Wells Fargo announced today a series of environmental sustainability initiatives, including setting a net zero 2050 target, encompassing financed emissions. The company also announced the launch of an Institute for Sustainable Finance to manage the deployment of $500 billion of financing to sustainable businesses and projects by 2030, to support science-based research on low-carbon solutions, and to advocate for policies that enable client transitions.
In setting its new net zero pledge, Wells Fargo joins other major Wall Street banks who have also recently set goals for Paris Agreement-aligned financing. Last week, Citi’s Jane Fraser established a 2050 net zero greenhouse gas (GHG) financing target for the bank on her first day as CEO, followed by a net zero financing commitment from Goldman Sachs. Bank of America, Morgan Stanley, and JPMorgan have made similar commitments.
In addition to setting new 2050 targets, and establishing the Institute for Sustainable Finance, Wells Fargo also committed to disclose its financed emissions measurement approach and provide more robust emissions data, to set interim emission reduction targets for select carbon intensive portfolios, including oil and gas, and power, and to integrate climate considerations into its Risk Management Framework.
Wells Fargo CEO Charlie Scharf, said:
“Climate change is one of the most urgent environmental and social issues of our time, and Wells Fargo is committed to aligning our activities to support the goals of the Paris Agreement and to helping transition to a net zero carbon economy. The risks of not taking action are too great to ignore, and collective action is needed to avoid the significant impact on our most vulnerable communities. We have a responsibility to help find solutions and are committed to deploying our resources and working closely with our clients in this transition.”