FleetBoston Financial

FleetBoston Financial is the seventh-largest financial holding company in the USA. Based in Boston, it has 20 million customers in more than 20 countries and territories, and its services include retail banking, corporate banking and investment services.

In December 2001, FleetBoston announced that it was the first bank anywhere in the world to endorse both the CERES principles and the United Nations Environment Programme Statement by Financial Institutions (UNEP FI), as part of its environmental management programme.

The group also claims to have incorporated environmental considerations into its lending policies.

The twin-track endorsement commits FleetBoston to use resources responsibly, to audit its performance, and to communicate the results to the public. Already the company has put in place a global procurement programme, heating and energy schemes, and employee health and safety programmes. Taken together, it reports that these initiatives have resulted in 'significant cost savings'.

Many of the initiatives taken within the company amount to good housekeeping. 'Energy reduction programmes have concentrated on those that would save the company the most money,' explains Kaj Jensen, one of 12 environmental specialists employed by FleetBoston. Replacing old and inefficient heating and air conditioning units has generated substantial savings, and 60 retail branches in the state of New Jersey are having their lighting upgraded.

Meanwhile the organisation is exploring the options for 'green' building design in the planning of new facilities.

In the area of procurement, the emphasis is on greener products such as recycled paper and re-used toner cartridges. For example, a contract for the supply of toner for laser printers specifies a goal of up to 50% recycled cartridge use, compared with a figure of less than 10% for the year 2001.

Chad Gifford, president and CEO of FleetBoston, explained: 'By endorsing the CERES principles and the UNEP Statement by Financial Institutions, as well as expanding upon our current environmental management efforts, products and services, we improve our ability to pro-actively manage environmental risk and generate significant cost savings for the corporation - benefiting both the community and our shareholders.'

Robert Varney, regional administrator of the US Environmental Protection Agency's New England office, commented: 'Fleet should also be congratulated for its efforts to implement these principles, ranging from the clean-up and re-use of hundreds of previously contaminated brownfield sites to the installation of energy-efficient lighting and other conservation efforts in their buildings.'

Robert Massie, the director of CERES, welcomed FleetBoston into the ranks of CERES-endorsing organizations. 'We expect that Fleet's long-standing commitment to the community and leadership position in financial services will stimulate progress and innovation throughout the industry,' he added.

The company's first environmental report for public consumption is planned for the second half of 2002. In the meantime, the principal challenge is to create a unified strategy across the group. 'One of the most significant tasks is to reach out to the numerous internal groups and get these business lines to work together with the environment department to incorporate the principles that CERES and UNEP FI represent,' says Jensen. 'Ultimately we would like to have a close connection with our finance/investment units to hopefully be able to offer environmentally and socially oriented investment options.'