Company to Exceed Current $20 Billion Goal by End of 2012; Sets New Internal Environmental Goals
CHARLOTTE, N.C.–(ENEWSPF)–June 11, 2012–Bank of Americatoday announced a new 10-year,$50 billionenvironmental 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, effectiveJan. 1, 2013, follows the anticipated completion of the company’s current 10-year,$20 billionenvironmental 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,” saidBank of America Chief Executive Officer Brian Moynihan. “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:
- Energy efficiency – in residential, commercial, and public properties, as well as supporting the full supply chain that drives energy efficiency.
- Renewable energy and energy infrastructure – including wind, solar, hydro, biomass and waste-to-energy solutions and their upstream and downstream supply chains, as well as smart grid, large-scale energy storage and other important infrastructures.
- Transportation – including certain lower carbon forms of transport such as electric and hybrid electric vehicles, batteries/fuel cells and sustainable bio-fuels, as well as developing local and regional charging infrastructure to support the growth of new hybrid vehicle technologies.
- Water and waste – focusing on innovative new technologies and infrastructure development, including water purification and waste disposal and recycling.
The bank also announced a goal to provide$100 millionin grants and program-related investments to nonprofit organizations, community development financial institutions and other non-governmental organizations promoting low-carbon and resource conservation solutions.
Bank of Americawill meet its new$50 billiongoal 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,” saidCathy Bessant, Global Technology and Operations executive and chair of Bank of America’sEnvironmental Council. “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 Americaalso 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 ofMarch 31, 2012, it has delivered$17.9 billiontoward that initiative, including:
- $8.4 billion, or 47 percent, for energy efficiency activities ranging from its$55 millionEnergy Efficiency Finance Program to provide low-cost loans and grants to support energy efficiency retrofits in low-income neighborhoods, to financing lighting, heating and cooling equipment upgrades in public housing developments, commercial and government buildings.
- $5 billion, or 28 percent, for renewable energy projects as diverse as helping theSan Jose Unified School DistrictinCaliforniabecome one of the largest solar powered systems in the world, and working with integrated food-energy business CleanStar Mozambique to replace thousands of charcoal-burning cook stoves with cleaner bio-ethanol fueled stoves. In 2011, the company helped arrange and finance the world’s two largest rooftop solar projects – with clientsPrologisandNRG Energy, and SolarCity respectively – supporting the potential creation of more than a thousand megawatts of solar energy capacity and thousands of jobs across the U.S.
- Nearly$1 billionfor consumer financing of hybrid vehicle purchases.
In 2004, Bank of Americawas the first financial institution to publicly commit to GHG reduction targets through the former EPA Climate Leaders program. In 2009, it was the first financial institution to exceed its targets: reducing emissions by 18 percent from 2004 to 2009 – twice its original 9 percent reduction goal. As part of the company’s commitment to LEED® (Leadership in Energy and Environmental Design) building, it partnered withThe Durst Organization to build theBank of America Tower atOne Bryant Park, the world’s first Platinum-certified high-rise office building under the LEED Core and Shell rating system.
New internal environmental goals
Today,Bank of Americaalso announced new operational goals it plans to achieve by 2015:
- 25 percent reduction in energy consumption from 2004 – equal to eliminating 1.2 million megawatt hours of annual energy use from our portfolio.
- 20 percent reduction in paper consumption (2010 baseline); paper used will:
- Contain 20 percent post-consumer recycled content.
- Be sourced entirely from certified forests.
- 20 percent reduction in global water consumption (2010 baseline).
- 70 percent diversion of global waste from landfill.
- All electronic waste streams to be disposed of using certified, responsible vendors.
These new goals build on the May 2011 announcement that by 2015,Bank of America plans to achieve:
- More than 30 percent aggregate reduction in global GHG emissions (2004 baseline).
- 20 percent LEEDcertification within its corporate workplace portfolio.
“Meeting these aggressive, industry-leading goals requires new ways of working across our company,” said Bessant. “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 Projectand theU.S. Green Building Council, who have helped us define and shape our focus as we continue to deliver impressive results.”
This year,the United Nationslaunched theSustainable Energyfor All initiative, a public-private partnership that highlights the important link between energy – in particular, energy access, energy efficiency and renewable energy – and broader development issues.Bank of Americawill further discuss its renewed external and internal goals with global leaders of governmental, private sector and non-governmental organizations at theUnited Nations Conference on SustainableDevelopment’s Rio+20 Conference in June, where the UN will lay out an ambitious range of energy targets.
Bank of America
Bank of Americais one of the world’s largest financial institutions, serving individual consumers, small- and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience inthe United States, serving approximately 57 million consumer and small business relationships with approximately 5,700 retail banking offices and approximately 17,250 ATMs and award-winning online banking with 30 million active users.Bank of Americais among the world’s leading wealth management companies and is a global leader in corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world.Bank of Americaoffers industry-leading support to approximately 4 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients through operations in more than 40 countries.Bank of America Corporationstock (NYSE: BAC) is a component of the Dow Jones Industrial Average and is listed on theNew York Stock Exchange.
Source: Bank of America
