Deploying capital to help fight climate change and grow the economy

Climate change is a critical issue that can be addressed through the public, private and nonprofit sectors working together. Recognizing our role as a global financial institution, Bank of America has committed $125 billion in financing by 2025 toward clean energy and other sustainability projects.

This includes helping sustainability efforts scale up, allowing them to achieve more than they could with a philanthropic grant or small business loan alone. For, whose mission is to empower families with access to safe water and sanitation through affordable financing, Bank of America committed the first $5 million dollars to its WaterEquity fund, which will raise $50 million over time, allowing the organization to bring safe water solutions to millions more.

“If you can get the financial world interested, and they can think of it in terms of capital deployment, what you can get is a much greater impact,” said Anne Finucane, Vice Chairman, Bank of America.

The economic impact that comes from financing clean and renewable energy projects is detailed in a report from Bank of America, Financing the Future: The Economic Opportunities of Bank of America’s $125 Billion Environmental Business Initiative. The findings demonstrate that between 2013 and 2017, Bank of America’s environmental financing supported an annual average of 76,043 jobs, contributed a cumulative $35.6 billion to GDP, and realized a cumulative $70.4 billion in economic output. The EY analysis also revealed that these low-carbon economy jobs pay good wages, with all project types supporting a higher average compensation than the U.S. annual average of $51,750. This environmental economic impact report demonstrates the power the financial industry has to support economic growth while addressing societal challenges.

As the world finds ways to address issues such as climate change and demands on natural resources, it will be important for financial institutions to continue their role in deploying capital to high-impact projects.

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