Case Studies: Leveraging Green-e® Marketplace for Certifying Green Energy Claims, Featuring Bank of America & Bigelow Tea

CASE STUDIES LEVERAGING GREEN-E® MARKETPLACE FOR CERTIFYING GREEN ENERGY CLAIMS
MICHELLE MCGINTY PROGRAM OUTREACH MANAGER CENTER FOR RESOURCE SOLUTIONS BOB HENDRICK VP Corporate Responsibility BIGELOW TEA BETH WYTIAZ SVP, GLOBAL ENVIRONMENTAL OPERATIONS MANAGER BANK OF AMERICA

AGENDA PAGE 2 © 2020 Center for Resource Solutions. All
rights reserved. • Introduction to CRS • Introduction to Voluntary Renewable Energy and Carbon Offsets • About Green-e® Certification • Case Studies with Guest Speakers: • Bob Hendrick, VP Corporate Responsibility, Bigelow Tea • Beth Wytiaz, SVP, Global Environmental Operations Manager, Bank of America

Nongovernmental Organization (NGO) creating policy and market solutions
to advance sustainable energy since 1997. • Expert Assistance • Renewable energy and climate policy • Renewable Energy Markets annual conference • Green-e® certification for suppliers and users of renewable energy and carbon offsets in the voluntary market Center for Resource Solutions © 2020 Center for Resource Solutions. All rights reserved.

Introduction VOLUNTARY RENEWABLE ENERGY AND CARBON OFFSETS PAGE 4 ©
2020 Center for Resource Solutions. All rights reserved.

Renewable Energy Certificates (RECs) PAGE 5 © 2019 Center for
Resource Solutions. All rights reserved. 1 MWh REC Electricity Grid Tracking System Generator 1 REC represents the renewable attributes of 1 MWh of renewable energy generation

It is important to retain RECs for all procurement methods
to make RE claims PAGE 6 © 2020 Center for Resource Solutions. All rights reserved. Self Generation (Lease and Own Generation) Onsite self-generation or lease Offsite self-generation or lease Direct Purchasing (Purchase from a Generator) Onsite PPA Offsite physical PPA Virtual PPA Direct attribute-only purchase Retail Purchasing (Purchase from a Supplier or Utility) Utility green pricing Direct access tariff Community renewables Competitive green power Unbundled certificates

Carbon Offsets PAGE 7 © 2020 Center for Resource Solutions.
All rights reserved. A carbon offset is a certificate representing the reduction of one metric ton (2,205 lbs) of carbon dioxide (or equivalent) emissions • Permanence • Additionality • Verified • Enforceable • Real Project Types Examples Renewable Energy Energy Efficiency Methane Capture Industrial Process Emissions Reduction Forestry and Agriculture

Consumer protection for voluntary renewable energy and carbon offset products
• Third-party Audit of Sales and Supply • Ensures no double counting or claiming • Marketing Materials Audit • Ensures clear consumer disclosures • Independent Governance Board Green-e® Energy Certification PAGE 10 © 2019 Center for Resource Solutions. All rights reserved. Green-e® Energy Certified Retail Sales by Product Type (MWh)

© 2020 Center for Resource Solutions. All rights
reserved. Self Generation (Lease and Own Generation) Onsite self-generation or lease Offsite self-generation or lease Direct Purchasing (Purchase from a Generator) Onsite PPA Offsite physical PPA Virtual PPA Direct attribute-only purchase Retail Purchasing (Purchase from a Supplier or Utility) Utility green pricing Direct access tariff Community renewables Competitive green power Unbundled certificates Green-e® Direct

• 15-year “New Date” • Must be surplus to regulation
• No double counting, selling or claiming • GHG reduction benefits must be included • State-specific requirements and restrictions • Vintage requirements Supply Must Meet the Green-e® Energy Standard PAGE 12 © 2020 Center for Resource Solutions. All rights reserved. 6 MONTHS 12 MONTHS 3 MONTHS

Green-e® Climate Certification for Carbon Offsets PAGE 13 © 2020
Center for Resource Solutions. All rights reserved. No retail oversight leaves room for: • Bad Actors (“Boiler rooms”) • Deception and Fraud • Double Selling and Mistakes Project-level certification standards Green-e® retail certification standard minimizes these risks and sets quality standards for project-level certification Risks Benefits

© 2020 Center for Resource Solutions. All rights
reserved.

Benefits of Certification PAGE 18 © 2020 Center for Resource
Solutions. All rights reserved. *NMI U.S. Sustainability Consumer Trends 2019 Brand and Reputation Benefits • Association with a well-recognized and trusted nonprofit • Differentiate your company/brand to sustainably minded customers and stakeholders Risk Reduction Benefits • Mitigate real legal and reputational risk • Reviews marketing claims and provides expertise to ensure clarity to consumers • Monitors state and federal best practices Over 1 in 3 (35%) consumers say they recognize the Green-e® logo and 21% say they are more likely to purchase a product with the logo

Bigelow Tea’s Journey to Green-e®

Bigelow Tea was founded in 1945 by Ruth Campbell Bigelow.
She created the specialty tea category when she introduced Constant Comment ® in 1945. We remain family owned and operated and Ruth’s Granddaughter, Cindi Bigelow, is our president and CEO. Bigelow Tea is the market leader in specialty tea, selling over 2 billion teabags each year. We have the top three selling items in the category and 5 of the top 10.

Sustainability Beliefs In the words of President & CEO Cindi
Bigelow: “We want to be a little better today than we were yesterday and a little better tomorrow than we are today.” “We want to be the best that WE can be and do the best that WE can do” “Be the Hummingbird”

Bigelow Journey to Green-e ® • We have a long
history of energy conservation • An energy consultant was retained to get us to the next level. They advise us on potential projects, long term strategy and the availability of funding • We installed solar panels at our corporate facility in 2008 • Energy reduction projects are implemented annually • All capital projects for new equipment require an energy reduction component • We measure our energy usage based on units produced

Energy Reduction Results From 2017 to 2019 • Head count
increased 3% • Tea blending increased 7% • Teabag production increased 8% • Electric spend was down 7.5% • Electric spend adjusted for volume was down over 10% • “ What should we do with those savings?”

What we did with the savings • We invested our
energy savings in renewable energy credits (RECs) and certification • Our RECs are Green-e® certified • 90% wind and 10% solar • We eliminated 12,000,000 pounds of Scope 2 emissions • Our RECs are audited and certified by Green-e® • We promote this by including the Green-e® bug on our packaging

Renewable Energy Credits • We wanted to use 100% renewable
energy in our facilities, but we did not have the resources to do so • We were skeptical about RECs • We investigated Green-e® and became convinced it was the way to go • By purchasing Green-e® RECs we were encouraging other companies to invest at a scale we were not able to • Green-e® Marketplace has been a great resource for communicating our commitment to a renewable solution

Results • We have eliminated our scope 2 CO2 emissions
(Electric Usage) • Our facilities are now using 100% renewable energy • All of our tea is produced using 100% clean energy

Bank of America’s Carbon Neutral journey July 2020

• Holding ourselves accountable • Managing risk well • Providing
transparency • Investing in the transition to a low-carbon economy • Financing sustainable projects, energy efficiency, greenhouse gas emissions • Reducing our environmental footprint 2 Driving responsible growth for long-term sustainability Governance Environment • Advancing economic mobility and social progress • Offering responsible products and services • Creating a supportive and inclusive workplace Social Our ESG leadership enables us to pursue growing business opportunities and manage risk associated with addressing the world’s biggest environmental and social challenges. It defines how we deploy our capital and resources, informs our business practices, and helps determine how and when we use our voice in support of our values. Named Euromoney’s World’s Best Bank for Diversity & Inclusion #2 on Fortune Magazine’s 50 Best Workplaces for Giving Back in 2018 list CDP Climate A List for leadership in greenhouse gas emissions management and reporting Ranked No. 1 financial services company and No. 3 overall on Fortune Magazine’s annual Change the World list Named one of America’s most JUST Companies by Just Capital and Forbes In 2018, deployed $21.5 billion in capital to support low-carbon, sustainable business activities as part of $125 billion Environmental Business Commitment Through Community Development Banking, we deployed more than $4.7 billion in loans, tax credit equity investments and other real estate development solutions Originated $200 million in loans as part of $1.5 billion community development financial institutions (CDFI) portfolio; $20 million Veteran Entrepreneur Lending Program to connect veteran business owners with affordable capital through participating CDFIs Launched a $60 million Blended Finance Catalyst Pool to support deals focused on energy access, affordable housing, water and sanitation access, and climate resiliency UN Sustainable Development Goals (SDGs) Committed to hiring 10,000 individuals from low- and moderate-income neighborhoods, through our Pathways program, over the next five years Held six global ESG Committee meetings to discuss issues central to our ESG approach with regular updates to our Board Invested more than $200 million in philanthropic capital as part of our $2 billion 10-year giving goal Achieved nearly 90% of our multi-year commitment to hire 10,000 veterans, guards, and reservists Issued our fourth and largest green bond for $2.25 billion and issued a $500 million social bond — the first social bond issued by a U.S. bank Invested over $220 million in 1,000+ nonprofits and provided leadership development to 2,000+ nonprofit leaders through Neighborhood Builders® Employees volunteered 2 million hours with the impact of employee giving and matching gifts from the bank totaling $53 million in support to our communities

3 How we operate • Manage our operations efficiently to
benefit the environment. • Achieved carbon neutrality and purchased 100% renewable electricity in 2019 • Member of RE100 and EV100 • More than 200 Financial Centers are LEED Certified in addition to office locations • Recommitted and increased operational goals: − Reduce energy usage by 40% − Reduce location-based GHG emissions by 50% − Reduce water use by 45% − Reduce waste to landfill by 35% Our business • Drive innovative new financial solutions across all our lines of business and deploy capital to develop solutions to climate change and other environmental challenges. − $125 billion in low-carbon business was fulfilled in 2019, six years ahead of schedule. − Launched third goal, started January 2020 and will provide an additional $300 billion by 2030 to low- carbon, sustainable business activities. − Since 2007, have deployed more than $158 billion to low-carbon, sustainable business activities. • From supporting renewable energy and low-carbon vehicles, to a robust ESG impact investment platform for wealth management clients. Working with others • Engage with partners to increase our impact. • Partners like the UN’s Sustainable Energy for All (SE4All) initiative and Stanford University’s Strategic Energy Alliance. • Committed more than $24 million in environmental philanthropy in 2019. Our people • Help our employees act as good environmental stewards at work, at home and in the community through our My Environment® program, with more than 24,000 employees participating across 30 countries. • Provide environmental discount and reimbursement programs – reimbursement for low-carbon vehicles, employee discount on home charging stations, solar panels on residential homes and car-ride sharing. • One of the first financial institutions to join the U.S. Department of Energy’s Workplace Charging Challenge and EV100. Commitment to the environment

4 Bank of America reached carbon neutrality in 2019. As
part of our Responsible Growth and Environmental, Social, Governance framework we developed a multi-pronged strategy that leverages a variety of tactics to reach our goals in a way that is efficient, drives innovation and maximizes positive environmental impact. Carbon neutral strategy To achieve carbon neutrality for scope 1 and 2 emissions the bank has: 1. Reduced energy use by 42% and location-based greenhouse gas emissions by 56% since 2010 2. Purchased 100% renewable electricity including onsite solar installations and long term agreements for new wind and solar where we operate 3. Supported impressive carbon credit projects across the regions we operate for remaining unavoidable emissions Kissimmee financial center with onsite solar panels Contracted for 80MW of new solar with pollinator habitats in underserved communities in North and South Carolina* Carbon offset program provides income to small holders for planting and managing trees in Africa *These new solar projects will more than cover the bank’s electricity usage across the two states while providing vital pollinator habitats and greening the local grid

30% Reducing emissions across operations 5 Over the decade we
have implemented strategies to reduce emissions from our facilities that have led us to surpass our current location-based emission reduction goal of 50%. Reaching this goal has included reducing facility space and implementing energy efficiency projects. In addition, we have benefited from the decarbonization of local and regional electricity grids where we operate. The chart below shows the proportion each component is contributing to the 50% location-based emission reduction goal: 471,000 tCO2 e 189,000 tCO2 e 283,000 tCO2 e Space reduction: since 2010 we have reduced facility space by 50m square feet 50% 20% 30% Energy efficiency: we have reduced emissions by implementing projects like LED lighting retrofits, modular data halls and upgrading HVAC/Chillers Grid emission reductions: emissions have been reduced as a result of coal plants closing and the switch to more natural gas and renewables 50% 20% Energy efficiency Grid emission reductions

Guided by our Responsible Growth and ESG strategy, we will
support verified carbon offset projects across the globe that drive innovation and maximize environmental and social impacts aligned with the SDGs. Carbon credits: purchasing strategy 6 *Offsets will be certified by Gold Standard, VCS, CAR, ACR, or CDM and sourced from specific projects with vintages no more than five years old **A global research organization that identified, reviewed, and analyzed the most viable solutions to climate change and ranked the top 80 Guiding Principles: • Purchase impactful, cost-effective and, to mitigate risk, third-party verified carbon credits* • Propel sustainable, science-based solutions to drive leadership and accelerate a low-carbon future • Prioritize projects connected to multiple SDGs and Project Drawdown** • Ensure environmental and social safeguards for long term viability through enhanced due diligence • Support projects that will resonate with clients, employees and shareholders • Engage partners that align with our Vendor Code of Conduct expectations

7% 4% 30% 56% 3% Anticipated* renewable purchasing components 7
Renewable electricity purchasing strategy To purchase 100% of our electricity from renewable sources we will leverage a variety of mechanisms that allow us to maximize impact and drive innovation. All while prioritizing opportunities that add new renewable electricity to the grid in a cost-efficient manner *Our current renewable purchasing is transitioning from buying short-term RECs from existing renewables to the model you see above **Physical PPA is an agreement for the long-term purchase of renewable electricity and RECs from a specific new renewable source in regions where we operate Onsite solar: Installing at 60+ owned sites Tax equity owned offsite: entering long-term agreements to purchase RECs from large wind projects BofA financed through tax equity providing us an ownership position Physical power purchase agreements (PPAs)**: executing contracts for new renewable electricity and RECs to cover load in regions where possible Long-term RECs: entering multi-year agreements to purchase RECs that support bringing new renewables into underserved communities International RECs: purchasing RECs to fill in gaps across countries

• Where available, Green-e certified RECs will be purchased •
Where Green-e certification is not available, the standards set out in Green-e will be followed to the extent practical • Acceptable technologies are those recognized by Green-e, including wind, solar photovoltaic (PV), run-of-river hydro1 and geothermal • Avoid biomass, which has non-zero GHG emissions and other air pollutant emissions • Where available, market-matched RECs/GOs will be purchased – The US is a single market for RECs; Europe is also a single market, with the European GO system – No regional preferences within the US or Europe • Where market-matched RECs are not available, we will approach REC purchases on a country-by-country basis – In some cases, US or EU RECs/GOs will be purchased for other countries, depending on the situation, location and availability • Projects from which RECs are purchased will ideally be less than 5 years old, to support newer projects. The maximum allowable age is 15 years, consistent with the Green-e standard. • Consider incremental funding options, which use a portion of the REC/GO purchase to fund new renewable electricity projects. In this scenario, project age is a less significant issue Certification Technology Geography Support for New Renewables 14 July 2020 Bank of America 8 Bank of America REC, REGO, and GO Purchasing Standards 1 Bank of America has a preference for hydro projects to carry a certification such as from the Low Impact Hydropower Institute

Bank of America provided necessary funding to support the first
of its kind wind/solar hybrid project in Minnesota (MN). We contracted to purchase the Renewable Energy Credits (RECs) long term. Project features: • Generates roughly 7,800MWh annually (5.6MW) • Serves the Lake Region Electric Coop • Partners are Juhl Energy and 3 degrees • Uses GE’s Wind Integrated Solar Energy (WiSE) technology platform to integrate solar panels through the wind turbine’s converter. • Utilizes solar to provide peak summer energy and wind through winter months Benefits: • More than covers our load in MN • Important role in making new project come online • Stimulates innovation in renewables • Brings new renewables to an underserved community driving social equity • Lowers utility bills for co-op members • Easy to execute contract structure Profile: Lake Region, Minnesota 14 July 2020 Bank of America 9

Profile: Kissimmee, FL Community financial center 10 In December of
2017 we installed onsite solar at the Kissimmee, Florida Community financial Center • The center is in a Low to Moderate Income (LMI) community • The center sits on a highly trafficked road that is part of the city's reinvestment corridor • We used a diverse owned solar provider to install the panels • Incorporated the effort into the planned renovations for the site System details • 42.2 kW system or 151 solar panels • Estimated to generate 56,700 kWh (30%) energy annually • Energy cost savings are estimated to be $7,088 annually

Green-e is a program run by the nonprofit, Center for
Resource Solutions (CRS) and is the leading third-party energy product verification and labeling program for renewable energy buyers in the U.S. and Canada. The program provides certification for Renewable Energy Certificates (RECs), carbon offsets, Direct Power Purchase Agreements (PPAs) and businesses and products. As a standard the bank only purchases Green-e certified RECs in the U.S. and Canada. As we reach the 100% renewable goal we feel there is value in utilizing the Green-e marketplace program for our U.S. operations. Green-e Marketplace • Marketing Claims can be validated and certified at either the corporate or on-product level • Reduces risk as Green-e provides expertise in marketing to ensure clarity to consumers and mitigate real legal and reputational risk • Provides consumer credibility because CRS is viewed as a credible and trusted certifying body • Differentiates us amongst competitors as no other financial institution has earned this certification • Associates us and this claim with a well recognized brand. Over 1 in 3 Americans recognize the Green-e logo. It appears on over 700 products as well as thousands of electricity product marketing materials. We are the first “retailer” to commit to this program Green-e marketplace program 14 July 2020 Bank of America 11

© 2020 Center for Resource Solutions. All rights reserved. www.resource-solutions.org
MICHELLE MCGINTY PROGRAM OUTREACH MANAGER [email protected] BOB HENDRICK VP Corporate Responsibility BIGELOW TEA BETH WYTIAZ SVP, GLOBAL ENVIRONMENTAL OPERATIONS MANAGER BANK OF AMERICA

Case Studies: Leveraging Green-e® Marketplace f...

Case Studies: Leveraging Green-e® Marketplace for Certifying Green Energy Claims, Featuring Bank of America & Bigelow Tea

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