Banking on a low-carbon economy: The economic impact of our $125 billion environmental business initiative report

As one of the world's largest financial institutions, Bank of America has a role and responsibility in accelerating the transition to a low-carbon and sustainable economy. We are doing that by providing the financial and intellectual capital to develop solutions to environmental challenges. Since 2007, we have provided more than $70 billion to low-carbon and sustainable business activities and as part of our second environmental business commitment, we are directing $125 billion in capital by 2025 to address climate change and demands on natural resources.

Our company purpose is to serve the financial needs of all our customers—from large corporate clients and institutional investors to individual consumers and small businesses. This is the cornerstone of our environmental business strategy: financing opportunities for clients to advance their businesses, invest in areas of future growth or that align to their values (or both), while creating positive environmental and economic change.

We also understand the importance of measuring this work. Therefore we teamed up with consulting firm EY to calculate the economic impacts of our U.S. environmental finance efforts. The results, located in our report called “Banking on a Low-Carbon Economy: The Economic Impact of Bank of America’s $125 Billion Environmental Business Initiative” highlight three key areas:


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    The analysis focused on a subset of our current $125 billion environmental business initiative and examined $12.6 billion of financing deployed directly in projects within the United States between 2013 and 2016. This subset corresponds with a previous report commissioned with EY to evaluate the environmental impacts of Bank of America’s environmental financing.

    According to EY’s estimate, over the course of four years, this subset supported an annual average of 39,728 jobs, realized a cumulative $29.9 billion in economic output, and contributed a cumulative $14.8 billion to GDP. The findings demonstrate Bank of America’s environmental business initiative is realizing positive economic impacts that enable sustainable growth, while helping to scale solutions to our most pressing environmental challenges.

    Learn more about our broader environmental efforts. Also, read the "Banking on a Low-Carbon Economy: The Economic Impacts of Bank of America's $125 Billion Environmental Business Initiative" report summary or the detailed EY Report.

    Jobs

    EY estimated from 2013-2016 in the U.S., Bank of America’s environmental financing supported an average of 39,728 jobs annually. This includes employment in industries such as wind, solar, energy conservation and energy efficiency.

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    Economic output

    Labor income: EY estimated jobs supported through Bank of America’s environmental business initiative drove a total of $9.6 billion in labor income.

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    Contributions to Gross Domestic Product (GDP)

    As part of our analysis, EY estimated how the outputs of our U.S. environmental finance has contributed to the United States economy, as measured by Gross Domestic Product (GDP). We refer to this as the “value added” by these projects. Value added captures the enhancement that a business gives a final good or service. Unlike economic output, which captures all the expenditures a business makes, value added equals the profit a business receives, the money it pays its workers, and its expenditures on the use of its machines and equipment. Over four years, the $12.6 billion (U.S.) subset of our $125 billion environmental business initiative has helped to contribute $14.8 billion to U.S. GDP.

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