Wells Fargo

RATING

SECTOR

Financial Services

WEBSITE

CONTACT

Wells Fargo Headquarters
420 Montgomery Street,
San Francisco,
California 94104, U.S.

Tel: 00 800 9564 4422 
Fax: 1-844-879-0544
Email: info@wellsfargo.com

 

STOCK EXCHANGE

LISTING

  • #1 Banking and Financial Services organizations in the U.S. Environmental Protection Agency’s Green Power Partnership National Top 100, and #4 overall 
  • #2 Most Generous Cash Donor (U.S.) (2018) The Chronicle of Philanthropy 
  • Green Power Partnership National Top 100 
  • No. 1 workplace giving campaign for the 10th consecutive year, United Way Worldwide  
  • A-  on CDP awarded
  •  14th Top Company for LGBT Employees (2019) DiversityInc 
  • 13th Top Company For Diversity (2019) DiversityInc
  • 21st best company for Latinas (2019) LATINA Style
  • 5 Star Company, Corporate Inclusion Index (2019) Hispanic Association on Corporate Responsibility
  • GEI member, 2020 Bloomberg GenderEquality Index 
  •  Leading Disability Employer Seal (2019) National Organization on Disability 
  • 2019 Military Friendly Employers® • 2019 Military Spouse Friendly Employer® 
  • Top 50 most community-minded companies (2019) Points of Light 
  • Perfect Score – 100 Corporate Equality Index (2020, 17th year) Human Rights Campaign 

EMPLOYEES

259,800

CHIEF SUSTAINABILITY OFFICER

Mary Wenzel

AWARDS

  • 2019 Citizens Award from the U.S. Chamber of Commerce Foundation for Best Environmental Stewardship Program
  • NeighborhoodLIFT® received the American Bankers Association Foundation’s highest honor with its 2019 Community Commitment Award for Affordable Housing 

CONTENT SOURCE

FURTHER READING

Report created by Maribel Sabino

 

Wells Fargo

SECTIONS :  Sustainability    Evaluation  •  Progress  •  Watch  •  Overview

 

Company Activity

Wells Fargo & Company is a diversified, community-based financial services company with $1.9 trillion in assets.

Founded in 1852, and headquartered in San Francisco, California, Wells Fargo provides banking, investment, and mortgage products and services, as well as consumer and commercial finance to support customers who conduct business in the global economy.

In February 2020, the bank announced a new organizational structure with five principal lines of business designed to create a fatter organizational structure and provide leaders with clear authority, accountability, and responsibility. In July 2020, the company completed the transition to this new organizational structure, including the finalization of leadership for these principals.

Wells Fargo’s five principal lines of business are:

  • Commercial Banking
  • Consumer & Small Business Banking
  • Consumer Lending
  • Corporate & Investment Banking
  • Wealth & Investment Management

Wells Fargo is committed to making a positive impact by helping people and communities succeed financially – and creating solutions for a stronger, more sustainable future where everyone can grow and prosper. 

Wells Fargo has long been committed to market-competitive compensation, career-development opportunities, a broad array of benefits, comprehensive health care coverage, 401(k) matching contributions, parental and critical caregiving leave, and strong work-life programs. Approximately 60% of Wells Fargo’s non-interest expense represents compensation and benefits.

Company Sustainability Activity

Wells Fargo is taking an active role in addressing pressing societal challenges to drive a positive impact. The company is committed to fostering a culture of environmental stewardship, which includes, finding new ways to minimize energy consumption and investing in renewable sources of energy to power their operations.

Operating with greater efficiency helps to achieve cost savings, enhance their team member experience, minimize their impact on the environment, manage risks associated with environmental performance, and set a positive example for the business community.

In 2016, Wells Fargo established an integrated, companywide corporate responsibility strategy which includes an ambitious set of goals to leverage its products and services, culture and business practices, and philanthropy to help address these global challenges over a five-year period. Their ESG Goals and Performance Data reflect progress against its goals in the following areas of priority:

  • Diversity and inclusion 
  • Economic empowerment
  • Environmental sustainability

In 2020, Wells Fargo transitioned its annual corporate responsibility reporting to environmental, social, and governance (ESG) reporting.

Wells Fargo discloses its reporting methodology to help stakeholders better understand their working definition of sustainable finance for purposes of measuring the company’s progress towards this commitment. This information is disclosed in the following reports:

Wells Fargo’s sustainable finance reporting is guided by the Green Bond Principles and Climate Bonds Initiative, and alignment with the United Nations (UN) Sustainable Development Goals

Highlights

  • Wells Fargo is committed to providing $200 billion from 2018-2030 to support environmental sustainability; with 50% of its commitment going towards low-carbon opportunities.
  • Wells Fargo continues to purchase renewable electricity to meet 100% of their global operations needs
  • Wells Fargo transitions to long-term agreements that fund new sources of green power by 2020
  • Sustain or increase their 45% reduction in greenhouse gas emissions from 2008 levels
  • Reduce energy consumption by 40% (2008 to 2020)
  • Wells- Fargo achieved LEED® status for 35% of buildings

Targets

ENVIRONMENTAL SUSTAINABILITY

  • Contribute to the Clean Trillion Initiative, a nonprofit sustainability advocacy organization Ceres, with an additional $1 trillion per year in clean energy investment will be needed to limit global temperature rise to below 2° Celsius.
  • Wells Fargo aims to sustain or increase their 45% reduction in greenhouse gas emissions from 2008 levels.
  • Wells Fargo aims to provide $200 billion in businesses and projects by 2030 and use 50% of the investment toward low-carbon opportunities.
  • Wells Fargo strives to provide $65 million to increase overall giving to critical environmental needs 
  • Wells Fargo set a target to purchase renewable electricity to meet 100% of their global operations needs by the close of 2017
  • Wells Fargo aims to transition to long-term agreements that fund new sources of green power by 2020
  • Goal to reduce energy consumption by 40%
  • Wells Fargo aims to achieve LEED® certification for 35% of buildings
  • Goal to reduce water consumption 65%
  • Strive to reduce total waste stream 50%
  • Aiming to enhance the sustainability of the supply chain
  • Striving to achieve 250,000 team member commitments to improving sustainability.

COMMUNITY IMPACT

  • Wells Fargo will build and improve 1,000 homes for low- and moderate-income households.
  • Support and administer the WE Care Fund
  • Wells Fargo aims to provide $500 million to increase their overall giving to critical economic needs.
  • In the works of helping 12 million customers better manage their credit scores. 
  • Aim to extend $175 million to Community Development Financial Institutions (CDFIs) serving diverse small businesses.
  • Wells Fargo has set the goal to originate $150 billion in new purchase loans to minority households. 
  • Aiming to originate $70 billion in new purchase loans to low- and moderate-income households.
  • Wells Fargo strives to achieve 8.5 million team member hours volunteer hours with 40% team member participation.
  • The company has set the target to provide down payment assistance to more than 4,000 lower-income homebuyers. 
  • Strive to provide $100 million to increase their overall giving to critical social needs.
  • Wells Fargo will invest in emerging technologies and innovative solutions to meet changing customer preferences.

DIVERSITY AND INCLUSION

  • Wells Fargo aims to increase participation in team member volunteer groups by 30%.
  • They strive to increase the veteran team member population to 20,000. 
  • The company strives for 15% of procurement spend with diverse suppliers and build capacity through supplier development

HEALTH AND SAFETY

  • Wells Fargo will work to enhance human rights risk management and reporting.
 

Progress

REDUCING ENVIRONMENTAL IMPACT

  • Wells Fargo provided approximately $23 billion to financing sustainable businesses and projects with 63% toward low-carbon opportunities.
  • Wells Fargo provided $30.1 million to meet critical environmental needs.
    • $6.7 million to advance clean technology and innovation.
    • $3.4 million to support environmental education.
    • $20.0 million to foster resilient communities.
  • Wells Fargo purchased renewable energy certificates (RECs) to meet 2018 global electricity needs.
  • The company supported the Bangalore off-site solar asset and Minnesota Community Solar Garden program through long-term agreements representing 18,000-megawatt hours (MWh) annually of net new capacity to the grid.
  • Wells Fargo achieved 8,900 MTCO2e reduction, equivalent to emissions of 1,890 passenger vehicles driven for one year.
  • 19,900 MWh energy usage reduction, equivalent to 1,600 homes’ annual energy use.
  • Wells Fargo achieved over 470,000 square feet of LEED-certified projects, equivalent to eight football fields.
  • They reduced 23 million gallons of water, equivalent to giving everyone in Los Angeles six 16-oz water bottles.
  • The company reduced the 20 million pound waste stream, equivalent to 700 full 1 dump trucks worth of trash. 
  • Wells Fargo was recognized as a CDP Supplier Engagement Leader.
  • Wells Fargo made 36,250 new team member commitments to improve sustainability.
  • Wells Fargo currently does not directly or indirectly provide new financing or is in the process of exiting existing relationships or reducing our exposure as contracts expire for the following activities or customers involved in the:
    • Coal industry, including companies deriving profits from mountaintop removal coal operations, or any project associated with the expansion of an existing or development of a new coal mine or new coal-fired power plant
    • Equator Principles in-scope transactions in the Alaskan Arctic region
    • Modern slavery, servitude, forced or compulsory labor (including child labor), and human trafficking
    • Private prison companies and immigrant detention centers

COMMUNITY IMPACT

  • In 2018, Wells Fargo launched several products and services to help customers better manage their money and spending in a more convenient, proactive way.
  • Wells Fargo provided $40.3 million to meet social needs
    • $16.6 million to advance social inclusion social needs.
    • $11.0 million to increase the financial capability of diverse consumers.
    • $12.7 million to develop women and diverse leaders.
  • The company achieved 2.04 million hours of volunteering (5.8 million hours since 2016) with 35.6% of employees participating. 
  • The company had a 9% increase in participation in team member volunteer groups.
  • Wells Fargo spent $1.36 billion on diverse suppliers or spent 11.7% of total procurement; surpassing the financial services industry average of 9.3%.
  • They helped 4 million customers better manage their credit scores.
  • The company extended $39.7 million to Community Development Financial Institutions (CDFIs) serving diverse small businesses.
  • They originated $35 billion in new purchase loans to minority households.
  • They originated $15.3 billion in new purchase loans to low- and moderate-income households.
  • Wells Fargo provided homebuyer education to 3,665 lower-income homebuyers.
  • They provided down payment assistance to more than 3,922 lower-income homebuyers.
  • Wells Fargo provided $139.3 million to increase its giving to society’s critical economic needs.
    • $7.3 million to increase the financial capability
    • $25.4 million to empower small businesses
    • $106.6 million to strengthen communities and families through sustainable housing
  • The company provided 2,804 grants totaling $4.9 million awarded to team members of  the WE Care Fund
  • Wells Fargo reallocated $175 million from the Wells Fargo Foundation to help address food shortages, public health needs, financial health, small business stability, and housing security for the most vulnerable populations
  • In 2017, the company brought further focus to its work to increase the number of LMI and minority homeowners with the launch of Advancing Homeownership®
    • $125 billion in home purchase loans for Hispanic homebuyers 
    • $60 billion in loans for Black and African American homebuyers

HEALTH AND SAFETY

  • Wells Fargo has enhanced human rights due diligence and started to develop and roll out human rights training.
 

Certificates

UN Sustainable Development Goals

UN SDGs Compliance

SDG 1: No Poverty

  • Wells Fargo works with a wide range of community organizations and government agencies to help underserved individuals and families gain access to banking, learn to manage their finances, and ultimately become more financially stable.
    • Wells Fargo committed $2 million over four years to help the Cities for Financial Empowerment Fund to launch its Bank On Fellowship program, supporting locally-led coalitions in delivering greater access to banking and financial education.
  • Since 2009, the Wells Fargo Home Lending team has provided more than 12.7 million homeowners with loans to either purchase a home or refinance an existing mortgage.
  • In 2018, Wells Fargo originated $15.3 billion in new purchase loans to low- and moderate-income households, putting the company on track to meet the goal of $70 billion by 2020.
  • Wells Fargo also originated $35 billion in new purchase loans to minority households in 2018, contributing to the goal of $150 billion by 2020. 

SDG 5: Gender Equality

  • 57% of Wells Fargo’s workforce is female. Named to Women’s Business Enterprise National Council (WBENC) Top Corporation Hall of Fame for their commitment to women-owned businesses, including $392 million spent with women-owned businesses.
  • Wells Fargo has been committed to market-competitive compensation, career-development opportunities, a broad array of benefits, comprehensive health care coverage, 401(k) matching contributions, parental and critical caregiving leave, and strong work-life programs.
  • Approximately 60% of Wells Fargo’s noninterest expense represents compensation and benefits. To support women aspiring to run science, technology, engineering, and mathematics (STEM) businesses, Wells Fargo teamed up with STEM Connector to fund the Million Women Mentors Entrepreneurship Initiative (MWM-Ei) Mentor Program

SDG 7: Affordable and Clean Energy

  • In 2018, Wells Fargo announced an ambitious and multi-faceted sustainable finance commitment anchored around a pledge to provide $200 billion in financing to sustainable businesses and projects between 2018 and 2030.
  • They aim to finance clean technology and renewable energy transactions and invest in environmentally beneficial companies and projects.
  • Wells Fargo intends to meet 100% of its global electricity needs with renewable energy and entered into its largest long-term renewable energy purchase to date. 

SDG 8: Decent Work and Economic Growth

  • Wells Fargo’s diversity and inclusion values of respect, openness, and growth are ingrained in their business decisions and in community advocacy. The firm recognizes the opportunity that working with diverse business owners presents and they pursue opportunities to engage the diverse supplier community, increase diverse spending, and build capacity and expertise for high-potential diverse suppliers.
  • They’re committed to further expanding Wells Fargo’s diverse supplier pipeline, and they’ve set an ambitious goal to achieve 15% of their procurement spend with diverse suppliers.
  • In 2018, the company achieved $1.36 billion in diverse supplier spend, representing 11.7% of their total procurement spend. They also launched a new learning platform, Develop You, to support the career growth and development of the company’s employees.

SDG 10: Reduced Inequality

  • Wells Fargo is advancing diversity and inclusion – helping ensure that all people across our workforce, our communities, and our supply chain feel valued and respected and have equal access to resources, services, products, and opportunities to succeed.
  • Require diverse candidate slates and interview teams for key roles at Wells Fargo with total direct compensation of more than $100,000.
  • Launch a “returnship” program focused on diverse talent who have been out of the workforce for an extended period to support their return to the industry
    • Build a formal development program for high-potential employees to create a more diverse and inclusive talent pipeline
    • Expand the reach of early talent program recruiting by increasing our participation in the US with Hispanic-serving institutions (HSIs) and historically black colleges and universities (HBCUs); this includes in-person and virtual diversity events.

SDG 11: Sustainable Cities and Communities

  • Wells Fargo contributed $9.7 million to the American Red Cross and other local nonprofits to support communities hit by devastating hurricanes, flooding, and wildfires, up from $4.1 million in 2017.
  • Wells Fargo dispatched its Mobile Response Unit and Customer Assistance Recovery Effort (CARE) team of volunteers to set up mobile recovery centers to help customers dealing with property damage and insurance policies, as well as questions about certain fees on auto and other personal loans, credit cards, lines of credit, and other services.
  • Nationwide, Wells Fargo waived $34 million in fees for customers recovering from various disasters in 2018.
  • The company committed $1 billion in philanthropic capital to address the U.S. housing affordability crisis through 2025. Since 2009, the Wells Fargo Home Lending team has provided more than 12.7 million homeowners with loans to either purchase a home or refinance an existing mortgage. 

SDG 13: Climate Action

  • In 2018, Wells Fargo expanded the Wells Fargo Innovation Incubator (IN²) program to advance technologies that address the interconnection of food, water, and energy. To support this new focus area, they added the Donald Danforth Plant Science Center, the world’s largest independent plant science institute, as a strategic partner to help develop and validate promising agricultural technologies that address critical sustainability challenges. Working with the Danforth Center, they’re launching the first cohort of startups working at this important intersection in 2019. Provided ~$26 billion in financing to sustainable businesses and projects to accelerate the transition to a low-carbon economy; bringing the cumulative total to ~$49 billion of their $200 billion commitment.  
 

Evaluation

Wells Fargo is committed to help address society’s most pressing and complex challenges and has effectively incorporated sustainability throughout its business model. The company is committed to fostering a culture of environmental stewardship, which includes, finding new ways to minimize energy consumption and investing in renewable sources of energy to power their operations.

Wells Fargo continues to strengthen their business for the future by complying with the United Nations Sustainable Development Goals (SDGs), having clear targets and initiatives to incorporate sustainable practices, and has multiple certificates to substantiate its goals. 

In addition, Wells Fargo listings and awards, providing an incentive for integrating sustainability more deeply into their big business. By taking action in support of their strategic corporate responsibility priorities, Wells Fargo also contributes to advancing the global priorities outlined in the SDGs.

Since 2016, Wells Fargo has invested a total of $223.349 B in the fossil fuel industry. Despite this large investment, Wells Fargo’s total fossil fuel financing plunged by 42% in 2020. As a result, Wells Fargo dropped from the fourth worst fossil bank in 2019 to the ninth-worst in 2020. 

Despite Wells Fargo’s clear commitment to sustainability, the company’s history and investment in the fossil fuel industry means it has been given an evaluation of mediocre (C) on the Impakter Sustainability Index.

Analyst Outlook: Positive

Wells Fargo is on the path to sustainability. The company’s drastic reduction in fossil fuel investment is noteworthy. If Wells Fargo continues decreasing its investment and stays on track with all its goals, the company could receive a  higher rating.

Key Points

  • Feb 14, 2019 – The U.S. The Environmental Protection Agency (EPA) has named Wells Fargo to its Green Power Partnership National Top 100 for using nearly 2 billion kilowatt-hours (kWh) of renewable energy annually, representing 100 percent of the company’s global electricity requirements.
  • The Board’s Corporate Responsibility Committee has primary oversight responsibility for Wells Fargo corporate responsibility policies, programs, and strategies This includes the bank’s community development and reinvestment activities and performance, fair and responsible lending, and support of charitable organizations, as well as policies and programs related to environmental sustainability and human rights.
  • This research included an evaluation of global standard expectations, including the GRI, the United Nations Sustainable Development Goals (SDGs), the SASB, and the Task Force on Climate-related Financial Disclosures (TCFD)
  • Wells Fargo acknowledges their investors and other stakeholders have a keen interest in the disclosure of climate-related risks and opportunities. As part of their sustainable finance commitment, they aim to implement the Task Force on Climate-related Financial Disclosures (TCFD) recommendations which provide a framework for companies and other organizations to develop more effective climate-related financial disclosures through their existing reporting processes.
  • Wells Fargo received a rating of “Outstanding” in its most recent Community Reinvestment Act (CRA) performance evaluation, which covered the years 2012 to 2018
  • ESRM commitment related to asset-specific financing aligns with the Equator Principles* international risk management framework.
 
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