Forests Policy

Bank of America recognizes that forests are vital for their role in the global carbon cycle through their ability to store greenhouse gasses and help mitigate global climate change.

But the fact remains: Deforestation and land use change is a significant risk to global forest ecosystems and the biodiversity that these forests support. Deforestation contributes approximately one fifth of the carbon emissions that help lead to climate change.

We are therefore strong advocates of sustainable forestry investments and are active in promoting these investments through our strategic investments division, trust management and other endeavors. We have developed the highest standards in the financial services sector for promoting sustainable forest practices through both our lending activity and our own operations.

When working forests are managed sustainably, they can provide additional economic benefit from the use of modern financial instruments, such as conservation easements and the future potential of forest carbon accounting to derive additional revenue. And, preserving and properly managing forests enhances biodiversity and the ability of the land to play its critically important role in absorbing atmospheric carbon.

Proper forest management helps to ensure that forests continue to provide a wide range of vital environmental benefits, including wildlife habitat, clean water and air, as well as a sustainable supply of forest products. Proper management also ensures the economic and cultural survival of forest-dependent communities.

In 2004, we made significant enhancements to our lending practices in the forest and paper products industry and were among the first to set a sustainable forestry standard. We developed our forest lending policy in consultation with our customers who have expertise in the sector as well as with environmental partners who work on developing best practices, including forestry certification. Our forest lending policy places additional value on forestry certification by incorporating it as a due diligence tool.

Paper Procurement Policies: For many years, the financial services industry has depended on the use of paper for a wide variety of business purposes. But today, recognizing that the paper trail leads back to our stressed and threatened forests, we recognize that maintaining the ecological health of our forests is necessary for the future of our business, and for humanity.

Understanding the impacts associated with our own operations, Bank of America committed to apply the same lending requirements for our customers to our own purchases of forest products, especially paper. Our paper procurement policies therefore mandate minimal use of paper containing virgin wood fiber. Instead, we source paper from forests that use environmentally preferable practices and protect environmentally sensitive areas.

Our paper procurement policy includes:

Source Reduction and Recycling: In order to reduce demand on forests, we continuously build on our long-standing commitment to minimize consumption of paper products containing virgin wood fiber.


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Quick Facts

  • There are two major types of rainforest: temperate rainforests and tropical rainforests
  • The largest temperate rainforests are found on North America's Pacific Coast and stretch from Northern California into Canada.
  • Less than 5 percent of the world's tropical forests are protected.
  • Tropical forests are a source of valuable wood such as teak, mahogany, rosewood and sandalwood.