On Wednesday, U.S. listed financial services giant PNC said it will spend $20 billion over the next five years in support of environmental finance initiatives. The new pledge will complement PNC’s Community Benefits Plan, a commitment of $88 billion in loans, investment and other financial support for low- and moderate-income (LMI), as well as underserved individuals in urban and rural communities.
The $20 billion environmental finance goal will be allotted to four categories: green buildings, specifically loans for buildings that comply with third-party recognized standards or certifications, including LEED and ENERGY STAR; renewable energy production and transmission, including wind, solar, geothermal and hydropower; clean transportation financing for zero/low- emission vehicles, EV charging stations and zero and low passenger or freight/rolling stock; and finally environmental sustainability-linked bonds and loans that conform to third-party frameworks, such as the Green Bond Principals.
“PNC recognizes that environmental issues, including climate change, are impacting our business, our clients and the communities in which we operate,” said PNC’s Chief Corporate Responsibility Officer Richard Bynum. “We acknowledge that the transition to a low-carbon economy presents both risks and opportunities, and we are committed to balancing financial priorities, responsible risk management and environmental considerations in ways that benefit our varied stakeholders.”
Last week, PNC announced the successful closing of its first-ever social bond, part of the PNC Sustainable Financing Bond Framework for the issuance of green, social and sustainability bonds. Last month, the bank joined the Partnership for Carbon Accounting Financials (PCAF), a global collaboration of financial institutions to establish standardized assessments and disclosures of greenhouse gas emissions financed by loans and investments.
