Texas has added British bank NatWest to its blacklist of financial institutions accused of boycotting the energy industry. This decision means any ongoing or future business that NatWest may have with Texas state agencies could be significantly impacted.
The inclusion of NatWest on this list stems from the bank’s recent policy decision to cease financing oil and gas projects. According to a spokesperson for Texas Comptroller Glenn Hegar, NatWest plans to stop renewing, refinancing, or extending existing loans for oil and gas exploration, extraction, and production starting in 2026.
Texas initially made its stance clear in 2022 when Comptroller Hegar compiled a list of financial institutions deemed to be boycotting the energy industry. In response, Texas state agencies were ordered to halt investments in these institutions and to divest any existing assets tied to them.
Hegar criticized the environmental, social, and corporate governance (ESG) movement, stating that it had created a “perverse system” where some financial companies prioritize pushing a social and political agenda over the best interests of their shareholders and clients.
Prominent banks like JP Morgan, BlackRock, HSBC, and Wells Fargo also found themselves on this blacklist. In response, these institutions assured Texas authorities that they were not opposed to the oil and gas industry and, in fact, had substantial investments in it. This situation placed the banks in a difficult position, as they faced backlash from climate activists while trying to appease both sides of the debate.
Since 2022, the list of financial institutions labeled as energy boycotters in Texas has been updated several times, with many of the banks currently on the list being European institutions, according to Bloomberg.