Wells Fargo has withdrawn from the Net-Zero Banking Alliance after Attorney General Ken Paxton opened a review into the bank and other financial institutions for potentially violating a state law.
In October 2023, Paxton opened a review into Wells Fargo and other financial institutions in light of Senate Bill 13—which was signed into law last year. The legislation prohibits state funds from being given to organizations that boycott energy companies.
According to Paxton, the Net-Zero Banking Alliance is an “anti-energy activist organization that requires its members to prioritize a radical climate agenda over consumer and investor interests.”
Paxton stated that the bank’s membership in the NZBA indicated that its “activities might have required it to be classified as an energy-company boycotter.”
Following the review, Wells Fargo announced it would be leaving the NZBA, thereby ending the review and allowing state governmental entities to do business with the bank.
“This is great news for Texas,” said Paxton. “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.”
“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.”
This is not the first time Texas’ new law has been enforced.
Earlier this year, State Board of Education Chairman Aaron Kinsey announced that the investment corporation BlackRock was not in compliance with SB 13. As a result, the state divested its Permanent School Fund from BlackRock—pulling $8.5 billion in assets.
