Bank of America has this week announced it is planning a 10-year US$50bn environmental business drive around clean-tech areas such energy efficiency, renewable energy and energy infrastructure, cleaner transportation, water and waste technologies.
The bank also announced its plan to ‘green’ its own operations and reduce its own carbon footprint.
The new environmental initiative will come into force on 1 January 2013, according to Bank of America, and the aim of the initiative is to apparently address climate change, reduce demands on natural resources and advance lower-carbon economic solutions.
The clean-tech drive from the bank comes in the wake of Wall Street giant Goldman Sach’s announcement last month that it was planning to pump US$40bn into clean-energy projects over the next decade.
"Environmental business delivers value to our clients, return for our shareholders, and helps strengthen the economy," said Bank of America CEO Brian Moynihan, in a statement this week.
The bank said its new environmental business initiative will consist primarily of lending, equipment finance, capital markets and advisory activity, carbon finance, and advice and investment solutions for clients.
Clean-tech focus areas
As for the areas of focus, they will include energy efficiency in residential, commercial, and public properties, as well as supporting the full supply chain that drives energy efficiency.
The bank’s renewable energy and energy infrastructure will hone in on areas such as wind, solar, hydro, biomass and waste-to-energy solutions and supply chains, as well as smart grid, large-scale energy storage and other important infrastructures.
As for the transportation, the focus will be on lower-carbon forms of transport, such as electric and hybrid electric vehicles, batteries/fuel cells and biofuels. The clean-transportation drive will also cover developing local and regional charging infrastructure in the US.
In terms of waste and water technologies, the bank will direct its attention on new technologies and infrastructure development, including water purification and waste disposal and recycling.
Bank of America said it will meet its new US$50bn goal by continuing to develop low-carbon business across its global platform.
The bank said it expects to grow its business activities around the world as governments, companies and individuals shift spending and investing patterns in response to energy security, resource efficiency and broader environmental awareness.
"Many of our clients are transitioning to more environmentally conscious business practices, products and services," said Cathy Bessant, global technology and operations executive and chair of Bank of America’s Environmental Council, in a statement from the bank.