Bank of America announced today a broad series of interim targets that will form the initial steps on the bank’s path to achieving net zero greenhouse gas (GHG) emissions in its financing activities, operations and supply chain by 2050.
Bank of America Vice Chairman, Anne Finucane said:
“It is critical that we leverage all parts of our business – beyond our direct operations – in order to accelerate the transition to a net zero global economy. We recognize that this will be no easy task, but we believe our commitment will help spur the growth of zero carbon energy and power solutions, sustainable transportation and agriculture, and other sector transformations, while generating more climate resilient and equitable opportunities for our future.”
BofA has emerged as a leading force in the movement to measure the emissions impact of finance operations. In July 2020, the bank joined the Partnership for Carbon Accounting Financials (PCAF), a global partnership of financial institutions with a mission to develop and implement a harmonized approach to assess and disclose the greenhouse gas (GHG) emissions associated with their loans and investments. BofA joined the PCAF as a core member, and was one of 16 global banks and investors to help develop the coalition’s recently launched Global GHG Accounting and Reporting Standard for the Financial Industry. The bank stated that has committed to disclosing its financed emissions no later than 2023.
In addition to setting a target date to report financed emissions, BofA released a series of 2030 operational and supply chain goals. The bank has already reached carbon neutrality in its own operations, as of 2019 and has pledged to maintain this achievement. The new 2030 targets include purchasing 100% zero carbon electricity, reducing location-based GHG emissions by 75%, energy use by 55%, and potable water use by 55%, diverting 75% of construction and demolition waste from the landfill, disposing 100% of electronic waste using certified responsible vendors, and purchasing 100% of paper from certified sources. In addition, the bank has pledged to manage facilities responsibly and achieve LEED certification (or comparable) for 40% of building space.
On the supply chain front, BofA will ensure that 70% of global vendors, by spend, set GHG emissions reduction or renewable energy targets, and assess 90% of global vendors, by spend, for ESG risks as outlined by the company’s Vendor Code of Conduct.
BofA also announced that based on its current pace of activity, the bank expects to exceed its targets to deploy a total of $445 billion in capital to low carbon sustainable business activities.
Commenting on BofA’s new initiatives, Mindy Lubber, CEO and President of sustainability-focused nonprofit organization Ceres, said:
“By outlining the steps Bank of America is taking to achieve net zero emissions, the company is accelerating the ambitions laid forth in the Paris Climate Agreement. As a global financial institution, Bank of America has unique influence and reach to help achieve those goals. We appreciate Bank of America’s commitment to set ambitious 2030 targets and look forward to more details in the future, including how it will work with clients to deliver on its commitment.”