Thursday, May 07, 2015

Bank of America to limit credit to coal companies; bank faced pressure from environmental groups

Citing pressure from universities and environmental groups "Bank of America announced Wednesday it will reduce its financial exposure to coal companies, acknowledging the risk that future regulation and competition from natural gas pose on the industry," Valerie Volcovici reports for Reuters. The bank said "it would cut back its lending to coal extraction companies and coal divisions of broader mining companies."

Andrew Plepler, head of corporate social responsibility at Bank of America, told Volcovici, "Our new policy reflects our decision to continue to reduce our credit exposure over time to the coal mining sector globally."

Bank of America said in a statement: "We have developed a coal policy that will ensure that Bank of America plays a continued role in promoting the responsible use of coal and other energy sources, while balancing the risks and opportunities to our shareholders and the communities we serve." (Read more)

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