The US investment bank Bank of America has announced a series of initiatives to achieve net zero greenhouse gas emissions by 2050. In addition, the entity has released its operational and supply chain objectives mby 2030 as part of a holistic commitment to environmental sustainability.
Based on the bank’s long-standing support for the Paris Climate Agreement, the entity has outlined the initial measures to reach its goal of zero net greenhouse gas emissions (GHG) in its financing activities, operations and supply chain before 2050. From Bank of America they remind that it continues to collaborate actively with its clients to help them accelerate their own transition to net zero emissions, and plans to set interim science-based emissions targets for high-emissions portfolios, including power and electricity.
“It is critical that we leverage all areas of our business, beyond our direct operations, to accelerate the transition to a net zero global economy. We know this will not be an easy task, but we believe that our commitment will help stimulate the growth of energy solutions and zero-carbon energy solutions, as well as sustainable transport and agriculture and other transformations of the sector, while generating more climate-resilient and equitable opportunities for our future, ” Anne Finucane, vicepresidenta de Bank of America, which directs the environmental, social and governance efforts, sustainable financing, capital deployment and public policies of the company in the entity.
As part of its transition to net zero emissions, In July 2020, Bank of America joined the Association for Carbon Accounting in the Financial Sector (PCAF) as a member of the Global Core Team. In collaboration with 15 other financial institutions, Bank of America participated in the development of the Global GHG Accounting and Reporting Standard for the financial industry, providing a consistent methodology to assess and disclose emissions associated with financing activities. In this sense, Bank of America has committed to disclose its financed issues before 2023.
This collaboration builds on Bank of America’s current and recent efforts with its partners to address financing, technology, policy, and other challenges inherent in the transition to a net zero global economy, including concrete actions. For example, Brian Moynihan, CEO of the entity, is the co-chair of the Sustainable Markets Initiative of His Royal Highness the Prince of Wales.
As explained Mindy Lubber, CEO and President of Ceres, “By exposing the steps Bank of America is taking to achieve net zero emissions, the company is accelerating the ambitions set out in the Paris Climate Agreement. As a global financial institution, you have a unique reach and influence to help achieve those goals. We appreciate Bank of America’s commitment to setting ambitious goals for 2030 and look forward to more details in the future, including how it will work with clients to meet its commitment. ”
One of the key points that Bank of America keeps in mind in its fight for the environment and the climate is to improve its operational objectives and its supply chain. In other words, also work within the entity. In 2019, Bank of America achieved carbon neutrality in its operations, one year ahead of schedule, and increased the number of suppliers that measure and publicly report GHG emissions through CDP’s supply chain survey.
Now, the entity has established a set of objectives for your operations and your supply chain to be achieved in 2030:
- Maintain carbon neutrality for operations.
- Acquire 100% of electricity with zero carbon emissions.
- Reduce greenhouse gas emissions by 75%.
- Reduce the use of energy and drinking water by 55%, in both cases
- Manage facilities responsibly and achieve LEED® certification (or similar) for 40% of the building space.
- Responsibly manage waste to reduce the amount sent to landfills.
- Divert 75% of construction and demolition waste from the landfill.
- Eliminate 100% of electronic waste using certified responsible suppliers.
- Ensure that 70% of suppliers worldwide, by spending, set targets for reducing greenhouse gas emissions or renewable energy.
- Evaluate 90% of global suppliers, by expense, in relation to ESG risks, as indicated in the company’s Supplier Code of Conduct.
- Keep reducing your use of paper and buy 100% of your paper from certified sources.
Finally, the entity has insisted on its commitment to deploy capital in sustainable and low-carbon business activities. “Significantly increasing investment in low-carbon technologies and activities necessary to decarbonize all sectors of the economy will be critical for Bank of America to achieve its net zero emissions targets,” the bank said.
Since 2007, Bank of America has directed more than $ 200 billion in capital and has committed to deploying a total of $ 445 billion by 2030 under its Environmental Business Initiative.. Now, the entity expects to exceed this commitment by 2030 based on current funding activity.