NatWest faces AGM showdown over ‘climate backtracking’

NatWest is facing significant shareholder opposition at its upcoming annual general meeting in Edinburgh amid allegations of “climate backtracking.” Investors and campaign groups, including the Church of England and ShareAction, are urging protest votes against the bank’s chair, Rick Haythornthwaite, over concerns that the bank has weakened its climate commitments. The dispute centers on NatWest’s recent decision to ease restrictions on lending to the oil and gas sector and to drop several decarbonisation targets without clear justification. ShareAction, supported by investors managing $1.4 trillion in assets, has submitted letters to the AGM demanding that NatWest engage with shareholders within three months to clarify its climate strategy. The campaign is further bolstered by a letter signed by 70 climate scientists and experts, calling on the bank to demonstrate leadership and reverse the dilution of its environmental commitments. Key policy changes under scrutiny include the removal of a pledge not to lend to oil and gas companies lacking credible transition plans or comprehensive carbon emissions reporting, as well as the abandonment of targets related to financing aluminium, cement, iron, and steel industries. Critics argue that NatWest’s revised approach undermines public trust and risks perpetuating fossil fuel financing, which could exacerbate the global climate crisis. Jeanne Martin, head of ShareAction’s banking programme, emphasized that the bank’s retreat from stringent fossil fuel restrictions contradicts its previous climate leadership stance and poses long-term economic and environmental risks. The campaign highlights the growing pressure on financial institutions to align their lending practices with global climate goals and the increasing willingness of investors to hold boards accountable for sustainability commitments. In response, a NatWest spokesperson stated that the bank has maintained interim targets aimed at reducing its climate impact by at least 50% compared to 2019 levels, while progressing toward a net-zero financing ambition by 2050. The bank also noted that its updated policies reflect the evolving regulatory landscape. Nonetheless, the upcoming AGM is poised to be a critical test of NatWest’s climate strategy and its relationship with environmentally conscious investors.