Wells Fargo to Deploy Additional $500 Billion in Sustainable Finance by 2030

(Credit: Pixabay)

by | Mar 9, 2021

(Credit: Pixabay)

Wells Fargo this week announced another step in its efforts to support the transition to a low-carbon economy by setting a goal of net zero greenhouse gas emissions — including its financed emissions — by 2050. To help meet this ambitious goal, Wells Fargo will measure and disclose financed emissions for select carbon-intensive portfolios; set interim emission reduction targets; deploy more capital to finance climate innovation; and continue to work with its clients on their own emissions reduction efforts. The company will also launch an Institute for Sustainable Finance to manage the deployment of $500 billion of financing to sustainable businesses and projects by 2030, as well as support science-based research on low-carbon solutions and advocate for policies that enable client transitions.

Wells Fargo outlined five areas of focus:

Setting a goal to achieve net zero greenhouse gas emissions by 2050

— Net zero goal includes Scopes 1, 2, and 3 financed emissions.

— Wells Fargo achieved carbon neutrality in its operations (Scopes 1 and 2) in 2019.

Committing to disclose the company’s financed emissions measurement approach and provide more robust emissions data

— Disclose its approach to measuring Scope 3 financed emissions within a year.

— Enhance transparency and disclose financed emissions for select carbon intensive portfolios — including the oil and gas sectors, and power sector — no later than the end of 2022.

— Expand disclosures to eventually include all financed emissions as sufficiently reliable data becomes available.

Setting interim emission reduction targets for select carbon intensive portfolios, including oil and gas, and power

— Set and disclose interim targets for select carbon intensive portfolios — including the oil and gas sectors, and power sector — no later than the end of 2022.

— Set and disclose targets for additional sectors within a reasonable time after disclosing financed emissions for those sectors.

Establishing an Institute for Sustainable Finance

— Establish an institute that will work across the enterprise to support clients in their climate transitions.

— Deploy an additional $500 billion in sustainable finance by 2030, building on the $157 billion provided since 2012.

— Support clients’ efforts to quantify their emissions.

— Support science-based research to aid clients in their low-carbon transitions.

— Advocate for policy initiatives that support clients’ low-carbon transitions as well as those that advance the US meeting the goals of the Paris Agreement.

— Work to support communities as they prepare for and adapt to increasing weather-related impacts with a focus on low- and moderate-income and other vulnerable communities that are being disproportionally impacted by climate change.

Integrating climate considerations into Risk Management Framework

— Integrate climate considerations into the company’s Risk Management Framework, eventually utilizing sufficiently reliable data as it becomes available, and use client carbon transition plans in our decision-making processes.

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