Fifth Third Sets $8 Billion Sustainable Finance Goal
September 23 2020 - 9:12AM
Business Wire
Fifth Third Bancorp (Nasdaq: FITB) today announced that it has
set a new sustainable finance goal of $8 billion to be achieved by
2025. This goal continues the Bank’s leadership in environmental
sustainability, having become the first Fortune 500 company to
achieve 100% renewable power through a single, solar project,
earning an A- Climate leadership score from CDP, and receiving an
EPA Green Power Leadership Award, all of which occurred over the
past year.
Fifth Third Bank Chairman, President & CEO Greg D.
Carmichael, said, “By setting this $8 billion sustainable finance
goal, we are expanding our commitment to partner with clients to
make a real difference for our planet. We are proud to be part of
the solution to address climate change through our financing of
quality renewable energy projects and other climate solutions.”
The Bank’s sustainable finance goal includes lending commitments
and financing for renewable energy (solar, wind, geothermal,
biomass and hydropower). It includes the financing of projects like
the Bancroft Station Solar Farm in Early County, Georgia. Fifth
Third financed the roughly $110 million construction-to-term
facility for Nashville-based Silicon Ranch Corporation in 2019. The
solar farm loads power onto the Georgia transmission grid and is
supplying Facebook’s Newton Data Center with 100% renewable
energy.
“At Silicon Ranch, we believe in the power of collaborative
partnerships,” said Virginia Williams, senior vice president of
project finance at Silicon Ranch. “We naturally seek to work with
financial partners who share this value and are grateful for the
strong relationship we have built with Fifth Third. Their support
of projects like Bancroft Station enable us to meet the goals of
our customers and bring significant capital investments to
underserved communities.”
Approximately $4 billion in renewable energy lending and capital
raising services have been provided by Fifth Third since 2012.
These services have led to the completion of more than 3.5 GW of
renewable energy projects across more than 50 clients. In 2018,
Fifth Third established its national renewable energy finance
center of excellence and drastically expanded the Bank’s
sustainability practice. In August 2019, the practice was further
expanded through the addition of a renewable energy investment
banking team. Today, approximately 25 Fifth Third employees are
dedicated full-time to sustainable financing and advisory
activities.
The current sustainable financing strategy and policy for
lending excludes more speculative development financing, such as
construction projects prior to being “shovel ready” or without a
power purchase agreement, as well as projects with less certain
off-taker contracts, including those that require taking merchant
and/or wholesale energy price risk.
More information regarding Fifth Third’s new $8 billion
sustainable finance goal, including the financing of the Bancroft
Station Solar Farm, will be published in the Bank’s inaugural
Environmental, Social and Governance (ESG) Report, which will be
available online on Sept. 30, 2020. The report will include
environmental data and a comprehensive Task Force on Climate
Related Financial Disclosure index.
The establishment of this $8 billion sustainable finance goal is
the latest in a series of steps—many of which align to the United
Nations Sustainable Finance Goal No. 13 Climate Action—that Fifth
Third has taken to be a leader in environmental sustainability.
Fifth Third also recently published a new Environmental and Social
Policy that identifies sectors that pose heightened environmental
and social risks. The policy provides guidance on sectors or
activities that are prohibited or that are subject to enhanced due
diligence and may require escalated review and approval. In 2017,
Fifth Third established five bold sustainability goals to be
achieved by 2022 and has, to date, achieved its goals for 100%
renewable power, a 25% reduction in greenhouse gas emissions and a
20% reduction in water usage. The Company continues to pursue its
remaining 2022 goals, which are a 25% energy use reduction and a
20% reduction in landfill waste.
About Fifth Third
Fifth Third Bancorp is a diversified financial services company
headquartered in Cincinnati, Ohio and the indirect parent company
of Fifth Third Bank, National Association, a federally chartered
institution. As of June 30, 2020, Fifth Third had $203 billion in
assets and operated 1,122 full-service banking centers and 2,456
ATMs with Fifth Third branding in Ohio, Kentucky, Indiana,
Michigan, Illinois, Florida, Tennessee, West Virginia, Georgia and
North Carolina. In total, Fifth Third provides its customers with
access to approximately 53,000 fee-free ATMs across the United
States. Fifth Third operates four main businesses: Commercial
Banking, Branch Banking, Consumer Lending and Wealth & Asset
Management. Fifth Third is among the largest money managers in the
Midwest and, as of June 30, 2020, had $405 billion in assets under
care, of which it managed $49 billion for individuals, corporations
and not-for-profit organizations through its Trust and Registered
Investment Advisory businesses. Investor information and press
releases can be viewed at www.53.com. Fifth Third’s common stock is
traded on the Nasdaq® Global Select Market under the symbol “FITB.”
Fifth Third Bank was established in 1858. Deposit and Credit
products are offered by Fifth Third Bank, National Association.
Member FDIC.
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Stacie Haas (Media Relations) Stacie.Haas@53.com |
513-534-5113
Chris Doll (Investor Relations) Christopher.Doll@53.com |
513-534-2345
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