Monday, March 08, 2021
SAN FRANCISCO--(BUSINESS WIRE)-- Wells Fargo today announced a major 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 reductions 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.
“Climate change is one of the most urgent environmental and social issues of our time, and Wells Fargo is committed to aligning our activities to support the goals of the Paris Agreement and to helping transition to a net zero carbon economy,” said Wells Fargo CEO Charlie Scharf. “The risks of not taking action are too great to ignore, and collective action is needed to avoid the significant impact on our most vulnerable communities. We have a responsibility to help find solutions and are committed to deploying our resources and working closely with our clients in this transition.”
Wells Fargo outlined five areas of focus:
Setting a goal to achieve net zero greenhouse gas emissions by 2050
Committing to disclose the company’s financed emissions measurement approach and provide more robust emissions data
Setting interim emission reduction targets for select carbon intensive portfolios, including oil and gas, and power
Establishing an Institute for Sustainable Finance
Integrating climate considerations into Risk Management Framework
The goals announced today are critical next steps in Wells Fargo’s efforts to accelerate transition to an equitable and sustainable future, and they build on recent progress.
For more information on Wells Fargo’s approach to managing climate risk, please see the company’s 2020 TCFD Report. Additional sustainability perspectives can be found at Wells Fargo Stories.
* Greenhouse gas emissions are categorized into three groups or 'Scopes' by the most widely used international accounting tool, the Greenhouse Gas (GHG) Protocol. Scope 1 covers direct emissions from owned or controlled sources. Scope 2 covers indirect emissions from the generation of purchased electricity, steam, heating and cooling consumed by the reporting company. Scope 3 includes all other indirect emissions that occur in a company’s value chain.
** In 2018, Wells Fargo announced its $200 billion sustainable finance commitment and updated the methodology for how it tracks progress. The 2018-2020 results are not comparable to previously reported results for the “finance environmentally beneficial business opportunity” progress statement. Wells Fargo’s current sustainable finance reporting methodology is available online.
About Wells Fargo
Wells Fargo & Company is a leading financial services company that has approximately $1.9 trillion in assets and proudly serves one in three U.S. households and more than 10% of all middle market companies in the U.S. We provide a diversified set of banking, investment and mortgage products and services, as well as consumer and commercial finance, through our four reportable operating segments: Consumer Banking and Lending; Commercial Banking; Corporate and Investment Banking; and Wealth and Investment Management. Wells Fargo ranked No. 30 on Fortune’s 2020 rankings of America’s largest corporations. In the communities we serve, the company focuses its social impact on building a sustainable, inclusive future for all by supporting housing affordability, small business growth, financial health and a low-carbon economy. News, insights and perspectives from Wells Fargo are also available at Wells Fargo Stories.
Additional information may be found at www.wellsfargo.com | Twitter: @WellsFargo.
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Jennifer Dunn
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EJ Bernacki
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Source: Wells Fargo & Company