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					 “ changeYo u m u s t b e t h e

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you wish to see in the


airwater              Bank of America
                      1999 Environmental Progress Report
“Co m i n g t o ge t h e r is a   beginning,
                                                           keeping      together                       is progress,

     working together is           success.”                                                             henry ford

                                               ta b l e o f co nte nts

    ken lewis message — The Environmental Ethics of Business                                       page 3

    bill vandiver message — Doing the Right Thing                                                  page 4

    candace skarlatos — The Sum of the Parts                                                       page 5

    section one — Company Profile                                                                  page 6

    section two — Environmental Policies, Organization and Management                              page 8

    section three — Health and Safety                                                              page 11

    section four — Community Participation and Accountability                                      page 12

    section five — Product and Services Stewardship                                                page 17

    section six — Supplier Relationships                                                           page 19

    section seven — Use and Conservation of Natural Resources for

                       Internal Operations                                                         page 20

    section eight — Emissions and Waste from Internal Operations                                   page 24

    section nine — Compliance                                                                      page 25

    section ten — Priorities and Challenges                                                        page 26

    appendix one — The Ceres Principles                                                            page 27

    appendix two — Significant Company Changes                                                     page 28

    This report is prepared using the CERES (Coalition for Environmentally Responsible Economies) recommended
    format. Bank of America reaffirmed its endorsement of the CERES Principles in 1999.

“Conservation                                        is the application of common sense

              to the common problems of the                   common good.”
                                                                                             gifford pinchot

                               th e e n v i r o n m e nta l e th i cs o f b us i n e s s

 a      t Bank of America, we believe environmental protection is an integral component of doing business.

        We are mindful that the company’s actions and leadership can make a difference in our own

 business practices around the world, in the communities where we do business and in our customer

 and client relationships. We are committed to making that difference.

 The Bank of America Environmental Commitment guides our company in four key areas of action:

 ➜ Reducing the environmental impacts from our company’s own operations

 ➜ Encouraging our associates to apply a conservation ethic on the job and at home

 ➜ Demonstrating environmental sensitivity in the products and services we provide

 ➜ Promoting activities that link business and environmental interests

 This 1999 Environmental Progress Report is our attempt to illustrate the reality of these words.

 I am personally very proud of the tens of thousands of Bank of America associates who have helped to

 implement and champion our corporate Environmental Commitment over the past year. You’ll read about

 their good work in these pages.

 But we know that much remains to be done. And so, I strongly endorse the sustained involvement needed as
 our company continues to integrate an environmental ethic with our business and economic decision-making.

 The Bank of America Environmental Commitment is part of who we are.

 Ken Lewis
 President and Chief Operating Officer

                        Leadership                                                                             3

              Bank of America
                “   I change myself, I                   ”
                                             change world.                  the

                                                                                                   gloria anzaldna

                                              d o i n g th e r i g h t th i n g

O        ver the past year, I’ve had many opportunities to observe what the Bank of America Environmental Commitment

         is all about. To me, it seems quite simple. Our commitment is about good people trying to do the right thing,

every day.

Whether we’re at the office or commuting to work, whether we’re thinking of our own children or those on a continent

far away, whether we’re thinking about clear air and clean water or how to improve the communities where we live

and work, we all confront today’s reality: Economic and business decision-making is increasingly intertwined with

environmental considerations.

As we reviewed our progress in anticipation of preparing this report, we were particularly proud of four achievements

in 1999. First, we began implementing environment-sensitive purchasing practices that are also cost-effective.

Second, we got our national recycling program successfully under way. Third, associates in all parts of the company

participated in record numbers in Team Bank of America and Environmental Network activities, far exceeding estimates

made a year ago. And fourth, our associates demonstrated a can-do spirit time and again in helping to build economi-

cally strong and more livable communities.

The bank’s 156,000 associates around the world made this happen!

I applaud them for so enthusiastically embracing, and personalizing, the corporate Environmental Commitment. I am
proud of their good work — with customers and clients and vendors, with teammates and with neighbors and other

stakeholders on countless local and regional initiatives. But most of all, I am gratified by the resulting goodwill that

benefits all of us at Bank of America.

And yet, ours is a work in progress, with much left to accomplish. We will continue to aim high. For the sake of future

generations, we must — we will — redouble our efforts to do the right thing in helping create a healthier environment.

Bill Vandiver
Corporate Risk Management executive

                               can-do spirit
                  Bank of America                                                                                          4
“          wonderful
     How                                          it is that nobody need wait a

                              single moment before starting to improve the                      world.
                                                                                                          anne frank

                                               th e s um o f th e pa rts

w         e couldn’t possibly include in this progress report all of the efforts Bank of America associates undertook

          throughout the year to give life to our corporate Environmental Commitment. Instead, our report cites

parts of the whole. Associates’ activities, at work and in their communities, around the block and around the world,

represent an astonishing range of interests and involvement. To my mind, the sum of these parts does seem great.

In 1999, Environmental Initiatives engaged associates across the company, and their response gave us important

feedback. Associates genuinely support the corporate Environmental Commitment, and they feel empowered to

contribute meaningfully to its success.

What’s next? Plenty! I look forward to Environmental Initiatives’ continuing interaction with bank colleagues and partners

who focus on finding good solutions to the many challenges a company our size faces in working to link business and

environmental interests.

Candace Skarlatos
Environmental Initiatives manager

    bank of americaAchievement                                                                                               5
“    D o n o t go w h e re t h e p a t h may      lead,
                                       go instead where there is no               path               and leave a trail.
                                                                                                  ralph waldo emerson

                                            s e c t i o n o n e — co m pa n y p r o f i l e

 b        ank of America Corporation is a global financial
          services company with operations in the United
          States and in 35 other countries.

 Dun & Bradstreet Number: 05-516-9452
                                                                        1999   revenues

                                                                        Consumer: $3.9 billion

                                                                        GCIB: $2.3 billion
                                                                                                          Commercial: $878 million

                                                                                                          PIAM: $841 million
 Corporate Tax ID Number:      56-0906609

 Management reports the corporation’s operating results in              total associates
 four business segments:
                                                                        1996:     141,453                 1998:    170,975
 Consumer Banking
                                                                        1997:     181,265                 1999:    155,906
 This group provides comprehensive retail banking products
 and services to individuals and small businesses through
 multiple delivery channels.                                         Sixteen associates are dedicated full-time to environmental
                                                                     matters in the corporation. They are organized as follows:
 Commercial Banking
                                                                     ➜ Two in Environmental Initiatives
 This group provides a wide range of commercial banking serv-
 ices for businesses with annual revenues of up to $500 million.     ➜ Twelve in Environmental Services, which provides
                                                                        environmental risk management services
 Global Corporate and Investment Banking (GCIB)
                                                                     ➜ Two in the National Source Reduction and
 This group provides a broad array of financial and investment
                                                                        Recycling program
 banking products — such as capital-raising, trade finance,
 treasury management, investment banking, capital markets,               asset size in millions
 leasing and financial advisory services — to domestic and
 international corporations, financial institutions and govern-          1996:    $477,702                1998:    $570,983
 ment entities.
                                                                         1997:    $617,679                1999:    $632,574
 Principal Investing and Asset Management (PIAM)

 This group includes direct equity investments in businesses
 and investments in general partnership funds, provides asset
 management, banking and trust services for high-net-worth
 clients both in the United States and internationally through its
 Private Bank. It also provides full service and discount broker-
 age, investment advisory and investment management, as well
 as advisory services for the corporation’s affiliated family of
 mutual funds.

Multiple delivery channels
                                          Global Financial Services                                                                  6
Most of the bank’s assets (loans outstanding, for example) are   Significant changes in company structure (for example, acqui-
booked in the United States. However, in those cases where       sitions and divestitures), sectors and product lines occurred
income is earned and expenses are incurred offshore to serve     during the five years prior to 1998. (See Appendix Two)
a relationship, those assets are booked offshore.
   1999   asset distribution
                                                                 ➜ On January 9, 1998, the corporation completed its merger
   United States                   92%        $583,390,000         with Barnett Banks.

   Asia                            3.3%       $ 20,923,000       ➜ On August 31, 1998, the corporation sold the investment
                                                                   banking operations of Robertson Stephens.
   Europe, Middle East, Africa     3.2%       $ 20,152,000
                                                                 ➜ On September 30, 1998, the merger between BankAmerica

   Latin America                   1.3%       $     8,109,000      and NationsBank corporations was completed, creating
                                                                   Bank of America.

As of December 31, 1999, the commercial lending business         1999
was concentrated in the following industries: transportation,
                                                                 ➜ On February 26, 1999, the corporation sold the investment
media, health care, business services, agribusiness, equip-
                                                                   management operations of Robertson Stephens.
ment and general manufacturing, retail, oil and gas, autos
and telecommunications.

                                     Company structure
                                 Business lending                                                                                7
“Discovery                                    consists of looking at the

         same thing as everyone else and thinking something                                            ”
                                                                                                  a l b e r t s z e nt- gy o r gy i

                       se c t i o n t w o — ba n k o f a m e r i c a e n v i r o n m e nta l com m i tm e nt

b         ank of America associates receive communications
          about environmental programs, criteria and guide-
          lines through their management, internal departmen-
tal procedure updates and internal communications. They may
also access environmental information and programs on the
                                                                   Internal operations

                                                                   Reducing the environmental impact from the company’s own

                                                                   Associate programs
corporate Intranet Web site.                                       Engaging associates to apply a conservation ethic in their jobs,
                                                                   commutes and homes.
  policy                        issue          publicly
  date                          date           available?          Core businesses

                                                                   Demonstrating environmental sensitivity in such core business
  Environmental                 3/29/99            Yes
                                                                   products and services as credit, investment, underwriting and
  Statement of                  12/13/99           N/A
                                                                   Public outreach
  Environmental Principles
                                                                   Taking a leadership role in activities that form a bridge
  Developing Countries          7/99               N/A             between business and the environment.
  Activity Criteria
                                                                   Our Environmental Commitment is a corporate commitment.
                                                                   Quarterly management reports and an annual report to exter-
programs, principles and guidelines
                                                                   nal audiences illustrate our progress on the commitment.
Bank of America Environmental Commitment
                                                                   Bank of America Statement of Environmental Principles
The Bank of America Environmental Commitment incorporates
                                                                   These principles, approved in December 1999, elaborate on
the best practices and best intentions of BankAmerica and
                                                                   the Bank of America Environmental Commitment and guide
NationsBank, which merged in 1998 to create Bank of America.
                                                                   lending officers to demonstrate environmental sensitivity in
Our new company believes environmental protection is an
                                                                   providing core business products and services such as credit,
integral component of doing business. The health of the
                                                                   investment, underwriting and payments. The principles apply
environment not only directly affects the quality of our lives;
                                                                   to all credit activities
it also serves as the foundation for the sustainable economy
                                                                   worldwide, commercial
on which our business and communities depend. As a result,                                        Environmental protection
                                                                   and consumer alike. Bank
environmental considerations are increasingly intertwined with
                                                                   of America strives to make     is an integral component
economic decisions. Today, progressive businesses are leaders
                                                                   special efforts to identify
in environmental protection while maintaining the flexibility to
                                                                   prudent ways to finance        of doing business.
implement innovative, cost-effective solutions that lead to
                                                                   projects and companies
business success.
                                                                   that benefit the environment and refrain from financing proj-
Bank of America is committed to help make economic develop-        ects and companies if their environmental practices fall short
ment and environmental protection compatible. Our goal is to       of acceptable standards. The bank considers environmental
show progress annually. We do this through:                        practices acceptable if they meet industry standards, conform
                                                                   to World Bank guidelines and comply with applicable law.

 Environmental sensitivity                                                             Principles                                     8
Developing Countries Activity Criteria                               modates changing technologies and environmental realities.
                                                                     We intend to make consistent, measurable progress in imple-
Approved in July 1999, the International Corporate Banking
                                                                     menting these principles and to apply them to all aspects of
criteria provide guidelines for credit granted in developing
                                                                     our operations throughout the world.
countries. These guidelines cover such areas as impact on the
environment, cultural and social structures and human rights.
                                                                     organization and management
Endorsing Company Statement                                          responsibility
The Bank of America Environmental Initiatives unit tracks            The company’s Corporate Risk Management executive,
various issues that directly affect sustainability as well as        reporting to the president, has overall accountability for
efforts aimed at building sustainable solutions. Environmental       the company’s Environmental Commitment. This officer
Initiatives networks with other businesses, community and            is considered the executive environmental officer. Other
environmental groups and government agencies, incorporating          levels of responsibility include:
best practices and other findings into the bank’s own work in
                                                                     Senior Vice President of Environmental Initiatives
support of the Environmental Commitment. Bank of Americas
                                      participation in the           This team is responsible for implementation, environmental
Corporations have a                   Bay Area Alliance for          advocacy, generating ideas, networking internally and with
                                      Sustainability is one          external stakeholders and reporting on the bank’s
responsibility for the                example of our partnering      Environmental Commitment.
environment and must                  with others to develop
                                                                     Senior Vice President of Environmental Services
                                      sustainable solutions.
conduct all aspects of                                               This team is responsible for due diligence on transactions that
                                      Although Bank of America
their business as                                                    require environmental oversight, providing environmental
                                      has not adopted a sustain-
                                                                     risk management expertise and information to lending
responsible stewards.                 ability policy, we are
                                                                     officers bankwide.
                                      committed through our
endorsement of the CERES (Coalition for Environmentally              Environmental Initiatives reports quarterly to the Corporate
Responsible Economies) Principles to achieve progress in             Risk Management executive, who further shares this informa-
meeting those principles (see Appendix One). They are built on       tion with senior management. Once a year, the Environmental
pursuing a sustainable economy and environment. The bank’s           Progress Report is sent to all senior management and the
community development lending and long-time involvement in           board of directors.
the communities we serve also illustrate our support of equitable
                                                                     In a move that saved materials and costs, this report for the
opportunities for all members of our communities.
                                                                     first time was not created as a brochure. The 1999 Environmental
By adopting the CERES Principles, we publicly affirm our belief      Progress Report is publicly accessible online. We will download
that corporations have a responsibility for the environment and      and print it as needed. Others may download it, as well.
must conduct all aspects of their business as responsible stew-
                                                                     The 1999 Environmental Progress Report is the first measure
ards of the environment by operating in a manner that protects
                                                                     of our progress as the newly formed Bank of America. Good
the earth. We believe that corporations must not compromise
                                                                     baseline metrics could not be established for 1999 because of
the ability of future generations to sustain themselves. We will
                                                                     merger transition issues. Our measurement processes will be
update our practices constantly in light of advances in technology
                                                                     reviewed and revised in 2000 to ensure we are starting with
and new understandings in health and environmental science.
                                                                     the right baseline for the new company. Where feasible, we will
In collaboration with CERES, we will promote a dynamic process
                                                                     normalize the merged companies’ environmental data and
to ensure that the principles are interpreted in a way that accom-
                                                                     other information.

                                                     Environmental risk management
Sustainable solutions                                                                                                                   9
bank of america associate responsibility                                 Help associates engage in environmental best practices
                                                                         and activities at work, at home and in their communities
Another Bank of America goal is to build environmental sensi-
tivity and consideration into our business decisions, practices          Provide measurable results of Environmental Network
and processes. If we are to succeed, our success will be the             activities to demonstrate the positive effects of corporate
result of the way we do business and not a special program.              environmental responsibility
Environmental Initiatives is an internal advocate and a change
                                                                         Encourage professional development and networking
agent within our corporate culture. But it is the tens of thousands
of associates throughout the company whose enthusiastic
support and hard work actually make the commitment a reality.         By year-end 1999, 38       It is the tens of thousands
The progress documented in this report was accomplished by            Environmental Networks
                                                                      had been organized.
                                                                                                 of associates throughout
the many associates who are responsible for the implementa-
tion of the Bank of America Environmental Commitment through          Some of the activities     the company whose
their job responsibilities and as champions for the environment.      the networks offered
                                                                                                 enthusiastic support and
                                                                      included brown bag
Associate Engagement
                                                                      lunches on subjects        hard work actually make
Another way for associates to participate in the bank’s               that ranged from com-
                                                                                                 the commitment a reality.
Environmental Commitment is through the Team Bank of America          posting to electric
Environmental Networks.                                               vehicles; seminars that included “Gardening the Less Toxic
                                                                      Way”; notifying associates about smog alerts; fall cleanups
The Environmental Networks engage associates in activities
                                                                      and the annual Bring Your Child to Work Day, at which network
that promote our Environmental Commitment and help to
                                                                      participants taught kids how to make recycled crafts.
establish Bank of America as a leader in working to achieve a
society that seeks a sustainable economy.                             ➜ Environews is an online internal newsletter that features
                                                                         updates on the progress of the bank’s Environmental
➜ Goals of the Environmental Networks
                                                                         Commitment, profiles of other companies’ environmental
   Help associates understand why an active environmental                activities and tips for the office and home.
   program and ethic should be part of our corporate culture

                                                                                      Internal advocacy
                    Making the commitment a reality
   Personal involvement                                                                                                                10
“                                     responsibility
 Yo u c a n n o t e s c a p e t h e

                                                              of tomorrow by evading it

                                                                                                       abraham lincoln

                                      se c t i o n th r e e — h e a lth a n d sa f e ty

                                                                e        ach manager is accountable for complying with
                                                                         the requirements of the bank’s health and safety
                                                                         programs. This compliance is subject to Bank of
                                                                 America internal audit procedures.


                                                                 Bank of America maintains an Injury and Illness Prevention
                                                                 program, which includes training, inspections, safety reviews
                                                                 and emergency preparedness. A corporate Life Safety unit is
                                                                 responsible for policy and training materials. An ergonomics
                                                                 program will be rolled out in 2000.

                                                                 management services

                                                                 The Management Services division, responsible for Bank of
                                                                 America buildings, requires facility management partners to
                                                                 properly maintain heating and air-conditioning systems to
                                                                 achieve optimum indoor air quality.

ErgonomicsLife safety                                                                                                            11
“   We can find better ways to build              communities
                                                                                                      that work for today’s

    families and preserve the                                                            for families in the future.

                                                                                                                    hugh mccoll
                       se c t i o n f o u r — com mu n i ty pa rt i c i pat i o n a n d acco u nta b i l i ty

            ith a vested interest in the quality of life and        All stakeholders must develop common ground, he said, in

W           prosperity of communities it serves nationwide,
            Bank of America is an active participant in the
towns and cities where we conduct business and our associ-
                                                                    finding ways to build neighborhoods, communities and cities
                                                                    that work for today’s families and are preserved for families of
                                                                    the future.
ates live and work. We promote associate volunteer efforts and
                                                                    Bank of America has long supported sustainable metropolitan
fund local philanthropic programs. The company also demon-
                                                                    prosperity through its community development lending,
strates its leadership through collaborations with a variety of
                                                                    brownfields redevelopment and inner-city revitalization. In May,
other stakeholders in developing solutions to local, regional
                                                                    Bank of America gave a big boost to San Francisco affordable
and national issues.
                                                                    housing by selling a two-acre urban site for $6 million less
                                                                    than market value to a public and nonprofit coalition. As many
smart growth commitment
                                                                    as 350 units of affordable housing will be part of this mixed-use
Bank of America views Smart Growth as an integrated and collab-     development. And in August, the bank donated two historic
orative approach to regional planning that brings together          buildings in South Carolina to the Rock Hill Economic Develop-
business, government, community and environmental stake-            ment Corporation (RHEDC). The 1920s structures, on Main
holders. At its best, this effort can provide economic success,     Street in the city’s historic district, will be restored by the
environmental protection and equitable opportunities and ben-       RHEDC for residential, retail and office use. Bank of America
efits for all segments of a community. Our numerous partners        is also a leader in the commercial real estate industry. These
and collaborators may use words other than “Smart Growth”           business activities, along with our Environmental Commitment
to describe these efforts. The point is that we’re all supporting   and philanthropic endeavors, are part of the Bank of America
sustainable metropolitan livability.                                Smart Growth advocacy.

Elements of Smart Growth can be found in mixed-use develop-         Why Smart Growth
ments, mixed-income housing, transit-oriented development
                                                                    Bank of America believes that sensible growth — planning for
and walkable communities. Elements of Smart Growth can be
                                                                    jobs and economic development while respecting the natural
seen in brownfields redevelopment on property that is, or is
                                                                    environment — is critical to economic vitality. As a matter of
perceived to be, contaminated; in the protection of open space
                                                                    public policy, Bank of America believes that this combination
and ecologically valuable lands; and in urban redevelopment
                                                                    can support a good quality of life for all.
that fills in center city areas that have been abandoned or fall-
en into disuse and disrepair. It is also found in new urbanism      The company’s workforce, and its business, is heavily urban
designs and well-designed density. Through its community            and suburban. So, to do right by bank associates, customers
advocacy, lending, workplace practices, internal operations,        and the thousands of communities where Bank of America
volunteerism and other efforts, the bank is helping put the         does business, the company is hard at work with community
“smart” in Smart Growth.                                            and environmental groups, government and businesses across
                                                                    the country.
In March 1999, Bank of America Chairman and Chief Executive
Officer Hugh L. McColl, Jr., announced the bank’s commitment        Through Corporate Real Estate (CRE), our facility planning and
to encourage and participate in Smart Growth initiatives in         management can support Smart Growth — in how we choose
communities throughout the Bank of America franchise.               facility sites, for example. In 1999, CRE put together a Smart

    Quality of life Stakeholder                                                       involvement                                       12
          Regional dialogues
Growth task force, which is finding ways to support the bank’s      mental quality and social equity. The overall goal is to reach
Smart Growth initiative in four focus areas:                        consensus on a new regional ”compact for sustainability”
                                                                    that can be endorsed and implemented by a majority of
➜ Base building and location principles
                                                                    the stakeholder organizations and local governments in
➜ Business incentive opportunities                                  the Bay Area. Senior Vice President Candace Skarlatos is

➜ Progressive transportation planning                               the bank’s representative.

➜ Efficient use of space and people                                 Californians and the Land

The CRE Smart Growth task force is a collaborative effort           Bank of America, the James Irvine Foundation, the William and

among representatives from our facility management compa-           Flora Hewlett Foundation, Environment Now Foundation and

nies, architects and other outsourced real estate functions.        the David and Lucile Packard Foundation co-chair an effort to
                                                                    provide a neutral ground where stakeholders interested in land
                                                                    use can seek sustainable solutions. In 1999, the group spon-
regional growth collaboration
                                                                    sored two reports from the Center for the Continuing Study of
Bank of America is engaged in numerous other collaborative          the California Economy: “Land Use and the California Economy”
efforts that support regional growth solutions.                     and “Smart Public Investments for the California Economy.”
Urban Land Institute                                                Senior Vice President Candace Skarlatos participates.

In May 1999, the Bank of America Foundation committed               Charlotte Center City Partners
$200,000 to the Urban Land Institute (ULI) over the next two        This group, which promotes uptown development in our head-
years to foster more informed and collaborative efforts among       quarters city, Charlotte, N.C., has spearheaded much of the
Smart Growth stakeholders. Outreach includes providing              office, commercial and residential growth in the center city.
communities with leadership training on Smart Growth issues         Jim Palermo, Bank of America Corporate Real Estate executive,
and support of ongoing ULI National Policy Forums. The bank         is a board member of Charlotte Center City Partners.
also was a sponsor of, and participant in, ULI’s National
                                                                    The Georgia Conservancy
Partners for Smart Growth Conference 2000 held in November
in San Diego.                                                       This organization, established in 1967, is dedicated to the
                                                                    responsible stewardship of Georgia’s natural resources.
National Association of Local Government
                                                                    It strives to balance the demands of social and economic
Environmental Professionals
                                                                    progress with a commitment to protect the environment. It
Bank of America participated in the National Association of         does so by convening business, government and community
Local Government Environmental Professionals’ (NALGEP)              interests, seeking reasoned positions on environmental issues
Smart Growth Business Partnership Project in 1999. Bank proj-       and fostering solutions through consensus building. Its
ects and best practices were featured in the NALGEP report,         acclaimed “Blueprints for Successful Communities” initiative
“Profiles of Business Leadership on Smart Growth.” Vice             has brought together community leaders to address growth
President Randy Muller contributed to the project and partici-      management issues. Mike Buchanan, Bank of America Real
pated in a roundtable discussion about the report’s findings.       Estate Banking executive, serves on the executive committee
Bay Area Alliance for Sustainable Development                       and board of trustees.

The alliance is a regional coalition of stakeholder organizations   Governor’s Council for Sustainable Florida
launched in 1997 to address the challenge of meeting San            The Governor’s Council, comprised of public- and private- sector
Francisco Bay Area sustainability needs. The alliance focuses       partners, promotes responsible environmental conduct and seeks
on transportation, housing, environmental quality, land use,        to provide a forum for addressing environmental, economic and
education and economic development. Its mission is to               social issues in a collaborative manner. Senior Vice President
improve long-term economic competitiveness by promoting             Bill Nicholson represents the bank on the council.
economic growth while simultaneously strengthening environ-

                                       Progressive public policy
Livable communities                                                                                                                    13
Growing Smarter                                                       Smart Growth Alliance

This group of businesses leads statewide efforts to find              The Alliance serves as a communications consortium, primarily
responsible and reasonable ways to manage Arizona’s explo-            in North Carolina, among environmental, governmental, aca-
sive population growth, both in traditional urban areas and the       demic and corporate groups concerned about Smart Growth
                                           rapidly urbanizing         issues. Board representatives include the Sierra Club president
                                           communities through-       in North Carolina and representatives from state government
All stakeholders must
                                           out the state. The         and the University of North Carolina. Senior Vice President
develop common ground                      bank has participated      Dennis Rash serves on the board of directors.
in finding ways to build                   primarily through its
                                                                      Voice and Choices
                                           membership in and
neighborhoods,                             affiliation with sever-    This North Carolina grassroots Smart Growth coalition for the
communities and cities                     al key statewide           14-county Greater Charlotte-Mecklenburg region is pulling
                                           organizations. They        together a regional agenda that can be addressed by local
that work for today’s                                                 governments. Vice President Bruce Lawrence chairs the coali-
                                           include the Arizona
families and preserve the                  Chamber of Commerce,       tion’s Reuse, Recycle and Reduce subcommittee. Senior Vice
                                           the Arizona Chapter        President Dennis Rash chairs its regional task force on
environment for American
                                           of the Nature              Transportation, Land Use and Open Space.
families of the future.                    Conservancy, the           Brownfields Redevelopment
                                           Sonoran Institute,
the Grand Canyon Trust and others. Senior Vice President              Brownfields are idle or under-used properties that have an
Dave Howell participates in this effort.                              element of real or perceived contamination. Returning these
                                                                      properties to productive use can generate jobs and tax rev-
North Carolina Environmental Defense                                  enues in older urban areas, where most brownfields are
The role of this group is to heighten awareness among                 located. Such redevelopment can help concentrate economic
community leaders about Smart Growth and urban sprawl                 activity in established urban areas and reduce expansion
statewide. Vice President Bruce Lawrence is on its board.             pressures on the urban fringe. The U.S. Environmental
                                                                      Protection Agency (EPA) has taken the lead in promoting
North Carolina Board of Transportation
                                                                      brownfields redevelopment.
Responsible for transportation policy and approving trans-
                                                                      Bank of America has made efforts to finance brownfields rede-
portation construction contracts, the board in 1999 embarked
                                                                      velopment and work with governmental agencies to make
on its first strategic planning process, which introduces Smart
                                                                      investment in brownfields more attractive to the private sector.
Growth concepts into transportation funding for the first time.
Senior Vice President Dennis Rash is a governor-appointed             ➜ Senior Vice President Evan Henry and Vice President Randy
member of the Board of Transportation.                                  Muller participated in numerous outreach activities includ-
                                                                        ing speaking at several local and national forums. Henry
Metropolitan Planning Council
                                                                        also chairs the brownfields work group for the EPA
This nonprofit organization works to enhance the vitality and           Environmental Finance Advisory Board.
livability of the Chicago metropolitan region. To accomplish
                                                                      ➜ Senior Vice President Mark Peterson, Real Estate Group-
that goal, it mobilizes leadership around regional solutions to
                                                                        Florida, serves on a Broward County task force that seeks to
the problems of housing, transportation, land use and urban
                                                                        identify contaminated sites and determine which should be
development. Senior Vice President Mary White Vasys serves
                                                                        recommended for brownfields designation.
on the board of governors and chairs the council’s Regional
Housing Committee.                                                    ➜ Senior Vice President Marsha Cantrell, Senior Vice President
                                                                        Bill Nicholson and Vice President Randy Muller reviewed
                                                                        and submitted written comments to the Florida Brownfields
                                                                        Interim Task Force proposal.

Environmental protection                                                                                                                 14
                                                                     Equitable opportunities
other external partnerships                                         Dam financing. Senior Vice President Candace Skarlatos is the
                                                                    bank’s representative.
Association of Commuter Transportation (ACT)
                                                                    Environmental Bankers Association (EBA)
ACT, a national organization of corporations and public agencies,
seeks cost-effective ways to lower the environmental impact         This forum brings together bankers who are responsible for
of employee commuting. The group advocates incentives for           environmental risk management from throughout the United
employers and employees who use alternative modes of trans-         States to exchange technical, risk management and legislative
portation and develops initiatives to reduce traffic congestion.    information. The EBA also serves as a technical resource on
Vice President Brian Thiele chaired this organization in 1999.      environmental issues. Senior Vice President Evan Henry and
                                                                    Vice President Randy Muller are on the EBA board of directors.
California Environmental Dialogue (CED)
CED is a collaboration of some of California’s leading corporate,
environmental and public policy leaders. The organization is        This organization was established to enhance San Diego
committed to strengthening environmental protection while           County residents’ appreciation for the unique wildlife habitat
reducing costs and improving economic efficiencies. The members     of the area. Executive Vice President Doug Sawyer is on its
share a belief that environmental protection and economic           board of directors.
prosperity go hand in hand. In 1999, the focus was on public
                                                                    Singapore Government Parliamentary Committee —
policy activities that helped define open space, parks and
habitat restoration and preservation as infrastructure that is
critical to support California’s quality of life, environment and   This committee was convened by the Singapore Parliament to
economic needs. Senior Vice President Candace Skarlatos             encourage public debate and involvement on important envi-
represents Bank of America.                                         ronmental issues such as infrastructure for solid and liquid
                                                                    waste disposal, implementation of pollution control measures
California Prosperity through Reform (CPR)
                                                                    and the establishment of high standards for public health.
Project CPR, a collaboration of business and labor leaders, is      Vice President Eugene Heng is a member of the committee’s
committed to a future that integrates economic and environ-         Resources Panel.
mental sustainability with opportunities for all Californians.
                                                                    Silicon Valley Manufacturing Group
Efforts focus on infrastructure investment, strategies for
accommodating growth, local and state fiscal accountability,        Principal officers and senior managers of member companies
educational achievement and performance-driven governance.          work cooperatively with local, regional, state and federal gov-
Vice President Roxanne Gould participates in CPR.                   ernment officials to address major public policy issues affect-
                                                                    ing the economic health and quality of life in California’s
Coalition for Environmentally Responsible Economies (CERES)
                                                                    Silicon Valley. On bottom-line issues that impact Silicon Valley
In 1999, Bank of America reaffirmed its endorsement of the          — including traffic relief, affordable and available housing,
CERES Principles. By adopting these principles, we publicly         an educated workforce, environmental quality, streamlined
affirm our belief that corporations must be good stewards of        permitting and tax fairness — the Manufacturing Group draws
the environment. Companies that endorse these principles            on members’ expertise to find workable, innovative answers.
pledge voluntarily to go beyond the requirements of law.            Executive Vice President John Conover is a board member and
Through this relationship, Bank of America has engaged in           treasurer/secretary.
mutually beneficial dialogues to strengthen interaction among
                                                                    Sonoma County Business Environmental Alliance
the business, environmental and socially responsible investing
communities. CERES has provided valuable assistance to              This alliance of business, environmental and government
Bank of America on environmentally sensitive issues, including      leaders is dedicated to promoting good environmental business
the bank’s decision not to participate in China’s Three Gorges      practices in this Northern California county. Vice President
                                                                    Dave Meddaugh participates in alliance activities.

              Growing smarter
                                        Sustainable development                                                                       15
The Nature Conservancy of Georgia                                    sponsorships and grants
The Nature Conservancy mission is to preserve earth’s diverse        During 1999, Bank of America and the Bank of America
plants, animals and natural communities by protecting the            Foundation funded $659,490 in grants, memberships and
lands and waters they need to survive. The Nature Conservancy        sponsorships to organizations involved in diverse environ-
has been active in Georgia since 1968. The Georgia chapter’s         mental efforts.
vision is to protect for future generations more than 175,000
                                                                     This giving focused on collaborative efforts and projects
acres of habitat in the state through cooperative partnerships,
                                                                     deemed possible “models” for environmental preservation
innovative science and diverse funding sources. Executive Vice
                                                                     and regional Smart Growth efforts that could be replicated
President Bill Middlemas serves on its board of trustees.
Trust for Public Lands (South East)

The goal of this Trust for Public Lands chapter is to acquire        associate volunteer activities
500 feet on either side of the Chattahoochee River for a             The company supports associate volunteering in the communi-
160-mile stretch through the heart of Georgia to protect the         ty through Team Bank of America, a worldwide organization
river from contamination and provide parks and green space.          through which associates can learn and develop new skills,
The Trust’s mission is to protect natural and historic places for    volunteer in the community and network with one another.
people to use and enjoy. Executive Vice President Michael
                                                                     The six components of Team Bank of America are:
Dulan is a member of the chapter’s board of directors and the
Chattahoochee River Land Protection Campaign Committee,              ➜ Diversity Network
which is supported by the Trust for Public Lands.
                                                                     ➜ Environmental Network (described in Section Two)
United Nations Environment Program (UNEP)
                                                                     ➜ Recreation Network
The United Nations Environmental Program’s Financial
                                                                     ➜ Retiree Network
Institutions Initiative provides a mechanism for constructive
dialogue among global financial institutions about the relation-     ➜ Speaking Network
ships among economic development, environmental protection
                                                                     ➜ Volunteer Network
and sustainable development. Senior Vice President Evan Henry
represents Bank of America on the steering committee and             The Volunteer Network promotes community participation
spoke at the UNEP Fifth Roundtable meeting in Chicago.               at Bank of America by encouraging and facilitating associate
                                                                     and retiree volunteerism in team and individual projects.
Valley Forward
                                                                     Environmental volunteer activities are encouraged. We weren’t
This coalition of Phoenix-area private- and public- sector organi-   able to conduct formal tracking in 1999, but our best estimate
zations focuses on quality of life issues. Historically, Valley      is that about 2,500 associates participated in events that
Forward has been the primary sponsor of Earth Day activities         contributed more than 100,000 hours of volunteer work on
in the Phoenix area and a champion of the redevelopment of           a range of projects and activities. Nationally, they included
the Salt River waterway through the metropolitan area. It has        Adopt a Highway, Earth Day, habitat restoration, international
also been a consistent voice in local debates about air quality,     coastal and river cleanups and zoo habitat restoration.
urban sprawl and other environmental concerns. Several
Bank of America associates are members of the coalition.

                                           Associate engagement
 Philanthropy                                                                          Support                                        16
“    In the end, our society will be defined not only by what we

                              create                     but by what we refuse to                 destroy.”
                                                                                                                john c. sawhill

                               se c t i o n f i ve - p r o d uc t a n d se r v i ce s s te w a r ds h i p

b        ank of America is committed to finding prudent ways
         to finance projects and companies that benefit the
         environment and refrain from financing those whose
environmental practices fall short of acceptable standards.
                                                                      associates are encouraged to support environmentally benefi-
                                                                      cial enterprises, it can be difficult to identify environmentally
                                                                      worthy projects that also meet credit risk standards. Therefore,
                                                                      partnerships through Small Business Guaranteed Programs or
                                                                      other institutional support are sometimes sought.
environmental sensitivity
                                                                      World Bank Guidelines
The Bank of America Statement of Environmental Principles
                                                                      The Statement of Environmental Principles specifically refers to
guides lending officers in demonstrating environmental
                                                                      the World Bank’s Pollution Control and Abatement Guidelines
sensitivity in selling products and services such as credit,
                                                                      as a key measure in evaluating potential environmental
investment, underwriting and payments.
                                                                      performance on projects we finance.
In Commercial Banking, for example, an environmental lending
                                                                      Bank of America considers environmental practices acceptable
team focuses exclusively on identifying and serving high-quali-
                                                                      if they meet industry standards, conform to World Bank guide-
ty, well-managed and profitable companies whose businesses
                                                                      lines and comply with applicable law.
benefit the environment. Our clients work in areas of liquid
waste collection and disposal, solid waste disposal, engineer-        The new Bank of America continues to support the decision to
ing and consulting, water and waste water treatment and               not directly finance Three Gorges Dam or finance any entity whose
contaminated-site remediation.                                        primary business is construction of this large hydroelectric,
                                                                      flood control and navigation project on the Yangtze River in
And in serving our international business, a $5.1 million Bank
                                                                      China. As for lending to financial intermediaries, we cannot,
of America Structured Trade Finance Group financing in June
                                                                      as a practical matter, insist that financial institutions or other
helped a U.S. manufacturer of air pollution monitoring equip-
                                                                      borrowers do only those things that we would do. But in deciding
                                               ment win a pres-
                                                                      whether to extend credit, we can and do take into account the
Bank of America is committed                   tigious contract
                                                                      nature of the transaction and relationships and how consistent
to finding prudent ways to                     to supply 11
                                                                      they are with our own beliefs.
                                               cities in China
finance projects and companies                 with equipment
                                                                      internal teams
that benefit the environment                   to monitor and
                                               fight growing          The bank’s Environmental Services team provides lending
and refrain from financing those                                      officers with research, evaluation and other support on
                                               pollution. Our
whose environmental practices                  client, Dasibi         environmental issues that affect our products and services.
                                               Environmental          The group has developed broad expertise in integrating
fall short of acceptable standards.
                                               Corp., expects         technical issues associated with actual or perceived contamina-
to see a 186% increase in sales this year as a result of this         tion of real property with the financing needs of our clients.
contract. The Export-Import Bank of the United States guaran-         Having pioneered the evaluation of environmental risk issues
teed the loan.                                                        in real estate financing in the late 1980s, this team has also
                                                                      led the financial industry in its involvement in community and
That Bank of America must uphold fiduciary responsibility
                                                                      public policy activities.
to our shareholders and depositors is a given. So, although

Product Stewardship
                                      Services Advisor                                                                                     17
Both Environmental Services and Environmental Initiatives act    They include:
in an advisory capacity as well, following issues of business
and public concern and sharing information with associates for
their use in making business credit and investment decisions.    This online banking service reduces the use of paper and saves
                                                                 customers the time and expense of travel. It’s convenient, too.
Across the company, associates are also encouraged to network
with public agencies, non-profit organizations and business      Recycled paper checks
regarding environmentally sensitive industries.                  Acknowledging that paper checks remain part of commerce,
The bank’s Statement of Environmental Principles was formally    Bank of America recycles paper that would otherwise become
approved in December and communicated to senior managers,        landfill and prints several check styles on recycled paper.
who were asked to inform associates within their areas of        Contribution checks
responsibility. In 2000, further communication is planned.
                                                                 Customers have the option of supporting any of three environ-
products and services                                            mental organizations when they select our special check series.
A growing number of the bank’s products and services reduce      A box of checks costs customers an additional 50 cents, which
the impacts on our environment, and we invite customers to       goes directly to the organization of their choice.
partner with us in using them — and doing right by the envi-     In 1999, customers ordered 268,249 boxes of the special
ronment at the same time. The new Take Action section on the     checks, resulting in a contribution of $134,125. Organizations
bank’s corporate Web site at identi-       that benefitted were Conservation International, The Nature
fies these products and services. Once at our homepage, go to    Conservancy and the Yosemite Fund.
Inside Bank of America and select the Environment.

      Take action
                          Beliefs            Responsibility                                                                        18
“     I believe the world is incomprehensibly                    beautiful,
                             an endless prospect of             magic wonder.”             and
                                                                                                                      ansel adams

                                       se c t i o n s i x — s u p p l i e r r e l at i o ns h i ps

p        rocurement & Corporate Services (P&CS) is the internal
         nationwide organization responsible for the company’s
         procurement of goods and services. Areas of focus are
minority business development, corporate travel, food services,
contract management, mail and transportation services, records,
                                                                      Request for Proposals

                                                                      P&CS has updated its request for proposal (RFP) template to
                                                                      explain the Bank of America Environmental Commitment to
                                                                      suppliers and vendors. This new section also informs them of
                                                                      the bank’s expectation that suppliers and vendors will adhere
recycling, document management, forms management, equip-
                                                                      to environmentally beneficial policies, including the use of
ment management and support, office supply orders and
                                                                      recycled paper goods. Furniture and carpet RFP templates
internal client relations.
                                                                      were expanded to solicit specific data regarding these com-
                                                                      modities’ environmental impacts.
integrated impacts
Because the majority of Bank of America purchases are made
through this centralized system, we consider it important to          P&CS also revised the contract template to require environmen-
leverage its functional responsibility and integrate environmen-      tal reporting data from suppliers and vendors, including,
tal impacts into its decision-making, processes and delivery.         where applicable, a quarterly report on paper usage and
To that end, the P&CS Enviro-Team was established in June             recycled content in products the bank uses. The bank also
1999 to review internal environmental impacts and propose             requests a written description of how the suppliers’ policies,
a range of options for reducing them. The team’s action plan          practices and procedures support the Bank of America
received management approval in December 1999. Each P&CS              Environmental Commitment.
department has a team representative. The team reports to             For example, Bank of America outsources its facility manage-
management each quarter on progress and updates its action            ment. The Property Service Guide used by facility partners was
plan as necessary.                                                    specifically modified in 1999 to solicit support for the bank’s
                                                                      recycling programs. Facility partners entered into agreements,
                                                                      each of which requires the partner to adhere to environmentally
                                                                      beneficial policies and practices and to encourage its subcon-
                                                                      tractors to do the same.

procurement & corporate services
 minority business development
“Study                       nature,      love              nature, stay close to           nature                      .

                                                                                                It will never fail you.

                                                                                                       frank lloyd wright
   se c t i o n se ve n — use a n d co nse r vat i o n o f n at u r a l r e s o u rce s f o r i nte r n a l o p e r at i o ns

t        he Bank of America Environmental Commitment
         includes reducing the environmental impacts of our
         global operations. Reducing internal operations’
environmental impacts involves efforts as diverse as making
buildings more energy efficient, including environmental
                                                                    ➜ Implemented in late 1999, the National Forms Web site con-
                                                                       tains close to 700 of the bank’s most commonly used forms.
                                                                       In a few short weeks, the site registered more than 40,000
                                                                       hits, with associates downloading more than 150,000 forms.
                                                                       We cannot determine how many associates may have ulti-
responsibility in vendor selection and contracts and implement-        mately printed these forms. However, we do know the bank
ing a national recycling program for all paper and non-paper           saved money and paper by having the forms available
confidential items for all domestic Bank of America locations.         electronically instead of printing and warehousing in bulk
                                                                       and having to dispose of obsolete forms.
circular economy
                                                                    ➜ The bank’s 21 document centers, located in 12 states
To lessen our environmental impacts, Bank of America is                across the country, printed an average of 17.7 million
moving toward a more circular economy in which our company             copies a month in 1999: About 70% (12.3 million) were
reduces materials use, recycles and supports the market for            double-sided.
recycled materials. This effort results in reduced raw material
                                                                    ➜ Internal communications vehicles encourage associates
demand and creation of wealth that puts less stress on the
                                                                       to use double-sided copying.
natural systems.
                                                                    Paper is by far the largest component of our waste stream.
                                         reuse                      By improving our recycling performance, we lower the environ-
     (less) raw                                                     mental impact of our operations. Instead of sending our paper
                                                                    to landfills, we can ship it where it can find new life as valuable
                           waste                                    ➜ National Recycling Program — Bank of America associates
                        manufacturing             consumption
                                                                       are domiciled in more than 5,000 facilities nationwide,
                                                                       including banking centers, office buildings, processing
                                                                       centers and warehouses. With a “footprint” of this magni-
                                                                       tude, a cost-effective nationwide recycling program was
                                                                       initiated through the merger transition process. Vice President
Bank of America’s efforts to move to a more sustainable                Halina Wojnicz, National Recycling manager, partnered with
economy are many. Even with success in moving away from                facility management providers, Procurement & Corporate
paper with the use of e-mail and online reports, the bank con-         Services Enviro-Team and other bank associates to launch
tinues to use significant quantities of paper.                         the National Recycling Program in October 1999.
Reduction                                                           The program consists of three primary elements: the distribu-
Rethinking our processes to reduce our use of paper has been        tion of desk-side recycling containers, the placement of central-
a first step in reducing the bank’s use of natural resources. Our   ized collection containers and associate education.
efforts have shown an immediate impact because of the size of
our employee base.

Lowering environmental impacts
                                                                        Shared resources
                  Circular economy                                                                                                        20
Distribution of desk-side containers began in the fall and        Baseline
continues. Meanwhile, large recycling containers are being
                                                                  Because 1999 was a merger transition year, the bank has not
installed centrally throughout our worksites. Associates empty
                                                                  yet established a baseline for paper and the percentages of
the contents of their deskside containers into these collection
                                                                  recycled and virgin paper. In 2000, contracts with paper
containers, which our recycling contractors service regularly.
                                                                  vendors will include quarterly
The most critical success factor for the program is informed      reports that will provide a      Paper is, by far, the
associate participation. Associates need to understand the        baseline by year-end 2000.
                                                                                                   largest component
importance of the program, how it works and the integral role     Meanwhile, the Procurement
they play. The program seeks to raise awareness, generate         & Corporate Services Enviro-     of our waste stream.
excitement and set expectations.                                  Team plans to make a signifi-
                                                                  cant commitment to purchase recycled paper starting with
Initially, each associate received a program announcement
                                                                  copy paper. Copy paper in the Eastern United States was
with a pledge card. A total of 47,000 respondents returned
                                                                  converted from 100% virgin to 30% post-consumer content
their cards (a 29% response rate), pledging to recycle. By
                                                                  recycled. In the West, copy paper was converted from 20% to
returning their cards, they were automatically entered into the
                                                                  30% post-consumer content recycled.
America Recycles Day drawing for the Green Dream House.
America Recycles Day is a public-private partnership engaged
in raising public awareness of recycling benefits. Its Green
Dream House drawing will be held in December 2000.                Other non-paper efforts to conserve natural resources include:

Periodic reminders and program boosters will keep associate       Furniture and Equipment Reuse
awareness and participation levels high. All program printed
                                                                  ➜ Furniture
materials use environmentally friendly recycled paper of the
smallest effective size and soy-based inks and no cardboard,         Reconditioned and reissued 74,929 pieces of surplus
plastic or filler materials.                                         furniture, saving natural resources and also realizing a
                                                                     significant cost avoidance of $20,640,815.
As the new program continues to roll out to all Bank of America
facilities in 2000, recycled tonnage is expected to steadily         Partnered with vendors, selling 56,505 pieces of used
increase. This increase is already evident in the 1999 year-end      furniture for a total of $516,179.
volumes, which we will use as our baseline. We have estimated
                                                                     Donated 7,755 pieces of furniture the bank no longer needed
the nationwide energy and environmental savings from this
                                                                     to schools, government agencies and non-profit organizations.
conservation in a number of ways.
                                                                  ➜ Equipment

  1999   year-end volumes                                            Reconditioned and reissued 25,470 pieces of equipment,
                                                                     realizing an estimated cost avoidance of $7,641,000.
  Paper recycled                           23,063 tons
                                                                     Recycled 203,000 pieces of equipment
  Avoided trash hauling costs              $763,962 per year
                                                                     Donated 6157 pieces of equipment
  Trees saved                              392,071 trees

  Hours of energy saved                    94,558,300 kwh         additional efforts
  Oil saved                                69,189 barrels         A national vendor was selected to fabricate and install in-store
                                                                  banking centers, using recycled materials in approximately
  Landfill space saved                     76,108 cubic yards
                                                                  40% of the displays. Recycling containers used by associates

Paper Reduction paper usage
       paper recycling                                                                                                             21
and the vendor in our new National Recycling Program are           commute, eating lunch in or walking to lunch or getting gas
made from recycled materials with 10-15% post-consumer             for the car after 6 p.m. Voice mail smog alert messages and
material. Bank of America is continuing to test a new carpet       signage were installed in our Atlanta Plaza Building lobby to
backing system, Shaw’s EcoWorx, a thermoplastic polyolefin         communicate to associates. Bank of America — and about
that is 100% recyclable when remelted and re-extruded into         1,000 associates — participated in the MARTA summer commute
new backing. Bank of America also purchased Herman Miller          subsidy program.
chairs made of recycled steel, polypropylene, nylon and foam.
The recycled content of these chairs ranges from 41- 77%,
depending on chair type.                                           In Maricopa County, Bank of America subsidizes a bus and
                                                                   carpool program for more than 200 associates. In 1999, a
Bank of America is an advocate for the reuse and refurbishment
                                                                   Transportation Environmental Faire informed associates about
of existing furniture and equipment. This policy has saved
                                                                   the benefits of alternative transportation choices. Speakers
millions of dollars in new capital purchases for the bank and
                                                                   included representatives from the America Lung Association
lessens the amount of additional raw materials and energy
                                                                   and the Central Avenue Transportation Association. As a result,
required in making new furniture and equipment.
                                                                   associates who carpool, walk, bike or take public transporta-
Bank of America, when possible, uses movable partition wall        tion were eligible for prizes in a monthly raffle.
systems to accommodate a changing workplace and reuses the
                                                                   Los Angeles Basin
original product. This practice eliminates the need to source,
manufacturer and ship additional material. It also reduces         Our employee commute option program, termed the BEAT
the amount of construction waste typical from offices made         (BankAmerica Employee Alternative Transportation), rewarded
of traditional drywall.                                            associates based on their contribution to clean air, with points
                                                                   converted to cash and credited to a debit card account.
When replacing carpet in our facilities, the bank currently
                                                                   Associates could redeem their value at any retailer that accepts
employs the recycling services of DFS, a company that
                                                                   a debit card. The BEAT program was eliminated at the end of
specializes in carpet recycling.
                                                                   1999. In a new program, we participate in the South Coast Air
Bank of America amended our contract with DesignTex to             Quality Board (SCAQB) vehicle scrapping program. The bank
specifically identify “green” upholstery fabrics, which            continues to sponsor a basic rideshare program that includes
associates can choose from when ordering furniture.                information sharing, ride matching, a guaranteed ride and
                                                                   preferred parking programs for carpoolers. The bank also
Partnering with Office Depot, the bank blocked ordering environ-
                                                                   continues to work with SCAQB to provide commuter information
mentally unfriendly products in the new Bank of America/Office
                                                                   to Southern California associates.
Depot 2000 Corporate Supplies Catalog. Styrofoam cups and
neon papers, which contaminate the bank’s recycled paper           Pacific Northwest
program are among the supplies removed from the catalog.
                                                                   The bank offers subsidies for both bus passes and registered
                                                                   carpools in this region, with 2,300 associates taking advan-
associate transportation
                                                                   tage of the program in Washington state. In Portland, where
Bank of America recognizes that associate commuting can            associates are encouraged to use alternative commute modes,
adversely affect air quality. The following programs address       about 180 associates took advantage of the subsidized bus
this impact and respond to local regulations.                      pass program in 1999.

Atlanta                                                            Sacramento Region

Various bank business groups implemented Smog Free Georgia         Bank of America has been a member of the Folsom-Rancho-
plans. Communications informed associates about how they           El Dorado Transportation Management Association (FredTMA) for
can reduce smog, such as using the Metro Atlanta Regional          five years. Through that partnership, bank associates benefit
Transportation Authority (MARTA) public transit system for their   through the Ride Share Matching Service and Bicycle

Active engagement
  Material life-cycle Energy use                                                                                                      22
Parts/Repair/Locker Discount program, and they are guaran-             Paper Coalition (RPC), comprised of paper buyers in the private,
teed a free ride home in the event of a problem. Joining with          public and non-profit sectors.
the FredTMA, Bank of America advocated for local light/hard
                                                                       The RPC is a voluntary organization of major paper users
rail extensions. Rancho Cordova participates in a “Spare the
                                                                       whose national board of directors includes Bank of America;
Air” program similar to the one in the San Francisco Bay Area.
                                                                       Kaiser Permanente; George Lithograph; Natural Resources
San Francisco Bay Area                                                 Defense Council; California Integrated Waste Management
                                                                       Board; Hewlett-Packard, Gap Inc.; City of Chicago; Kinko’s;
Bank of America initiated a process to support “Spare the Air”
                                                                       RR Donnelley & Sons Company; Environmental Law & Policy
days in the Bay Area. Certain associates receive electronic noti-
                                                                       Center; Alameda County Waste Management Authority and
fication of anticipated high pollution days and requests for
                                                                       Source Reduction and Recycling Board; and Corporate Express
curtailed use of emission-producing products. Those associates
                                                                       Document & Print Management. Today, the coalition has more
then further distribute the notification. At our Livermore facility,
                                                                       than 260 members, and Bank of America chairs its board.
the Environmental Network put on a well-received electric vehicle
display and brown bag lunch that included an overview of legacy        U.S. Green Building Council
BankAmerica’s history with electric vehicles and directed
                                                                       The council is a non-profit building industry coalition that
associates to more information about this technology.
                                                                       promotes the understanding, development and accelerated
Associates were able also to test-drive electric vehicles.
                                                                       implementation of “green building” policies, programs, tech-
                                                                       nologies, standards and design practices. Bank of America is
working relationships
                                                                       a member and sponsors the council’s Web site.
To assist in moving toward a more sustainable economy,
Bank of America associates solicit advice and technical
expertise in the development and management of our                     Bank of America is a participant in the U.S. Environmental
environmental programs and practices.                                  Protection Agency’s WasteWise program, which seeks to
                                                                       reduce business solid waste. Members of this voluntary pro-
Networking and building relationships with environmental
                                                                       gram commit to preventing waste, buying or manufacturing
groups, government agencies and other businesses is an
                                                                       recycled products and recycling.
important link to finding ways to mitigate against the bank’s
environmental impacts. Of special interest to us are relation-         Additional relationships in which we have shared information
ships with others working to find solutions that are cost-effec-       and collaborated on solutions include Environmental Defense,
tive and beneficial to the environment and change the funda-           Business for Social Responsibility, National Recycling
mental infrastructure needed for a more sustainable future.            Coalition, Conservatree and GreenClips.

Bank of America is involved in many working relationships              Further, Bill McDoungh, former dean of the School of Architecture,
beneficial to our efforts to reduce our internal environmental         Institute for Sustainable Design, at the University of Virginia,
impacts.                                                               conducted an internal seminar on sustainable building practices.
                                                                       Associates from Real Estate Banking, Community Development
Recycled Paper Coalition
                                                                       Banking, the Charlotte Development team, Procurement &
When Bank of America began buying recycled paper, we found             Corporate Services, Corporate Affairs and Real Estate Manage-
higher prices and problems with recycled paper quantity, variety       ment Services participated along with select vendor partners.
and quality. We believed greater market demand would stimu-
late paper manufacturers to address these issues, but we
alone could not generate greater demand. Finding that other
companies shared our goals, we worked to form the Recycled

Public Transportation
                     Bicycle                                                                                                                23
“ Nature            uses as little as         possible                            of anything.
                                                                                            johannes kepler

    se c t i o n e i g h t — e m is s i o ns a n d w a s te f r om i nte r n a l o p e r at i o ns

                                             b           ank of America does not have a climate change policy
                                                         although the Environmental Initiatives team follows the
                                                         issue. Information that could affect our products and
                                              operations is shared within the company as appropriate.

                                              energy use

                                              A request for proposal (RFP) was issued in 1999 to obtain a vendor
                                              specializing in energy management services, including energy-efficient
                                              project design and development. This project will establish an energy
                                              baseline, and we’ll report on our progress beginning in 2000.

                                              vehicle use

                                              Vehicle use and associate commutes affect air quality and contribute
                                              to greenhouse gases. Bank of America efforts to support alternative
                                              commute options are discussed in Section Seven. During 1999, 168
                                              older vehicles in the bank’s fleet were replaced with cleaner-burning
                                              vehicles. The fleet also includes one Compressed Natural Gas (CNG)

Greenhouse gases
    environmental compliance                                                                                           24

“Without a sense of   caring
                       there can be no sense of             community.”
                                                                                anthony j. díangelo

                         se c t i o n n i n e — com p l i a n ce

                                             b          ank of America outsources the environmental
                                                        compliance services for facility management.
                                                        Services primarily includes asbestos investigation,
                                               certification and abatement, as well as a host of other
                                               facility-related inspections, certifications and abatements.
                                               Currently, our facility partners are under contract to provide
                                               such environmental compliance. Workplace health and safety
                                               are covered in Section Three.

                                               legal reporting

                                               It is possible that Bank of America has foreclosed on real
                                               property collateral or has fiduciary responsibility for property
                                               containing evidence of the historical release of oil or chemicals
                                               that is reportable. In those cases, the bank has reported it to
                                               the appropriate authority.

    Facility management
        Responsibility                                                                                             25

“            words
    Good                               do not last long until they amount to

                                                                                                                     chief joseph

                                     se c t i o n te n — p r i o r i t i e s a n d ch a l l e n g e s

o          ur 1999 priority was to begin implementing the
           Bank of America Environmental Commitment. The
           goal is to integrate this commitment into the bank’s
decision-making, processes and products. If successful, the
commitment will not represent a special program. Rather, the

                                                                       Our company is never static. It must remain flexible and ever
                                                                       nimble when planning for changes that better accommodate
                                                                       customer and client needs and market and economic conditions.
                                                                       Likewise, ongoing implementation of the Bank of America
commitment will become part of our corporate culture and
                                                                       Environmental Commitment must be flexible. However, we
mindset, fully integrated into the way Bank of America con-
                                                                       do have priorities. For 2000, they include:
ducts business.

The challenges are many. In 1999, certainly the biggest chal-             2000   priorities
lenge was working through the transition that followed the                ➜    Continuing to build an environmental awareness
1998 merger of BankAmerica and NationsBank. While this                         throughout our company
transition presented opportunities to identify best practices
and begin embedding an environmental ethic in our new                     ➜    Improving reporting processes and establishing
company, the changes in personnel, processes and products                      baseline metrics
also constrained our efforts. The transition also made it
                                                                          ➜    Implementing source reductions, such as using less
difficult to set baselines and design a good measurement
                                                                               paper, that lessen our environmental impacts
reporting process.
                                                                          ➜    Strengthening and building new relationships in
challenges                                                                     which we work collaboratively to find environmentally
                                                                               sustainable solutions to the conduct of our business
➜ Because the bank is a service company, associate interest
  and engagement are key to successfully implementing the
  commitment. The accomplishments noted in this report                 Our commitment to the environment may seem unexpected to
  are the direct result of senior management support, the              some. So much the better. However, the global perspective of
  empowerment of associates bankwide and associates’                   our new company gives new breadth and depth to our efforts.
  own enthusiastic response to meeting the commitment.                 We now have the opportunity to engage more associates than
  The challenge in such a large organization is communicating          before, to participate meaningfully in more communities and to
  both the commitment and what it means to all associates              leverage our impact across a broader range of environmental
  and the facility in which they operate.                              issues. We want our customers, communities and our associates
                                                                       to think of Bank of America in ways they never thought of a
➜ The bank’s environmental impacts, and the best way
                                                                       bank before.
  to reduce them, are not yet completely understood.
  Networking among associates, other companies and                     We welcome your visits to our corporate Web site at
  nonprofit organizations has helped direct the bank’s        for information and your comments
  commitment and implementation process.                               about our ongoing environmental activities.

        Challenges                                   Priorities                                                                         26
“          creation                                                   forests
    The                                       of a thousand

                                                                                                 is in one                ”
                                                                                                              ralph waldo emerson

                                        a p p e n d i x o n e — th e ce r e s p r i n c i p l e s

Protection of the Biosphere                                            Environmental Restoration

                    We will reduce and make continual                  We will promptly and responsibly correct conditions we have
                    progress toward eliminating the release of         caused that endanger health, safety or the environment. To
                    any substance that may cause environmen-           the extent feasible, we will redress injuries we have caused
                    tal damage to the air, water, the earth or         to persons or damage we have caused to the environment
its inhabitants. We will safeguard all habitats affected by our        and will restore the environment.
operations and will protect open spaces and wilderness while
                                                                       Informing the Public
preserving biodiversity.
                                                                       We will inform in a timely manner everyone who may be affected
Sustainable Use of Natural Resources
                                                                       by conditions caused by our company that might endanger
We will make sustainable use of renewable natural resources            health, safety or the environment. We will regularly seek advice
such as water, soils and forests. We will conserve non-renewable       and counsel through dialogue with persons in communities
natural resources through efficient use and careful planning.          near our facilities. We will not take any action against employ-
                                                                       ees for reporting dangerous incidents or conditions to manage-
Reduction and Disposal of Wastes
                                                                       ment or to appropriate authorities.
We will reduce and, where possible, eliminate waste through
                                                                       Management Commitment
source reduction and recycling. All waste will be handled and
disposed of through safe and responsible methods.                      We will implement these principles and sustain a process that
                                                                       ensures that the board of directors and chief executive officer
Energy Conservation
                                                                       are fully informed about pertinent environmental issues and
We will conserve energy and improve the energy efficiency of           are fully responsible for environmental policy. In selecting our
our internal operations and of the goods and services we sell.         board of directors, we will consider demonstrated environmen-
We will make every effort to use environmentally safe and              tal commitment as a factor.
sustainable energy sources.
                                                                       Audits and Reports
Risk Reduction
                                                                       We will conduct an annual self-evaluation of our progress in
We will strive to minimize the environmental, health and               implementing these principles. We will support the timely
safety risks to our employees and the communities in which             creation of generally accepted environmental audit procedures.
we operate through safe technologies, facilities and operating         We will annually complete the CERES Report, which will be
procedures, and by being prepared for emergencies.                     made available to the public.

Safe Products and Services                                             disclaimer
                                                                       These principles establish an environmental ethic with criteria by which
We will reduce and, where possible, eliminate the use,
                                                                       investors and others can assess the environmental performance of companies.
manufacture or sale of products and services that cause                Companies that endorse these principles pledge to go voluntarily beyond the
                                                                       requirements of the law. The terms “may” and “might” in principles one and
environmental damage or health or safety hazards. We will              eight are not meant to encompass every imaginable consequence, no matter
inform our customers of the environmental impacts of our               how remote. Rather, these principles obligate endorsers to behave as prudent
                                                                       persons who are not governed by conflicting interests and who possess a strong
products or services and try to correct unsafe use.                    commitment to environmental excellence and to human health and safety. These
                                                                       principles are not intended to create new legal liabilities, expand existing rights
                                                                       or obligations, waive legal defenses, or otherwise affect the legal position of any
                                                                       endorsing company, and are not intended to be used against an endorser in any
                                                                       legal proceeding for any purpose.

“ Success                              is the sum of small            efforts
                                                                                  — repeated day in and day out.

                                                                                                              robert collier
                                 a p p e n d i x t w o — s i g n i f i c a nt com pa n y ch a n g e s

1995                                                                 1997
On March 31, 1995, the registrant’s mortgage-banking sub-            On January 7, 1997, the registrant completed the acquisition of
sidiary acquired a $10 billion residential mortgage-servicing        Boatmen’s Bancshares, Inc.
portfolio from Source One Mortgage Services Corporation.
                                                                     During 1997, the corporation sold a number of business units
On March 31, 1995, the registrant’s mortgage banking subsid-         acquired as a result of its acquisition of Boatmen’s Bancshares,
iary acquired the residential mortgage-servicing business of         Inc., including Boatmen’s corporate and institutional trust and
KeyCorp Mortgage, Inc., from KeyCorp and Key Bank of New York.       stock transfer businesses, relocation management business,
                                                                     insurance premium financing business and an escrow services
The registrant formed MECA Software LLC and, on June 30,
1995, MECA purchased MECA Software, Inc. and its “Managing
Your Money” software for an aggregate purchase price of              On October 1, 1997, the corporation completed the acquisition
approximately $35 million.                                           of Montgomery Securities, Inc., an investment banking and
                                                                     institutional brokerage firm.
On December 4, 1995, the registrant completed the sale of the
portion of its corporate trust business that deals with bond         On October 1, 1997, the corporation also acquired Robertson
servicing and administration to The Bank of New York.                Stephens & Company Group, an investment banking and
                                                                     investment management firm.
On December 13, 1995, the registrant completed the acquisi-
tion of Intercontinental Bank.
On December 21, 1995, the registrant completed the acquisi-
                                                                     On January 9, 1998, the corporation completed its merger with
tion of North Florida Bank Corporation.
                                                                     Barnett Banks.

1996                                                                 On August 31, 1998, the corporation sold the investment
                                                                     banking operations of Robertson Stephens.
On January 9, 1996, the registrant completed the acquisition of
Bank South Corporation.                                              On September 30, 1998, the merger between BankAmerica
                                                                     and NationsBank corporations was completed, creating
On January 10, 1996, the registrant completed the acquisition
                                                                     Bank of America.
of CSF Holdings, Inc.

On January 31, 1996, the registrant completed the acquisition        1999
of Sun World.
                                                                     On February 26, 1999, the corporation sold the investment
On April 29, 1996, the registrant, through NationsCredit             management operations of Robertson Stephens.
Commercial Corporation, its wholly owned, indirect subsidiary
engaged primarily in the commercial financial services business,
completed the acquisition of LDI corporation.

On May 24, 1996, the registrant completed the acquisition of
Charter Bancshares, Inc.

On August 13, 1996, the registrant completed the acquisition of
TAC Bancshares, Inc., and its subsidiary, Chase Federal Bank FSB.

On August, 31, 1996, the registrant acquired aggregate
deposits of approximately $970 million from Bluebonnet
Savings Bank, FSB.                                                                                                                      28
Although the merger of BankAmerica Corporation and

NationsBank Corporation was completed in 1998, transition

activities continued through 1999. Data in this report for

1999 have been normalized using the best estimates available.

If information was unavailable to make a good estimate,

the data baseline is for the current year only.

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