UPDATE 1-Bank of America starts $20 bln environmental plan
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By Jonathan Stempel
NEW YORK, March 6 (Reuters) - Bank of America Corp. (BAC.N), the second-largest U.S. bank, said on Tuesday it plans to commit $20 billion over 10 years to support growth in environmentally friendly activities and reduce global warming.
The Charlotte, North Carolina-based company said it will commit $18 billion to businesses for such areas as improving energy efficiency, reducing carbon emissions and developing environmentally sustainable products and technologies.
On the consumer side, the bank plans several programs in the next year. These include a credit card where use will result in contributions by the bank to greenhouse gas reduction projects, and a mortgage giving borrowers a reduced interest rate or $1,000 back if they buy energy-efficient homes.
"Green technology has been expanding rapidly," said Andrew Hoffman, a business professor at the University of Michigan Erb Institute for Global Sustainable Enterprise, in an interview. "But the word 'green,' while it's still relevant, is no longer the main driver of many decisions to become more environmentally friendly. It's just smart business."
Bank of America said it has taken steps to become more eco-friendly. It is building office towers in Charlotte and just off New York's Times Square that are designed to be environmentally efficient. It also offers $3,000 rebates to employees who buy hybrid vehicles.
"Most commitments have involved things that companies are not going to do -- for example, not financing certain environmentally-destructive projects," said Jim Mahoney, the bank's head of public policy, in an interview. "Our intention is to identify and provide support for business activities that lead to an environmentally sustainable economy."
The bank is by far the largest U.S. retail bank, and by assets ranks second nationally to Citigroup Inc. (C.N). Bank of America generated a record $21.13 billion of profit last year, and hopes the environmental program will bring in more.
"We would certainly hope that this program would fit in with our strategy of building broad relationships with our customers," Mahoney said.
