Wells Fargo has withdrawn from the Net-Zero Banking Alliance, a global group of banks committed to reducing greenhouse gas emissions. This move follows Goldman Sachs’ exit two weeks ago, as financial firms face mounting pressure from Republicans and regulatory bodies over their climate initiatives.
The NZBA, which aims to align lending and investment portfolios with net-zero emissions by 2050, has attracted over 100 banks since its founding in April 2021. However, five have left the alliance, including Wells Fargo, according to the group’s spokesperson.
No reason was given for Wells Fargo’s decision, but it comes as other financial firms have scaled back their climate initiatives due to pressure from GOP officials. Last month, asset management giants BlackRock, Vanguard, and State Street were accused of violating antitrust law through climate activism in a lawsuit by Texas and 10 other Republican-led states.
The NZBA spokesperson stated that the alliance “respects the decision Wells Fargo has made based on its own individual circumstances” but acknowledged that it prefers banks to stay.
Source: https://www.reuters.com/sustainability/sustainable-finance-reporting/wells-fargo-departs-climate-banking-group-another-high-profile-exit-after-2024-12-20