerns
Specifically, the bank removed bans on renewing or refinancing reserve‑based lending for oil and gas exploration, extraction, and production; and offering reserve‑based lending for new oil and gas customers.
It also removed a ban on dealing with oil and gas majors that do not have transition plans aligned with the world's climate goals; and another on upstream companies that have most of their assets located outside the UK.
"Our energy system review reflects the complexity of the economic transition and the broader direction of the national policy agenda," NatWest Head of Group Sustainability Kirsty Britz said in a statement.
"While our exposure to oil and gas represents less than 1% of the bank’s balance sheet, we also recognise the important yet declining role oil and gas will play as the UK transition progresses."
The bank still aimed to at least halve the climate impact of its financing by 2030, she added.
In response, sustainable finance non-profit ShareAction said it would call for investors to oppose the re-election of Chair Richard Haythornethwaite at the next annual meeting, slated for late April.
"NatWest has long positioned itself as a climate leader, so stepping back from commitments to restrict financing for the largest fossil fuel firms expanding oil and gas extraction is a serious concern," Kelly Shields, ShareAction's senior campaign manager, said.
(Reporting by Simon Jessop; Editing by Susan Fenton)
