BANK OF AMERICA
Company Provides $21.6 Billion to Address Climate Change and Demands on Natural Resources, While Advancing Lower-carbon Economy; New $50 Billion Environmental Business Initiative Launched
Bank of America today announced it exceeded its original 10-year, $20 billion environmental business initiative – more than four years ahead of schedule – delivering more than $21.6 billion in lending, equipment and carbon finance, capital markets and advisory activities to clients around the world.
Effective January 1, 2013, Bank of America renewed its commitment to growing its environmental business opportunities by embarking on a new 10-year, $50 billion business initiative, bringing the company’s total goal to $70 billion over the course of 16 years – the largest of any financial institution.
“Our environmental business is the perfect example of how we connect capabilities across the company to benefit our clients and our shareholders,” said Cathy Bessant, Global Technology and Operations executive and Bank of America’s Environmental Council chair. “By helping our clients achieve their own unique goals for environmental sustainability, we’re growing our business, supporting our communities and promoting a low-carbon global economy.”
To hone its business initiative and ensure transparency as well as incorporate stakeholder feedback around its efforts, Bank of America is partnering with Ceres, an organization dedicated to mobilizing investor and business leadership to build a thriving, sustainable global economy. Ceres President Mindy Lubber has seen firsthand the impact the bank’s efforts have had in the market place.
“We are seeing the unprecedented impacts of global climate change in our lifetime. Given expected population growth and expanding urbanization, there needs to be far more attention toward energy efficiency and low-carbon energy and transportation solutions. For a company like Bank of America to set these kinds of financial goals and exceed them demonstrates the kind of marketplace leadership we need to ensure economic growth in a carbon-constrained world.”
In 2012 alone, Bank of America provided more than $4.5 billion toward underwriting, advising on and financing a number of innovative transactions under its environmental business initiative.
The chart below breaks down by sector where the company’s business activities took place.
In one of the last transactions to be completed under the $20 billion initiative, Bank of America Merrill Lynch completed tax equity financing for EDF Renewable Energy on the 100.8 megawatt Spearville 3 Wind Project in Kansas. The project is expected to generate enough electricity to supply approximately 40,000 average homes. Other recently completed transactions that represent the diversity of the clients and industries served through the environmental initiative include:
The company’s $20 billion environmental business initiative included a $50 million commitment from the Bank of America Charitable Foundation to invest in nonprofit organizations dedicated to addressing critical environmental issues. That goal also was exceeded, with the foundation delivering more than $54.3 million to global nonprofit organizations including groups such as Water.org, The Nature Conservancy, the U.S. Green Building Council, Ocean Conservancy, C2ES, the Greenforce Initiative and Habitat for Humanity.
Bank of America’s new $50 billion environmental business initiative will consist primarily of lending, equipment finance, capital markets and advisory activity, carbon finance, and advice and investment solutions in areas including energy efficiency, renewable energy, transportation, water and waste, as well as $100 million in grants and program-related investments to nonprofit organizations, community development financial institutions and other NGOs promoting low-carbon and resource conservation solutions. This landmark global initiative focuses on and promotes a broad array of social and environmental benefits:
The company will work with traditional businesses such as agriculture, forestry, transportation, technology, retail and healthcare to help advance their low-carbon activities. Bank of America also 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.
Bank of America
Bank of America is 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. We serve approximately 52 million consumer and small business relationships with approximately 5,400 retail banking offices and approximately 16,300 ATMs and award-winning online banking with 30 million active users. Bank of America is 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 America offers industry-leading support to approximately 3 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 Corporation stock (NYSE: BAC) is a component of the Dow Jones Industrial Average and is listed on the New York Stock Exchange.
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Reporters May Contact:
Britney Sheehan, Bank of America, 1.206.358.7563