CINCINNATI--(BUSINESS WIRE)--In 2017, Fifth Third set an ambitious goal to power the Bank’s operations across its national footprint – including more than 1,000 retail locations and operational facilities across 11 states – with 100% renewable power.
In late August 2019, Fifth Third achieved this goal with the opening of the Aulander Holloman solar facility in North Carolina. The project was made possible through a virtual power purchase agreement (VPPA), which guaranteed that Fifth Third would purchase all the electricity generated, thereby enabling the developer of the solar project to secure funding and build the project.
As part of the agreement, and in return for Fifth Third’s financial guarantee, the Bank receives claims for adding net-new renewable capacity to the regional grid in the form of renewable energy certificates (RECs). RECs are issued when one megawatt hour of electricity is generated and delivered to the electricity grid from a renewable energy resource. Appropriately verified and retired RECs act as a proof of generating and using renewable energy. As an industry best practice, Fifth Third uses a combination of RECs, onsite renewable energy, and ongoing energy-efficiency measures across the enterprise to power its operations with 100% renewable power.
“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,” said 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.”
In 2023, the solar power generation from the Aulander Holloman solar facility was more than 190,000 megawatt hours – enough to power over 25,000 homes, or the equivalent of emissions from over 29,000 passenger vehicles.
Fifth Third has continued to build upon its commitment to renewable energy by installing solar panels at 20 new financial centers at the end of 2023 and into 2024. These projects took place in communities across North Carolina, South Carolina, Tennessee and Florida. In all, Fifth Third now has 24 retail locations generating up to 80% of annual electric needs at some locations.
Fifth Third’s use of solar power, combined with internal efforts to reduce energy use, have helped the Bank reduce enterprise-wide grid-based energy use by more than 40% - one of Fifth Third’s six operational sustainability targets adopted in 2022. To-date, the Bank has achieved two of the six goals, and is making significant progress toward the rest.
“These goals are the most aggressive operations sustainability goals we’ve had to date,” Pratik said. “They maintain our focus on critical areas of operational sustainability while demonstrating our continued leadership in the financial services industry.”
More information about Fifth Third’s sustainability strategy is available in the Bank’s 2023 Sustainability Report.
About Fifth Third
Fifth Third is a bank that’s as long on innovation as it is on history. Since 1858, we’ve been helping individuals, families, businesses and communities grow through smart financial services that improve lives. Our list of firsts is extensive, and it’s one that continues to expand as we explore the intersection of tech-driven innovation, dedicated people and focused community impact. Fifth Third is one of the few U.S.-based banks to have been named among Ethisphere’s World’s Most Ethical Companies® for several years. With a commitment to taking care of our customers, employees, communities and shareholders, our goal is not only to be the nation’s highest performing regional bank, but to be the bank people most value and trust.
Fifth Third Bank, National Association is a federally chartered institution. Fifth Third Bancorp is the indirect parent company of Fifth Third Bank and its common stock is traded on the NASDAQ® Global Select Market under the symbol "FITB." Investor information and press releases can be viewed at www.53.com. Deposit and credit products provided by Fifth Third Bank, National Association. Member FDIC.
