Bank of America Merrill Lynch - Green bonds

The Asda Environmental Leadership Award, Shortlisted, 2016

Bank of America Merrill Lynch (BofAML) is funding solutions to climate change through Green Bonds and building their name as a leader in environmental finance.

Good for the environment

  • Green Bonds underwritten by BofAML are helping to close the finance gap needed order to limit global temperature rises to 2°C and meet international climate change goals.
  • Green Bonds directly finance projects that are helping to improve energy efficiency, lower energy use and reduce carbon emissions.

Good for business

  • As the primary underwriter of Green Bonds, BofAML has been able to support the growth of a market that was $41bn in 2015 and is expected to expand to approximately $60bn in 2016.
  • Being a leader in this space has also helped BofAML increase external awareness of its environmental initiatives and strengthened the company's reputation.

Bank of America Merrill Lynch logoAccording to the International Energy Agency, a trillion additional dollars a year are needed for clean energy financing in order to move away from fossil fuels and reduce the impact of climate change. Despite this, there are many green projects that lack the necessary capital to get off the ground.

Green Bonds are a solution to this problem. A green bond is a fixed-income financial instrument for raising capital through the debt capital market which specifically finances business activities with an environmental benefit. BofAML uses Green Bonds to help match capital to environmental projects. 

Projects financed by Green Bonds include:

  • $40m financing for the City of Los Angeles to finance the largest LED streetlight retrofit project in the world, reducing 71,000 MWh of energy from use.

  • $100m investment in a solar PV power partnership with SolarCity which avoided greenhouse gas emissions equivalent to 15,000 metric tons CO2e.

Green Bonds are helping to close the finance gap needed order to limit global temperature rises to 2°C and meet international climate change goals. As the primary underwriter for Green Bonds BofAML has supported the growth of a market that was $41bn in 2015. 

What Bank of America Merrill Lynch's President EMEA said:

“Through our leadership of the green bond market, we are able to match significant investor capital with critical environmental needs. Increasing the use of Green Bonds is a vital opportunity not only for our institution, but also for the sustainability of the planet.” - Alex Wilmot-Sitwell, President, EMEA, Bank of America Merrill Lynch. 

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