(Reuters) – Wells Fargo (NYSE:) has withdrawn from a group of global banks committed to reducing greenhouse gas emissions, increasing the number of high-profile companies pulling out of climate initiatives amid mounting political pressure.
The bank has terminated its membership in the Net-Zero Banking Alliance, a spokesperson said Friday, two weeks after another notable departure by Goldman Sachs.
Financial companies, long criticized for their ties to the fossil fuel industry, have sought to integrate zero-neutrality standards more prominently into their operations. But recently they’ve started rolling back some of those initiatives to avoid irritating Republicans.
GOP officials have been cracking down on companies they see as climate-friendly. Last month, asset management giants BlackRock (NYSE:), Vanguard and State Street (NYSE:) were accused of violating antitrust law through climate activism in a lawsuit by Texas and ten other Republican-led states.
Wells Fargo, however, did not provide a reason for this move.
“The alliance prefers not to see a bank holiday, but respects the decision Wells Fargo has made based on its own individual circumstances,” an NZBA spokesperson said.
The NZBA is a group of banks “committed to aligning their lending and investment portfolios with net-zero emissions by 2050,” according to its website.
Since the UN-backed alliance was formed in April 2021, it has attracted more than 100 banks, while five have left, the group’s spokesman said.
“The overall increase in membership shows how important understanding climate risk and the net zero transition has become for banks and businesses around the world,” she added.
Wells Fargo’s departure was first reported by Bloomberg News earlier on Friday.
