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Read the complete report at bankofamerica.com/csrreportCorporate Social Responsibilityat Bank of AmericaHighlightsLife’s better when we’re connected
ContentsCorporate Social Responsibilityat Bank of America3Responsible business practices4Strong economies6Environmental sustainability8Leadership & service10Arts & culture12Diversity & inclusion14Communicating our impact16To our customers, clients, shareholders,neighbors and teammates:Our purpose is to help make fnancial lives better. Better byconnecting our customers and clients to the fnancial solutions theyneed. Better by connecting across our company to deliver thosesolutions. And, better by making connections in the communities inwhich we live and work.Every day I hear examples of how our employees have made adiference — helping a small business get up and running, advisinga family on a fnancial plan for college, or bringing a large deal to asuccessful close. I’m equally proud of the impact our team makes everyday through our 1.5 million annual volunteer hours, and our involvementin so many important issues, including hunger relief, education, jobtraining, the environment and support for our military and veterans.Under Anne Finucane’s leadership, our Corporate Social Responsibilityteam oversees these activities and is available to provide additionaldetails about our eforts. For those interested, contact information formembers of the team can be found on page 17.I believe we have a unique opportunity to make the fnancial lives ofthose we serve better. This report captures some of the steps we havetaken to do just that.Brian T. MoynihanChief Executive OfcerCorporate Social Responsibility at Bank of America 1
Corporate Social Responsibilityat Bank of AmericaEnvironmental sustainabilityBeing a responsible business is integral to our success, and that of the customers,clients, shareholders and communities we serve around the world. CorporateSocial Responsibility (CSR) is embedded in our values and informs how weconduct business, develop products and services and deliver on our goals andcommitments. CSR is integrated into core areas, where we continue to focusour resources:Responsible business practicesArts & cultureResponsible business practices: We rigorously reviewour business practices and policies and are continuing tosimplify information for customers, maintain a strong riskculture, build industry-leading levels of capital and manageour businesses to be accountable to shareholders andstakeholders, including customers, clients, employees,regulators, community and nonproft organizations.Strong economies: We support the economic health ofcommunities, from fnancing afordable housing and smallbusinesses in low-income neighborhoods to providinggrants in the areas of housing, hunger and jobs.Environmental sustainability: We put our capital andexpertise to work to address climate change, reducedemands on natural resources and advance lower-carboneconomic solutions.Leadership & serviceDiversity & inclusionStrong economiesLeadership & service: We support programs that developemerging women leaders around the world as well asstudent leaders and high-performing nonprofts acrossthe United States. Our employees volunteer their timeand expertise, helping individuals to gain fnancial stability,feeding the hungry and building afordable housing.Arts & culture: We promote local economic growth andcommunity engagement worldwide, providing grants to helppreserve works of art globally, loan exhibits to museums andsupport free admission to U.S. cultural institutions.Diversity & inclusion: With a global workforce in more than40 countries, diversity and inclusion — in thought, style,experience, culture, ethnicity and sexual orientation —are good for business, attract and retain talent and enableour company to better serve employees, customers, clientsand shareholders.Corporate Social Responsibility at Bank of America 3
Case study: overdraf feesOur progressive position on debit card overdraft fees at the pointof sale has supported our ongoing efforts to provide customerswith greater control, choice and clarity. One of the first and mosttangible demonstrations of that commitment was our decision tomaterially help many of our customers who were telling us, “Don’tlet me spend money I don’t have.” So, in response to this feedback,we decided to decline all debit-card transactions at the point ofsale when customers didn’t have enough money in their accountsto pay for them. We supported that approach by providing severalways to warn customers when their balances were approachingzero. This policy of preventing unexpected debit card overdraftfees, which went well beyond regulations later enacted by theFederal Reserve, has been widely praised by customers, consumeradvocates, policymakers and our own employees.Responsible business practices“We work to be fair, transparent, straightforward and easy to dobusiness with, as our ability to form and sustain long-lastingrelationships with our customers and clients is contingent onmaintaining their confdence and trust.In 2012, our commitment to responsible business practices led us toevaluate and update policies surrounding operational risk andgovernance, build our capital reserves to industry-leading levels andexpand our engagement with stakeholders to learn how we can betterserve our customers and communities.In our Consumer Banking business, we worked with Pew CharitableTrusts to launch an enhanced checking Clarity Statement , atwo-page document that clearly and concisely explains the fees andpolicies related to the specifc checking account being opened. In ourGlobal Wealth Management business, our commitment to deliveringvalue to clients resulted in client satisfaction with Merrill LynchFinancial Advisors remaining at or near an all-time high in 2012.Our strength and stability directly afects our shareholders, customersand clients and employees. Proactively managing the risk inherent inour operations as a fnancial institution is a critical responsibilityshared by all employees. In 2012, we continued our eforts to ensure4 Responsible business practicesthat all of our employees feel personally responsible for identifyingand alerting appropriate managers to risk, because a strong riskculture is critical to the future success of Bank of America. Our RiskFramework provides employees with a consistent guide to managingrisk across our businesses and geographies, and is reviewed annuallyby senior management and updated as needed.9.25%increased capital reserves — estimated Basel 3Tier 1 Common Capital Ratio at December 31, 2012(U.S. Basel 3 Notice of Proposed Rulings Fully Phased-in). 276 billionlong-term debt at December 31, 2012,down from 372 billion at December 31, 2011. 475 billiontotal value of credit extended globally in 2012; of whichmore than 105 billion was for community development.Bank of America's decision on debit card penalty fees isa really big deal, not just for its customers but for thelong-term bottom line of the bank.Martin EakesChief Executive OfcerCenter for Responsible Lending”In 2012, the second full year since we implemented this change,customer complaints concerning insufficient funds and overdraftfees continued to decrease while the number of overdraftsdecreased by more than half. This was thanks, in part, to the newdebit card policy and to the more than 20 million low-balancecourtesy alerts we send each month to nearly 8 million uniquecustomers.The continued positive feedback from our customers andcommunities confirms the business and social value of ourcommitment to building long-term customer relationships.Case study: stakeholder engagementWe engage daily with stakeholders including customers, clients,investors, regulators, community organizations, employees andothers in more than 40 countries in which we do business. Wework with these groups through formal, mandated engagementssuch as shareholder meetings as well as our ongoing outreach tocustomers, nonprofit organizations and community groups.Our Market Presidents — 99 across the U.S. — are responsiblefor overseeing business integration, community involvement andemployee engagement in suburban areas from Little Rock, AR andOklahoma City, OK to large metropolitan areas including New York,NY, Chicago, IL and Los Angeles, CA. They enhance our outreachto our communities — forging new and stronger relationships withleaders of business chambers, economic development authorities,nonprofit organizations and advocacy group leaders, amongothers. Globally, our Country Presidents fulfill a similar function onbehalf of our international businesses as our Market Presidents inthe U.S.For example, when Fulton County, Georgia was looking for a wayto provide its first responders with affordable housing options,our Georgia market president teamed up with the AtlantaNeighborhood Development Partnership to create an innovativepublic-private partnership. The Homes for First RespondersProgram will redevelop vacant, bank-owned real estate inunincorporated Fulton County and offer those homes at lowinterest rates for qualifying police officers, firefighters, emergencymedical technicians and other first responders who serve the city.In addition to the efforts of our Market and Country Presidents, wehave established two external councils through which we engagewith stakeholders: The Bank of America National Community Advisory Council,a U.S.-focused group of independent civil rights leaders,community representatives and consumer advocates, which ofersadvice and counsel on critical business and governance issues. The Bank of America Global Advisory Council, which wasestablished in 2012, includes 14 business, academic and publicpolicy leaders who will share their expertise and insights on thebank’s global engagement and advise senior bank executives ontrends and emerging opportunities in local markets, includingsocial and environmental issues.Responsible business practices 5
Providing homeless families afordable housing in Seattle.Strong economiesBy extending credit to individuals, local businesses and communityorganizations, we help fuel neighborhood revitalization whilefocusing on a fair return for our shareholders. And throughphilanthropic investments, we further our impact by helpingto address issues vital to every community’s success, includingaffordable housing and workforce development.In 2012, we continued to make progress toward our long-termlending, investing and philanthropic giving goals established in2009. We provided 105.5 billion toward our 10-year, 1.5 trillioncommunity development lending and investing goal and more than 200 million toward our 10-year, 2 billion giving goal.Maintaining our commitment to help low- and moderate-incomeindividuals (who earn less than 80 percent of area median income)and communities, we work to make our resources available tothose who need them most. We extended capital to individualsand small businesses with a focus on stimulating local economic 569.5 billiontoward U.S. Community DevelopmentLending & Investing goal, 2009–2012.development. We also worked closely with nonprofit organizationsand community leaders to more effectively address pressingcommunity challenges. 19.6 billion“in total U.S. small business lending in 2012; 17.7 billion in 2011; 18.7 billion in 2010. 75.1 billionin U.S. mortgage lending (frst mortgages) in 2012,including 15.5 billion for more than 96,500 low- andmoderate-income customers. 200 million '09-'12 Total201020112012 146,844 151,163 109,715 85,767 493,488 12,840 11,245 12,744 14,530 51,359Consumer Lending 5,190 2,991 1,553 1,079 10,813Economic Development 3,840 2,983 2,900 4,147 13,870Small BusinessYearly TotalsBank of America is a leader in responsible lending andsustainable homeownership and its commitment is feltevery day through its eforts to educate consumers andreal estate professionals, as well as its ability to providesupportive, afordable homeownership programs.Case study: Teach for IndiaIn 2012, through our philanthropic programs, we gave morethan 44 million to help strengthen the social and economichealth of communities by supporting education and workforcedevelopment initiatives.Through our work with Teach for India, an affiliate of Teach forAmerica, we are helping to improve the Indian education system,which faces challenging problems due to population growthand urbanization. Our partnership supports teacher training,recruitment and day-to-day operations of schools and facilitiesin areas including Pune and Mumbai. In 2012, we provided a 145,000 grant to fund 22 fellowships in seven schools serving880 students. Over the past two years, the program has helpedto improve students’ literacy and math skills, equipping themwith the tools needed to achieve long-term success.Gary AcostaFounder of National Associationof Hispanic Real Estate Professionals”in philanthropic investments in 2012.2009Afordable HousingCase study: afordable housingAs one of the most active affordable housing lenders in theUnited States, we are committed to addressing housing needsfor individuals and families in the communities we serve, includinglow- and moderate-income areas. Through lending, tax creditequity investments and real estate development solutions,in 2012, we provided more than 2.6 billion for communitydevelopment — commitments that will help create nearly11,000 affordable housing units, while helping to revitalizecommunities and create stronger economies. 168,714 168,382 126,912 105,523To address the need for affordable long-term housing optionsfor families in the Seattle area, Catholic Community Servicesof Western Washington developed Monica’s Village Place withfunding from Bank of America. The completed project now housesmore than 150 individuals, including children.In addition to this community development investment, in 2012we provided funding to support services that offer residents ofMonica’s Village Place practical
Brian T. Moynihan . Contents . Corporate Social Responsibility 3 at Bank of America Responsible business practices 4 Strong economies 6 Environmental sustainability 8
