Wells Fargo has joined an expanding list of corporate banks to exit the Net-Zero Banking Alliance and their climate initiatives, Bloomberg first reported on Friday.
The company had previously embraced the theatrics of distancing themselves from the fossil fuel industry and manipulating net-zero standards into their business practices. Banks have begun to dial back their antipathy to oil and gas production as more state and federal GOP officials have taken note.
“The alliance prefers not to see any bank leave but respects the decision Wells Fargo has made based on its own individual circumstances,” an NZBA spokesperson said.
Earlier in December, Goldman Sachs announced it was leaving the sector coalition whose goal was to align loans and investment strategy with global efforts to combat climate change. Banks that join the NZBA promise to align with the group’s aim of reaching net-zero emissions by 2050, set targets to help get them there, and publish progress on their efforts each year.
Neither Goldman Sachs nor Wells Fargo gave an official reason for their departure.
Texas Attorney General Ken Paxton applauded Wells Fargo’s decision which he described as “an anti-energy activist organization that requires its members to prioritize a radical climate agenda over consumer and investor interests.” In 2023, Paxton opened a review into Wells Fargo and other institutions over a state law that prohibits governmental entities from entering into contracts with companies that boycott the oil and gas industries.
“Today, Wells Fargo took a step in the right direction by officially ending their affiliation with NZBA, and Texas welcomes them to continue doing business with our great State. I urge other financial institutions to follow their example and end ESG [environmental, social, and governance] policies that are hostile to our critical oil and gas industries,” Paxton said in a statement.
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