Chart by Oil Change International
An article published on April 19, 2018, in Oil Change International, Bank of America Leads Finance for Atlantic Coast Pipeline, says, “The abuses, risks and climate pollution of the Atlantic Coast Pipeline have a clear set of financiers, led by the nation’s largest commercial bank, Bank of America.” The chart above is from the article, and lists the many banks funding the ACP.
Most shareholders are probably unaware of BOA’s large role in enabling the destruction the ACP will bring to many citizens of North Carolina. But impacted landowners, including indigenous leaders, plan to be at the BOA shareholder meeting in Charlotte NC next week to educate them.
The article notes, “The pipeline’s route burdens some of North Carolina’s poorest communities including the native Lumbee population. In Virginia, one of the project’s massive compressor stations, an industrial complex generating noise, pollution and safety hazards 24/7, is proposed in the heart of a historic, rural African-American community. The litany of this project’s abuses and dangers is long. And those abuses and dangers now have a clear set of financiers, led by the nation’s largest commercial bank, Bank of America.…
“Bank of America, together with JPMorgan Chase, was a “Lead Arranger and Bookrunner” for the loan. This means BOA was key to the process of negotiating terms, assessing risk and arranging the participation of all the banks forming the syndicate for the loan. Bank of America committed $255 million to the credit facility.
“Bank of America’s leading role in this loan adds to the Bank’s poor performance in screening out financial support for companies engaging in the production of so called ‘extreme’ fossil fuels, including coal, tar sands, and oil and gas produced in ultra-deepwater and Arctic environments. Rainforest Action Network recently published its annual Fossil Fuel Finance Report Card, which examines bank policies and financing for the worst fossil fuels driving the climate crisis. Bank of America received an average D Grade for its policies on the fossil fuel projects discussed in the report, and was estimated to have financed over $13.6 billion to these projects from 2015 through 2017. This financing did not include the loan to ACP LLC.”
The article discusses changing policies of other financial institutions, saying, “The World Bank Group recently announced an end to upstream oil and gas financing by 2019. Other banks including ING and BNP Paribas are restricting financing for some of the worst fossil fuel projects. There is so much more the finance sector should be doing, and Bank of America is lagging behind some of its peers on this crucial sustainability issue that weighs so heavily on our planet’s future.”
On April 20, 2018, the Toronto Globe and Mail published an article called HSBC to stop funding most new fossil fuel developments. “Europe’s largest bank, HSBC, said on Friday it would mostly stop funding new coal power plants, oil sands and arctic drilling, becoming the latest in a long line of investors to shun the fossil fuels. Other large banks such as ING and BNP Paribas have made similar pledges in recent months as investors have mounted pressure to make sure bank’s actions align with the Paris agreement, a global pact to limit greenhouse gas emissions and curb rising temperatures. ‘We recognise the need to reduce emissions rapidly to achieve the target set in the 2015 Paris Agreement … and our responsibility to support the communities in which we operate,’ Daniel Klier, group head of strategy and global head of sustainable finance, said in a statement.”