An announcement recently came from Bank of America committing the bank to achieving net-zero greenhouse gas emissions from its financing activities by 2050. Making it the largest U.S. bank to set such an achievement, Bank of America joins Morgan Stanley and JPMorgan Chase to commit to such a transition.
Bank of America, the fourth largest global financier of fossil fuels, announced the transition to better align its financing activities with global climate goals. The bank also announced it will “measure and disclose its financed emissions through the Partnership for Carbon Accounting Financials (PCAF),” according to a press release.
“It’s high time banks are accountable for the emissions of their lending portfolios—including the financing of fossil fuel projects,” Natasha Lamb, managing partner of Arjuna Capital, said. “Bank of America’s commitment to achieve net zero emissions by 2050 is a huge step forward, not only toward achieving the Paris climate goal, but towards creating a lower-risk more climate-resilient company.”
While shareholders are growing more concerned about the impacts of climate change to the economy, shareholder advocates, like As you Sow and Arjuna Capital, have filed climate-focused resolutions with large banks, such as Bank of America, asking them to take immediate steps to align it’s financing with the Paris Agreement’s 1.5 degree goal, according to a press release.
Bank of America’s announcement outlined how it will measure, disclose and reduce greenhouse gas emissions associated with their financing activities, including the financing of fossil fuels.
“Investors applaud Bank of America’s commitment to transition to a more sustainable business model and reduce the growing climate impacts of its financing activities,” Danielle Fugere, president of As You Sow, said. “This commitment positions BofA to thrive in the rapidly evolving net-zero economy. It will also catalyze decarbonization across the economy, signaling the necessity for businesses to move onto a net-zero transition pathway or find access to capital more costly or limited as money flows to low carbon activities.”