BofA
Banks $20 Billion to Grow Green Economy
Source GreenBiz.com
URL: http://www.greenbiz.com/news/news_third.cfm?NewsID=34688
CHARLOTTE, N.C., Mar. 6, 2007 -- Under an ambitious new initiative
announced by Bank of America, the financial institution will direct $20
billion to help its corporate, individual and small-business customers
take advantage of the business opportunities created by green economic
growth.
The details of the ten-year initiative, which will
encourage the development of environmentally sustainable business
practices through lending, investing, philanthropy and the creation of new
products and services.
"Over the last decade, Bank of America has
implemented programs that have significantly reduced the environmental
impact of our own operations," said Kenneth D. Lewis, Bank of America's
chairman and CEO. "Today, we have a tremendous opportunity to support our
customer's efforts to build an environmentally sustainable economy --
through innovative home and office construction, new manufacturing
technology, changes in transportation, and new ways to supply our energy."
Under its environmental initiative, Bank of America will emphasize
the business opportunities created by "green" economic growth by providing
critical financing to encourage the development of environmentally
sustainable products and technology; accelerate the deployment of existing
technology; and increase energy efficiency.
For its corporate
clients, Bank of America will commit $18 billion in lending, advice and
market creation to help commercial clients finance the use and production
of new products, services and technologies:
- Commercial Real Estate Banking: The company will build upon its
expertise in financing environmentally friendly development by creating
customized solutions for clients who are developing and implementing
environmentally sustainable designs. Areas of focus include financing
real estate projects with LEED certification, improvements in energy
efficiency, brownfield redevelopment, promotion of smart growth, and the
use of energy-related tax credits.
- Corporate & Investment Banking: The company will focus on
financing and advisory services to clients participating in emissions
offsets markets, developing energy-efficient or low-carbon technologies
and helping private/public sector entities adopt green and low-emissions
technology.
- Carbon Emissions Trading: The bank will launch the capability to
trade carbon emissions credits in order to enable clients to achieve
carbon emission neutrality through existing and emerging market
mechanisms.
- Environmental Lending Consideration: The company will give favorable
consideration, among other existing underwriting criteria, to lending
opportunities with clients that are creating and implementing
environmentally sustainable products, services and
technologies.
Bank of America currently is developing a set of
products for individuals who consider the environmental impact of their
purchasing decisions and want to offset or minimize their carbon
emissions. The bank will announce the launch several new products in the
next year, including an eco-friendly credit card. For every dollar spent
on this new card, Bank of America will make a contribution to an
environmental organization to invest in greenhouse gas reduction projects.
These cards, available later this year, will have environmentally friendly
incentives and features.
In addition to the new card, Bank of
America will create the following programs for its individual customers:
- WorldPoints Rewards for the Environment: Existing cardholders may
donate their WorldPoints rewards to organizations that invest in
greenhouse gas reductions or redeem them for environmentally friendly
merchandise.
- The Green Mortgage Program: Homebuyers will receive a reduced
interest rate or $1,000 back for each home-purchase mortgage meeting
ENERGY STAR specifications.
- Environmental Home Equity Program: For customers who use their home
equity line of credit's Visa Access Card, Bank of America will make an
annual donation to a non-profit organization that focuses on
environmental conservation. At launch, donations will be directed to
Conservation International for land conservation and carbon
sequestration. Additional non-profit organizations may be added to the
program over time.
- Timberland Investment Solutions: Bank of America is evaluating
proprietary investment management solutions that incorporate forest
conservation principles consistent with those defined by the Forest
Stewardship Council. Reforestation, wildlife management, responsible
development and the support of carbon sequestration ecosystems are
important attributes that will be considered. Bank of America intends to
commit its own capital to promote "green" investment solutions for its
clients.
In addition, Bank of America will further promote an
existing product, the EPA SmartWay Transport Program. Under a partnership
between the Environmental Protection Agency and the freight industry, the
bank provides Small Business Administration SBA Express loans with no
collateral and flexible terms to small and mid-sized trucking companies to
finance fuel efficient technologies. The loan program helps trucking
companies purchase SmartWay Upgrade Kits that include idle-reduction
devices, low-rolling resistance tires, aerodynamic equipment and exhaust
after-treatment devices. The kits can improve fuel efficiency by 15
percent.
Bank of America will also make a series of investments to
offset the impact its own operations and associates have on the
environment, including a planned commitment of $1.4 billion to achieve
LEED certification in all new construction of office facilities and
banking centers; donating $50 million from the Bank of America Charitable
Foundation to support non-profit organizations focused on forest
preservation, innovative energy conservation, developing green affordable
housing and other environmentally Progressive activities; and investing
$100 million in energy conservation measures for use in all company
facilities.
"We have the opportunity to do more than address our
own internal business practices," said Anne Finucane, chief marketing
officer and chair of the company's environmental council. "As one of the
world's leading financial institutions, we can and will work directly with
individual and business customers to address the pressing issue of global
climate change."
"Bank of America is getting out on the front end
of this issue -- developing innovative products and services that will
flourish in a developing green economy while helping households,
investors, and businesses cut greenhouse gases," said Eileen Claussen,
president of the Pew Center on Global Climate Change.
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