Bank of America has announced it will mobilize an additional $300 billion in capital by 2030 through its Environmental Business Initiative. The company looks to increase its investment in low-carbon business activities as part of its focus on deploying capital for responsible, sustainable growth through lending, investing, capital raising, advisory services and developing financing solutions.
This commitment is in addition to the $126 billion already deployed over the past 12 years in support of environmental business efforts across the globe.
The enterprise wide initiative is designed to unlock the necessary financing and investment to address the broad themes outlined in the United Nations Sustainable Development Goals (SDGs) including affordable housing, clean water and sanitation, sustainable energy, education and health care.
“The need to mobilize and deploy capital to address climate change has never been more urgent,” said Bank of America Vice Chairman Anne Finucane. “As one of the world’s largest financial institutions, Bank of America has a responsibility and an important role to play in helping to mitigate and build resilience to climate change by using our expertise and resources, as well as our ability to convene partners across sectors, to accelerate the transition from a high-carbon to a low-carbon society.”
Leadership in environmental business
In 2013, Bank of America issued its second Environmental Business Initiative commitment with a goal to deploy $125 billion by 2025. The company will achieve this commitment by the end of 2019, six years ahead of schedule.
The company has supported clients through environmental business including:
- Since 2013, Bank of America has issued $4.35 billion in corporate green bonds. In May 2018, the company issued its fourth and largest green bond for $2.25 billion – becoming the first U.S. financial institution to issue four corporate green bonds.
- Bank of America Merrill Lynch has led green bond underwriting since 2007, according to the Environmental Finance Green Bond Database and Bloomberg New Energy Finance league tables. Since 2007, Bank of America Merrill Lynch has underwritten $38 billion in green bonds on behalf of 100 clients, supporting more than 220 deals and providing critical funding to environmental projects.
- The company has been the No. 1 tax equity investor in the U.S. from 2015 through 2018 according to the Bloomberg New Energy Finance league tables. Since 2007, the Bank of America Merrill Lynch Renewable Energy Finance team has been responsible for approximately $10.5 billion of renewable energy tax equity financing supporting wind and solar facilities.
- By helping clean energy business tap global markets, Bank of America is funding important sustainable projects while creating jobs and spurring economic progress. EY took an independent look at a 25 percent subset of its second environmental commitment ($30 billion deployed in the U.S. between 2013 and 2017) and found this financing supported an annual average of 76,000 domestic jobs, realized a cumulative $70 billion in economic output, and contributed a cumulative $36 billion to GDP.