British bank NatWest softens fossil fuel lending rules

Core Viewpoint - NatWest Group has softened its fossil fuel lending policy, prompting concerns from activist group ShareAction regarding the bank's commitment to climate leadership [1]. Group 1: Policy Changes - NatWest removed bans on renewing or refinancing reserve-based lending for oil and gas exploration, extraction, and production [1]. - The bank also lifted restrictions on offering reserve-based lending to new oil and gas customers [1]. - Additionally, bans on dealing with oil and gas majors without transition plans aligned with climate goals and upstream companies with assets primarily outside the UK have been removed [1]. Group 2: Strategic Context - The changes reflect the complexity of the energy transition and the broader national policy agenda, as stated by NatWest's Head of Group Sustainability, Kirsty Britz [1]. - Despite these changes, NatWest aims to halve the climate impact of its financing by 2030 [1]. Group 3: Reactions and Implications - ShareAction plans to call for investors to oppose the re-election of Chair Richard Haythornethwaite at the upcoming annual meeting due to concerns over the bank's retreat from climate commitments [1]. - The activist group emphasizes that NatWest has historically positioned itself as a climate leader, making the recent policy shift a significant concern [1].