Wells Fargo Exits Net-Zero Banking Alliance Amid Pressures from Texas Attorney General's Review

Wells Fargo Exits Net-Zero Banking Alliance Amid Pressures from Texas Attorney General's Review

Wells Fargo has officially withdrawn from the Net-Zero Banking Alliance (NZBA), a move expected to impact the financial and energy sectors.

The bank's departure from the organization, which advocates for net-zero greenhouse gas emissions, was confirmed on Thursday.

This decision follows concerns raised by Texas Attorney General Ken Paxton, who has been examining financial institutions for potential boycotts of the fossil fuel industry.

According to a release from the Texas Attorney General's office, the review of Wells Fargo's affiliation with the NZBA was prompted by Senate Bill 13, a Texas law designed to prevent governmental entities from conducting business with companies that might actively be seeking to ostracize the oil and gas sector.

Wells Fargo chose to quickly respond to the Attorney General's urging, a move that has subsequently allowed them to freely resume business operations with state entities.

Attorney General Paxton, in a statement obtained by the Texas Attorney General’s office, expressed his satisfaction with Wells Fargo's decision, remarking, "This is great news for Texas. On August 21, I strongly encouraged that Wells Fargo leave Net-Zero Banking Alliance due to its unlawful ESG commitments. On December 19, Wells Fargo confirmed that they would leave NZBA because of my request." He further noted the importance of other financial institutions to take note and similarly reassess their policies.

SOURCE: hoodline