Wells Fargo Pledges $500 Billion Toward Net-Zero Emissions by 2050
By Dieter Holger
Wells Fargo & Co. pledged half a trillion dollars over the
next decade as part of a new goal to reach net-zero emissions by
2050, joining other big banks that have set out similar
The San Francisco-based bank, one of the five largest in the
U.S. by assets, said Monday that its new pledge takes aim at its
funding of carbon-intensive industries. To aid in that goal, it
would deploy some $500 billion by 2030 toward sustainable financing
that would help green the economy.
Wells Fargo's move expands its focus from its contribution to
climate change from its direct operations, like its offices,
business travel and energy use, to its financing, as banks face
pressure from investors and activists to wield their lending power
to fight climate change.
In 2019, the bank reached carbon neutrality from its direct
operations and energy purchases, known as Scope 1 and 2 emissions.
Its new pledge tackles the more elusive Scope 3 emissions, which
are contained in products. In Wells Fargo's case, that would be its
lending and investments.
More and more big lenders across the world have pledged to reach
net-zero greenhouse gas emissions and mobilize financing to help
meet the Paris Agreement on climate change. Earlier this year, Bank
of America Corp. and Spain's Banco Santander SA said they would
reach net-zero emissions by 2050.
Wells Fargo said it would first disclose its financed emissions
of select carbon-intensive portfolios, including oil-and-gas and
power companies, and set interim reduction targets for those
portfolios no later than the end of 2022. Eventually, it will set
targets and disclose emissions for all of its financing.
"We have a responsibility to help find solutions and are
committed to deploying our resources and working closely with our
clients in this transition," Wells Fargo Chief Executive Charlie
Write to Dieter Holger at email@example.com
(END) Dow Jones Newswires
March 08, 2021 14:29 ET (19:29 GMT)
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