Bank of America

990c          

Red LineText of policiesCommentsScore
Regulatory requirements
Ensure LegalityForest Practices
In all cases, the borrower must remain in compliance with applicable laws and regulations governing timber harvesting.
C. Bank of America will not finance companies or projects that collude with, or knowingly purchase timber from, illegal logging operations. Due diligence will include company representation as to its practices and monitoring for illegal logging.
F. Bank of America will not finance companies or projects that contravene any relevant binding international environmental agreement to which the member country concerned is a party or that violate local, state or national environmental, labor or social laws. (...)

Code of conduct
Facilitation of tax evasion
Bank of America may be exposed to reputational harm, or potential civil and criminal liability, if those providing services (...) facilitate the evasion of taxes, while working on behalf of the company. (...) You are expected to be informed of and alert to this issue and to ensure that you do not knowingly assist the evasion of taxes.

Social Risk Policy Framework
Prohibited list - Bank of America will not knowingly engage in illegal activities including:
• Illegal logging or uncontrolled fire – including transactions in which a client engages in illegal logging or uncontrolled use of fire for
clearing forest lands
• Transactions for illegal purposes
The bank’s credit policy requires clients to be in full compliance with environmental laws and regulations. Forest Lending Policy requires compliance with all applicable laws and regulations governing timber harvesting, and excludes illegal logging. The bank will not finance any companies or projects that contravene any relevant binding international environmental agreement or that violate local, state or national environmental, social or labour laws.well
No Corruption and Tax EvasionCode of conduct
Facilitation of tax evasion
Bank of America may be exposed to reputational harm, or potential civil and criminal liability, if those providing services (...) facilitate the evasion of taxes, while working on behalf of the company. (...) You are expected to be informed of and alert to this issue and to ensure that you do not knowingly assist the evasion of taxes.

Bank of America Anti-Money Laundering (AML) and Counter-Terrorist Financing Policy Statement
(...) it is the policy of Bank of America to take all reasonable and appropriate steps to prevent persons engaged in (...) financial crime, (...) from utilizing Bank of America products and services. Compliance with both the letter and the spirit of the anti-money laundering regulatory regimes in the countries and jurisdictions in which Bank of America operates is one way the Bank works to achieve this policy.

Social Risk Policy Framework
Prohibited list - Bank of America will not knowingly engage in illegal activities including:
• Bribery – including giving, offering, receiving or requesting bribes
• Transactions designed to manipulate financial results – including transactions or activities designed to artificially or unfairly manipulate or change the reported value of a client, instrument or transaction or inappropriately reduce tax liabilities.
The bank has policies to prevent engagement with those that are involved in financial crimes, but it does not cover tax evasion structures by clients.partly
Ensure ESIA for mills and plantationsNo publicly available policies or documentation were found that cover this criteria.not
Social requirements
Ensure FPICForest Practices
ES Risk Policy Framework
D. Bank of America respects the rights of indigenous communities whose livelihoods or cultural integrity could be adversely impacted by resource extraction from and clearing of forests. Due diligence procedures for projects in primary temperate/boreal or high conservation value forests will evaluate the impact on the indigenous peoples that could be affected. In these instances, the bank will not provide financing unless it is determined that indigenous peoples impacted by projects in these sensitive areas, have the opportunity and, if needed, culturally appropriate representation, and access to information to engage in informed participation.
Indigenous peoples
Bank of America recognizes that Indigenous Peoples, Native, and First Nations Communities have cultural beliefs, values and lands that are often under threat. We conduct enhanced due diligence for transactions in which the majority use of proceeds is attributed to identified activities that may negatively impact an area used by or traditionally claimed by an indigenous community. For these transactions, we expect our clients to demonstrate alignment with the objectives and requirements of the IFC PS 7, which addresses impacts to Indigenous Peoples including FPIC. (p18)
Te policy requires FPIC for affected indigenous communities, in some cases, but not for other, non-indigenous impacted communities.partly
Respect Human RightsES Risk Policy Framework
Human rights
In our operations around the world, we strive to conduct our business in a manner consistent with the United Nations Universal
Declaration of Human Rights, the United Nations Guiding Principles for Business and Human Rights and the ILO Fundamental Conventions. We have set clear expectations for our vendors (...) (p11)

Social Risk Policy Framework
Prohibited list - Bank of America will not knowingly engage in illegal activities including:
• Child labor, forced labor or human trafficking – including engaging with companies or transactions in which a client is directly involved in child labor, forced labor or human trafficking

Human Rights Statement
We have endorsed a number of international charters, principles and initiatives that address social and environmental issues, including the United Nations Principles for Responsible Investment, the Equator Principles, Carbon Principles, United Nations Global Compact and CERES Principles. Our Environmental and Social Risk Policy Framework (ESRPF) articulates how we approach environmental and social risks across our business (...)
The policy requires respect for human rights, but does not explicitly require companies to have policies for their suppliers.partly
Respect Indigenous rights and customary land use rights· Forest Practices
Additionally, Bank of America will not finance operations in areas where indigenous land claims are not settled.

ES Risk Policy Framework
D. Bank of America respects the rights of indigenous communities whose livelihoods or cultural integrity could be adversely impacted by resource extraction from and clearing of forests. Due diligence procedures for projects in primary temperate/boreal or high conservation value forests will evaluate the impact on the indigenous peoples that could be affected. In these instances, the bank will not provide financing unless it is determined that indigenous peoples impacted by projects in these sensitive areas, have the opportunity and, if needed, culturally appropriate representation, and access to information to engage in informed participation.
Indigenous peoples
Bank of America recognizes that Indigenous Peoples, Native, and First Nations Communities have cultural beliefs, values and lands that are often under threat. We conduct enhanced due diligence for transactions in which the majority use of proceeds is attributed to identified activities that may negatively impact an area used by or traditionally claimed by an indigenous community. For these transactions, we expect our clients to demonstrate alignment with the (...) IFC PS 7, which addresses impacts to Indigenous Peoples including FPIC. (p18)
Protection is not extended to local communitiespartly
No forced resettlementForest Practices
ES Risk Policy Framework
D. Bank of America respects the rights of indigenous communities whose livelihoods or cultural integrity could be adversely impacted by resource extraction from and clearing of forests. Due diligence procedures for projects in primary temperate/boreal or high conservation value forests will evaluate the impact on the indigenous peoples that could be affected. In these instances, the bank will not provide financing unless it is determined that indigenous peoples impacted by projects in these sensitive areas, have the opportunity and, if needed, culturally appropriate representation, and access to information to engage in informed participation.
Indigenous peoples
Bank of America recognizes that Indigenous Peoples, Native, and First Nations Communities have cultural beliefs, values and lands that are often under threat. We conduct enhanced due diligence for transactions in which the majority use of proceeds is attributed to identified activities that may negatively impact an area used by or traditionally claimed by an indigenous community. For these transactions, we expect our clients to demonstrate alignment with the objectives and requirements of the IFC PS 7, which addresses impacts to Indigenous Peoples including free, prior and informed consent. (p18)
FPIC is required for transactions negatively impacting Indigenous peoples, but this is not extended to economic resettlement or local communities.partly
Environmental Requirements
No forest degradation and deforestationForest Practices
A. Bank of America will use due diligence measures to assure that lending proceeds are not used to finance commercial projects or operations that result in resource extraction from, or the clearing of:
I. Primary tropical moist forests;
II. Intact forests as defined by the World Resource Institute (WRI);
III. Primary forests in temperate or boreal forest regions that are not managed using sustainable forestry practices as verified by an independent third party audit; and
IV. High conservation value forests unless under approved conservation plans verified by an independent, third party audit with necessary permits granted by applicable governmental/regulatory authorities.
B. Given the benefits associated with reforestation of cleared and degraded land, Bank of America will finance tree plantations on previously cleared forest land if the clearing and/or degradation of the land was conducted in accordance with applicable laws and regulations. Exceptions are allowed only after five years have passed and only if no direct link to the original deforestation can be demonstrated..

Social Risk Policy Framework
Prohibited list - Bank of America will not knowingly engage in illegal activities including:
• Natural resource extraction in UNESCO World Heritage sites –(...) unless there is prior consensus between UNESCO and the host country’s governmental authorities that activities will not adversely affect the natural or cultural value of the site
There is protection for some areas, but not for HCS areas, peatlands nor protected areas.partly
Protect endangered speciesNo publicly available policies or documentation were found that cover this criteria.not
No high-risk speciesNo publicly available policies or documentation were found that cover this criteria.not
No fireForest Practices
E. Bank of America will not finance companies that do not have an explicit policy against the uncontrolled and/or illegal use of fire in
their forestry or plantation operations. Due diligence will include company representation as to its policy and monitoring.

Social Risk Policy Framework
Prohibited list - Bank of America will not knowingly engage in illegal activities including:
• Illegal logging or uncontrolled fire – including transactions in which a client engages in illegal logging or uncontrolled use of fire for
clearing forest lands
The policy requires clients to have a policy on the use of fire, but does not prohibit its usepartly
Protect peatNo publicly available policies or documentation were found that cover this criteria.not
No persistent pollutionNo publicly available policies or documentation were found that cover this criteria.not
Corporate association / scope of the policy
Corporate association / scope of the policyThe policies do not expressly apply to suppliers and/or parent, sister or subsidiary companies of the bank’s client.not