Bank of America announced a new 10-year, $50 billion environmental business goal to help address climate change, reduce demands on natural resources and advance lower-carbon economic solutions. The company also introduced significant new goals to reduce the environmental impact of its own operations.
The new goal, effective Jan. 1, 2013, follows the anticipated completion of the company’s current 10-year, $20 billion environmental business initiative – a program that is more than four years ahead of schedule.
“Environmental business delivers value to our clients, return for our shareholders, and helps strengthen the economy,” Bank of America Chief Executive Officer Brian Moynihan, said. “We met our prior goal in about half the time we set for ourselves, so more than doubling our target is ambitious but achievable.”
The new environmental business initiative will consist primarily of lending, equipment finance, capital markets and advisory activity, carbon finance, and advice and investment solutions for clients. The areas of focus include:
The bank also announced a goal to provide $100 million in grants and program-related investments to non-profit organizations, community development financial institutions and other non-governmental organizations promoting low-carbon and resource conservation solutions.
Bank of America will meet its new $50 billion goal by continuing to develop low-carbon business across its global platform. The company expects to grow its business activities around the world as governments, companies and individuals worldwide shift spending and investing patterns in response to energy security, resource efficiency and broader environmental awareness. The company also will work with traditional businesses such as agriculture, forestry, transportation, technology, retail and healthcare to help advance their low-carbon activities.
“Many of our clients are transitioning to more environmentally conscious business practices, products and services,” Cathy Bessant, Global Technology and Operations executive and chair of Bank of America’s Environmental Council, said.
“We can continue to grow our business, promote a greener global economy and address climate change by helping our clients meet their own sustainability objectives.”
Bank of America also will work with third parties to explore how best to quantify the impact of its capital commitment on reducing greenhouse gas (GHG) emissions and promoting energy conservation, renewable energy generation and other tangible environmental and societal benefits.
Today’s announcement builds on Bank of America’s legacy of leadership in the environmental arena. The company was one of the first financial institutions to launch a substantial, formal environmental business initiative, and as of March 31, 2012, it has delivered $17.9 billion toward that initiative, including:
“Meeting these aggressive, industry-leading goals requires new ways of working across our company,” Bessant, said.
“We have a strong culture of environmental sustainability. Our work is even stronger due to important collaboration with a number of leaders in this space like Ceres, Carbon Disclosure Project and the US Green Building Council, who have helped us define and shape our focus as we continue to deliver impressive results.”