Ross Kerber, Elizabeth Dilts Marshall

NEW YORK/BOSTON (Reuters) – Wells Fargo (NYSE:) & 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.

Wells is the latest U.S. banking giant to establish targets for reducing the amount of emissions from lending it, as per the United Nations Net Zero Banking Alliance.

Interim targets for the bank include reducing absolute emissions from oil and gas companies by 26% by 2030, compared to 2019 levels. Portfolio “emissions intensity” in the power sector will also be reduced by 60% by the end of the period.

Details that follow the same targets as a rival bank Citigroup Inc (NYSE 🙂 will help the bank achieve its overall goal to reduce net greenhouse gas emissions by 20% by 2050.

Based on projected reductions by businesses and consumers of electric vehicles, the bank has set itself the goal to lower oil and gas emission across all three scopes.

Scope 1 and 2 are the two types of greenhouse gas emissions. Scope 3 emissions result from indirect emissions. These emissions can also be tracked and reduced by partners, suppliers, or other third parties.

Nathan Lebioda (head of Wells Fargo’s Treasury Strategic Programs) stated that “We believed with the oil-and gas sector, the absolute measure was the best path to follow.”

Citigroup Inc announced in January it plans to reduce the emissions of companies from its energy loan portfolio by 29% before 2030. Others have focused on reducing clients’ emissions intensity, a strategy that is not supported by climate activists.

According to climate activists, Wells Fargo was third among all global banks in providing fossil fuel support for $272 billion between 2016 and 2021. Some opponents claimed Wells’s goals were in conflict with its support of fossil fuel expansion.

Alison Kirsch from Rainforest Action Network’s research and policy management, stated in a statement that “any target that does not check this box will fail to pass muster among activists or investors.”

Other people gave Wells Fargo better marks.

Dan Saccardi from Ceres Company Network stated by email that “these targets include strong methodology which extends beyond lending and includes capital market activity.”