The FINANCIAL -- Bank of America has pledged to increase the company’s current environmental business initiative from $50 billion to $125 billion in low-carbon business by 2025 through lending, investing, capital raising, advisory services and developing financing solutions for clients around the world.
The announcement of July 27 will be highlighted at the White House’s American Business Act on Climate Pledge event, which recognizes corporations for their support of action to address climate change. The event will bring together executives from various industries as they pledge their support of an agreement in advance of the climate change talks in Paris scheduled for later this year. The company is represented by Purna Saggurti, Bank of America Merrill Lynch chairman of Global Corporate and Investment Banking.
The company initiative and commitment focus on energy efficiency, renewable energy and transportation, in addition to addressing other important areas like water conservation, land use and waste. This expanded second commitment builds on the company’s initial environmental business initiative established in 2007 and fulfilled in 2013, four years ahead of schedule, according the Bank of America Corporation.
“We are putting our financial capital, our intellectual capital, and the strength of our partnerships to work to help create a better future for all of us,” said Brian Moynihan, chief executive officer, Bank of America.
“We will continue to work with partners around the globe to develop innovative and scalable solutions that attract new investors and additional capital to clean energy and low-carbon infrastructure opportunities,” said Saggurti.
“Since making its original environmental business commitment in 2007, Bank of America has consistently been among the leaders in every branch of clean energy finance we track,” said Michael Liebreich, founder and chairman of the Advisory Board, Bloomberg New Energy Finance. “This new commitment means Bank of America is again setting the pace. To be considered a leading provider of financial services, in anything from energy to real estate, it’s crucial to be focused on funding low-carbon solutions, and Bank of America’s new commitment is a very significant statement.”
Bank of America has provided more than $39 billion in financing for low-carbon activities since 2007, including $12 billion in 2014 alone, of which:
Forty percent went to renewable energies – solar, wind, hydro, geothermal, advanced biofuels or mixed portfolios.
Thirty-three percent went to financing energy efficiency.
In the past 12 months, Bank of America has deployed several innovative capital markets solutions designed to accelerate the funding of low-carbon projects, focusing in particular on developing the green bond market and building out its new Catalytic Finance Initiative.