Bank of America plans to spend $1 trillion U.S. on environmental business initiatives by 2030.
The second largest U.S. lender said it will push green finance moving forward, expanding on the $300 billion U.S. it committed to environmental business initiatives in 2019. Bank of America said the latest announcement puts its total commitment to sustainable finance by 2030 at $1.5 trillion U.S.
The environmental initiatives will help the bank’s push for a greener economy through lending, capital raising, and advisory and investment services all aimed at helping low-carbon and other sustainable businesses. In February, Bank of America said it would target net-zero greenhouse gas emissions before 2050.
The announcement was in line with steps taken by other top-tier financial institutions to improve their performance on environmental, social and governance (ESG) issues. Interest in ESG has grown as investors assess how economies should look in the future.
Mastercard (NYSE:MA) said in March that it would link bonuses for its senior executives to their performance in helping the company achieve its goals for cutting carbon emissions. And U.S. bank Citigroup (NYSE:C) has launched a new investment banking unit to support efforts towards environmental sustainability.