By Ross Kerber
(Reuters) – Texas' comptroller said on Wednesday he had added Britain's NatWest to a list of companies that “boycott” energy companies, potentially restricting the bank's business with state agencies.
A spokesman for Comptroller Glenn Hegar said by email that NatWest was added to the list because of limits it has placed on energy financing.
The spokesman cited a NatWest policy stating that after the end of 2025 it “will not renew, refinance or extend existing reserve-based borrowings 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 inclusion on the list.
A representative for NatWest, formerly known as Royal Bank of Scotland (NYSE:), said via email that the lender was unlikely to be able to comment until Thursday morning.
Under a new Texas law, Hegar’s office is responsible for determining which firms or funds effectively discriminate against energy companies, a major part of the Texas economy, even if they continue to invest in the energy sector. Publicly traded companies face limits on the business they can do with state entities such as pension funds.
The process is part of a broader effort by Republican politicians to crack down on investor concerns about environmental, social and governance (ESG) considerations.
Many of these efforts have failed to produce major changes, and the new restrictions are not always strict. For example, the new Texas law contains provisions for officials to keep contracts in place if it is financially prudent.
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