SEIU Withdraws Resolution at Wells Fargo on Climate Change Strategy, Anticipates Greenhouse Gas Assessments of High-Risk Portfolios This Fall

At today's Wells Fargo and Co.'s annual meeting, an expected resolution on greenhouse gas goals (GHG) filed by 10 institutional investors, including the SEIU Master Trust, was withdrawn after the Company committed to completing greenhouse gas assessments of key lending portfolios, including agriculture, primary energy production, and power generation. Other filers of the proposal include Trillium Asset Management Corp., the Connecticut Retirement Plans and Trust Funds, Domini Social Investments, Calvert Asset Management Co., the Sisters of St. Francis of Philadelphia, Bon Secours Health Systems, Basilian Fathers of Toronto, Camilla Madden Charitable Trust, and Rockefeller and Co.

The SEIU Capital Stewardship Program, which has been in dialogue with Wells Fargo for three years on the issue of GHG reductions, new products, and strategic evaluation of climate risk and opportunities, says progress could not come a moment too soon. "Large shareholders take the issue of climate risk very seriously, and we needed signs that the bank was examining climate change as a business risk, not a 'feel-good environmental issue' for its customer base," says Tracey Rembert, Senior Governance Analyst for the SEIU Capital Stewardship Program. "Outside of the U.S. government, Wells Fargo is the world's largest agricultural lender -- for growers, manufacturers, and processors. The bank has major exposure here."

Wells Fargo is a prominent holding in the SEIU Master Trust, and SEIU members anticipate climate change impacting their environment, the cost of energy, and their retirement savings in complex ways. "We want Wells Fargo to put its talents to use in finding bank-specific responses to the climate challenge, and that means taking a comprehensive look at its lending portfolio to discern which clients are at risk, and which clients are well-positioned to deal with a carbon-constrained economy," says Rembert. "We withdrew the resolution in good faith that Wells Fargo is heading in the right direction. We'll continue monitoring the company to make sure it delivers what it has committed to shareholders this year," declares Rembert.

"We're pleased Wells Fargo is taking steps to assess not only the risks of climate change, but also opportunities to develop new types of green financial instruments that help the Earth, help key customers, and help the bank's future competitiveness," adds Steve Lippman, Vice President of Social Research at Trillium Asset Management Corporation, who also agreed to withdraw the resolution asking Wells Fargo to set emission reduction goals for its operations and high-risk commercial loan portfolios.

"There is a positive role for financial institutions to play in building renewable and low-carbon energy markets," said Rembert. "Just look at the role of Goldman Sachs in the TXU deal. There is significant money to be made in doing the right thing on climate change, and that will benefit us as shareholders in the long run."

With 1.8 million members, SEIU is the fastest-growing union in North America. SEIU is the largest health care union, including hospitals, nursing homes, and home care; the largest property services union, including building cleaning and security; and the second largest public employee union. The SEIU Capital Stewardship Program services the pension funds of SEIU members, including Taft-Hartley funds under the SEIU Master Trust and the SEIU General Fund.

CONTACT: Tracey Rembert 202-730-7039