Wells Fargo has announced its withdrawal from the Net-Zero Banking Alliance, a collective effort among global banks to reduce greenhouse gas emissions to net zero by 2050.
According to Reuters, this move comes just two weeks after Goldman Sachs similarly exited the alliance, marking another significant departure from climate commitment groups among major financial institutions.
The bank’s departure was confirmed by a spokesperson last Friday but no specific reasons were provided for the decision. This retreat from climate initiatives by prominent financial players occurs amidst a broader pushback from Republican politicians who criticize companies they perceive as overly accommodating to climate change agendas.
Recently, Republican-led states, including Texas, have taken legal actions against asset management firms like BlackRock, Vanguard, and State Street, accusing them of antitrust violations due to their climate-focused activities.
Despite the setback of losing members, the Net-Zero Banking Alliance, which advocates for aligning bank lending and investment portfolios with net-zero emissions by mid-century, continues to grow. Established in April 2021 under the auspices of the United Nations, the alliance still boasts an increasing roster of over 100 member banks.
An NZBA spokesperson expressed regret over Wells Fargo’s decision but respected the bank’s autonomy, stating, “The alliance prefers not to see any bank leave but respects the decision Wells Fargo has made based on its own individual circumstances.” They also highlighted the growing importance of climate risk understanding and the transition to net-zero practices within the banking sector globally, indicating a strong ongoing commitment among many other institutions.
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