Bank of America (BAC) recognizes that its ability to attract and retain customers and employees could be adversely affected “to the extent our reputation is damaged” and that “failure to address, or to appear to fail to address various issues” could damage the Corporation and its business prospects (2005 Annual Report).

BAC also recognizes that:

• The company’s health is dependent on the health of communities and our society;
• Climate change and atmospheric pollution represent a risk to the ultimate stability and sustainability of our way of life; and
• Every part of our business has a potential impact on our environment.

(http://www.bankofamerica.com/environment/index.cfm?template=env_clichangepos)

As a leading financial institution, BAC implemented a goal of reducing direct greenhouse gas (GHG) emissions from its facilities by 9% and indirect GHGs within its energy and utility portfolio by 7%. However, BAC’s greatest impact on climate change and the environment arises from its financing of businesses and activities such as coal mining that emit substantial greenhouse gases (e.g., carbon dioxide and methane) and other pollutants.

Mountain top removal (MTR) coal mining, in particular, has serious adverse impacts on communities, the environment, and public health. MTR causes massive environmental devastation. Forests are clear-cut, the tops of mountains blasted away to reveal coal seams and the rubble dumped in the valleys below, filling streams and destroying water resources.

The U.S. Environmental Protection agency (EPA) found that approximately 1,200 miles of headwater streams in the Appalachian coal region (or 2% of the streams in the study area) were directly impacted by MTR. (http://www.epa.gov/region3/mtntop/index.htm)

Recently, EPA placed 79 MTR projects on hold to review of the permits due to concerns about water quality and environmental health.  (http://www.bloomberg.com/apps/news?pid=email_en&sid=aJjhGdHTDUH4)

Between 1992 and 2012, EPA estimates MTR will have destroyed approximately 7% of Appalachian forests in coal mining regions studied. (http://www.epa.gov/Region3/mtntop/pdf/mtm-vf_fpeis_full-document.pdf)

Deforestation is the second leading source of GHG emissions worldwide. (http://www.gsfc.nasa.gov/gsfc/service/gallery/fact_sheets/earthsci/green.htm)

Old growth forests, like those found in Appalachia, are important carbon sinks that store atmospheric carbon dioxide.  The carbon in forests destroyed by MTR each year roughly equals the annual emissions from two 800-megawatt coal-fired power plants.

RESOLVED

Shareholders request that BAC’s Board publish a report, at reasonable cost and omitting proprietary information, by October 2010, describing (i) the implementation of its policy barring funding of companies engaged predominantly in MTR and an assessment of the efficacy of the policy in reducing GHG emissions and in protecting BAC’s reputation; and (ii) assessing the probable impact on GHG emissions and environmental harm to Appalachia of expanding the policy to bar project financing for all MTR projects.

SUPPORTING STATEMENT

Recognizing the particularly damaging impacts of MTR, BAC adopted a policy that bars it from financing companies “whose predominant method of extracting coal is through mountaintop removal.”  However, BAC hasn’t reported on how this policy has impacted its lending.  Furthermore, unless the policy is broadened by barring all “project financing” for MTR projects, we doubt that it will significantly impact on the environmental concerns caused by MTR.

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Bank of America (BOA) is a diversified financial services company providing banking,investment, investment banking, credit card and consumer finance services.BOA recognizes that its ability to attract and retain customers and employees could be adversely affected “to the extent our reputation is damaged” and that “failure to address, or to appear to fail to address various issues” could damage the Corporation and its business prospects. (2005 Annual Report)BOA also recognizes that:

• The health of our company is dependent on the health of communities and our society;
• Climate change and atmospheric pollution represent a risk to the ultimate stability and sustainability of our way of life; and
• Every part of our business has a potential impact on our environment.

http://www.bankofamerica.com/environment/index.cfm?template=env_clichangepos

BOA’s greatest impact on climate change and the environment arises from its financing of businesses and activities, such as electric power generated from coal-burning plants, that emit substantial greenhouse gases (e.g., carbon dioxide) and other pollutants.

As a leading financial institution, BOA has adopted a goal of reducing direct greenhouse gas (GHG) emissions from its facilities by 9% and indirect GHGs within its energy & utility portfolio by 7%.

However, BOA continues to provide financing for companies engaged in mountain top removal (MTR) coal mining and for coal-fired electric power, which, in addition to having serious adverse impacts on communities, the environment, and public health, may also increase the long-term indirect GHG emissions within BOA’s portfolio.

MTR devastates the environment. Forests are clear-cut, the top of mountains blasted away to reveal coal seams and the rubble dumped in the valleys below, filling streams and destroying water resources. Between 1992 and 2012, the US Environmental Protection Agency estimates MTR will have destroyed approximately 7% of Appalachian forests in coal mining regions studied. (http://www.epa.gov/Region3/mtntop/pdf/mtm-vf_fpeis_full-document.pdf)

Deforestation is the second leading source of GHG emissions worldwide. (http://www.gsfc.nasa.gov/gsfc/service/gallery/fact_sheets/earthsci/green.htm)

The carbon in forests destroyed by MTR each year roughly equals the annual emissions from two 800 megawatt coal-fired power plants.

Coal-burning plants, which supply nearly half of U.S. electric power, are responsible for 80% of the nation’s GHG emissions from this sector. Technology for capturing and sequestering carbon from coal-burning plants is in the pilot stage and not widely available. Uncertainties remain regarding leakage and impact on underground water sources.

Coal plants also release most of the sulfur dioxide, nitrogen oxide, particulate matter and mercury, which harms reproductive health and mental development in children. (http://www.ucsusa.org/clean_energy/coalvswind/c02c.html)

Dr. James Hansen, a leading climate scientist at NASA’s Goddard Space Center, has urged an immediate moratorium on the construction of new coal fired power plants in the U.S. as a priority to avoid triggering dangerous destabilization of the Earth’s climate systems. (http://www.columbia.edu/~jeh1/dots_feb2007.ppt)

RESOLVED

Shareholders request that BOA’s board of directors amend its GHG emissions policies to observe a moratorium on all financing, investment and further involvement in activities that support MTR coal mining or the construction of new coal-burning power plants that emit carbon dioxide.

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Addresses

Sample Letter

Dear Mr. ________:

I am writing to urge that your bank take action to incorporate environmental and human rights considerations into its policy and procedures for underwriting stocks and bonds.

<Please include a personal paragraph describing yourself, your business with the bank, and why you are concerned about this issue.>

The recent controversy over the bank underwriting of PetroChina stock and China Development Bank bonds highlights the need for banks to carefully assess the environmental and human rights impact of the stocks and bonds that they underwrite. Underwriting the securities of corporate bad actors and financing – even indirectly – controversial infrastructure projects, such as the 3 Gorges Dam, can quickly and dramatically hurts a bank’s goodwill and consumer businesses.

I urge you to take action to ensure to address these important issues as the same time as protecting your good reputation and franchise.

Please write back and tell me how you intend to address this critical concern.

Sincerely,

Your Name

Your Address

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