Regan Brown
Wells Fargo has been criticized for its involvement in fossil fuel financing. Between 2016 and 2021, the bank provided $272 billion in lending and underwriting to the fossil fuel industry, with its fossil fuel financing increasing by $20 billion from 2020 to 2021, the highest increase of any global bank. Despite committing to net-zero financed emissions by 2050, Wells Fargo's targets do not include plans for phasing out fossil fuel finance, and the bank continues to fund fossil fuel expansion.
| Characteristics | Values |
|---|---|
| Fossil fuel backing from 2016 to 2021 | $272 billion |
| Fossil fuel financing increase from 2020 to 2021 | $20 billion |
| Fossil fuel financing in 2021 | $46.2 billion |
| Fracking financing in 2021 | $8.5 billion |
| Commitment to net-zero emissions | By 2050 |
| Absolute emissions reduction targets for oil and gas sector | 26% by 2030 |
| Emission intensity reduction targets for power sector | 60% by 2030 |
| Top fossil fuel clients from 2016 to 2021 | Pioneer Natural Resources, Diamondback Energy, Marathon Petroleum |
| Fossil fuel financing focus on fracking | 22% |
| Fossil fuel financing from 2016 to 2019 | Second-highest among global banks |
| Fracking financing from 2016 to 2020 | Highest among global banks |
| Coal policies compared to other US banks | Weakest |
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What You'll Learn
Wells Fargo's funding of fossil fuels
Wells Fargo has been criticized for its involvement in funding fossil fuels. In 2022, Wells Fargo was the last of the big US banks to set 2030 emissions targets. Between 2016 and 2021, Wells Fargo provided $272 billion in lending and underwriting to the fossil fuel industry, ranking third among global banks. Its fossil fuel financing increased by $20 billion from 2020 to 2021, the highest increase of any global bank. Notably, Wells Fargo was the world's second-worst banker of fossil fuels between 2016 and 2019 and the worst banker of fracking between 2016 and August 2020.
In 2021, Wells Fargo provided $8.5 billion in financing to fracking companies, even surpassing JPMorgan. The bank's top two fossil fuel clients between 2016 and 2021 were fracking giants Pioneer Natural Resources ($21 billion) and Diamondback Energy ($14.2 billion). Despite this, Wells Fargo has touted its $10 billion investment in renewables, which is far outweighed by its $46.2 billion investment in fossil fuels in 2021.
In March 2021, Wells Fargo committed to achieving net-zero financed emissions by 2050. However, critics argue that this pledge lacks credibility due to its recent increases in fossil fuel funding. Wells Fargo's net-zero plan includes targets to reduce absolute emissions in the oil and gas sector by 26% and emissions intensity in the power sector by 60% by 2030. However, these targets do not explicitly prevent the bank from financing fossil fuel expansion.
Wells Fargo's involvement in funding fossil fuels has drawn criticism from climate activists and investors. While the bank has set emissions reduction targets, its continued support for fossil fuel expansion calls into question its commitment to addressing the climate crisis. Wells Fargo's funding has contributed to the expansion of fracking, a method of extracting oil and gas that has significant negative consequences, including contaminating groundwater, triggering earthquakes, and harming the health of nearby communities and the environment.
In summary, Wells Fargo has been a significant funder of fossil fuels, particularly fracking. While the bank has committed to reducing emissions and joined the Net Zero Banking Alliance, its actions fall short of addressing the urgent need to phase out fossil fuel financing. Wells Fargo's funding of fossil fuels contradicts its claims of addressing the climate crisis and raises concerns about greenwashing.
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Net-zero commitments
Wells Fargo has been criticised for its role in funding fossil fuels, particularly fracking. In 2021, the bank provided $8.5 billion in financing to fracking companies, and between 2016 and 2021, it was the world's second-worst banker of fossil fuels and the worst banker of fracking.
In March 2021, Wells Fargo committed to achieving net-zero financed emissions by 2050. The bank's net-zero plan included interim targets to reduce absolute emissions in the oil and gas sector by 26% and emissions intensity in the power sector by 60% by 2030. However, these targets do not explicitly prevent the bank from financing fossil fuel expansion, and Wells Fargo has not ruled out continued financing of fossil fuels.
In October 2021, Wells Fargo joined the Net-Zero Banking Alliance (NZBA), which commits members to aligning their financial activities with the aim of reaching net-zero emissions by 2050. However, NZBA banks continue to fund fossil fuels, and Wells Fargo's membership in the alliance does not guarantee substantive action on climate change.
In March 2025, Wells Fargo scrapped its net-zero financed emissions goal and discontinued its 2030 sector-specific targets on financed emissions. The bank cited factors outside its control, such as public policy, consumer attitudes, and technology shifts, as reasons for abandoning its targets. Despite this, Wells Fargo stated that it would continue to provide financing and expertise to help clients pursue their sustainability goals and maintain its other sustainability commitments, including achieving net-zero emissions across its operations by 2050 and deploying $500 billion in sustainable finance by 2030.
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Fracking
Wells Fargo has been the focus of climate activists and investors due to its funding of fossil fuel projects, including fracking. Fracking, or hydraulic fracturing, is a method of extracting oil and gas by pumping high-pressure fluid into rock to create fractures that release natural gas. The process has negative environmental and health consequences, such as contaminating groundwater and releasing harmful particles and gases into the atmosphere.
Wells Fargo has been a major funder of fracking, providing billions of dollars in lending and underwriting to the fossil fuel industry. In 2021, the bank was the world's biggest banker of fracking, with its top two fossil fuel clients being fracking giants Pioneer Natural Resources and Diamondback Energy. Despite its commitment to net-zero financed emissions by 2050, Wells Fargo's targets do not explicitly prevent the bank from financing fossil fuel expansion. The bank's oil and gas targets include upstream and downstream companies but exclude midstream companies, which is a significant loophole.
In 2021, Wells Fargo provided $8.5 billion in financing to fracking companies, an increase from previous years. The bank's net-zero plan includes interim targets to reduce absolute emissions in the oil and gas sector by 26% and emissions intensity in the power sector by 60% by 2030. However, these targets do not include midstream emissions, which is a major weakness. Wells Fargo has also faced criticism for its weak policies on coal, which still allow for corporate financing and enable fossil fuel expansion.
Climate activists and investors have expressed concern over Wells Fargo's continued funding of fossil fuel expansion and the lack of concrete actions to address the climate crisis. The bank has faced votes at shareholder meetings and protests calling for it to adopt policies that proactively ensure its lending does not contribute to new fossil fuel development. While Wells Fargo has acknowledged the urgency of climate change and committed to the Paris Agreement, its pledges and targets have been criticized as insufficient to address the scale of the climate crisis.
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Emissions targets
Wells Fargo has been criticised for its role in financing fossil fuels and for failing to take sufficient action to address the climate crisis. In 2022, it was the last of the big US banks to set emissions targets, with Rainforest Action Network calling on the bank to take concrete action to stop funding fossil fuel expansion.
In March 2021, Wells Fargo committed to achieving net-zero emissions across its financed portfolio by 2050. The bank's plan included a commitment to reduce absolute financed emissions from the oil and gas sector by 26% and financed emissions intensity from the power sector by 60% by 2030. However, these targets were criticised for not explicitly preventing the bank from financing fossil fuel expansion and for not including targets for midstream companies, a major loophole.
Wells Fargo has also been criticised for increasing its funding for fracking in recent years and for having weak policies on coal. In 2021, the bank provided $8.5 billion in financing to fracking companies, surpassing JPMorgan. While Wells Fargo has claimed that it is not providing new financing for the coal industry, shareholder resolutions and reports have suggested that the bank is still providing funding for coal-related projects, such as the Enbridge Line 3 tar sands pipeline expansion.
In March 2022, Wells Fargo became the last major US bank to make an explicit commitment to achieve net-zero financed emissions by 2050, following other banks such as Morgan Stanley, Bank of America, Citi, and Goldman Sachs. However, this commitment has been criticised for lacking concrete action and for not including restrictions on fossil fuel financing. In 2023, Wells Fargo abandoned its 2030 sector-specific interim financed emissions targets and its 2050 net-zero goal for financed emissions, citing factors outside its control such as public policy and consumer behaviour. The bank will, however, continue to pursue its 2030 operational sustainability goals and its 2050 target for its own operational emissions.
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Climate crisis
Wells Fargo has been criticised for its role in the climate crisis. The bank has been a major funder of fossil fuels, providing $272 billion in lending and underwriting to the fossil fuel industry between 2016 and 2021, making it the third-largest among global banks. Its fossil fuel financing has increased, with a $20 billion increase from 2020 to 2021, the most of any global bank. Notably, Wells Fargo was the world's second-worst banker of fossil fuels between 2016 and 2019 and the worst banker of fracking between 2016 and August 2020. In 2021, the bank provided $8.5 billion in financing to fracking companies, surpassing JPMorgan.
Wells Fargo has been criticised for its weak policies on coal and its continued financing of fossil fuel expansion. The bank's commitment to net-zero emissions by 2050 has been viewed as insufficient, with critics arguing that immediate action is needed to address the climate crisis. Wells Fargo's net-zero plan includes targets to reduce absolute emissions in the oil and gas sector by 26% and emissions intensity in the power sector by 60% by 2030. However, these targets do not explicitly prevent the bank from financing fossil fuel expansion, and the plan has been criticised for lacking concrete actions to stop funding fossil fuels.
In response to criticism, Wells Fargo has defended its actions, claiming that it is committed to addressing climate change. The bank has joined the Net-Zero Banking Alliance (NZBA) and has set emissions reduction targets for its oil, gas, and power clients. However, critics argue that Wells Fargo's targets are inadequate and that its membership in the NZBA does not guarantee an end to fossil fuel funding.
The climate crisis demands urgent action, and banks like Wells Fargo have a significant responsibility to address their contribution to the crisis. While Wells Fargo has made commitments to reduce emissions, these must be matched by concrete actions to stop funding fossil fuel expansion and set timelines for phasing out fossil fuel financing. The bank's actions will be closely watched by climate activists and investors, who expect meaningful progress in addressing the climate crisis.
Overall, Wells Fargo's role in the climate crisis is undeniable, and the bank faces pressure to align its actions with its commitments to address the urgent challenge of climate change.
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Frequently asked questions
Yes, Wells Fargo has funded fossil fuels. Between 2016 and 2021, Wells Fargo provided $272 billion in lending and underwriting to the fossil fuel industry, the third-largest among global banks. Its fossil financing increased by $20 billion from 2020 to 2021, more than any other global bank.
Yes, Wells Fargo has committed to reaching net-zero financed emissions by 2050. Their plan includes reducing absolute financed emissions from the oil and gas sector by 26% and financed emissions intensity from the power sector by 60% by 2030. However, critics argue that these targets do not explicitly prevent the bank from financing fossil fuel expansion and that Wells Fargo's actions do not match its pledges.
Wells Fargo has been called the world's second or third-biggest banker of fossil fuels. In 2021, it provided $8.5 billion in financing to fracking companies, surpassing JPMorgan. Wells Fargo was also the top banker of fracking in 2020 and the worst banker of fracking between 2016 and August 2020.
