Bank of America and Goldman Sachs have promised the Obama administration to invest in, and provide other support for, efforts to fight climate change.
By signing the American Business Act on Climate Pledge, the two financial services companies along with 11 other U.S. corporations have agreed to promote increased investment in low-carbon technology and renewable-energy projects. Policymakers will use the commitments, which were also signed by Apple, Coca-Cola, Google and Walmart, as support for international climate negotiations set to take place in Paris this December.
B of A has raised its spending target for environmental initiatives to $125 billion from the $50 billion, multiyear goal it set in 2012. It has provided $39 billion in financing for renewable-energy, efficiency and other projects in the current program in addition to a $20 billion effort completed in 2013.
Bank of America conducted the first benchmark-sized corporate green bond, valued at $500 million, in 2013 and held another such offering, for $600 million, this spring.
Goldman Sachs said it expects to complete its own goal of financing $40 billion in clean energy projects next year, having already completed a $33 billion program. The investment bank's asset management division is "moving full force" toward expanding its environmental, social and governance-related investment products in response to higher demand from clients, a company spokesman said.
Moreover, Goldman laid out plans for how it will reduce its own carbon footprint by 2020, including working towards using 100% renewable power for its electricity needs worldwide and reducing energy use at the facilities it controls by 10%.