ESG ADOPTION AND SUSTAINABLE INVESTMENT: EVIDENCE FROM WELLS FARGO AND THE U.S. BANKING SECTOR

Authors

  • Noor Sabah Hameed Al-Dahaan University of Kerbala, Kerbala, Iraq.
  • Hussein Hadi Abdulameer University of Kerbala, Kerbala, Iraq.
  • Noor Salah AlRamadan University of Kerbala, Iraq
  • Hayder Yonus Kadhim University of Kerbala, Iraq

Keywords:

U.S. Banking Industry, Wells Fargo, Investment Strategies, Sustainable Finance, ESG (Environmental, Social, Governance), Regulatory Frameworks, Net-Zero Commitments, Corporate Governance, and ESG Metrics.

Abstract

This research examines the effects of ESG (i.e. environmental, social, and governance) initiatives over investment strategies of the Wells Fargo. Wells Fargo is a major bank of USA. This research evaluates the influence of ESG criteria over portfolio development, risk mitigation, and financial performance in the Wells Fargo. This research also emphasizes on evaluation of sustainable financial commitment of $500 billion of the Wells Fargo. This analysis is performed in context of ESG products like green bonds and the challenges such as green washing concern and fossil fuel financing. The research explores that innovations of ESG metrics such as technological advancements, ESG reporting, and ESG metrics are the important enablers of the sustainable investment. There are different barriers that are faced by organizations with the adoption of ESG such as political resistance and data inconsistencies. Despite of these challenges, ESG is transforming banking industry towards long-term value creation. This study has revealed high level of ESG integration in the Wells Fargo. It has faced tensions between ESG adoption and financial objectives. However, it has effectively maintained leadership position in ESG adoption in the US banking industry.

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Published

2025-03-30

Issue

Vol. 17 No. 1 (2025): International Journal of eBusiness and eGovernment Studies (IJEBEG)

Section

Original Article