UK-based banking group NatWest has revealed that its lending to the oil and gas market fell by 21% in 2021 as part of the efforts to decarbonise its loan portfolio.
NatWest said its lending to oil and gas companies fell from £4.1bn to £3.25bn, which accounts for up to 0.7% of the bank’s loan book.
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From 1 January of this year, the lender has decided to continue to support upstream oil and gas companies where the most of their assets being financed are UK based, and, where those companies report the emissions of their operated assets by end of 2023.
NatWest Group CEO Alison Rose said: “Finance is a key enabler in the drive to net-zero and we are acting to ensure that we are helping to end the most harmful activity while championing climate solutions and accelerating the speed of transition to the zero-carbon economy.
The announcement follows the bank’s decision to phase out from coal in the UK by 2024 and globally by 2030.
“Our research has found that SMEs could create up to 130,000 new jobs, produce around 30,000 new businesses and result in an estimated £160bn opportunity for the UK economy. We want to help our customers to realise this potential.”
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By GlobalDataAs part of its efforts to transition to net zero, the lender is working with its retail and business customers and had lent £17.5bn in climate and sustainable funding last year.
It has offered £728m in green mortgages to its retail customers and provides a carbon tracking feature in its mobile banking app as well.
