We're the bank for people who care what their money does in the world. When you deposit your money at Amalgamated, it supports sustainable organizations, progressive causes, and social justice. We are committed to environmental and social responsibility. We're net-zero and powered by 100% renewable energy, and we have a long, proud history of providing affordable access to the banking system, supporting immigrants and affordable housing, and being a champion of workers' rights.
If it seems like you're hearing a lot more about environmental, social and governance (ESG) issues in banking these days, it's not your imagination—the topic has rapidly gained prominence across the industry in 2021 and will likely become even more important in years to come. The growing focus on climate risk has spurred banks (and their regulators) to more closely examine their environmental exposures—how rising sea levels and changing weather patterns might affect their existing loan portfolios. They're also reconsidering their support of companies and projects that generate substantial carbon emissions. Amalgamated Bank, based in New York, is part of a consortium of banks that disclose the greenhouse gas emissions of their loans and investments. A bank executive told Lawler that close to 25% of its loan portfolio is directed toward climate solutions, and the percentage may go up. “We have a bounty of clients looking to solve the world’s problems and looking to partner with us,” the executive says.
Amalgamated Financial in New York is acquiring Amalgamated Investments Co., the parent of Amalgamated Bank of Chicago, for $98.1 million in cash. While their names and missions are similar, the two companies are not affiliated. Both companies emphasize environmental, social and governance missions, serving nonprofit organizations and unions. Together, the companies said they would also serve political organizations and philanthropies that support environmental sustainability and social enterprises. "This acquisition aligns with our disciplined strategy of pursuing accretive opportunities that allow us to expand geographically, strengthen our financial resources and increase our customer base while leveraging our unique expertise in operating as an ESG-driven bank," Priscilla Sims Brown, Amalgamated Financial's president and CEO, said in a press release Wednesday.
Amalgamated Bank yesterday announced that Keith Mestrich has informed the Board of Directors that he will step down from his positions as President and Chief Executive Officer on January 31, 2021. At that time, he will transition from a director to special advisor to the Board through July 2021. Mr. Mestrich joined Amalgamated Bank in 2012 and has served as its President and Chief Executive Officer since 2014. The Board has formed a Search Committee comprised of Lynne Fox, Chair of the Board, and four independent directors to oversee a national search process for a new CEO.