Turn to the nation's most objective and informative daily environmental news resource to learn how the United States and key players around the world are responding to the environmental...
Sept. 19 — Bank of America is going carbon neutral as JP Morgan Chase and Morgan Stanley get ready to price carbon internally.
They’ll join Goldman Sachs, which is among a few dozen companies that reported to the nonprofit CDP a tangible impact on their business from internalizing a cost on carbon.
More than 200 companies in the U.S. are now using or plan to use internal carbon pricing, a 43 percent uptick from last year, according to the latest tally from CDP.
Paula DiPerna, a special adviser to CDP North America, said carbon pricing at banks is “complicated.”
Banks typically use carbon pricing to cut emissions from operations such as buildings and data centers.
As part of its carbon neutrality goal, Bank of America pledged Sept. 19 to purchase 100 percent renewable electricity. That shift has been “investor-driven, employee-driven and customer-driven,” Bank of America’s environmental, social and governance executive Andrew Plepler said in New York at a Climate Week event.
But the main financial risk from carbon exposure is concentrated in banks’ commercial lending.
Amalgamated Bank, the largest union-owned bank in the U.S., just adopted new policies to reduce carbon risk across its own assets and lending portfolio.
“The announcements today are a step in the right direction but it will require everyone to make the changes necessary to stabilize our climate and create sustainable environment,” Keith Mestrich, the bank’s president and chief executive officer, said in a statement Sept. 19.
Canada’s TD Bank told CDP its internal carbon price has helped drive “an increased commitment to developing a range of low-carbon financial products,” including financing for residential renewables and energy efficiency projects, insurance for hybrid and electric vehicles and the issuance of a $500-million green bond.
“Banks are a good indicator of confidence that low-carbon is the horizon line of the future,” DiPerna said.
-- John Herzfeld in New York contributed to this report.
To contact the reporter on this story: Andrea Vittorio in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Larry Pearl at email@example.com
Copyright © 2016 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)