Sustainable Finance

In addition to actively managing our internal operations, we support the transition to a low-carbon economy by helping our clients finance energy efficient and renewable energy projects. In 2017, PNC’s sustainable finance commitment totaled more than $10 billion, including but not limited to contributions from PNC’s Equipment Finance, Public Finance and Real Estate Finance businesses.

Energy Financing

PNC supports the continued adoption of renewable energy and encourages innovation in the deployment of alternative energy sources by helping customers implement economically viable renewable energy solutions.

In 2017, PNC’s Energy Capital business provided financing to the City of Holyoke’s Gas and Electric, a municipal-owned power company, for a 5.8MWdc ground-mounted photovoltaic project located at a former coal-burning power plant site in Holyoke, Massachusetts. This project will be expanded in 2018 to include a 3MWac battery storage system on the same site as the solar project, specifically to enhance operational efficiency, optimize intermittent solar energy and improve power reliability to customers. Once completed, the project will be one of the largest utility-scale energy storage installations in Massachusetts.

The City of Holyoke’s 5.8MWdc ground-mounted photovoltaic project

Another example of PNC’s support of renewable energy solutions was PNC Energy Capital’s financing of a 4.7MWdc project. The project is located on 30 acres of land in Weld County, Colorado and produces energy that will be fed into the grid and used by the customers of Poudre Valley Rural Electric Association, Inc., a rural electric distribution cooperative. The project will also be used to create educational opportunities for students at the local high school. This marks the third solar transaction for which PNC Energy Capital has provided financing to Poudre Valley Electric Association.

Green Bonds

One of the largest components of PNC’s sustainable finance efforts is our underwriting of bonds that drive greater environmental benefits. This includes both traditional bonds and designated “green bonds.” In 2016, PNC became a signatory to the Green Bond Principles, guidelines managed by the International Capital Markets Association that prescribe best practices for underwriting and issuing green bonds, and in 2017, PNC was a co-manager on the MidAmerican Energy $850 million green bond. This transaction’s proceeds were used to finance a portion of MidAmerican Energy’s wind farms as the company expands its renewable energy generation. As a Green Bond Principal signer, PNC actively supports the Green Bond market and continues to educate clients and the company regarding the benefits of green bond financing.

Responsible Investing

PNC is committed to improving its ability to help clients better express their values and beliefs. Consequently, we have made a major commitment to expanding our responsible investing investment capabilities and solutions, and in 2017, named our first formal head of responsible investing. Our head of responsible investing is working internally to develop solutions that help clients achieve their investment objectives and reflect their values through investments that consider environmental, social and governance (ESG) impacts.

PNC ended 2017 with $2.1 billion in assets under management across its Hawthorn, Wealth and Institutional Asset Management business units, which reflects a 5 percent increase compared to 2016. We have built adaptable offerings that incorporate both exclusionary and inclusionary screening, allowing us to meet the evolving needs of our institutional and wealth clients. In September 2016, PNC began working with a third-party investment manager that provides responsible investing overlays on multiple domestic and international passively-managed indices. They also offer two specialty indices, one focused on companies with positive ESG characteristics and another aligned with Catholic values. In addition to passive overlays, PNC continues to offer various dedicated solutions, including mutual funds, separately-managed accounts and exchange traded funds.

In 2017, PNC became a subscriber to MSCI’s ESG Issuer and Fund Metrics, which allows us to screen companies, mutual funds and ETFs against various ESG categories. This allows us to better identify investment options that reflect our clients’ goals and values. In addition, PNC's Asset Management Group revised its proxy guidelines so that PNC investors can vote on corporate proposals according to the U.S. Conference of Catholic Bishops’ socially responsible guidelines, or along general ESG guidelines. Education and training are core components of PNC’s approach to responsible investing. Our advisors are regularly briefed on industry trends, trained to lead existing and prospective clients through productive discovery conversations and continuously provided with information to improve their understanding of our dynamic responsible investing capabilities. We also provide resources and information directly to our clients and other interested parties on PNC’s Responsible Investing website. Launched in 2017, this website offers resources including videos, white papers and information about our Hawthorn, Wealth Management, and Institutional Responsible Investing product offerings.

In 2017, PNC's sustainable financing totaled

$10B+

PNC ended 2017 with

$2.1B

in assets under management