Commercial, GHG Emissions, Sourcing Renewables - November 11, 2021
U.S. Bank to Achieve Net Zero GHG Emissions by 2050
U.S. Bank announced several commitments to address the impacts of climate change on its business, customers, and communities, including reaching net zero GHG emissions by 2050 and sourcing 100% renewable electricity.
The Minneapolis-based financial institution said it plans to conduct the following:
- Setting a goal to achieve net zero GHG emissions by 2050,
- Setting a goal to source 100% renewable electricity within its operations by 2025 and joining RE100,
- Setting an environmental finance goal of $50 billion by 2030,
- Aligning disclosures with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations and
- Joining the Partnership for Carbon Accounting Financials (PCAF) and committing to measure and disclose financed emissions using PCAF standards.
“Managing our business in an environmentally sustainable manner is an important component of corporate responsibility and critical to the health of our economy,” said Andy Cecere, chairman, president and CEO of U.S. Bank in a statement. “We continue to take steps to enhance how we assess the financial and operational risks climate change poses to our company, our clients and the world.”
The bank’s goal to reduce GHG emissions to zero by 2050 will expand the company’s environmental focus from its operations to all parts of its business. The company will measure, disclose and commit to zero net greenhouse gas emissions, including financed emissions by 2050.
One priority will be focusing on financed emissions and aligning with PCAF standards will support U.S. Bank’s efforts to calculate financed emissions, an important component for tracking progress toward the company’s net zero commitment.
By the end of 2022, the bank will announce its interim 2030 emissions reduction targets for carbon-intensive portfolios.
In 2016, the company set GHG emissions reduction targets using 2014 baseline data. Through the end of 2019, it achieved a 44% reduction, reaching its shorter-term target 10 years earlier. U.S. Bank continues working toward reaching the 2044 target of 60% emissions reduction as well as setting a goal to source 100% renewable electricity by 2025.