Accounting
Wells Fargo Joins Largest U.S. Banks in Setting Net-Zero Climate Goal
Investors seek net-zero commitments from banks as a critical and necessary step in avoiding the climate impacts predicted to severely disrupt economic and social systems. The recent, unprecedented freezing temperatures in Texas, and the massive ...
Mar. 09, 2021
Wells Fargo has announced that it intends to achieve net-zero greenhouse gas emissions for its financing activities by 2050. With this announcement, six of the largest U.S. banks have now declared their intent to align with the Paris Climate Agreement by setting net-zero-by-2050 goals.
Over the past few years, investors have actively engaged with leading banks to seek progress in measuring and disclosing financed emissions and setting net-zero goals, including filing shareholder resolutions such as that filed with Wells Fargo by As You Sow and Mercy Investment Services Inc., Connecticut Retirement Plans and Trust Funds, Arjuna Capital, Sisters of the Holy Names of Jesus and Mary U.S., and Daughters of Charity Province of St. Louise, last fall.
Investors seek net-zero commitments from banks as a critical and necessary step in avoiding the climate impacts predicted to severely disrupt economic and social systems. The recent, unprecedented freezing temperatures in Texas, and the massive dislocations which ensued, are only the most recent example of growing climate harms. As part of the process of reaching net-zero-financed emissions, investors also seek nearer-term, interim targets from banks to demonstrate progress.
“Wells Fargo’s announcement establishes a clear bar for the banking sector — now that six of the top U.S. banks have made this commitment, we expect that others will join in demonstrating that their own financing is in line with the Paris Agreement’s global net-zero climate goal,” said Danielle Fugere, president of As You Sow.
Frameworks like the Partnership for Carbon Accounting Financials can help create global consistency in measuring and reporting progress. We look forward to seeing Wells Fargo take the next steps on this critical pathway.
“We underscore that a net-zero commitment is only the beginning of this important process. We will be looking to Wells Fargo to fill in the details of its climate plans by setting interim targets and transparently reporting progress toward those goals.”
To learn more about As You Sow’s work on climate change, click here.