Wells Fargo Drops ESG Commitments Under Multi-State Legal Pressure

HELENA, MT – In a landmark decision prompted by a multi-state legal push, Wells Fargo has announced its withdrawal from Environmental, Social, and Governance (ESG) commitments, notably its goal to achieve net-zero greenhouse gas emissions by 2050. This policy change, originally in line with the United Nations’ Net-Zero Banking Alliance’s targets, comes after Montana Attorney General Austin Knudsen, along with 18 other state AGs, launched a probe into potentially deceptive ESG trade practices under Montana’s Consumer Protection Act.

“Wells Fargo’s decision to withdraw its anti-energy goals is a pivotal move showing we are effectively countering the undue political pressures,” AG Knudsen stated. He underscored his firm commitment to ensuring that no corporation or financial institution subverts customer and market needs for political gains.

The inquiry into Wells Fargo began alongside investigations into other major financial entities like Bank of America, Citigroup, Goldman Sachs, JP Morgan Chase, and Morgan Stanley. These banks, which had collectively pledged to match the NZBA’s goals, all left the alliance in 2024. The ongoing scrutiny emphasizes Knudsen’s resolve to root out any financial practices prioritizing political objectives over genuine consumer and market essentials.

The backpedaling by Wells Fargo from ESG commitments, amid heavy legal and public scrutiny, may set a precedent for other banks. This shift underscores a broader trend of financial institutions moving away from politically-driven strategies that placed non-market priorities at the forefront over authentic market dynamics and client needs.