Efforts to enhance transparency in energy financing practices have gained momentum as the New York City Comptroller, Brad Lander, has reintroduced shareholder resolutions at several major U.S. banks and included Wells Fargo for 2025. The initiative seeks to promote accountability by urging banks to disclose their financial support for low-carbon energy projects relative to fossil fuel investments. This move aims to foster a more sustainable future through greater corporate responsibility.
This year's proposals mark a continuation of last year’s efforts, which garnered significant support from various institutional investors. In 2024, the Comptroller filed resolutions on behalf of three city pension funds at six leading banks, requesting annual disclosure of their "energy supply ratio" (ESR). The term ESR, now used instead of "clean energy supply," refers to the proportion of financing allocated to low-carbon energy compared to fossil fuels. While some banks withdrew their resolutions following commitments to address concerns, others saw substantial backing from investors such as Legal & General Investment Management and CalSTRS.
The push for greater transparency continues to gain traction, reflecting a broader shift towards sustainability in financial practices. By expanding the list of targeted banks and refining the proposal language, the Comptroller underscores the importance of responsible investment strategies. Despite objections from some banks that argue these proposals interfere with operational autonomy, the initiative highlights the growing demand for environmentally conscious business practices. Ultimately, this drive for transparency supports a more sustainable economic landscape, encouraging companies to align their activities with global climate goals.