In honor of Earth Day on April 22, all week we’re focusing on the E in ESG. Sandra Ericson, rbb’s partner in charge of energy and natural resources is taking a deep dive into three brands that have established strong ESG propositions by focusing on the environment and innovative solutions to fight climate change. Not only are these brands impressive in their own right, but we’re also proud to call them #rbbclients. Read Part I here.
Yesterday we talked about Neste, an rbb client that morphed its entire business model, down to the products it develops, to create its ESG vision. Today, we’ll focus on an rbb client that ensures they are committed to people and planet in numerous ways, such as encouraging volunteerism and active board member involvement at the local level. But for Bank of America, one of the world’s leading financial institutions, its greatest asset lies in its ability to invest, and help others invest in responsible growth with a focus on ESG leadership. In other words, the bank puts its money where its mouth is.
Bank of America has an amazing track-record of deploying capital in critical areas of society – just when we need it most. This year, the bank committed $1.25 billion over five years to help communities address economic and racial equality issues exacerbated by the pandemic.
When it comes to tackling climate change, the bank has a similar focus. Since 2007, the company has mobilized more than $200 billion in capital to finance low-carbon and sustainable business activities across the globe and it has a commitment to invest $1 trillion by 2030.
This financing helps support clients and their sustainable business activities in areas such as renewable energy, energy efficiency, improved forestry, pollution control measures and sustainable transportation, including electric vehicles and charging infrastructure.
Bank of America is also dedicating significant financial, intellectual, philanthropic and catalytic capital to support the advancement of developing technologies, such as carbon finance, sustainable agriculture and biofuels, water infrastructure, clean hydrogen, waste-to-energy, and carbon capture and sequestration technologies.
When it comes to its own operations and reducing its environmental impact, Bank of America also has big plans. Recently, the company announced actions to achieve net zero greenhouse gas emissions before 2050, along with broader 2030 operational and supply chain goals. The bank achieved carbon neutrality in its operations back in 2019, a year ahead of schedule.
Finally, Bank of America does its part to help the wider population invest in ESG principles. 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.
As one of the largest companies in United States, Bank of America no doubt has the ability to put its money to good use. By using a local market strategy that deploys capital to the organizations best suited to use it, while being accountable for its own responsible growth, Bank of America is another example of an rbb client leading the way this Earth Day.