Keybank Announces $40 Billion Investment In Communities Including Affordable Housing, Economic Inclusion, And Climate Change Funding Commitments
Building on early fulfillment of its groundbreaking $16.5 billion Community Benefits Plan, KeyBank today announced it will increase its commitment to $40 billion. The investments will continue focus on economic access and equity for underserved communities and populations.
Launched in 2017, the National Community Benefits Plan surpassed its $16.5 billion goal in 2020 by delivering more than $18 billion in lending and investments across its footprint. This includes $530 million of investments throughout Connecticut and Massachusetts supporting small business and home lending in low- and-moderate income communities, affordable housing and community development projects, and philanthropic efforts targeted toward education, workforce development, and safe, vital neighborhoods.
Highlights from the first four years of community investment in Key’s Connecticut and Massachusetts market include (as of 12/31/20):
• KeyBank invested more than $258 million in affordable housing and community development projects, such as the St. Martin Townhouses in New Haven, Westbrook Village Apartments in Hartford, and Lyman Terrace Apartments in Holyoke, MA.
• KeyBank originated $99 million in small business loans to businesses that are part of low- and-moderate income communities.
• KeyBank provided $169 million in mortgage lending to low- and moderate-income communities.
• KeyBank made $3.79 million in transformational philanthropic investments in neighborhoods through grants to nonprofit organizations, including Connecticut Center of Arts & Technology (New Haven), New Haven Works, Hartford Promise, Governor’s Prevention Partnership, The Workplace (Bridgeport), Stamford Boys & Girls Club, Wayfinders (Springfield MA), and Mass Mentoring Partnership (Boston).
Through its expanded commitment, KeyBank’s aggregate investments nationwide under the Community Benefits Plan will include:
• $36 Billion – Economic Equity & Inclusion – KeyBank will continue its commitment to providing affordable housing, mortgages, small business lending, and transformative philanthropy throughout the markets where it does business. In addition, KeyBank plans to support homeownership by investing in down payment assistance.
From hiring and career development to increasing spend with diverse suppliers, KeyBank will continue its longstanding focus on diversity, equity, and inclusion inside and outside of the company. KeyBank will also build partnerships with CDFIs focused on serving minority-owned businesses and will develop and deliver financial education in minority and LMI communities.
• $4 Billion – Renewable Energy & Sustainability – Since 2012, KeyBank has made more than $15 billion in renewable energy investments and was a top provider of renewable energy financing in North America in 2019 and 2020. The updated commitment will include this long-standing focus to increase KeyBank’s renewable energy financing, as well as accelerating Key’s efforts to reduce the company’s environmental footprint.
KeyBank also announced it has received its 10th consecutive “Outstanding” rating from the Office of the Comptroller of the Currency for reaching the highest standards of the Community Reinvestment Act (CRA). The Community Reinvestment Act requires banks to meet the credit needs of low- and moderate-income (LMI) communities across America. KeyBank is one of the only U.S. national banks to be rated “Outstanding” by the OCC for ten consecutive review periods, since the Act’s passage in 1977.
To implement the Community Benefits Plan, KeyBank will work with community leaders and organizations to develop specific plans for each market it serves across 15 states. For more information on KeyBank’s more than $40 billion National Community Benefits Plan, log on to Key.com/Community.
Chris Gorman
Chairman, Chief Executive Officer, and President, KeyCorp
“Corporate citizenship matters; it matters for our communities, for our clients, and for our colleagues. Delivering on the commitments of our Community Benefits Plan has brought access to capital for neighborhoods and neighbors who have often faced unfair barriers to financial support. Receiving a tenth consecutive ‘Outstanding’ rating for exceeding the requirements of the Community Reinvestment Act serves as affirmation that KeyBank’s approach is the right one- but we recognize the work isn’t finished.”
“Doing our part to address social justice and racial equity, increasing environmental concerns, and an international pandemic with disproportionate impact on low- and moderate-income communities is both an opportunity and an obligation. Creating shared value with the communities we serve means facing head on the issues we have long been working to address. These systemic issues must be addressed collectively – inside and outside our company – to drive the outcomes we want to create.”
Greg Jones
Chief Diversity, Equity, and Inclusion Officer, KeyCorp
“While 2020 has brought significant challenges to our communities and a collective awakening about the injustices people of color face every day in America, these challenges have presented each of us with opportunities to take action and influence change. Through the National Community Benefits Plan, we are committed to addressing these issues in ways that provide both comprehensive and sustainable social, racial, and economic solutions. Whether it is providing access to affordable housing, supporting local small businesses, or increasing representation within KeyBank’s executive ranks, the extended Plan is designed to build upon our strong foundation and create lasting change in our communities.”
James Barger
Market President, Connecticut and Massachusetts
“KeyBank has a long-standing commitment to the Connect and Massachusetts market. We live and work in the communities we serve and have a proven track record of helping clients and communities thrive. KeyBank will work closely with local leaders and organizations across Connecticut and Massachusetts to develop comprehensive solutions to the pressing issues of economic disparity, racial equity, and climate change.”
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About KeyCorp
KeyCorp’s roots trace back 190 years to Albany, New York. Headquartered in Cleveland, Ohio, Key is one of the nation’s largest bank-based financial services companies, with assets of approximately $170.3 billion at December 31, 2020. Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of more than 1,000 branches and approximately 1,400 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank is Member FDIC.
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