NatWest Faces Shareholder Revolt Over Climate Policy

NatWest confronts the possibility of a significant shareholder backlash during its upcoming annual meeting in Edinburgh. A coalition of investors, including influential bodies like the Church of England Pensions Board, alongside numerous climate scientists, are advocating for protest votes against the bank's chair, Rick Haythornthwaite. This action stems from concerns that NatWest has recently weakened its stance on climate commitments.

Specifically, the bank has reportedly eased restrictions on lending to companies in the oil and gas sector. Campaigners point to the removal of a commitment not to finance oil and gas exploration and production companies with assets primarily outside the UK, as well as abandoned targets for sectors like aluminum, cement, and iron and steel. These changes have been described by critics as "climate backtracking."

ShareAction, a key advocacy group, is spearheading the campaign, presenting letters at the AGM. These include a statement backed by investors managing $1.4 trillion in assets. The group also delivered a letter signed by 70 climate experts urging NatWest to demonstrate leadership by reversing its policy adjustments. Investors are requesting a meeting within three months to discuss the bank's climate strategy.

In response, a NatWest spokesperson stated that the bank maintains interim climate impact reduction targets and is working towards net-zero financing by 2050. The bank asserts that its updated policies are designed to be clearer and more practical, offering better support to customers while ensuring accountability on climate commitments. NatWest plans to continue engaging with stakeholders.