Wells Fargo Exits Net-Zero Banking Alliance Following Pressure from Texas AG Paxton

Dec 20, 2024, 03:44 PM

Wells Fargo & Co. has announced its withdrawal from the Net-Zero Banking Alliance (NZBA), the world's largest climate alliance for banks. This move marks the latest in a series of high-profile exits from climate-focused groups by Wall Street firms, amid increasing political pressure. The decision follows a review by Texas Attorney General Ken Paxton, who had encouraged Wells Fargo to leave the NZBA due to its environmental, social, and governance (ESG) commitments, which he deemed unlawful. The withdrawal comes after similar actions by other major financial institutions, including Goldman Sachs, as they navigate the shifting landscape of ESG initiatives. Additionally, support for ESG investing is reportedly dwindling, with multiple blue-chip companies dropping ESG terms from their loans.