Wells Fargo joins the club of the companies targeting fewer greenhouse emissions whit their new plan, “absolute emissions.” This plan is related to the financing of companies in the oil and gas sector.
With this new plan, Wells Fargo became the latest big U.S. bank to establish a target to reduce emissions it finances. This is steep toward the Net Zero Banking Alliance set by the United Nations.
The vision of Wells Fargo plan
The goal for now in Wells Fargo’sFargo’s plan is to reduce absolute emissions by companies it lends in the oil and gas industries. The target is 26% less by 2030, taking the first measures in 2019. On the other hand, we have the power sector, in which the speciations of reduction are 60% less by 2030. Again taking 2019’s2019’s measures.
Citigroup, a Wells Fargo competitor, have a similar plan aiming to net-zero greenhouse emissions by 2050.
There are categories for greenhouse emissions. The ones known as scopes 1 and 2 are emissions made indirectly or directly for example. Different history for the Scope 3 emissions, considered much harder to track and reduce and made by suppliers and partners.
Wells Fargo’s plans to reduce oil and gas emissions across scopes 1, 2, and 3, have bases. Those are the consumer adoption of electric vehicles. Also, on the planned reduction of emissions made by companies and consumers as well.
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“We felt with the oil and gas sector the absolute measure would be the appropriate path to take,” said Nathan Lebioda, head of Wells Fargo’sFargo’s treasury strategic programs.
Some believe that this is a hypocritical act from the bank. That is because of the $272 billion given to fossil fuels between 2016 and 2021. That amount was considered the largest given to that sector among global banks.
“Any target that doesn’t check that box won’t pass muster with activists or investors.” Said Alison Kirsch, research and policy manager at Rainforest Action Network, in a statement.