Wells Fargo & Co unveiled new targets to reduce greenhouse gas emissions, including goals to reduce the 'absolute emissions' related to its financing of companies in the oil and gas sector, an executive said Thursday.
Register now for FREE unlimited access to Reuters.comunveiled new targets to reduce greenhouse gas emissions, including goals to reduce the "absolute emissions" related to its financing of companies in the oil and gas sector, an executive said Thursday.
Wells is the latest big U.S. bank to set targets to reduce the emissions it finances through lending, in line with the United Nations-convened Net Zero Banking Alliance.The bank's interim targets aim to reduce absolute emissions by companies it lends to in the oil and gas sector by 26% by 2030 from 2019 levels, and to reduce portfolio "emissions intensity" - a measure of emissions relative to output - in the power sector by 60% during the same period.
The bank's goal to reduce oil and gas emissions across scopes 1, 2 and 3 is based on projections that incorporate planned reductions in emissions by companies and consumer adoption of electrical vehicles. Direct and indirect greenhouse gas emissions are known as Scope 1 and 2 emissions, while emissions generated by suppliers and partners are referred to as Scope 3 emissions, and are considered much more challenging to track and reduce.
"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's treasury strategic programs.