Amalgamated Bank Commits to Net Zero Targets by 2045
Report details plans to eliminate emissions in financing and operational activities, becoming the first U.S. bank to set targets aligned with science under the guidelines of the UN Net Zero Banking Alliance
(NEW YORK, NY; WASHINGTON, DC) October 25, 2021 – Amalgamated Bank, a subsidiary of Amalgamated Financial Corp. (NASDAQ: AMAL) a mission-driven full-service commercial bank that empowers organizations and individuals to advance positive social change, today announced formal targets to achieve 49% reductions in 2030 and net zero greenhouse gas emissions in its financing and operations by 2045—five years ahead of the 2050 global deadline for net zero emissions, as stated by the UN Intergovernmental Panel on Climate Change.
Amalgamated Bank is the first US bank to set full portfolio targets under the guidelines of the UN Net Zero Banking Alliance and is taking a rigorous approach to climate science aligned target setting.
Published on the eve of the global climate summit in Glasgow, Amalgamated Bank’s targets are summarized in a new report that details the core strategies and assumptions behind the targets, including client engagement, new streams of finance and expectations for public policy. The Bank will also host a virtual panel discussion on November 1, 2021 to further elaborate on the goals and plans described in the report.
"Climate finance requires a global movement, which is why Amalgamated Bank has taken significant action by leading global economic initiatives and investments in sustainability,” said Priscilla Sims Brown, President and CEO of Amalgamated Bank.
Ivan Frishberg, Chief Sustainability Officer added, “Our Net Zero Climate Targets Report outlines our plan for how we expect to build and align with a climate safe future. The foundation of this work is a plan to measure our impact, to set targets that guide our business and the impact we have in the world, and to be transparent about what this will mean. Our climate work is technical and strategic, but it also honors the heritage of those who work for the future. We are excited to embark on this work, engage with clients to realize our goals, and communicate our progress to our valued stakeholders.”
- Amalgamated Bank’s detailed plan to achieve net zero emissions by 2045 without the use of portfolio or client level offsets
- Intermediate 2030 emissions reduction goals for each of the Bank’s emissions categories
- Policy and client engagement strategies to enable faster decarbonization
- Intermediate 2030 goals to scale climate solutions and long term goals for financed emissions removals
The report has been submitted to SBTi, which will conduct a target validation process using established metrics that define and promote best practices in emissions reductions. Targets are considered ‘science-based’ if they are in line with what the latest climate science deems necessary to meet the goals of the Paris Climate Agreement.
“The financial sector plays a critical role in decarbonizing the economy and we need the financial sector to step up and commit to ambitious action in order to limit global temperature rise to 1.5°C,” said Cynthia Cummis of SBTi. “Amalgamated’s climate targets, based on the Science Based Targets initiative’s target setting methods, is a quality blueprint for other banks to follow. We look forward to reviewing the targets for SBTi validation.”
To explore these targets and the broader climate considerations for governments and corporations, Amalgamated Bank will host a virtual panel discussion featuring esteemed panelists Cynthia Cummis, Director of Private Sector Climate Mitigation at the World Resources Institute & Co-Founder of the Science Based Targets Initiative, and Puleng Tumelo Ndjwili-Potele, Banking Team Lead of the UNEP Finance Initiative. The panel will be held Monday, November 1, 2021 where speakers will discuss the process for setting targets and the reasoning behind this critical need.
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About Amalgamated Bank
Amalgamated Bank (“Amalgamated” or the “Bank”), the wholly-owned banking subsidiary of Amalgamated Financial Corp. (Nasdaq: AMAL), is a mission-driven New York-based full-service commercial bank and a chartered trust company with a combined network of six branches in New York City, Washington D.C., San Francisco, and Boston. Amalgamated Bank provides commercial banking and trust services nationally and offers a full range of products and services to both commercial and retail customers. Since our founding in 1923, Amalgamated Bank has served as America’s socially responsible bank, empowering organizations and individuals to advance positive social change. Amalgamated Bank advocates alongside those working to make the world more just, compassionate, and sustainable. Amalgamated Bank is the country’s largest B Corp® bank and a proud member of the Global Alliance for Banking on Values. We don’t just have a mission, we are on a mission to advance economic, social, racial and environmental justice utilizing the tools of finance. For more information, please visit our website at www.amalgamatedbank.com.
About the Science Based Targets initiative
The Science Based Targets initiative mobilizes companies to set science-based targets and boost their competitive advantage in the transition to a zero-carbon economy. It is a collaboration between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF) and one of the We Mean Business Coalition commitments. The initiative defines and promotes best practice in science-based target setting, offers resources and guidance to reduce barriers to adoption, and independently assesses and approves companies’ targets.
Cautionary Note Regarding Forward-Looking Statements
Some of the statements in this press release are ‘‘forward-looking statements’’ within the meaning of the federal securities laws. Words and phrases such as “expect,” “plan,” “believe,” “continue,” “committed,” “will,” and variations of such words or similar expressions are intended to identify such forward-looking statements. Forward looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions (“risk factors”) that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what may be expressed or forecasted in such forward-looking statements. We assume no duty to update, amend or clarify forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Risks factors include, without limitation, adverse effects on the market price of our shares and on our operating results because of our inability to timely complete, if ever, the environmental goals described in this release; our ability to fully realize the general economic and business conditions that may affect us in connection with completing environmental goals; unanticipated expenses such as litigation or legal settlement expenses; changes in capital market conditions and the impact of the completion of the environmental goals on our employees, customers and suppliers. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. The inclusion of such statements should not be regarded as a representation that such plans, estimates, expectations or goals will be achieved. Additional factors that could cause our results to differ materially from those described in the forward-looking statements can be found under the section entitled “Risk Securities and Exchange Commission (“SEC”), as updated in the Company’s Quarterly Reports on Form 10-Q, and as such factors may be updated from time to time in our periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. The foregoing list of important factors is not exclusive.
Jacobson Strategic Communications