Bank of America (BofA) unveiled a series of interim targets to reduce emissions associated with its financing activities in several key emissions-intensive sectors.
The new goals, targeting the auto manufacturing, energy and power generation sectors, were published in BofA’s “Approach to Zero” strategy, laying out the bank’s approach to achieving its climate goals and target setting process. BofA announced last year a commitment to achieve net zero greenhouse gas (GHG) emissions in its financing activities, operations and supply chain by 2050.
BofA’s new financed emissions goals include 2030 targets to reduce auto manufacturing intensity by 44%, including Scope 1, 2 and end use Scope 3 emissions, energy sector emissions intensity by 42% for Scope 1 and 2 and 29% for Scope 3, and power generation intensity by 70% for Scope 1.
While the bank’s targets initially only cover its business loan exposure to each sector, BofA stated that it plans to add capital markets activity to its 2030 goals once a methodology is released by the Partnership for Carbon Accounting Financials (PCAF). BofA also said that it plans to add targets for other key sectors through 2024.
BofA’s Approach to Zero also discusses the bank’s strategy to help finance the net zero transition. Key pillars of the plan include assisting clients in achieving their own net zero objectives through the development of products and services and investing in climate solutions, advocating for industry and global standards to drive comparable commitments and disclosure, analyzing data to develop decision-useful metrics, setting science-aligned milestone targets, and reporting on progress following TCFD and Net Zero Banking Alliance guidance.
Bank of America CEO Brian Moynihan, said:
“This work goes hand in hand with the way we are engaging our clients – those that have set their own net zero goals, those working toward future goals, and those that are in the supply chain of companies that have a goal – to help ensure a just, stable transition to the sustainable future we all want.”
Click here to access Bank of America’s Approach to Zero.