Wells Fargo has set emission reduction targets for its oil, gas and energy customers

0

NEW YORK/BOSTON, May 6 (Reuters) – Wells Fargo & Co (WFC.N) has unveiled new greenhouse gas emission reduction targets, including “absolute emissions” reduction targets linked to its funding companies in the oil and gas sector, an official said Thursday.

Wells is the latest major U.S. bank to set emissions reduction targets, which it funds through loans, in line with the United Nations-convened Net Zero Banking Alliance. Read more

The bank’s interim targets aim to reduce the absolute emissions of the companies it lends to in the oil and gas sector by 26% by 2030 compared to 2019 levels, and to reduce the “emissions intensity” of the portfolio – a measure of emissions versus production – in the electricity sector. 60% over the same period.

Join now for FREE unlimited access to Reuters.com

Register

The details, which follow similar targets from rival bank Citigroup Inc, move the bank toward an overall goal of achieving net zero greenhouse gas emissions by 2050.

The bank’s goal to reduce oil and gas emissions in Scopes 1, 2 and 3 is based on projections that incorporate expected corporate emissions reductions and consumer adoption of electric vehicles. consumers.

Direct and indirect greenhouse gas emissions are referred to as scope 1 and 2 emissions, while emissions generated by suppliers and partners are referred to as scope 3 emissions and are considered much more difficult to track and reduce. Read more

“We felt that with the oil and gas sector, absolute measurement would be the appropriate path to take,” said Nathan Lebioda, Wells Fargo’s head of strategic treasury programs.

In January, Citigroup Inc (CN) said it was aiming for issuance by companies in its energy loan portfolio to decline 29% by 2030. Other banks focused on reducing “the emissions intensity” from their customers, a method that climate activists say doesn’t go far. sufficient. Read more

Climate activists have calculated that Wells Fargo provided $272 billion in fossil fuel support from 2016 to 2021, the third-largest among global banks. Some critics said Wells’ goals conflicted with his support for fossil fuel expansion.

“Any target that does not check this box will not go through with activists or investors,” Alison Kirsch, research and policy manager at Rainforest Action Network, said in a statement.

Others gave Wells Fargo higher ratings.

“These goals include a robust methodology that extends beyond lending to include capital markets activity,” Dan Saccardi, program director at Ceres Company Network, said via email.

Join now for FREE unlimited access to Reuters.com

Register

Reporting by Elizabeth Dilts Marshall in New York and Ross Kerber in Boston; Editing by Cynthia Osterman

Our standards: The Thomson Reuters Trust Principles.

Share.

Comments are closed.