Wells Fargo has officially abandoned its commitment to achieving net-zero emissions by 2050, prompting Montana Attorney General Austin Knudsen to close his investigation into the bank’s Environmental, Social, and Governance (ESG) policies. The move follows a broader controversy over whether financial institutions should consider climate-related targets in their lending practices.
The investigation, launched in October 2022 by Knudsen and 18 other state attorneys general, focused on whether Wells Fargo and five other major banks—Bank of America, Citigroup, Goldman Sachs, JP Morgan Chase, and Morgan Stanley—engaged in deceptive trade practices under Montana’s Consumer Protection Act. The banks had aligned their lending policies with the United Nations’ Net-Zero Banking Alliance (NZBA), a global initiative promoting reduced financing for fossil fuel-related businesses to combat climate change.
Knudsen and other attorneys general argued that such commitments amounted to an “anti-energy” stance that could illegally restrict credit access for companies involved in oil, gas, and coal industries. Critics of ESG policies claim they allow corporations to prioritize political and environmental agendas over financial performance and consumer interests.
“Wells Fargo’s decision to abandon its anti-energy goals is a good indicator we’re turning the tide in the left’s war on American energy,” Knudsen said in a statement. “But as Attorney General, I won’t let up on my commitment to hold corporations and financial institutions accountable that illegally put the political agendas of their allies ahead of what’s best for their customers and shareholders.”
All six banks targeted in the investigation left the NZBA in 2024, but Wells Fargo is the first to explicitly roll back its net-zero goals, stating it would be “discontinuing our sector-specific 2030 interim financed emissions targets and our goal to achieve net zero by 2050 for financed emissions.”
While Knudsen has closed the case against Wells Fargo, investigations into the remaining five banks remain ongoing, setting the stage for continued legal battles over the role of ESG initiatives in the financial sector. The decision is likely to intensify the national debate over whether banks should be able to adopt climate-related policies or if such commitments interfere with free-market principles and consumer rights.