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PNC Expands Its Environmental Finance Pledge To $30 Billion

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PNC Expands Its Environmental Finance Pledge To $30 Billion

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  • Commitment focuses on green buildings, renewable energy and clean transportation
  • Complementary to PNC’s Community Benefits Plan, which pledges $88 billion in loans, investments and other support for underserved individuals and communities
  • PNC also plans to establish new science-aligned targets for its operational footprint

The PNC Financial Services Group, Inc. announced the expansion of its environmental finance commitment to $30 billion. The bank initially announced in August 2021 a commitment of $20 billion over five years in support of environmental finance. Since then, PNC has completed $9 billion in environmental financing for its customers.

This commitment is an extension of PNC’s ongoing support for its customers as they transition to a low-carbon economy, and is complementary to the bank’s Community Benefits Plan, which pledges $88 billion in loans, investments, and other financial support to bolster economic opportunity for low- and moderate-income (LMI) individuals and communities, people and communities of color, and other underserved individuals and communities. 

“PNC continuously assesses ways in which we, as a financial institution, can support our clients’ ambitions as they work toward their own climate transition goals,” said Michael P. Lyons, head of Corporate & Institutional Banking. “The expansion of our environmental finance commitment is a natural next step as client demand increases.”    

See related article: Air France-KLM to Present Sustainability-Linked Financing Framework to Investors

The $30 billion environmental finance goal is comprised of the following pillars which may evolve over time:

  • Green Buildings – loans for buildings that meet third party-recognized standards or certifications, including LEED and ENERGY STAR.
  • Renewable Energy – financing for renewable energy production and transmission, including wind, solar, geothermal and hydropower.
  • Clean Transportation – financing for zero and low emissions vehicles, electric vehicle charging stations, and zero and low emissions passenger or freight/rolling stock.
  • Environmental sustainability-linked bonds and loans which align to third-party frameworks such as the Green Bond Principles, and loans linked to environmental Key Performance Indicators (KPIs) or those with designated environmentally sustainable use of proceeds.

As a result of its recent integration of BBVA USA’s footprint, PNC is also planning to establish new, ambitious, science-aligned environmental targets for its operational footprint, including further reducing carbon emissions, and energy and water consumption. These new targets will use a base year of 2022 – the first full year of combined PNC and BBVA USA operations – and will be announced as part of PNC’s Corporate Responsibility Report to be published this year.

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