U.S. Bank Sets Goal to Achieve Net Zero Greenhouse Gas Emissions by 2050
November 10 2021 - 8:31AM
Business Wire
The company also sets goal to source 100%
renewable electricity by 2025 and sets an environmental finance
goal of $50 billion by 2030
U.S. Bank today announced
several company-wide commitments to address the impacts of climate
change on its business, customers and communities,
including:
- Setting a goal to achieve Net
Zero greenhouse gas emissions (GHG) by 2050
- Setting a goal to source 100%
renewable electricity within its operations by 2025 and joining
RE100
- Setting an environmental
finance goal of $50 billion by 2030
- Aligning disclosures with the
Task Force on Climate-related Financial Disclosures (TCFD)
recommendations
- Joining the Partnership for
Carbon Accounting Financials (PCAF) and committing to measure and
disclose financed emissions using PCAF standards
“Managing our business in an environmentally sustainable manner
is an important component of corporate responsibility and critical
to the health of our economy,” said Andy Cecere, chairman,
president and CEO of U.S. Bank. “We continue to take steps to
enhance how we assess the financial and operational risks climate
change poses to our company, our clients and the world. Today, we
announce a series of significant goals and initiatives toward
achieving Net Zero and establishing our target for renewable
electricity, which is important not only for our business but also
for our customers and communities.”
Net Zero GHG emissions by 2050
Setting a goal to reduce greenhouse gas emissions to zero by
2050 will expand U.S. Bank’s environmental focus from its
operations to all parts of its business. The company will measure,
disclose and commit to zero net greenhouse gas emissions –
including financed emissions – by 2050.
Financed emissions will be a focus for U.S. Bank, aligning its
business with its environmental priorities. U.S. Bank will join
PCAF, committing to measure and disclose financed emissions using
PCAF standards. Aligning with PCAF standards will support U.S.
Bank’s efforts to calculate financed emissions, which is an
important component for tracking progress toward the company’s Net
Zero commitment.
Additional details, including interim 2030 emissions reduction
targets for carbon-intensive portfolios (based on current data
availability) will be released by the end of 2022.
100% renewable electricity in U.S. Bank operations by
2025
U.S. Bank has been focused on reducing emissions within its own
operations for years, and in 2016 set GHG emissions reduction
targets using 2014 baseline data. As of the end of 2019, the bank
had achieved 44% reduction, reaching its shorter-term target 10
years early. U.S. Bank continues to work toward reaching the 2044
target of 60% emissions reduction as well as setting a goal to
source 100% renewable electricity by 2025.
Environmental finance goal of $50 billion by 2030
U.S. Bank will advance the transition to a low-carbon economy by
financing more customers and projects that have a positive impact
on the environment. The company is setting a $50 billion
environmental finance goal by 2030 using a 2020 baseline and
establishing an environmental finance framework that provides
clarity on tracking against this goal. U.S. Bank plans to release
additional details about this framework by the end of 2022.
In addition to its tax equity investments in renewable energy
projects, the U.S. Bancorp Community Development Corporation
(USBCDC) will begin offering debt financing on renewable energy
projects starting later this year. U.S. Bank and USBCDC have been
active in environmental finance for many years, investing $39.7
billion in environmentally beneficial business since 2008.
Integrating climate considerations into risk management
framework
U.S. Bank’s Risk Management function is integrating these
environmental commitments and related climate risk management
activities into its existing risk management framework, through the
identification, measurement, monitoring and mitigation of exposure
to physical and transition risks. Jodi Richard, vice chair and
chief risk officer for U.S. Bank, has appointed a new climate risk
executive within her organization to lead the strategy and
coordination of all risk management activities related to climate
risk.
“It’s important that risk management is aligned to support
business strategy and activities, while prudently managing our
risks over both the short and long-term time horizon,” said
Richard. “By joining PCAF and supporting TCFD, we are committed to
implementing measurement and disclosure practices in alignment with
industry guidance.”
More information on U.S.
Bank’s ESG work can be found in the 2020 ESG report or
usbank.com/environment.
About U.S. Bank
U.S. Bancorp, with nearly 70,000 employees and $567 billion in
assets as of September 30, 2021, is the parent company of U.S. Bank
National Association. The Minneapolis-based company serves millions
of customers locally, nationally and globally through a diversified
mix of businesses: Consumer and Business Banking; Payment Services;
Corporate & Commercial Banking; and Wealth Management and
Investment Services. The company has been recognized for its
approach to digital innovation, social responsibility, and customer
service, including being named one of the 2021 World’s Most Ethical
Companies and Fortune’s most admired superregional bank. Learn more
at usbank.com/about.
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version on businesswire.com: https://www.businesswire.com/news/home/20211110005819/en/
Susan Beatty, U.S. Bank Public Affairs & Communications
susan.beatty@usbank.com
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