Talk by James Close | Head of Climate, Natwest
Last week 70 Durham students and staff attended a talk and Q&A with James Close, Head of Climate at NatWest and formerly Director for Climate Change at the World Bank, hosted by the Durham Climate Society. As head of Climate Change James has taken charge of NatWest’s personal green ambitions, which include halving their climate impact by 2030, hitting net zero by 2050, and funding £100 billion to Climate and Sustainable Funding and Financing between 1 July 2021 and 2025. They were recently the banking sponsor for COP26.
Close began by discussing the immense challenge that climate change presents and the consequences of failing to meaningfully address the crisis. He advocates a path of stubborn optimism: thinking positively about how to make material impact on carbon emission reductions. When asked plainly whether NatWest’s ambitious climate targets are truly attainable, he addressed the helplessness that so many of us feel when faced with this global emergency but reiterated the power of maintaining optimism in the face of crisis. He also discussed the extraordinary level of collaboration necessary for substantial change.
He encouraged students to think systemically about climate change. He argued that finance needs to be ‘purpose-led’ to be a useful tool for reducing emissions. It is crucial to assess the principles that institutions operate by to ensure they are having positive environmental impacts. He confessed that organisations, especially banks, are ever-conscious about returns, raising the debate on whether NatWest’s objective of aiding customers should take precedence over obligation to shareholders.
“Close advocates a path of stubborn optimism”
Undoubtedly, NatWest are largely still known as the bank of oil and gas. Despite a thorough transition strategy, NatWest still hold many investments in fossil fuel giants. When asked about divestment, Close was transparent that divestment is a great source of worry for him. He explained the considerations behind NatWest’s credible transition plan, determining who NatWest are comfortable banking with. He argued that by dropping ‘in-between’ clients, those situated somewhere in the middle of those that NatWest will happily bank and those NatWest have decided to drop, then there will simply be alternative capital that will come in and bank these clients with no consideration of environmental impact. So, Close argued that it was far better to help them develop a better net zero strategy alongside NatWest.
“He argued that finance needs to be ‘purpose-led’ to be a useful tool for reducing emissions.”
One key takeaway from the talk was the necessity of ‘following the carbon’ for having true impact on climate change. In August, under Close’s direction, NatWest launched their Carbon planner for business and a carbon footprint tracker for customers. He hopes this service will help individuals and businesses track carbon emissions more clearly. The service not only makes carbon footprint data more accessible but also offers pathways for reducing emissions.
The talk was brilliantly received, with an engaged audience posing thoughtful questions to James through the Q&A session. Its success was a testament to the fact that Durham students are resolute in their commitment to climate justice and affirmed the very reason that Climate Society was established: to inspire Durham’s future climate leaders. James had this to say: “I’m inspired to see the vision and enthusiasm of Durham Climate Society to inform and promote action across a wide section of the university community’. Thank you to James and to all our members for coming and to DU Finance Society for collaborating with us. We look forward to seeing you all at the next talk.
