Big banks put chips on green

Big banks are getting in on the trend of going green.

The Bay Area's largest banks are pursuing a variety of measures that include making multi-billion-dollar loan commitments, incorporating green building practices into their branches and boosting lending to alternative energy and other green sectors.

The region's reputation for environmental concern places the Bay Area, and the state, high on the corporate agenda for instituting green initiatives.

Wachovia, for instance, is rolling out green branches in California and Bank of America made one of its first loans under an environmental commitment to save a forest in Northern California.

The flurry of activity shows no sign of abating.

Bank of America committed earlier this year to lend $20 billion over 10 years to support the growth of environmentally sustainable business practices through lending, investing, philanthropy and the creation of new products and services. The bank made a $65 million loan to a Northern California nonprofit last month to keep a forest intact and institute sustainable timber harvesting practices while saving coastal redwoods.

Wells Fargo has become one of the nation's largest purchasers of renewable energy in the United States. More than 40 percent of its electricity, nationwide, is offset with wind power.

In conjunction with that effort, the bank is boosting its financing of alternative energy businesses such as wind energy projects in Texas, Maine and Minnesota.

"I found it appealing to be in on the ground floor of Wells Fargo's environmental initiatives and help shape them," said Barry Neal, Wells Fargo's director of environmental finance who came to the bank in January 2006 from the private equity arena.

Wachovia's push into California this year includes opening the first of 300 green branches nationwide in the southern part of the state. Charlotte, N.C.-based Wachovia, which maintains its western headquarters in Oakland, said the green branches will use at least 20 percent less energy and 25 percent less water than the bank's traditional branches.

The bank plans to start employee recycling programs at the green branches and provide bike racks and preferred parking for low-emission vehicles.

The bank's leadership was won over to adopting the green measures in part from the long-term savings generated by the green branches.

"In 10 years, we won't call this green building practices, it will just be standard construction procedures," said Patrick Mumford, senior vice president and environmental affairs manager at Wachovia.

At 19 Wachovia employee cafeterias, the bank is testing a refillable mug program. The bank also established glassware service programs to reduce use of plastic and paper goods.

Whether the green movement with the big banks is a long-term trend or simply a fad remains to be seen.

But the executives advocating going green within these companies see it as something big.

"The environmental initiative is just a starting point," Wells Fargo's Neal said. "It's creating the impetus for new business."