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Texas Adds Natwest nyse Nwg to Energy 'boycott' List over Financing Restrictions

Texas Adds NatWest (NYSE: NWG) to Energy ‘Boycott’ List Over Financing Restrictions

Texas has added Britain’s NatWest (NYSE: NWG) to a list of firms that “boycott” energy companies, potentially restricting the bank’s business with public agencies, the comptroller said on Wednesday.

NatWest was added to the list because of limits it has added on energy financing, a spokesperson for Texas Comptroller Glenn Hegar said via email.

The spokesperson cited a NatWest policy stating that after the end of 2025, it will “not renew, refinance or extend existing reserve-based lending specifically to finance oil and gas exploration, extraction and production.”

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

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

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 remain invested in the energy sector. Listed companies face limits on business they can do with state entities such as pension funds.

The process is part of a broader push by Republican politicians against investors’ concerns for environmental, social, or governance (ESG) considerations.

Many of these efforts have failed to bring about big changes and new restrictions are not always tight. For instance, the new Texas law contains provisions for officials to keep contracts in place if financially prudent.

(Source: Reuters)

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Mark Glenn
Mark Glenn is a financial journalist and breaking news reporter for ABBO News. Mark is known for his ability to deliver real-time news updates on market developments, mergers and acquisitions, corporate earnings reports, and regulatory changes, helping investors stay informed and make sound financial decisions.