Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate risk management
• Community development
• Compensation and benefits
• Corporate governance
• Corporate risk management and compliance
• Customer privacy and data security
• Diversity, equity, and inclusion
• Employee incentives and risk-taking
• Environmental and social due diligence
• Fair and responsible lending and pricing
• Stakeholder engagement
• Transparent information and fair advice for customers
• Business ethics
• Business policies and practices

Environmental Achievements

• Achieved carbon neutrality in operations (Scope 1 and 2) in 2019 and 2020.
• Met 100% of global electricity needs with renewable energy in 2017.

Social Achievements

• Launched the Banking Inclusion Initiative, a 10-year commitment to help unbanked individuals gain access to affordable transactional accounts.
• Made significant progress toward 2016 commitments to provide $150 billion in new home purchase loans to minority households and $70 billion in loans to LMI households.
• Launched Advancing Homeownership®, including 10-year commitments to provide $125 billion in home purchase loans for Hispanic homebuyers and $60 billion in loans for Black and African American homebuyers.
• Donated approximately $234 million of Paycheck Protection Program (PPP) processing fees to nonprofit organizations supporting small businesses through June 30, 2021.
• Increased annual spending with diverse suppliers from $824 million in 2013 to nearly $1.4 billion in 2020.

Governance Achievements

• Independent Board Chair since 2016.
• Strengthened alignment between executive performance and compensation.
• Implemented a Clawback and Forfeiture Policy to recover compensation in case of risk management failures.
• Upgraded digital resources to empower employees to report ethics-related concerns without fear of retaliation.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its impact on employees, customers, and communities.
• Addressing systemic issues exposed by the pandemic, including racial and economic inequities.
• Climate change and its impact on business and communities.
• Increasingly frequent extreme weather events.
• Managing environmental and social risks associated with lending and investments.

Mitigation Strategies

• Implemented initiatives to support employees, customers, and communities during the COVID-19 pandemic.
• Launched the Banking Inclusion Initiative and Advancing Homeownership® to address financial inclusion and homeownership gaps.
• Committed to deploying $500 billion in sustainable financing by 2030 and achieving net-zero greenhouse gas emissions by 2050.
• Established the Institute for Sustainable Finance to manage the $500 billion commitment.
• Developed the Environmental and Social Risk Management (ESRM) Framework to identify, evaluate, and manage environmental and social risks.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Opportunities

• Financing renewable energy and clean tech projects.

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UN SDGs

UN Sustainable Development Goals

• SDG 1: No Poverty
• SDG 5: Gender Equality
• SDG 7: Affordable and Clean Energy
• SDG 8: Decent Work and Economic Growth
• SDG 10: Reduced Inequalities
• SDG 11: Sustainable Cities and Communities
• SDG 13: Climate Action

Examples of how Wells Fargo's initiatives contribute to these goals are provided throughout the report.

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Impact
• Diversity, Equity, and Inclusion

Environmental Achievements

• Reduced total energy consumption by 15% from 2019 baseline
• Reduced total waste stream by 38% from 2019 baseline
• Reduced water consumption by 30% from 2019 baseline
• Reduced total Scope 1 and Scope 2 (location) GHG emissions by 25% from 2019 baseline
• Contracted for 210 megawatts (MW) of new renewable energy generation
• Met 100% of its electricity consumption with renewable energy

Social Achievements

• Donated nearly $615 million in charitable contributions in 2021
• Financed $29.6 billion and $7.8 billion for new purchase loans to serve over 58,000 minority households and over 38,000 low- and moderate-income households respectively
• Helped over 81,756 Black and African American families and individuals become homeowners with $21.4 billion in mortgage financing
• Helped 207,248 Hispanic and Latino families and individuals become homeowners through $54.8 billion in mortgage financing
• Provided approximately 282,000 Paycheck Protection Program (PPP) loans totaling nearly $14 billion
• Fulfilled its roughly $420 million Open for Business Fund commitment

Governance Achievements

• Significant refreshment of the Board of Directors to enhance skills and experience
• Increased percentage of women on the Board of Directors to 36%
• Increased percentage of directors with ESG qualifications/experience to 29%

Climate Goals & Targets

Environmental Challenges

• Climate change
• Shortage of affordable housing
• Supporting small businesses navigating the COVID-19 pandemic
• Increasing diverse representation at all levels

Mitigation Strategies

• Set a goal of net-zero greenhouse gas emissions by 2050
• Joined the Net-Zero Banking Alliance
• Published the Wells Fargo CO2eMission SM methodology
• Launched the Wells Fargo Dream.Plan.Home. SM mortgage
• Pledged to create at least 250,000 new Black and African American homeowners in 10 years
• Committed to increasing Hispanic and Latino homeownership over 10 years
• Established the Open for Business Fund
• Launched a new company-wide employee feedback platform

Supply Chain Management

Supplier Audits: 74% participation in CDP survey (2021)

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Third-party Assurance: Independent third-party accountant

Awards & Recognition

• Five industry awards in 2021 in recognition of training excellence

Environmental Metrics

ESG Focus Areas

• Financial health
• Housing access and affordability
• Small business growth
• Scale clean energy
• Increase sustainability where we live and work
• Advance climate finance and innovation
• Support an equity-focused transition
• Employee support
• Corporate governance

Environmental Achievements

• Met 100% of global electricity consumption with renewable energy since 2017
• Deployed $2.7 billion of tax equity capital for renewable power and storage projects in 2022
• Entered into over 210 megawatts of long-term agreements supporting new sources of renewable energy
• Installed solar energy arrays at nearly 60 locations

Social Achievements

• Helped over 11 million customers access their FICO Scores in 2022
• Launched Well Life, a new employer brand strategy to attract and retain high-performing talent
• Invested $5.4 million in the Wells Fargo Financial Capability Grant Program in 2022, helping individuals save $14.1 million and reduce debt by $17.4 million
• Enabled individuals to reduce debt by $10.1 million and helped 10,500 people establish or increase their credit score through the Credit Building Grant Program in 2022
• Donated more than $525 million since the beginning of 2019 to support available and affordable rentals, homeownership, and housing stability

Governance Achievements

• Established the Office of Consumer Practices in 2021 to ensure fair and transparent products, services, and business practices
• Implemented a comprehensive risk-based sanctions compliance program
• Implemented a global risk-based Anti-Bribery and Corruption Compliance Program

Climate Goals & Targets

Environmental Challenges

• Barriers remain that can make it difficult for some customers to transition to low-carbon solutions (e.g., multifamily and affordable housing)
• Increases in resource usage and emissions output in 2022 as more people returned to the office after the height of the COVID-19 pandemic

Mitigation Strategies

• Teamed with RMI to address challenges impeding the advancement of affordable low-carbon multifamily housing
• Continuing efforts to consolidate our real estate portfolio and employ additional steps to minimize waste and conserve energy

Supply Chain Management

Supplier Audits: 344 suppliers invited to participate in CDP survey in 2022

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Growth in clean energy markets

Reporting Standards

Frameworks Used: SASB, GRI, TCFD, UNGC

Third-party Assurance: KPMG LLP (limited assurance on sustainable finance activities)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 10 (Reduced Inequalities)
• Goal 11 (Sustainable Cities and Communities)
• Goal 13 (Climate Action)

Wells Fargo's initiatives support these goals through sustainable finance, community investment, and operational improvements.

Awards & Recognition

• Largest Financial Corporate Sustainability Bond of 2022 by the Climate Bonds Initiative

Environmental Metrics

ESG Focus Areas

• Climate Action
• Community Impact
• Corporate Governance and Ethics
• Risk Management
• Employee Well-being

Environmental Achievements

• Reduced total energy consumption by 18% from 2019 baseline
• Reduced water consumption by 22% from 2019 baseline
• Reduced total waste stream by 37% from 2019 baseline
• Met 100% of global electricity consumption with renewable energy (primarily unbundled Renewable Energy Certificates)
• Originated, committed, advised, or facilitated approximately $178 billion in sustainable finance (2021-2023)

Social Achievements

• Awarded a $7.5M grant to Habitat for Humanity International to build and repair homes
• Provided ~17K hours of mentorship for Connect to More℠ participants
• Donated $650M+ to help address housing access and affordability since 2019
• Provided Credit Builders Alliance a $1.5M grant to assist organizations serving credit insecure individuals
• Donated ~$23M in sustainability-focused grants to nonprofit organizations

Governance Achievements

• Implemented Environmental and Social Impact Management (ESIM) Framework
• Maintained a strong risk culture and risk management framework
• Established the Office of Consumer Practices to ensure fair and transparent products and services

Climate Goals & Targets

Environmental Challenges

• Challenges associated with data availability and quality
• Evolving standards and methodologies for measuring, reporting and verifying ESG-related metrics
• Evolving information security threats
• Balancing aspirational short-term targets with other interests (energy security, equitable energy transition)

Mitigation Strategies

• Engaged third-party carbon accounting software platform for GHG emissions calculations
• Implemented comprehensive information security program aligned with industry standards
• Periodically review underlying topics related to ESG to prioritize efforts
• Annual review of Risk Management Framework and approval by the Board’s Risk Committee

Supply Chain Management

Supplier Audits: Approximately 50 forums reaching more than 5,000 internal and external participants in 2023; 234 suppliers invited to participate in CDP survey, 372 participated

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Third-party Assurance: KPMG LLP (limited assurance on sustainable finance assertion)

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 5: Gender Equality
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 10: Reduced Inequalities
• Goal 11: Sustainable Cities and Communities
• Goal 13: Climate Action

The SDGs informed the definition of Sustainability Impact Areas (Climate Action and Community Impact).

Awards & Recognition

• Nine Brandon Hall Excellence Awards (2023)

Environmental Metrics

ESG Focus Areas

• Sustainability
• Traceability
• Regenerative Agriculture

Climate Goals & Targets

Environmental Challenges

• Rising input costs
• Labor shortages
• Extreme weather events
• Unpredictable market volatility
• Geopolitical instability (Ukraine war, Middle East tensions)
• Transportation/logistics issues
• Increasing food fraud
• Financial barriers and knowledge gaps preventing large-scale adoption of regenerative agriculture practices
• Regulatory focus on seed treatments
• Supply chain disruptions in seafood due to inflation and interest rates

Mitigation Strategies

• Continued push for the transition to regenerative agriculture practices
• Adoption and implementation of smart technologies in agriculture
• Addressing regulatory concerns regarding seed treatments (monitoring closely)

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Opportunities

• Development of energy-efficient products and practices in agriculture

Environmental Metrics

ESG Focus Areas

• Resiliency Financing
• Energy Transition
• Climate Risk Mitigation
• Sustainable Investing
• Sustainability Reporting
• Supply Chain Sustainability
• Nuclear Energy
• Data Center Efficiency
• Housing Affordability
• Global Competition

Climate Goals & Targets

Environmental Challenges

• Increasing frequency and severity of climate-related catastrophes
• Global competition for critical minerals and low-carbon technologies
• Potential US deregulation impacting emissions reductions
• Growing demand for data center capacity exceeding carbon-free energy supply
• Rising insurance premiums and construction costs exacerbating housing affordability crisis
• Complexity and potential overreach of EU sustainability reporting requirements

Mitigation Strategies

• Targeted investments in mitigation and resiliency financing
• Developing a deep understanding of supply chains and trade policies
• Focusing on efficiency measures in data centers and using AI for optimization
• Innovative financial structures and cross-sector collaboration to mitigate housing risks
• Advocating for a more balanced approach to sustainability reporting

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Natural disasters

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Investments in resiliency
• Development of energy-efficient technologies