The giant Wells Fargo bank is committing US$200 billion to finance sustainable projects and businesses through 2030, while boosting carbon risk reporting and transparency across its existing accounting and lending practices.
The US$1.9-trillion company 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 CEO Tim Sloan. “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.”
More than $100 billion of the total will go to “clean technology, renewable energy, green bonds, low-emission transportation, and other projects that ‘directly support the transition to a low-carbon economy,’” Business Green states. The rest will be invested in areas like sustainable agriculture, recycling, and conservation.
Wells Fargo is also committing to “sector-leading transparency” in its work on sustainable financing, accounting and inclusion practices, and annual impact reporting, and in its progress toward the United Nations Sustainable Development Goals, the article states. The bank has cut its greenhouse gas emissions 45% since 2008, began procuring 100% if its electricity from renewables last year, and achieved its 2020 carbon reduction target early, Business Green notes.
Ceres CEO Mindy Lubber called the announcement a “significant” contribution to the momentum toward clean energy within the financial sector. “More and more investors and companies understand the economic imperative and strategic long-term benefits of keeping global temperature rise to well below 2.0°C,” she said.