Bank of America (BAC: NYSE) and Rainforest Action Network announced today that BAC will set new environmental standards, leading the financial services industry toward a new level of best practice. The bank committed to significant programs to reduce climate change emissions and to protect intact forest ecosystems.
Today's announcement articulates unprecedented targets and timelines to reduce greenhouse gas emissions throughout Bank of America's chain of activities. Initial reduction goals are based on current best estimates of the Intergovernmental Panel on Climate Change (IPCC), 7 percent by 2008. Bank of America recognizes its responsibility to address climate change and the role of the service sector in promoting and implementing reductions of greenhouse gas emissions that extends beyond its own operations, including relationships with customers and suppliers.
The enhanced policy increases forest protection to encompass intact tropical, temperate and boreal forest ecosystems and includes a commitment by Bank of America to assist in funding the ongoing mapping of these regions for future protection.
Bank of America will not provide funding for resource extraction from old-growth tropical rainforests, and lending proceeds will not go to logging operations in intact forests as defined by World Resources Institute mapping as it is developed. Provision of lending proceeds in all other old-growth forests will be limited to projects and operations that provide independent third party verification of sustainable forestry practices. Recognizing the connection between the health of our planet and our communities, Bank of America has pledged to deny financing for projects in these sensitive forests where indigenous land claims are not settled.
BAC will also create an environmental council to ensure the bank's environmental goals and objectives are met, tracked and reported. The council will be led by Eugene M. McQuade, BAC president, and will include senior executives from various business lines and support functions. Bank of America will meet regularly with Rainforest Action Network and other stakeholders to implement this policy and report on its progress.
Bank of America has had a strong environmental program since 1992 and is a recognized leader among corporations with environmental policies. The bank was the first Fortune 500 financial institution to endorse both the Coalition for Environmentally Responsible Economies (CERES) principles and the United Nations Environment Program Finance Initiatives (UNEP FI).
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