Environmental Business Initiative — Deploying capital to low-carbon, sustainable business activities
2007: Set first goal at $20 billion, met four years ahead of schedule
2012: Met first commitment four years ahead of schedule
2013: Set second goal at $50 billion
2015: Increased second goal to $125 billion
2019: Met second goal, six years ahead of schedule
2020: Third goal deploys an additional $300 billion by end of 2030
Total commitment (2007-2030) = more than $445 billion
A recent report demonstrates how our environmental business commitment is making a positive impact on the U.S. economy.
Also, we manage environmental and social risks across our enterprise and have established an Environmental and Social Risk Policy Framework and Task Force on Climate-related Financial Disclosures (TCFD) report to provide transparency into those policies and processes.
Read our 2019 Annual Report, ESG Performance Data Summary, and recent press releases to learn more.
Our environmental business strategy
We understand the powerful role we have to play—globally—in helping our customers and clients navigate the transition to a low-carbon, sustainable economy.
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 that create positive environmental change and enabling individuals and institutions to invest in environmental sustainability.
Environmental Business Initiative financing by line of business
Breakdown of 2007-2019
$158 billion
in financing
-
$80.3 Billion
Global Markets
Includes Public Finance, Trading and Commercial Real Estate Banking
-
$70.7 Billion
Global Corporate and Investment Banking
Includes Investment Banking, Leasing and Corporate Banking
-
$1.69 Billion
Global Commercial Banking
-
$3.94 Billion
Consumer Vehicle Lending
-
$170 Million
CDFI Lending
* $46 million supported not-for-profits between 2007-2013 -
$867 Million
Additional financing supported Strategic Environmental Investments, Corporate Workplace and Global Wealth and Investment Management
Blended Finance Catalyst Pool
The Blended Finance Catalyst Pool provides $60 million in capital and mobilizes additional private capital to advance the United Nations Sustainable Development Goals (SDGs). The financing pool specifically focuses on energy access (SDG7), affordable housing (SDG11), water and sanitation access (SDG6), and climate resiliency (SDG13). The initiative aims to support economic growth and result in more sustainable jobs, development and projects as well as drive innovation. Read our press release to learn more.
Green Bonds
Bank of America is excited to play a leadership role in the rapid expansion of the green bond market. The issuance of our fifth corporate green bond of $2 billion in aggregate principal amount expands our commitment to sustainable finance. Our most recent bond’s proceeds will help support the United Nations Sustainable Development Goal (SDG) No. 7 of affordable, clean energy. With this offering, Bank of America becomes the first U.S. financial institution to issue five corporate green bonds, raising a total of $6.35 billion for renewable energy projects since 2013. Learn more.
Equally as important, BofA Securities has been the leading underwriter of green bonds globally since 2007 according to Bloomberg New Energy Finance league tables and Environmental Finance Bond database. Additionally, in the same time period this division has underwritten more than $49 billion on behalf of more than 100 clients, supporting more than 288 deals and providing critical funding to environmental projects.
Tax Equity
*Bank of America Renewable Energy Finance team has been the No. 1 tax equity investor in the U.S. since 2015. Its portfolio at the end of 2019 was approximately $9.4 billion of Tax Equity renewable energy investment, supporting wind and solar facilities.
*According to Bloomberg New Energy Finance league tables.
Community Development Financial Institutions (CDFI)
In addition to our direct lending and investment business in community development, we work with 255 Community Development Financial Institutions (CDFIs) to finance affordable housing, economic development projects, small businesses, entrepreneurs, and community facilities. CDFIs extend the reach of what we can do on a direct basis, and we have a loan portfolio to CDFIs in an amount greater than $1.5 billion. In 2019 we originated more than $325 million in CDFI loans with use of proceeds focused on environmental sustainability. Learn more about our work with CDFIs.
Our partners
Big challenges require collaboration. That is why we partner with leading non-profit and academic organizations that are working toward a sustainable, low-carbon energy future, expanding access to clean and safe water and developing extreme weather and climate change resilience solutions. These partners conducting crucial research and demonstrating strategies that can be scaled and making a significant and positive impact across the globe.
In 2019 alone, we provided more than $24 million in philanthropic support to organizations helping to make a difference in local communities and around the globe.
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