Bank of America
Summary:
Bank of America adopted its environmental policy in 2004.
- The policy was supplemented in 2007 by the announcement of a $20 billion climate change initiative to help support consumer and client efforts to improve efficiency and reduce greenhouse-gas emissions. While this is an important step, it is also important to recognize that this climate pledge commits the equivalent of less than 0.2% of their assets per year to these investments.
The policy includes a 7% greenhouse gas emission reduction target in its energy and utility portfolio by 2008.
It also commits to a 9% reduction in operational GHG emissions by 2009.
Nonetheless, Bank of America is providing significant financial services to the coal sector, including the controversial mining company Massey Energy, which is notorious for its devastating practices of mountain-top removal
Citi (formerly Citigroup)
Although the overall policy (originally called "New Environmental Initiatives") has apparently been updated since the 2004 version, Citi has failed to publicly disclose its Environmental and Social Risk Management Policy
Summary:
In 2004, Citi was the first bank in North America to adopt environmental policies addressing biodiversity, indigenous rights, and climate change. This groundbreaking policy came after RAN conducted a four-year campaign targeting Citi for financing activities that destroyed ecosystems around the world.
While Citi’s policy charted important new territory, the climate change commitments were too modest. Citi has focusing primarily on its operational carbon impact (for example, its buildings), but has failed to address the impact of its core business. The policy includes a commitment to reduce internal/operational GHG emissions 10% from 2005 levels by 2011.
A fatal flaw is Citi’s unwillingness to address the climate impacts of its lending portfolio; the policy does not prevent Citi’s involvement in projects with egregious greenhouse gas emissions. According to the Wall Street Journal, Citi was the largest arranger of corporate financing for the power and oil and natural gas industries in 2006.
In 2007, Citi issued a statement calling for federal action on climate change and announcing that it will spend “$50 billion over the next 10 years to address global climate change through investments, financings and related activities to support …alternative energy and clean technology among the clients and markets it serves, as well as within its own businesses and operations.” However, according to Bloomberg, Citi's financing for conventional dirty energy was 200 times larger than for alternative energy in 2006, and Citi was the top financier of coal worldwide in 2006. These investments dwarf the amount that Citi is saying it will make available for clean energy, illustrating why Citi must upgrade its policy commitments to reduce its financial involvement with greenhouse-gas intensive sectors.
Goldman Sachs
Summary:
Adopted November 2005; first investment bank to adopt an environmental policy statement.
Policy recognizes the significance of climate change, calls for public policy to address it, and makes a commitment to reduce the greenhouse gas emissions from their leased and owned offices by 7% by 2012, using a 2005 baseline.
States preference for Forest Stewardship Council certification of forestry projects that impact high conservation value forests; prohibition on financing projects or companies involved in illegal logging.
JPMorgan Chase
Summary:
Adopted April 2005
Policy established new best practices in several areas including carbon mitigation and reduction, endangered forest protection, independently certified sustainable forestry, and respect for indigenous peoples rights.
Includes statement on the significance of climate change, and a commitment to reduce internal GHG emissions by 5-7% by 2012, based on a 2005 baseline. Also commits to report on aggregate GHG emissions from their power sector projects; to conduct research regarding carbon constraints in the utility sector; and to re-examine valuations in the oil, gas, power and transport sectors in light of the operating constraints posed by limits on carbon emissions, and the emergence of alternative clean technology.
