Wells Fargo will aim to have “net zero” greenhouse gas emissions by 2050, the bank announced Monday. The move comes after similar pledges across Wall Street, including from Charlotte’s Bank of America.
As a part of the pledge, Wells Fargo will disclose financed emissions for some “carbon-intensive” portfolios. The company will also finance $500 billion of sustainable projects.
“We have a responsibility to our clients and customers, our investors and to society at large,” said Jon Weiss, the head of corporate and investment banking.
Wells Fargo will set interim emission reduction targets for its oil, gas and power financing by the end of 2022, according to a news release. The bank is already carbon-neutral in its internal operations.
In February, Bank of America announced a similar pledge, which included goals to purchase only zero-carbon electricity and reduce water usage. New York-based Citi announced it would go “net zero” earlier in March.
While the pledges are generally welcomed by environmentalists, some are skeptical of the sincerity of the pledges and curious about details. The Sierra Club criticized both Citi and Bank of America’s pledges for a lack of specifics when they were announced.
Almost all major banks have had longstanding financial relationships with the oil and gas industry.
Wells Fargo had long been a major backer of the industry, and two years ago Bank of America CEO Brian Moynihan personally helped close one oil company’s $35.7 billion purchase of a rival.
“We are a major players in the oil and gas space in the United States particularly,” Wells Fargo’s Weiss said. “We view this as a collaboration with our clients in those industries to help them in their transition to a lower-carbon economy.”
Wells Fargo plans to continue to finance carbon-intensive businesses, Weiss said, as part of helping those businesses navigate the transition to a lower-carbon economy. The bank ruled out funding oil and gas drilling in the Arctic last year.
