Bank of America Will Transition to Recycled Plastic for All Plastic Credit and Debit Cards Beginning in 2023

Rhea-AI Summary

Bank of America has announced a significant initiative to transition all its plastic credit and debit cards to be made from at least 80% recycled plastic starting in 2023. This move, the first of its kind by a U.S.-based bank, aims to reduce over 235 tons of single-use plastics annually and support a sustainable supply chain. Market research shows that over 72% of consumers are interested in environmental sustainability. Bank of America aims to further reduce greenhouse gas emissions and energy usage through this initiative while continuing to offer digital debit cards, introduced in 2019.

Positive

• Transition to recycled plastic will reduce over 235 tons of single-use plastics annually.
• Over 72% of consumers show interest in sustainability, aligning with the initiative.
• Estimates indicate reduced greenhouse gas emissions, energy, and water usage.

Negative

• None.

First U.S. Based Bank to Make the Change for All Plastic Credit and Debit Card Products; Will Help to Reduce More Than 235 Tons of Single-Use Plastics

CHARLOTTE, N.C., April 21, 2022 /PRNewswire/ -- Bank of America today announced that it will transition all plastic credit and debit card products to be made from at least 80% recycled plastic starting in 2023. The company is the first U.S. based bank to make this commitment across its entire debit and credit card portfolio, in keeping with its focus to reduce single-use plastic in its supply chain. This will help reduce the environmental impact of plastics in cards issued by Bank of America and support the company's efforts to drive sustainable, low-carbon solutions.

Market research conducted by Escalent (April 2022) found that more than 72% of consumers and small business clients are interested in environmental sustainability and more than 69% show favorability towards having a recycled plastic debit/credit card.

"Shifting to a recycled card product is another step toward a more sustainable solution which will help foster a circular economy," said Mary Hines Droesch, head of Consumer and Small Business Products at Bank of America. "We are committed to incorporating sustainability throughout our business."

Bank of America issues 54 million consumer and commercial cards annually and estimates this effort will help to reduce more than 235 tons of single-use plastics, based on its annual card issuance. The company also anticipates that switching to recycled plastic for its credit and debit card portfolio will reduce greenhouse gas emissions, energy and water usage.¹ In addition, Bank of America has offered digital debit cards since 2019.

"Bank of America offers a digital card for debit which clients can instantly create when they open an account or when they need a card replacement," said Robin Growley, Consumer Deposit Payments and Products executive at Bank of America. "The digital card further helps to reduce our clients' reliance on plastic."

Bank of America's History of Sustainable Leadership
Bank of America set its first goal to reduce greenhouse gases in its operations in 2005, and in 2019 the company met its carbon neutrality goal a year ahead of schedule. Last year, Bank of America set a net zero before 2050 goal across its financing activities, operations and supply chain. Earlier this month, the company announced its targets for reducing emissions associated with financing activities related to three key sectors: auto manufacturing, energy and power generation.

In April 2021, the company also announced a $1 trillion by 2030 goal to mobilize capital to accelerate the environmental transition, this as part of its $1.5 trillion sustainable finance commitment to support the United Nations Sustainable Development Goals. Since 2007, Bank of America has mobilized more than $350 billion toward climate and environmental business activities.

Additional resources: Annual Report to shareholders; Environmental Commitment.

¹ More details about this initiative will be shared in early 2023, when the company completes an ISO-conformant life-cycle assessment of its plastic credit and debit cards.

Cautionary Information and Forward-Looking Statements
This press release contains statements regarding environmental, social and governance (ESG) related information and opinions, in each case which may include metrics, targets, goals, commitments and sustainability strategy. Such Information and any statements made in connection therewith are not guarantees or promises that any metrics, goals, targets or commitments will be met, and are based on current goals, targets, commitments, estimates, assumptions, developing standards and methodologies and currently available data, which continue to evolve and develop. The information in this press release is as of the date referenced, subject to change without notice and should be regarded as indicative and for illustrative purposes only. Such information may also include the use of non-financial metrics and/or other information that are subject to significant measurement uncertainties, which may include the methodology, collection and verification of data, various estimates and assumptions and/or underlying data that is obtained from third parties, some of which cannot be independently verified.

Additionally, certain statements contained in this press release may constitute "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act, including statements about future financial performance and business and ESG-related information, which may evolve over time. Words such as "estimates," "anticipates," "believes," "expects," "intends," "plans," and similar expressions are used to identify forward-looking statements. Forward-looking statements reflect management's current expectations, plans or forecasts, are not guarantees of future results or performance, involve certain known and unknown risks, uncertainties and assumptions that are difficult to predict and often beyond Bank of America Corporation's control and are inherently uncertain. Actual outcomes and results may differ materially from those expressed in, or implied by, forward-looking statements. You should not place undue reliance on any forward-looking statement and should consider the uncertainties and risks discussed in Bank of America Corporation's 2021 Annual Report on Form 10-K and subsequent Securities and Exchange Commission filings. Bank of America Corporation undertakes no obligation to update or revise any forward-looking statements.

Website links throughout this press release are provided for convenience only, and the content on the linked websites is not incorporated by reference into this press release.

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. Connect with us on Twitter (@BofA_News).

For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom and register for news email alerts.

Reporters may contact:

For environmental inquiries:
Kelly Sapp, Bank of America
Phone: 1.980.214.3070
kelly.e.sapp@bofa.com

For credit and debit card inquiries:
Don Vecchiarello, Bank of America
Phone: 1.980.387.4899
don.vecchiarello@bofa.com

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SOURCE Bank of America Corporation

FAQ

What is Bank of America's initiative regarding plastic credit and debit cards?

Bank of America will transition all its plastic credit and debit cards to be made from at least 80% recycled plastic starting in 2023.

How much single-use plastic will Bank of America's card transition reduce?

The initiative is expected to reduce more than 235 tons of single-use plastics annually.

What percentage of consumers are interested in sustainable banking options?

Market research indicates that over 72% of consumers are interested in environmental sustainability.

When did Bank of America start offering digital debit cards?

Bank of America has offered digital debit cards since 2019.

Is Bank of America's move to recycled plastic cards environmentally beneficial?

Yes, it aims to reduce greenhouse gas emissions and conserve energy and water.