Bank of America promises $50bn in green investment
Bank of America is set to become one of the world’s largest investors in low-carbon projects, after this week unveiling a new 10-year, $50bn (£32bn) environmental business investment programme.
The US banking giant, which has in the past faced criticism from green groups for financing carbon-intensive projects, said that it had set the new goal after realising its current 10-year programme to invest $20bn in environmental businesses would be completed four years ahead of schedule, with nearly $18bn in green investment delivered as of March this year.
“Environmental business delivers value to our clients, return for our shareholders and helps strengthen the economy,” said Bank of America chief executive Brian Moynihan in a statement. “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 company said the new programme would consist of lending and equipment finance, capital market and carbon finance activity, and advisory services, with a particular focus on the energy efficiency, renewable energy, transportation, and water and waste sectors.
The commercial activity will also be complemented by a target to provide $100m in grants and investments to non-profit environmental organisations.
Cathy Bessant, global technology and operations executive and chair of Bank of America’s Environmental Council, said the new goals were in direct response to growing demand from customers and increased investment globally in the low-carbon economy.
“Many of our clients are transitioning to more environmentally conscious business practices, products and services,” she 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.”
In addition to its new green investment targets, the bank also announced new operational targets for 2015 intended to reduce energy consumption across its operations by 25 per cent against a 2004 baseline, while also slashing paper and water use by a fifth against a 2010 baseline, and ensure that 70 per cent of waste is not sent to landfill.
The new targets build on an announcement in May last year that committed the bank to cutting its greenhouse gas emissions 30 per cent against 2004 levels by 2015.
The US banking giant, which has in the past faced criticism from green groups for financing carbon-intensive projects, said that it had set the new goal after realising its current 10-year programme to invest $20bn in environmental businesses would be completed four years ahead of schedule, with nearly $18bn in green investment delivered as of March this year.
“Environmental business delivers value to our clients, return for our shareholders and helps strengthen the economy,” said Bank of America chief executive Brian Moynihan in a statement. “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 company said the new programme would consist of lending and equipment finance, capital market and carbon finance activity, and advisory services, with a particular focus on the energy efficiency, renewable energy, transportation, and water and waste sectors.
The commercial activity will also be complemented by a target to provide $100m in grants and investments to non-profit environmental organisations.
Cathy Bessant, global technology and operations executive and chair of Bank of America’s Environmental Council, said the new goals were in direct response to growing demand from customers and increased investment globally in the low-carbon economy.
“Many of our clients are transitioning to more environmentally conscious business practices, products and services,” she 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.”
In addition to its new green investment targets, the bank also announced new operational targets for 2015 intended to reduce energy consumption across its operations by 25 per cent against a 2004 baseline, while also slashing paper and water use by a fifth against a 2010 baseline, and ensure that 70 per cent of waste is not sent to landfill.
The new targets build on an announcement in May last year that committed the bank to cutting its greenhouse gas emissions 30 per cent against 2004 levels by 2015.
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