"Bank of America: Fossil Fool Or Force For Nature?"
Bank of America CEO Kenneth D. Lewis received two utterly different awards from environmental groups on Tuesday, April 1 — the Energy Action Coalition and Rainforest Action Network (RAN) voted him the “Fossil Fool of the Year,” while the Natural Resources Defense Council (NRDC) honored him at their annual fundraising gala as a “Force for Nature.”
Rebecca Tarbotton of RAN said, “Ken Lewis faced a who’s who list of polluters, but voters deemed him the worst of a very deserving crop.”
Frances Beinecke of NRDC said, “We have the know-how to beat global warming. What we need is the leadership to make it happen, and Ken Lewis is providing that leadership.”
FOSSIL FOOL? Climate and environmental activists celebrated “Fossil Fools Day” yesterday, April 1, with actions across the globe protesting the fossil fuel industry. Heeding Al Gore’s call for “young people to engage in peaceful protests to block major new carbon sources,” they blockaded coal mines, coal plants, and energy company headquarters.
As part of the day of action, the Energy Action Coalition dedicated the Fossil Fools Awards to “the world’s biggest contributors to our global addiction to fossil fuels.” Kenneth Lewis won top honors for facilitating “nearly $1 billion in loans to Massey Energy and Arch Coal, two of the largest companies involved in the environmentally devastating process of mountaintop removal coal mining” in the last few years. Bank of America also made several billion dollars in loans and facilitated stock offerings in 2006 for Peabody Energy, the world’s largest private coal company.
FORCE OF NATURE? NRDC’s tenth annual “Forces for Nature” $1000-a-plate fundraising gala feted Ken Lewis and NYC mayor Michael Bloomberg at Cipriani 42nd Street.
NRDC honored Lewis for Bank of America’s ten-year, $20 billion environmental initiative which “addresses climate change by championing sustainable business practices through innovative lending and investing strategies, new financial products and services and operations.” The initiative was launched last year. The new Bank of America Tower in New York City, when completed in 2009, will be one of the most environmentally friendly and efficient office
buildings in the world.
GETTING CLEANER: At the NRDC gala, Lewis made the major announcement that Bank of America would adopt the Carbon Principles, “a set of guidelines that help advisors and lenders to power companies evaluate and address carbon risks in the financing of projects” drafted in January by Citigroup Inc., J.P. Morgan Chase & Co., and Morgan Stanley. According to the Wall Street Journal, “the ‘Principles’ push utilities to explore other alternatives to regular coal plants . . . Still, the banks make clear they won’t stop funding all conventional coal plants—they’ll simply want assurances higher rates will cover likely costs of carbon.”
Lewis’s announcement demonstrates the effectiveness of having both critical pressure by the Rainforest Action Network and cooperative ventures with NRDC in changing the business practices of multinational corporations. But much more effort — from many more people — is needed to compel those with great power to accept their great responsibility to be responsible stewards of this planet.