PNC Financial Services Group is committing $20bn to environmental finance over the next five years.
The investment will be structured around four pillars: green buildings, renewable energy, clean transportation and environmental sustainability-linked bonds and loans.
This will include financing buildings that meet third-party green certifications, investing in energy sources such as wind, solar and geothermal power, and creating a portfolio of zero and low emission transportation.
The fourth pillar will incorporate bonds which align to third-party frameworks such as the green bond principles, and loans linked to environmental key performance indicators.
Richard Bynum, chief corporate responsibility officer of PNC, said: “We acknowledge that the transition to a low-carbon economy presents both risks and opportunities, and we are committed to balancing financial priorities, responsible risk management and environmental considerations in ways that benefit our varied stakeholders.”
This $20bn investment plan is the latest in several developments for PNC and the integration of ESG commitments into its business.
Last year, the group appointed its first head of sustainable finance in Kristi Eberhardt. She was tasked with heading up a financial finance practice that focuses on counseling clients through climate transition strategies. This was borne out of the issuance of PNC’s inaugural green bond in 2019.
Not all of PNC’s sustainable work is committed to environmental causes, with the group recently unveiling a Community Benefits Plan.
This involved the commitment of $88bn in loans, investments and other financial support to disadvantaged and underserved communities.
Earlier in August, PNC also announced it had raised $700m from its first social bond with the proceeds going to vulnerable and underserved populations.
This came around the same time PNC also revealed its first Task Force for Climate-related Financial Disclosures Report. The group formally endorsed these recommendations in 2019, with a plan to integrate these being revealed last year.