Significant Increase from $300 Billion Target by 2030 set in 2019; Company Also Sets Broader SDG-Focused Sustainable Finance Target of $1.5 Trillion by 2030
Bank of America today announced a goal of deploying and mobilizing $1 trillion by 2030 in its Environmental Business Initiative in order to accelerate the transition to a low-carbon, sustainable economy. This commitment will anchor a broader $1.5 trillion sustainable finance goal by both environmental transition and social inclusive development purposes, spanning business activities across the globe.
“The private sector is well-positioned to ensure that the capital needed – at the scale it is needed – can drive the transition to a low-carbon, sustainable economy,” said Bank of America Vice Chairman, Anne Finucane, who leads the company’s environmental, social and governance (ESG), sustainable finance, and public policy efforts. “We will meet our commitment by working with clients to provide lending, capital raising, advisory and investment services, and to develop financial solutions and drive innovation to ensure the transition to a sustainable economy.”
Bank of America’s broader $1.5 trillion sustainable finance target is consistent with the United Nations Sustainable Development Goals (UN SDGs), and will spur transformative change nationally and around the world. Beyond the $1 trillion climate-related finance, the balance of the sustainable finance goal is focused on social inclusive development, scaling capital to advance community development, affordable housing, healthcare, and education, in addition to racial and gender equality.
“We stand alongside our clients in helping drive the transition in sustainable lending, investing, and markets activity,” said Chief Operating Officer Tom Montag, who co-chairs Bank of America’s Sustainable Markets Committee with Finucane. “Bank of America will continue to mobilize players across the entire financial system to increase the flow of capital.”
Today’s announcement increases Bank of America’s 2019 commitment of $300 billion to low-carbon, sustainable business initiatives, to $1 trillion by 2030 as part of its Environmental Business Initiative. This commitment advances an environmental transition across sectors to solutions in energy efficiency, renewable energy, sustainable transportation, resource efficiency, sustainable water and agriculture as well as improved forestry and pollution control measures. Since launching the Environmental Business Initiative in 2007, Bank of America has deployed more than $200 billion to low-carbon, sustainable business activities, including expanding its asset-based lending, tax equity investment and capital raising activities across current and emerging clean energy and power, transportation and other industry sectors important for environmental transition. Today’s news follows the company’s recent announcement to achieve Net Zero before 2050.
Finucane and Montag co-chair the company’s Sustainable Markets Committee, which collaborates across business lines to deliver innovative financing solutions in support of the United Nations Sustainable Development Goals. The company’s sustainable finance highlights include:
A top issuer of Green, Social and Sustainability bonds: In 2020, Bank of America issued a $1 billion corporate social bond to support those on the front lines of the coronavirus health crisis; and a first-of-its kind $2 billion equality progress sustainability bond to help advance racial equality, economic opportunity and environmental sustainability. Since 2013, the company has issued $9.85 billion in eight corporate Green, Social and Sustainability bonds.
For recent highlights of the bank’s ESG efforts, see page 38 of the Bank of America 2020 Annual Report. Further information can be found in the 2021 Proxy Statement and at www.bankofamerica.com/environment.
At Bank of America, we’re guided by a common purpose to help make financial lives better, through the power of every connection. We’re delivering on this through responsible growth with a focus on our environmental, social and governance (ESG) leadership. ESG is embedded across our eight lines of business and reflects how we help fuel the global economy, build trust and credibility, and represent a company that people want to work for, invest in and do business with. It’s demonstrated in the inclusive and supportive workplace we create for our employees, the responsible products and services we offer our clients, and the impact we make around the world in helping local economies thrive. An important part of this work is forming strong partnerships with nonprofits and advocacy groups, such as community, consumer and environmental organizations, to bring together our collective networks and expertise to achieve greater impact. Connect with us on Twitter (@BofA_News).
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Kelly Sapp, Bank of America