NatWest is facing a potential showdown at its annual general meeting (AGM) in Edinburgh on Tuesday, as campaigners and investors protest against what they describe as the bank's 'climate backtracking'. ShareAction, a campaign group, is calling for protest votes against the reappointment of chair Rick Haythornthwaite, accusing the board of watering down restrictions on lending to the oil and gas sector and dropping decarbonisation targets without adequate explanation.
Investors including the Church of England Pensions Board, Rathbones Investment Management, and Nest have backed the campaign, pledging to vote against board members. ShareAction will present a statement signed by investors with $1.4 trillion in assets, demanding that the bank meet them within three months to discuss its climate strategy. Additionally, a letter signed by 70 climate scientists and experts urges NatWest to reverse its policy changes.
The bank's recent policy revisions include dropping a commitment not to lend to oil and gas companies lacking credible transition plans or failing to report carbon emissions. NatWest also removed a pledge not to finance exploration and production firms with most assets outside the UK, and abandoned targets for aluminium, cement, iron, and steel sectors. The climate experts' letter states: 'NatWest has undermined public trust and created a clear path for continued financing of a global fossil fuel economy.'
Jeanne Martin, head of ShareAction's banking programme, said: 'NatWest spent years presenting itself as a climate leader, but quietly rolling back fossil fuel restrictions shows the board is heading in the wrong direction. This kind of backtracking has real consequences, fuelling a climate crisis that is already damaging homes, health and livelihoods.'
A NatWest spokesperson defended the changes, stating the bank retained interim targets to halve its climate impact by 2030 compared to 2019, while working towards net zero emissions by 2050. The spokesperson added: 'We have refined our approach to ensure it reflects the evolving policy environment... Our updated policies are designed to provide clearer, more practical support while keeping our approach to climate clear and accountable.'
