Bank of America (BofA) announced today a major increase in its sustainable finance targets, aiming to achieve $1.5 trillion in sustainable finance mobilization and deployment by 2030, including a new goal of $1 trillion in its Environmental Business Initiative aimed at accelerating the transition to a low-carbon, sustainable economy.
Bank of America Vice Chairman, Anne Finucane, who leads the company’s ESG, sustainable finance, and public policy efforts, said:
“The private sector is well-positioned to ensure that the capital needed – at the scale it is needed – can drive the transition to a low-carbon, sustainable economy. We will meet our commitment by working with clients to provide lending, capital raising, advisory and investment services, and to develop financial solutions and drive innovation to ensure the transition to a sustainable economy.”
BofA’s Environmental Business Initiative seeks to deploy capital to low-carbon, sustainable business activities, advancing an environmental transition across sectors including solutions in energy efficiency, renewable energy, sustainable transportation, resource efficiency, sustainable water and agriculture as well as improved forestry and pollution control measures.
Since launching the initiative in 2007, BofA has deployed more than $200 billion to low-carbon, sustainable business activities. Today’s announcement marks a significant increase in the bank’s exiting target, set in 2019, to deploy $300 billion to these activities.
Beyond BofA’s new environmental finance goal, the balance of the bank’s $1.5 trillion target is aligned with other United Nations Sustainable Development Goals (UN SDGs), aimed at generating transformative change nationally and around the world. Sustainable finance efforts will focused on social inclusive development, scaling capital to advance community development, affordable housing, healthcare, and education, in addition to racial and gender equality.
Chief Operating Officer Tom Montag, who co-chairs Bank of America’s Sustainable Markets Committee with Finucane, said:
“We stand alongside our clients in helping drive the transition in sustainable lending, investing, and markets activity. Bank of America will continue to mobilize players across the entire financial system to increase the flow of capital.”