BANK MAKES MEANINGFUL CHANGES IN ENVIRONMENTAL POLICIES
BOSTON, MA – Boston Common Asset Management commends PNC Financial for implementing key environmental policy and procedure changes, which were highlighted in its recently released 2015 Corporate Responsibility Report. The bank enhanced its Mountaintop Removal (MTR) framework, adopted a coal-fired power plant policy, and enhanced due diligence in high-risk sectors such as Coal and Minerals, Utilities, and Oil and Gas. In addition, PNC established a new position, a senior Environmental and Social Risk Officer, and adopted enhanced environmental risk analysis for Corporate Banking clients. Plans are also underway to conduct an internal environmental stress test.
Boston Common Asset Management has spearheaded a multi-year investor dialogue with PNC, most recently at the senior executive level, encouraging the bank to increase transparency on its approach to environmental and climate risk.
“We applaud PNC’s responsiveness,” said Geeta Aiyer, President and Founder of Boston Common Asset Management, “and its willingness to engage in the thoughtful conversations and exchange of information that ultimately led to policy changes with tangible impact.”
For over a decade, Boston Common has engaged the global financial industry, encouraging a deliberate approach to address the environmental and social risks associated with bank project financing, lending, and investing. Late in 2014, Boston Common led an investor coalition with 80 institutional investors from around the world, representing $540 billion in assets under management, to urge 63 global banks to disclose information on their policies and practices as they relate to climate change.
“We feel as though PNC’s commitment comes not a moment too soon and should be an example for its peers,” said Lauren Compere, Managing Director of Boston Common. “Overall, the banking industry continues to delay the integration of climate risk into its long-term strategic planning. PNC has demonstrated the foresight that Boston Common believes is vital to the transition to a low carbon economy and to the underlying valuations of the company.”
ABOUT BOSTON COMMON ASSET MANAGEMENT
Boston Common Asset Management is an experienced investment manager and a leader in global sustainability initiatives. It specializes in long-only, global equity and balanced strategies for U.S. investors. The firm’s investment process combines financial analysis with a proprietary Environmental, Social, and Governance (ESG) framework. Boston Common’s overall goal is to preserve and build capital and to add value through targeted company and industry engagement efforts. The firm is recognized as a women- and minority-owned business by the Massachusetts Supplier Diversity Office. Since its inception in 2003, Boston Common has built a strong investment record and has meaningfully improved corporate practices in the U.S. and abroad.
Boston Common’s report, “Financing Climate Change: Carbon Risk in the Banking Sector,” calls on investors to push for systemic change in the banking industry to address climate change risks.
MEDIA CONTACT:
Lauren Compere: 617-960-3912, lcompere@bostoncommonasset.com
