Bank of America is ahead of schedule on its 10-year, $20 billion climate-change business initiative launched in 2007, according to the company’s 2010 Environmental Progress Report. As of the second quarter of 2010, the financial institution has directed $8.4 billion of the $20 billion environmental commitment through lending, investing, capital markets activity, philanthropy and the company’s own operations.
The program is directed at companies that require investments or access to capital markets to develop and commercialize energy technology, and commercial real estate developers and businesses looking to finance energy-efficient expansion. It also targets larger enterprises that want to lease energy-saving equipment to become more efficient or use renewable sources of energy, and investors seeking guidance on emerging opportunities in the alternative energy sector.
Here’s the breakdown for the $8.4 billion in investments and financing projects.
–$2.8 billion in commercial real estate banking, financing projects relating to Leadership in Energy and Environmental Design (LEED) certification, Energy Star, brownfield redevelopment and the use of renewable energy tax credits
–$2.8 billion in equity and debt capital raised to help facilitate clients’ climate change initiatives
–$2.2 billion in equipment financing for energy efficiency projects and renewable energy projects in solar, wind, biomass and biofuel technologies for both utilities and end users
–$265 million in private equity investments for innovative companies addressing climate change issues
–$233 million invested in corporate workplace energy and resource efficiency initiatives for Bank of America facilities and LEED certification for all new construction office facilities and banking centers
–$102 million in transactions that have financed emission reductions in the global carbon markets
–$21 million in philanthropic support for nonprofit organizations focused on addressing climate change and other environmental opportunities
Bank of America has provided carbon trading services and offered advice on more than $2 billion in low-carbon energy mergers, acquisition and other financial transactions on behalf of both large and small renewable energy companies.
Similarly, Bank of America Merrill Lynch provided advice to clients on more than $2 billion in low-carbon energy and clean energy mergers, acquisition and other financial transactions on behalf of both large and small renewable energy companies.
At the operational level, Bank of America has reduced its greenhouse gas (GHG) emissions 18 percent by the end of 2009, doubling its goal set in 2004, by improving the energy efficiency of its new office construction, retrofitting existing structures and reducing its office space.
Over the past three years, Bank of America has invested more than $150 million in energy conservation measures, such as energy-efficient lighting and HVAC systems, for its facilities. The company’s Corporate Workplace Intelligent Command Control Center (iC3), which centralizes the monitoring and control of energy use in buildings across its portfolio, has helped the company reduce emissions and cut costs by more than $100 million since 2004.
Bank of America also is committed to build all new banking centers to meet LEED standards. As an example, in 2010, Bank of America opened The Bank of America Tower at One Bryant Park, the first commercial high-rise in the U.S. to achieve LEED Platinum certification from the U.S. Green Building Council (USGBC).
The Bank of America Corporate Center, the company’s headquarters building in Charlotte, achieved LEED for Existing Buildings certification in 2010. The bank also opened 1 Bank of America Center in Charlotte, N.C., which is currently seeking LEED Gold certification.
In March, Bank of America was named one of the nation’s “greenest” banks, according to a ranking from Banking Technology News.