Bank of America announced 2030 targets for reducing emissions associated with financing activities related to three key sectors: auto manufacturing, energy and power generation. The targets are outlined in the company’s Approach to Zero™, which details Bank of America’s net zero greenhouse gas emissions approach and target setting process.
“This work goes hand in hand with the way we are engaging our clients – those that have set their own net zero goals, those working toward future goals, and those that are in the supply chain of companies that have a goal – to help ensure a just, stable transition to the sustainable future we all want,” said Brian Moynihan, Chief Executive Officer at Bank of America.
Setting 2030 Targets for Financing Activities
To develop emission reduction targets related to its financing activity, Bank of America drew from its understanding of climate science and the guidance provided by industry collaborations in which the company participates including the Net-Zero Banking Alliance and the Sustainable Markets Initiative.
Bank of America’s targets initially cover emissions related to its committed credit exposure to clients in auto manufacturing, energy and power generation. For each of these sectors, the company has set targets based on emissions intensity, calculated on a weighted average for each portfolio of clients:
- Auto manufacturing 2030 targets:
Reduce intensity 44% gCO2e/km (Scope 1, Scope 2 and end use Scope 3 carbon emissions)
- Energy 2030 targets:
Reduce intensity 42% gCO2e/MJ (Scope 1 and Scope 2 emissions)
Reduce intensity 29% gCO2/MJ (End use Scope 3 carbon emissions)
- Power generation 2030 target:
Reduce intensity 70% kgCO2/MWh (Scope 1 carbon emissions)
Full details on the targets can be found in the company’s Approach to Zero™.
Bank of America plans to set targets for other key sectors through 2024 and update targets to include capital markets activities when the methodology is finalized and released by Partnership for Carbon Accounting Financials (PCAF). As data continues to improve and the science evolves, the company plans to review its targets to ensure they remain relevant and in alignment with its net zero before 2050 goal.
Bank of America plans to disclose its 2019 financed emissions baselines for the auto manufacturing, energy and power generation sectors, along with 2020 data, later this year in its Task Force on Climate-Related Disclosures (TCFD) report. The company also plans to disclose the financed emissions for its entire business loan portfolio in 2023.
Bank of America met its carbon neutrality and 100% renewable electricity goals for its operations in 2019, a year ahead of schedule. Since then, the company has set 2030 operations and supply chain goals, including a commitment to utilize sustainable aviation fuel (SAF) for at least 20% of the company’s total annual corporate and commercial jet fuel usage.
In April 2021, the company announced a $1 trillion by 2030 goal to mobilize capital to accelerate the environmental transition, this as part of its $1.5 trillion sustainable finance commitment to support the United Nations Sustainable Development Goals. In 2021, Bank of America mobilized and deployed approximately $250 billion in sustainable finance activity of which approximately $155 billion was for climate and environmental transition. Since 2007, Bank of America has mobilized more than $350 billion toward climate and environment-related business activities.
Additional environmental, social and governance (ESG) metrics, progress, and disclosures can be found in the company’s Annual Report to Shareholders, ESG Performance document, Environmental and Social Risk Policy Framework and Task Force on Climate-related Financial Disclosures.
Visit www.bankofamerica.com/environment to learn more about Bank of America’s environmental sustainability efforts.