Fifth Third Bank: Five Years of 100% Renewable Power
In 2023, renewable energy passed 30% of the world’s electricity supply.
Accelerating the energy transition is vital to preserving the environment in line with the Paris Agreement and providing energy security for future generations.
Fifth Third Bank has been powering all of its operations in the US with 100% renewable energy for five years.
This was made possible through a virtual power purchase agreement (VPPA), where Fifth Third guaranteed it would purchase all power generated at the Aulander Holloman solar facility in North Carolina.
Fifth Third was the first Fortune 500 company, and the first bank, to commit to purchasing 100% renewable energy from a single project.
“Ultimately, the power purchase agreement has meant that we put more power into the nation’s electricity grid than we use with all our facilities combined,” says Pratik Raval, Chief Sustainability Officer for Fifth Third.
“Additionally, and equally importantly, this has proven to be a smart financial decision, particularly as an energy price hedging mechanism for the Bank.
“In that regard, this is a great example of sustainability as a driver for direct business value creation while mitigating our climate impact.”
Fifth Third’s sustainability efforts
Founded in 1848, Fifth Third Bank aims to reduce its scope 1 and 2 GHG emissions 75% by 2030.
In 2023, the company had US$215bn in assets and more than 18,500 employees.
Fifth Third has 1,088 full-service banking centres and around 41,000 fee-free ATMs across the US.
It has already achieved its US$8bn renewable energy finance goal and since expanded this, committing to a new US$100bn environmental and social finance goal.
Tim Spence, Chairman, President and CEO at Fifth Third Bank, says: “At Fifth Third Bank we know doing the hard thing is often the right thing to do.
“With an ambition to be the one bank people most value and trust, we strive to do the right thing for our shareholders, customers, communities and employees every day.“
Aulander Holloman solar facility
The Aulander Holloman solar project, which opened in late August 2019, was made possible through Fifth Third's VPPA.
Under the agreement, the bank guaranteed the purchase of all the electricity generated by the facility, providing the developer with the financial security needed to secure funding and Renewable Energy Certificates and the Grid.
As part of the VPPA, Fifth Third receives renewable energy certificates (RECs) for the net-new renewable capacity added to the regional grid.
These RECs act as a proof of generating and using renewable energy, and the bank uses a combination of RECs, on-site renewable energy, and energy-efficiency measures to power its operations with 100% renewable electricity.
The Aulander Holloman solar facility generated over 190,000 megawatt hours of solar power in 2023, enough to power more than 25,000 homes or the equivalent of emissions from over 29,000 passenger vehicles.
Fifth Third has continued to invest in renewable energy, installing solar panels at 20 new financial centres across North Carolina, South Carolina, Tennessee, and Florida at the end of 2023 and into 2024.
These on-site solar projects now generate up to 80% of the annual electricity needs at some locations.
"These goals are the most aggressive operations sustainability goals we've had to date," says Pratik.
"They maintain our focus on critical areas of operational sustainability while demonstrating our continued leadership in the financial services industry."
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