MONTCLAIR, NJ, MARCH 27, 2025. Wells Fargo has recently made the controversial decision to abandon its previously announced commitment to achieve net-zero financed emissions by 2050. In addition, the bank has rescinded its interim 2030 emissions reduction targets for key sectors such as power generation, oil and gas, auto manufacturing, and steel production. This shift represents a significant deviation from the bank’s earlier climate-related goals. With this decision, Wells Fargo has become the first major U.S. bank to abandon its climate commitments amid broader political pressure and regulatory challenges, including the Trump administration’s continued opposition to climate initiatives.

This development is deeply disappointing and represents a serious setback in the fight against climate change. It is especially disheartening that a financial institution with the influence of Wells Fargo has chosen to walk back its commitments, particularly given the growing body of scientific evidence supporting the need for urgent action. As the world continues to experience devastating climate-related disasters, companies must take responsibility for their role in addressing the climate crisis. This is not only to protect the planet but also to safeguard their own financial future and that of their investors.

Wells Fargo has long been one of the largest financiers of fossil fuel projects. Between 2006 and 2023, the bank provided over $296 billion in funding to the fossil fuel industry, ranking as the fifth-largest financier of fossil fuels since the Paris Agreement was signed. With this latest move to abandon its net-zero commitment, Wells Fargo is likely to continue its substantial investments in fossil fuel projects, which pose significant financial and reputational risks to both the bank and its shareholders.

At Investor Advocates for Social Justice (IASJ), we have been working on behalf of investors to push for policies at Wells Fargo that are more consistent with international climate standards and human rights frameworks. In particular, we focus on climate justice and protecting Indigenous Peoples’ rights, recognizing the direct link between climate change and human rights violations. Indigenous communities are often on the front lines of extraction and development projects, which makes them disproportionately vulnerable to the impacts of climate change. On behalf of the American Baptist Home Mission Societies (ABHMS), IASJ has filed a shareholder resolution with Wells Fargo this year on Indigenous Peoples’ Rights.

Gina Haas, Director of Investments at ABHMS, emphasizes this concern: “Wells Fargo’s decision to reverse its climate commitments is deeply concerning both from a moral and a financial perspective. As faith-based investors, we believe corporate responsibility requires addressing climate change and its impacts on communities. Rolling back these commitments not only exposes us as investors to long-term risks but also undermines the bank’s responsibility to the people and planet impacted by their financial decisions.” 

This year, Wells Fargo also challenged ABHMS’s proposal with the Securities and Exchange Commission (SEC) in an attempt to silence shareholder concerns. This last-minute challenge relied on new SEC guidelines introduced under the current administration, highlighting Wells Fargo’s eagerness to backtrack on accountability at the first opportunity. The SEC did not concur with Wells Fargo’s argument and the proposal will be going to a vote.

We call on Wells Fargo to reinstate its alignment with international climate standards. Wells Fargo’s decision to abandon its climate commitments represents a serious setback in addressing the climate crisis, particularly for Indigenous communities that are disproportionately affected by fossil fuel extraction. As one of the largest financiers of fossil fuels, the bank’s continued support for harmful projects poses significant risks not only to the environment but also to investors.

Additional Resources:
ESG Drive Article: US banks turn to SEC to dodge climate, social shareholder proposals
IASJ’s Advocacy Matters Blog Post: Financing Harm: The Link Between Banks, Fossil Fuels, and Indigenous Peoples’ Rights
Sierra Club’s Statement: Wells Fargo Becomes First Major US Bank to Abandon its Net-Zero Commitment