BofA More than Doubles Sustainable Finance Activity, Mobilizing $250 Billion in 2021
Bank of America (BofA) revealed today that it has more than doubled its sustainable finance activity in 2021, reaching an all-time high of $250 billion in capital mobilized for financing UN SDG-aligned green and social projects, compared to approximately $105 billion in 2020.
The jump in financing activity follows the launch of a commitment made by BofA last year to achieve $1.5 trillion in sustainable finance mobilization and deployment by 2030, including $1 trillion for its Environmental Business Initiative aimed at accelerating the transition to a low-carbon, sustainable economy.
Paul Donofrio, Vice Chair of Bank of America, said:
“Our sustainable finance strategy permeates every aspect of how we deliver for our clients, employees and communities, and we are committed to a more inclusive, net zero society for all. Our sustainable finance focus is long-standing and continues to play a catalytic role in scaling our environmental transition and inclusive social development goals across the globe. As a financial institution, we are leveraging the power of our size, expertise and the capital markets to mobilize more investments and financings to address these global challenges and opportunities.”
According to BofA’s annual report, issued today, the bank is one of the largest underwriters of green bonds, having supported to date more than 225 clients in raising over $300 billion through more than 400 ESG-themed bond offerings.
In 2021, the bank’s sustainable finance activities included mobilizing approximately $155 billion for environmental transition projects and activities, addressing climate change and promoting the circular economy, including solutions for renewable energy, energy efficiency, clean transportation, water & sanitation, sustainable agriculture, and carbon capture & sequestration. Another $95 billion was geared towards social inclusive development, including categories such as advancing community development, affordable housing, healthcare, education, financial and digital inclusion, access to basic services, racial and gender equality, and promoting environmental justice.
Karen Fang, Global Head of Sustainable Finance at Bank of America, said:
“Finance with a purpose is a powerful tool for driving social and environmental change. Through our work with internal stakeholders, external alliances, and other partners, we are making tangible and meaningful progress towards achieving a more sustainable future. While there is still much more to do, our significant increase in firm wide sustainable activity last year demonstrates our commitment and ability to lead by example. Whether it’s our work in developed or emerging markets, on mature or new technologies, on climate change or social equity, our sustainable finance efforts are always focused on finding new and innovative ways to increase the amount of capital that is flowing to where it is needed the most.”