Texas adds UK lender NatWest to energy ‘boycott’ list over financing restrictions By Reuters

By Ross Kerber

The Texas state comptroller said Wednesday that the state has added British bank NatWest to a list of companies that “boycott” energy companies, which could restrict the bank’s business with public entities.

NatWest was added to the list because of its restrictions on energy financing, Texas Comptroller spokesman Glenn Hegar said via email.

The spokesman cited NatWest’s policy that after the end of 2025, existing reserve-based lending will not be renewed, refinanced or extended specifically for the purpose of financing oil and gas exploration, extraction and production.

Hegar’s office did not immediately comment on how much business, if any, might be affected by NatWest’s placement on the list.

A representative for NatWest, formerly known as Royal Bank of Scotland (NYSE: ), declined to comment.

Under a new Texas law, Hegar’s office is now charged with identifying companies or funds that discriminate against energy companies, which are a major part of the Texas economy, even if they remain invested in the energy sector. Listed companies face restrictions on the business they can do with state entities such as pension funds.

The move is part of a broader campaign by Republican politicians against investor concerns over environmental, social or governance considerations.

But many of these efforts have failed to produce significant change, and the new restrictions aren’t always strict. For example, a new law in Texas includes provisions requiring officials to keep contracts if they are financially prudent.