PNC to stop financing MTR, support renewables instead

One of the largest bank operations in Kentucky will stop financing mountaintop removal and has committed to supporting renewables.

PNC Bank, which has more deposits in Kentucky than any other bank according to the Associated Press, included the following statement in its Corporate Responsibility 2010 statement that was updated in late October.

"MTR is the subject of increasing regulatory and legislative scrutiny, with a focus on the permitting of MTR mines. While this extraction method is permitted, PNC will not provide funding to individual MTR projects, nor will PNC provide credit to coal producers whose primary extraction method is MTR. PNC will continue to monitor this industry while various regulatory issues are addressed through legislation and public policy."

In addition, the company said it is:

"... committed to supporting renewable sources of energy by funding wind and solar power activities with the expectation that one day these will become meaningful contributors to our power supply. "

PNC is the latest bank targeted by the Rainforest Action Network (RAN) and other groups to withdraw support for MTR. RAN staged an action at a PNC location in Washington, DC during Appalachia Rising in late September, and a branch location in Lexington also has been the site of a protest.

Amanda Starbucks, who directs RAN's Energy Finance Campaign, said in a blog post that she asked why the company made this new policy public. PNC responded that awareness of mountaintop removal and its impacts has been growing and that groups like RAN put the issue on their radar.

PNC's corporate responsibility policy is part of PNC's commitment to "strengthening and enriching communities in which we live and conduct business," according to CEO Jim Rohr. The decision about MTR financing also recognizes the financial risk of investing is such operations.