New opportunities are emerging, especially in the western states, where climate change has become an economic stimulus. Climate change has moved from an abstract to an inconvenient truth.
In the West, in particular, it has become intermingled with discussions of water shortages, sprawl, and restoration of natural resources, rural development, tourism, population growth, and industrial expansion.
• The Western Governors’ Association which represents 19 states and three U.S. territories recently adopted a resolution to increase the use of alternative fuels and improve vehicle fuel efficiency while reducing dependence on foreign oil and cutting greenhouse gas emissions.
• There is an enormous demand for energy - particularly clean, affordable energy such as wind power and biodiesel, which can be produced in America while adding value to agricultural products. Clean coal technology is an important solution for the near future, bridging the petroleum economy of the past together with the hydrogen economy of the future.
• In another major action, eight of the nation’s largest water agencies have formed the Water Utility Climate Alliance, which will develop unified strategies to understand, prevent and respond to climate change.
• In Colorado, a new Solar Residential Program offers $1 million in rebates to residents who install solar systems in their homes. The program is part of Gov. Bill Ritter’s commitment to build a new “energy economy” in the state.
Setting the standards in a relentless battle
Battling something like climate change is a daunting task, especially when viewed in a global perspective. Yet banks can make a difference. The key is to take a ground-up approach: attacking climate change first within their own operations, then in their communities, and finally at state and national levels.
Lewis Bank of America, which began in San Francisco in 1904, is setting a high standard for all banks. Last year, it launched an $18 billion program to promote environmentally sustainable business activity that addresses global climate change. The 10-year initiative encompasses lending, investing, philanthropy, and the creation of new products and services.
Among the initiatives are financing real estate projects incorporating LEED (Leadership in
Energy and Environmental Design) certification; offering homebuyers, through its Green Mortgage Program, a reduced interest rate or $1,000 back for each home-purchase mortgage meeting the federal government’s ENERGY STAR specifications; and working with nonprofit organizations committed to improving the environment, such as the Redwood Forest Foundation, which acquired 50,000 acres in the Usal Redwood Forest by using $65 million attained with flexible long-term financing.Becoming Green
Bank of America’s environmental efforts are external and internal, with $1.4 billion committed to achieving LEED certification in all new construction of office facilities and banking centers. Needless to say, most banks can’t match Bank of America; however, they can initiate programs that match their own capabilities and goals.Mechanics Bank of Richmond, Calif., for instance, has launched a program to make all of its 31 retail offices LEED certified. Yet although the bank has gained customers and reduced its utility and maintenance costs, ROI is not the sole stimulus for the green program.
Uzel’s National Bank is promoting a paperless system of operations and using recycled materials where possible. The bank also was instrumental in the launch of Greenecco.com, an ecologically inspired website, and in the creation of a green credit card, where 50 percent of the proceeds from the card are donated to the environmental charity of the cardholder’s choosing. These types of credit cards will no doubt find increasing favor among banks. Bank of America’s new Brighter Planet Visa credit card, for example, allows customers to earn points used to help build community-based renewable energy projects across the United States.
Alpine South Rifle At Alpine Bank, with 38 locations located throughout western Colorado, a Green Team was created two years ago to study every facet of the bank’s operations. The result is an impressive list of environmental initiatives. Among the many achievements are attaining ISO 14001:2004 certification — the internationally recognized gold standard for environmental management — and receiving LEED certification for its South Rifle location.
Getting Started
The creation of jobs related to climate change and the restoration economy translates into unprecedented opportunities for banks willing to be leaders and innovators, even when the risks may be high. Here are a few suggestions:
• Become involved in local, state or regional organizations as a member of a working group or advisory committee.
• Explore how to become an equity partner or a participant in a public-private partnership to promote local, county or state green projects.
• Develop lending programs to encourage existing customers — and potential new customers — to invest in green technologies, such as solar power and green construction.
• Help existing businesses to become more environmentally friendly and establish programs to help new businesses dedicated to helping the environment.
• Introduce new products and services, such as green credit cards, that strengthen your relationship with customers seeking ways to help the environment.
Make your bank green, such as gaining LEED certification for your facilities and introducing programs such as Alpine Bank’s “Reduce, Recycle, Renew.”
The banks mentioned here realize that improving the environment helps their customers, their communities, their own institutions and their business outlook. If you are still caught under the yellow caution flag, it may be time to explore how to turn your institution — and your community — green.
