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Bank of America financed $1.3 billion for commercial and industrial energy efficient buildings between 2013 and 2016, the company announced today. In a new report, Banking on a Low-Carbon Economy, Bank of America outlines the amounts of funding it has invested across a variety of environmental activities, as well as the economic benefits that have resulted from its financing of such projects through lending, investing, and capital raising.
The company first set its environmental business initiative to direct $20 billion toward low-carbon and sustainable business activities in 2007; since then, the company has continued to add to its commitment, for a total of $125 billion toward its environmental business initiative by 2025. Its investments have so far led to the avoidance of nearly 2.4 million metric tons of greenhouse gas emissions, the company says.
Bank of America’s report was the result of a desire to ensure that its environmental funding is deployed in a way that “creates positive outcomes.” The methodology that led to the report was developed with consulting firm EY.
The report mainly focuses on benefits resulting from its environmental financing between 2013 and 2016. In terms of areas of investment, Bank of America says in that time period it financed:
- $1.9 billion in residential energy efficient buildings
- $2.3 billion in photovoltaic solar projects
- $3.7 billion on wind projects
- $2 billion on energy efficient installations
- $1.3 billion on commercial and industrial energy efficient buildings
- $1.1 billion on low-carbon vehicles
- $366 million in other renewable energy
While its investments have led to the avoidance of nearly 2.4 million metric tons of greenhouse gas emissions, Bank of America also wanted to exhibit the strength and sustainability of a truly low-carbon economy.
Bank of America says that from 2013 through 2016, its funding:
- supported an annual average of 39,728 jobs;
- realized a cumulative $29.9 billion in economic output;
- contributed a cumulative $14.8 billion to GDP.
The company says the findings demonstrate that environmental business initiatives help companies to realize positive economic outcomes that enable sustainable growth.
Bank of America’s own environmental goals include increasing energy efficiency, achieving carbon neutrality, and purchasing 100% renewable electricity by 2020, the company says.