GHG Emissions, Finance, Sourcing Renewables - April 14, 2022
Bank of America Sets 2030 Targets
Bank of America announced 2030 targets for reducing emissions associated with financing activities related to three key sectors: 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: Reduce intensity 44% gCO2e/km (Scope 1, Scope 2 and end-use Scope 3 carbon emissions)
- Energy: Reduce intensity 42% gCO2e/MJ (Scope 1 and Scope 2 emissions);
Reduce intensity 29% gCO2/MJ (End-use Scope 3 carbon emissions) - Power generation: :Reduce intensity 70% kgCO2/MWh (Scope 1 carbon emissions)
“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, CEO at Bank of America, in a statement.
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.
The company has set 2030 operations and supply chain goals, including a commitment to utilizing 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.
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