Wells Fargo Exits Net-Zero Alliance Amid Paxton's Energy Boycott Review; Urges End to Unlawful ESG Pledges

AUSTIN, TX -- Attorney General Ken Paxton applauded Wells Fargo’s announcement that it has withdrawn from the Net-Zero Banking Alliance (“NZBA”), an anti-energy activist organization that requires its members to prioritize a radical climate agenda over consumer and investor interests.

Wells Fargo’s announcement was made following Attorney General Paxton’s review of the bank’s status as a potential boycotter of energy companies. Under Texas law, financial institutions boycotting the oil and gas industries are ineligible to enter into contracts with State governmental entities. Following Wells Fargo’s withdrawal from the NZBA, Texas will end its review, enabling State governmental entities to do business with Wells Fargo.

In October 2023, Attorney General Paxton opened a review into Wells Fargo and other financial institutions’ status in light of Senate Bill 13, a Texas law prohibiting governmental entities from entering into contracts with companies that boycott the oil and gas industries. Wells Fargo’s membership in NZBA indicated that its activities might have required it to be classified as an energy-company boycotter under state law.

“This is great news for Texas. On August 21, I strongly encouraged that Wells Fargo leave Net-Zero Banking Alliance due to its unlawful ESG commitments. On December 19, Wells Fargo confirmed that they would leave NZBA because of my request,” said Attorney General Paxton. “Today, Wells Fargo took a step in the right direction by officially ending their affiliation with NZBA, and Texas welcomes them to continue doing business with our great State. I urge other financial institutions to follow their example and end ESG policies that are hostile to our critical oil and gas industries.”

To read about Wells Fargo’s announcement, click here.