Bank of America Announces $20 Billion Environmental Initiative

CHARLOTTE, N.C., March 6 /PRNewswire/ -- Bank of America Corporation announced today a $20 billion initiative to support the growth of environmentally sustainable business activity to address global climate change. Bank of America's ten-year initiative encourages development of environmentally sustainable business practices through lending, investing, philanthropy and the creation of new products and services.

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"Over the last decade, Bank of America has implemented programs that have significantly reduced the environmental impact of our own operations," said Kenneth D. Lewis, Bank of America chairman and CEO. "Today, we have a tremendous opportunity to support our customer's efforts to build an environmentally sustainable economy -- through innovative home and office construction, new manufacturing technology, changes in transportation, and new ways to supply our energy."

Under its environmental initiative, Bank of America will emphasize the business opportunities created by "green" economic growth by providing critical financing to encourage the development of environmentally sustainable products and technology; accelerate the deployment of existing technology; and increase energy efficiency.

Corporate Clients

Bank of America will commit $18 billion in lending, advice and market creation to help commercial clients finance the use and production of new products, services and technologies:

  * Commercial Real Estate Banking:  The company will build upon its
    expertise in financing environmentally friendly development by creating
    customized solutions for clients who are developing and implementing
    environmentally sustainable designs.  Areas of focus include financing
    real estate projects with LEED certification, improvements in energy
    efficiency, brownfield redevelopment, promotion of smart growth, and the
    use of energy-related tax credits.

  * Corporate & Investment Banking:  The company will focus on financing and
    advisory services to clients participating in emissions offsets markets,
    developing energy-efficient or low-carbon technologies and helping
    private/public sector entities adopt green and low-emissions technology.

  * Carbon Emissions Trading:  The bank will launch the capability to trade
    carbon emissions credits in order to enable clients to achieve carbon
    emission neutrality through existing and emerging market mechanisms.

  * Environmental Lending Consideration: The company will give favorable
    consideration, among other existing underwriting criteria, to lending
    opportunities with clients that are creating and implementing
    environmentally sustainable products, services and technologies.

  Individual Customers

Bank of America currently is developing a set of products for individuals who consider the environmental impact of their purchasing decisions and want to offset or minimize their carbon emissions. The bank will announce the launch of the following new products in the next year:

  * Eco-friendly Credit Card:  For every dollar spent on this new card, Bank
    of America will make a contribution to an environmental organization to
    invest in greenhouse gas reduction projects. These cards, available
    later this year, will have environmentally friendly incentives and
    features.

  * WorldPoints Rewards for the Environment:  Existing cardholders may
    donate their WorldPoints rewards to organizations that invest in
    greenhouse gas reductions or redeem them for environmentally friendly
    merchandise.

  * The Green Mortgage Program:  Homebuyers will receive a reduced interest
    rate or $1,000 back for each home-purchase mortgage meeting ENERGY STAR
    specifications.

  * Environmental Home Equity Program:  For customers who use their home
    equity line of credit's Visa Access Card, Bank of America will make an
    annual donation to a non-profit organization that focuses on
    environmental conservation.  At launch, donations will be directed to
    Conservation International for land conservation and carbon
    sequestration.  Additional non-profit organizations may be added to the
    program over time.

  * Timberland Investment Solutions:  Bank of America is evaluating
    proprietary investment management solutions that incorporate forest
    conservation principles consistent with those defined by the Forest
    Stewardship Council.  Reforestation, wildlife management, responsible
    development and the support of carbon sequestration ecosystems are
    important attributes that will be considered.  Bank of America intends
    to commit its own capital to promote "green" investment solutions for
    its clients.

  In addition, Bank of America will further promote its existing product:
  * EPA SmartWay Transport Program:  Under a partnership between the
    Environmental Protection Agency and the freight industry, the bank
    provides Small Business Administration SBA Express loans with no
    collateral and flexible terms to small and mid-sized trucking companies
    to finance fuel efficient technologies. The loan program helps trucking
    companies purchase SmartWay Upgrade Kits that include idle-reduction
    devices, low-rolling resistance tires, aerodynamic equipment and exhaust
    after-treatment devices.  The kits can improve fuel efficiency by 15
    percent.

  Investments by Bank of America

Bank of America will also make the following investments to offset the impact its own operations and associates have on the environment:

  * Committing $1.4 billion to achieve LEED certification in all new
    construction of office facilities and banking centers;

  * Donating $50 million from the Bank of America Charitable Foundation to
    support non-profit organizations focused on forest preservation,
    innovative energy conservation, developing green affordable housing and
    other environmentally Progressive activities; and

  * Investing $100 million in energy conservation measures for use in all
    company facilities.

"We have the opportunity to do more than address our own internal business practices," said Anne Finucane, chief marketing officer and chair of the company's environmental council. "As one of the world's leading financial institutions, we can and will work directly with individual and business customers to address the pressing issue of global climate change."

"Bank of America is getting out on the front end of this issue -- developing innovative products and services that will flourish in a developing green economy while helping households, investors, and businesses cut greenhouse gases," said Eileen Claussen, president of the Pew Center on Global Climate Change.

Today's announcement by Bank of America builds upon environmental programs previously announced by the company, including:

  * Expansion earlier this year of its $3,000 hybrid vehicle reimbursement
    to more than 185,000 U.S.-based Bank of America associates;

  * Investment of $1.5 billion to construct environmentally progressive
    towers in Charlotte, N.C. and New York City;

  * Aggressive, voluntary goals to reduce greenhouse gas emissions across
    the company nine percent by 2009 and seven percent in our energy and
    utility portfolio by 2008; and

  * Active program to reduce paper usage throughout company operations; from
    2000-2006, the company reduced paper usage per associate by 40 percent.

Bank of America will continue to track and report on the progress of its environmental initiatives. The 2005 Sustainability Report can be found at: http://www.bankofamerica.com/environment/pdf/EnvironmentalReport_FN3.pdf.

Bank of America

Bank of America is one of the world's largest financial institutions, serving individual consumers, small and middle market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk-management products and services. The company provides unmatched convenience in the United States, serving more than 55 million consumer and small business relationships with more than 5,700 retail banking offices, through more than 17,000 ATMs and award-winning online banking with more than 21 million active users. Bank of America is the No. 1 overall Small Business Administration (SBA) lender in the United States and the No. 1 SBA lender to minority-owned small businesses. The company serves clients in 175 countries and has relationships with 98 percent of the U.S. Fortune 500 companies and 80 percent of the Global Fortune 500. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange. Bank of America is an equal housing lender. Certain activities and services referred to in this press release are provided by Banc of America Securities LLC and other affiliates of Bank of America Corporation.

SOURCE: Bank of America Corporation

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