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Capital Acumen Issue 32

Bank Of America Commits To Carbon Neutrality By 2020

The purchase of 100% renewable electricity and a 40% cut in energy use are part of the bank' s plan.

Solar array at sunset

Henglein and Steets/Offset

Bank of America recently strengthened its long-standing commitment to a better world. This past September, the bank announced new operational goals that it expects to meet by 2020, including plans to become carbon neutral. The initiative reflects the bank’s continuing efforts to reduce the environmental impact of its operations and address climate change.

The Plan

Bank of America aims to reduce location-based greenhouse gas (GHG) emissions by 50%, energy use by 40%, water use by 45% and waste to landfill by 35% in its operations across the globe by 2020.

In addition, the bank has committed to purchasing 100% renewable electricity, possibly through the purchase of renewable energy certificates, or RECs. One REC is produced every time one-megawatt hour of renewable electricity is generated and put onto the grid. As part of this commitment, the bank has joined RE100, a global initiative of influential businesses committed to renewable electricity. These new commitments build upon the success of the company’s 2015 operations goals and the deployment of $125 billion in financing for low-carbon and sustainable business.

The bank has joined a global initiative of influential businesses committed to renewable electricity.

“The expansion of our operational goals for 2020 — achieving carbon neutrality and purchasing 100% renewable electricity — builds on our existing environmental commitment and responsible growth strategy,” said Anne Finucane, vice chairman of Bank of America. “This demonstrates the measurable actions we are taking to reduce our environmental impacts.”

The Accomplishment

From 2010 to 2015, the company reduced its greenhouse gas emissions by 37% — more than doubling its goal of a 15% reduction — primarily through implementing energy efficiency projects and consolidating space across its global operations in more than 35 countries.

The Environment and Beyond

Bank of America’s latest initiatives show a continued commitment to environmental initiatives that contribute positively to the communities where the company operates, and provide opportunities for customers, clients and employees.

“Our environmental strategy and efforts not only promote a greener global economy,” said Alex Liftman, global environmental executive at Bank of America. “They also give us a strategic advantage in our industry and help us deliver long-term value.”

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