Wells Fargo (NYSE: WFC) is the latest bank to shy away from the environmentally destructive practice of mountaintop removal mining for coal.
The bank is a relatively small player in financing coal companies, according to a New York Times report. However, its intent to scale down its involvement with those that practice mountaintop removal is yet another sign that the financial sector is waking up to the financial and reputational risks involved when the bottom-line is prioritized above the environment.
Wells Fargo is joining a broader movement by banks to increase scrutiny of lending to companies involved in environmentally destructive practices. Credit Suisse (NYSE: CS), Morgan Stanley (NYSE: MS), JPMorgan Chase (NYSE: JPM), Bank of America (NYSE: BAC) and Citibank (NYSE: C) have all stated their intent to phase out lending for mountaintop removal operations.
Banks are also beginning to wash their hands of palm oil production in south east asia and oil sands mining in Canada.
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