Bank of America Tuesday unveiled a $20 billion initiative to support the growth of environmentally sustainable business activity to address global climate change.
The company’s 10-year initiative encourages development of environmentally sustainable business practices through lending, investing, philanthropy and the creation of new products and services.
"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," said Kenneth D. Lewis, Bank of America chairman and CEO.
Under the initiative, Bank of America will emphasize business opportunities created by "green" economic growth by providing financing for the development of environmentally sustainable products and technology and accelerate the deployment of existing technology.
The company will commit $18 billion in lending, advice and market creation to assist commercial clients by financing the use and production of new products, services and technologies. Initiatives will include aiding clients in developing energy-efficient or low-carbon technology and help both the public and private sectors adopt low-emissions technology.
The bank will also launch the capability to trade carbon emissions credits in order to enable clients to achieve emission neutrality through existing and emerging market mechanisms.
Bank of America will also continue to promote its current “EPA Smart Way” Transportation Program. Through a partnership with the EPA and the freight industry, the bank provides Small Business Administration SBA Express loans with no collateral to small and mid-sized trucking companies to finance fuel-efficient technology. The loan program can help trucking companies purchase “SmartWay” Upgrade Kits that include idle-reduction devices low-rolling resistance tires and aerodynamic equipment. These kits can improve fuel efficiency by 15 percent.
The company will also commit $1.4 billion to achieve LEED certification in all new construction of office facilities and banking centers and will donate $50 million from the Bank of America Charitable Foundation to support non-profit organizations focused on several environmentally-friendly projects.