Bank of America Announces Actions to Achieve Net Zero Greenhouse Gas Emissions before 2050

Rhea-AI Summary

Bank of America has announced its commitment to achieving net zero greenhouse gas emissions in its operations, financing activities, and supply chain by 2050, aligning with the Paris Climate Agreement. The company plans to set interim science-based emissions targets, particularly for high-emission portfolios. As part of its broader sustainability strategy, Bank of America aims to reduce location-based greenhouse gas emissions by 75% by 2030 and increase the use of zero carbon electricity. The bank will also invest $445 billion in low-carbon technologies by 2030.

Positive

• Commitment to achieve net zero greenhouse gas emissions by 2050.
• Plans to establish interim science-based emissions targets for high-emission portfolios.
• Achieved carbon neutrality in its operations a year ahead of schedule in 2019.
• Aiming to invest $445 billion in low-carbon technologies by 2030.

Negative

• No specific metrics disclosed for the interim science-based emissions targets.
• Dependence on client participation for achieving net zero goals which may introduce variability.

Building on Bank of America’s longstanding support for the Paris Climate Agreement, the company today outlined initial steps to achieve its goal of net zero greenhouse gas (GHG) emissions in its financing activities, operations and supply chain before 2050. Bank of America continues to actively engage with its clients to help accelerate their own transitions to net zero, and it plans to establish interim science based emissions targets for high-emitting portfolios, including energy and power. In addition, Bank of America released its broader 2030 operational and supply chain goals as part of a holistic commitment to environmental sustainability.

“It is critical that we leverage all parts of our business – beyond our direct operations – in order to accelerate the transition to a net zero global economy,” said Bank of America Vice Chairman, Anne Finucane, who leads the company’s environmental, social and governance, sustainable finance, capital deployment, and public policy efforts. “We recognize that this will be no easy task, but we believe our commitment will help spur the growth of zero carbon energy and power solutions, sustainable transportation and agriculture, and other sector transformations, while generating more climate resilient and equitable opportunities for our future.”

Collaboration on the Path to Net Zero

As part of its transition to net zero emissions, in July 2020, Bank of America joined the Partnership for Carbon Accounting Financials (PCAF) as a member of the Global Core Team. In collaboration with 15 other financial institutions, Bank of America participated in the development of the Global GHG Accounting and Reporting Standard for the Financial Industry, providing a consistent methodology to assess and disclose emissions associated with financing activities. Bank of America is committed to disclosing its financed emissions no later than 2023.

This collaboration builds on Bank of America’s ongoing and recent efforts with partners to address the financing, technology, policy and other challenges inherent in the transition to a net zero global economy, including:

• CEO Brian Moynihan serves as co-chair of His Royal Highness The Prince of Wales’ Sustainable Markets Initiative.
• The World Economic Forum’s International Business Council, under Moynihan’s chairmanship, recently released a set of common Environmental, Social and Governance (ESG) Stakeholder Capitalism Metrics, developed in conjunction with the Big 4 Accounting Firms. Nearly 70 global companies have committed to the metrics, which include recommendations of the Task Force on Climate-related Financial Disclosures, as well as alignment with net zero emissions before 2050. Moynihan is also a member of the World Economic Forum’s Alliance of CEO Climate Leaders and its Transition Finance Steering Committee.
• Bank of America is also a founding partner of RMI’s Center for Climate Aligned Finance, and members of 1t.org U.S. Stakeholder Council and Energy Transitions Commission.
• Bank of America routinely engages members of its National Community Advisory Council – including Ceres, the Center for Climate and Energy Solutions (C2ES), Clean Air Task Force, The Nature Conservancy, World Resources Institute, and U.S. Green Building Council – and other external stakeholders, to provide valuable perspective and guidance in shaping its net zero strategy and planning.

“By outlining the steps Bank of America is taking to achieve net zero emissions, the company is accelerating the ambitions laid forth in the Paris Climate Agreement,” said Ceres CEO and President Mindy Lubber. “As a global financial institution, Bank of America has unique influence and reach to help achieve those goals. We appreciate Bank of America’s commitment to set ambitious 2030 targets and look forward to more details in the future, including how it will work with clients to deliver on its commitment.”

Expanding Operations and Supply Chain Commitment

Bank of America achieved carbon neutrality in its operations in 2019, a year ahead of schedule, and increased the number of vendors that measure and publicly report GHG emissions through the CDP Supply Chain survey. Bank of America has now established the next set of targets for its operations and supply chain to be achieved by 2030:

• Maintain carbon neutrality for operations (Scope 1 and 2).
• Purchase 100% zero carbon electricity.
• Reduce location-based GHG emissions by 75% (Scope 1 and 2).
• Reduce energy use by 55%.
• Reduce potable water use by 55%.
• Manage facilities responsibly and achieve LEED® certification (or comparable) for 40% of building space.
• Responsibly manage waste to reduce amount sent to landfill.
  • Divert 75% of construction and demolition waste from the landfill.
  • Dispose 100% of electronic waste using certified responsible vendors.

• Ensure 70% of global vendors, by spend, set GHG emissions reduction or renewable energy targets.
• Assess 90% of global vendors, by spend, for ESG risks as outlined by the company’s Vendor Code of Conduct.
• Continue to reduce paper use and purchase 100% of paper from certified sources.

Deploying Capital to Low-Carbon, Sustainable Business Activities

Significantly increasing investment in the low-carbon technologies and activities needed to decarbonize all sectors of the economy will be critical to Bank of America meeting its net zero goals. Since 2007, the company has directed more than $200 billion in capital and has committed to deploy a total of $445 billion by 2030 under its Environmental Business Initiative. The company already expects to exceed this commitment in advance of 2030 based on current financing activity. Under this initiative, the company partners closely with its clients to finance the adoption of low-carbon solutions, including resource-efficient building construction, renewable energy, sustainable transportation such as electric vehicles and charging infrastructure, and resource-efficient agriculture.

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 sequestration technologies. More details on Bank of America’s approach to addressing climate change and managing risk in its financing activities can be found in the company’s updated Environmental and Social Risk Policy Framework and Task Force on Climate-related Financial Disclosures Report.

Bank of America
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. Learn more at about.bankofamerica.com, and connect with us on Twitter (@BofA_News).

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www.bankofamerica.com

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FAQ

What is Bank of America's goal for greenhouse gas emissions by 2050?

Bank of America aims to achieve net zero greenhouse gas emissions in its operations, financing activities, and supply chain by 2050.

What interim targets is Bank of America planning to set for greenhouse gas emissions?

Bank of America plans to establish interim science-based emissions targets for high-emission portfolios, including energy and power.

How much is Bank of America investing in low-carbon technologies by 2030?

Bank of America has committed to invest $445 billion in low-carbon technologies by 2030.

When did Bank of America achieve carbon neutrality in its operations?

Bank of America achieved carbon neutrality in its operations in 2019, a year ahead of schedule.