Our business practices

Vendor management

Mutually beneficial supplier relationships

We encourage our suppliers to operate in ways that promote beneficial social and environmental outcomes. For our part, we pledge to treat our suppliers with respect, provide development opportunities and work as long-term partners.

Our Supply Chain team is responsible for the procurement of products and services for use by Bank of America and our affiliates and is driven by our Vendor Code of Conduct and our Human Rights Statement. Our focus and support includes:

  • Fairness: We seek to have competitive procurement activities and bid processes that foster equal opportunity so that qualified companies can provide products and services that meet our requirements.
  • Local Sourcing: We are committed to the growth and development of communities in which we do business. Where possible, we work with our supplier base to support local economies.
  • Diversity: We aim to source from diverse suppliers, which include businesses owned by individuals who are minority, women, veteran and other diverse-owned suppliers.
  • Environment: We survey about 200 of our suppliers annually to assess their environmental practices and performance.

Delivering on our goals

  • We support the development of diverse suppliers through scholarships awarded by the Women’s Business Enterprise National Council and Minority Business News USA.
  • We continue to enhance the social and environmental performance of our supply chain.
  • In 2016, we set our first-ever goals to address greenhouse gas emissions in our supply chain with two vendor engagement goals: to maintain a response rate to CDP supply chain information requests of at least 90 percent, and for 90 percent of CDP supply chain responding vendors to disclose greenhouse gas emissions.

Supplier diversity

We support the growth of diverse businesses through our Supplier Diversity program, which develops relationships with vendors owned by minority, women, veteran and other diverse-owned suppliers.Through strategic collaborations, we include diverse suppliers in our procurement practices, which in 2016 resulted in more than $2.6 billion of diverse procurement spending.

In 2014, Bank of America became the first (and remains the only) Financial Services Institution to ever be inducted into the Billion Dollar Roundtable, a nationally recognized organization created to celebrate corporations that spend at least $1 billion with diverse-owned suppliers. In 2015, our Supplier Diversity programs marked a 25-year milestone of supporting minority, women, veteran and other diverse-owned suppliers. And in 2016, Bank of America won the Financial Services Corporation of the Year Award from the National Minority Supplier Development Council (NMSDC), was awarded the Platinum Top Corporation Award from the Women’s Business Enterprise National Council and was named Best of the Best Corporation by the National Gay and Lesbian Chamber of Commerce. Our continuing commitment to supplier diversity initiatives includes:

  • Awarding capacity building scholarships for executive education and entrepreneurial programs to help diverse business owners take their businesses to the next level;
  • Encouraging participation in our Supplier Diversity and Development Mentoring Program – a high-touch mentor program that is customized for each participating diverse supplier to drive optimum developmental impact; and
  • Offering development training through our Supplier Diversity and Development Small Business Institute to help small and diverse businesses overcome challenges to growth and capacity building.

We are well-positioned and committed to investing in diverse businesses to drive sustainable growth and create shared success. When diverse suppliers achieve success, the diverse communities we serve experience tangible and sustained economic benefits. Our approach, of committing to spend Bank of America procurement dollars with diverse businesses while simultaneously investing in their continued development, gives rise to a meaningful, long-term impact.

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Suppliers and environmental impact

CDP Supply Chain Program
Since 2009, we have invited suppliers to respond to the CDP supply chain questionnaire, which helps us track greenhouse gas emissions and associated risks that impact our global supply chain. In 2016, we requested disclosures from 196 suppliers and achieved a best-in-class response rate of 90 percent. We also set our first-ever goals to address greenhouse gas emissions in our supply chain with two vendor engagement goals: to maintain a response rate to CDP supply chain information requests of at least 90 percent, and for 90 percent of CDP supply chain responding vendors to disclose greenhouse gas emissions. Each year, we provide individualized feedback regarding each supplier’s level of transparency and performance to the participating suppliers and their vendor managers. This has facilitated an ongoing dialogue with our suppliers, which promotes collaboration and provides a meaningful opportunity to recognize leadership among our highest-performing suppliers.

We are proud to report that in 2016, 64 percent of our supplier respondents have greenhouse gas emissions reduction or renewable electricity procurement goals.

The CDP supply chain questionnaire also allows our suppliers to communicate proposals to reduce our environmental impact. In 2016, we received 69 collaborative ideas from 56 of our suppliers to mitigate our environmental impact and the impacts of the products and services that we offer. These proposals include innovative ideas such as closed loop recycling, advanced credit card production methods that reduce energy use, route optimization to reduce transportation emissions, and lean manufacturing practices that reduce waste. These proposals indicate a willingness to reduce emissions and a long-term desire to engage with us on environmental sustainability.

Twelve suppliers that we invited to respond to the CDP supply chain survey are on the 2016 Supplier Climate A List, a ranking based on their survey responses and demonstration of strong and transparent climate strategies and emissions reduction programs. Bank of America has been recognized as one of 29 companies on CDP’s supplier engagement leader board for helping to reduce carbon emissions and lower climate related risks in our supply chain over the past year. Approximately 3,300 companies were assessed by CDP for their supply chain engagement activities and work with suppliers to reduce emissions and lower climate-related risks in supply chain. The recognition demonstrates our focus on responsible growth and sustainability and puts us in the top 1 percent of the companies assessed by CDP.

View our CDP responses in the Report Center.

Sourcing

In addition to engaging our own supply base in CDP, we’ve continued to integrate environmental sustainability criteria into our supplier sourcing processes by providing our sourcing managers specific questions regarding supplier sustainability practices and scoring criteria. The result has been an increased incorporation of sustainability criteria into requests for proposals and requests for information from our suppliers. Since 2014, we have used sustainability questions in our sourcing processes to better reflect desired environmental criteria of goods and services purchased by Bank of America. In addition, our contract templates contain representations and warranties to ensure that our suppliers use environmentally beneficial practices relevant to and meeting the minimum standards of their particular industry.

Our Vendor Code of Conduct outlines the expectations we set for our suppliers to demonstrate their commitment to basic working conditions and ethical business practices.

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