Wells Fargo, one of the top 3 banks in the US, announced on Thursday its intention to commit $200 billion in financing towards sustainable businesses and projects by 2030 — targeting at least 50% towards clean technologies.
Ranked as the third biggest bank in the United States with assets worth $1.95 trillion, Wells Fargo will now turn its attention toward sustainable financing, committing $200 billion by 2030, with a specific focus on supporting clean technology and renewable energy transactions that directly support the global transition to a low-carbon economy — including clean technologies, renewable energy generating sources, green bonds, and alternative transportation.
Wells Fargo also outlined its commitment to transparency in its methodology for accounting, project inclusion, and the carbon intensity of its credit portfolio, and will also report on the social, environmental, and economic impacts of its new sustainable lending. This puts Wells Fargo’s new financing direction in line with a growing trend for companies and financial institutions to share their environmental impact with shareholders.
— Wells Fargo (@WellsFargo) April 19, 2018
“Wells Fargo is committed to taking a leadership role in supporting the transition to a low-carbon economy and promoting environmental sustainability through our products and services, operations and culture, and philanthropy,” said Wells Fargo CEO Tim Sloan, who made the announcement during his keynote at the CECP CEO Force for Good Investor Forum in San Francisco. “With this commitment, we are combining a strong financial goal with enhanced transparency and disclosure practices that we believe will lead to sector-wide progress on responsible, sustainable finance.”
In further support of the bank’s commitment to sector-leading transparency, Wells Fargo has committed to engaging with “sector peers” and other organizations that are interested in furthering a common approach to responsible and sustainable financing.
Wells Fargo has also pledged to periodically revisit its transparency policies so that it can make any necessary adjustments based on progress made and/or developments in best practices for transparency and disclosure.
“Wells Fargo’s new commitments are significant and add to the growing momentum by the financial sector to commit hundreds of billions of dollars in clean energy investments and to improve transparency through greater disclosure of climate-related risks and opportunities,” added Mindy Lubber, CEO and President of Ceres. “More and more investors and companies understand the economic imperative and strategic long-term benefits of keeping global temperature rise to well-below 2-degrees Celsius.”