Finance - August 19, 2021
PNC Pledges $20 Billion in Sustainable Financing
PNC pledged Aug. 18 to finance $20 billion for sustainability-related projects over five years.
The financial services firm plans to use the financing on projects that fall into one of four categories: green buildings, renewable energy, clean transportation and environmental sustainability-linked bonds and loans. Green buildings will need to be recognized by third-party standards like LEED and ENERGY STAR, while sustainability bonds and loans will need to align to frameworks like the Green Bond Principles or Key Performance Indicators (KPIs).
This new commitment will support PNC’s previously announced Community Benefits Plan, which pledges $88 billion in loans, investments and other financial support for projects in underserved communities.
“PNC recognizes that environmental issues, including climate change, are impacting our business, our clients and the communities in which we operate,” Richard Bynum, PNC’s chief corporate responsibility officer, said in a statement. “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.”
PNC first launched a sustainable finance practice in 2020 following the issuance of its inaugural green bond in late 2019. The program works with businesses to assist with structuring loans and debt issuances that incorporate preferential pricing tied to the achievement of sustainability KPIs.
This week, the firm released its first Task Force for Climate-related Financial Disclosures (TCFD) report outlining its climate risk management strategy in terms of governance, strategy, risk management and metrics and targets.