Amalgamated Bank Becomes First Public U.S. Company To Add Environmental and Societal Commitments To Corporate Organization Certificate
Shareholders approved Amalgamated’s new business purpose clause, further committing the bank to its B Corp values and ensuring business decisions consider social and environmental factors in-line with shareholder return.
It is at the very core of our commitment to our clients and communities to be America’s socially responsible bank and to lead the charge in balancing profits with purpose, which means it is essential that we take this next important step as the first public bank to amend our Organization Certificate in line with our B Corp values.
NEW YORK, July 30, 2020: As part of its continued commitment to social responsibility and sustainability, Amalgamated Bank (Nasdaq: AMAL) today announced it will become the first U.S.-based publicly traded company and the first publicly traded bank across the globe to amend its Organization Certificate to formally recognize the value of business objectives that realize standards of sustainability and public good.
Since 2017, Amalgamated Bank has been a Certified B Corporation (B Corp), committed to balancing its pursuit of profit with its pursuit of purpose by meeting the highest standards of verified social and environmental performance, public transparency, and legal accountability.
This spring, Amalgamated Bank shareholders overwhelmingly voted to approve an amendment to the bank’s Organization Certificate to include a business purpose clause and language that commits the bank to consider the impact of its decisions on various factors beyond shareholder return, including workers, customers, suppliers, community, the environment, and society.
Following the approval of Amalgamated Bank’s New Organization Certificate by the New York State Department of Financial Services, the bank is now the first U.S.-based publicly traded company and the first public bank to add these measures to its Organization Certificate.
“It is at the very core of our commitment to our clients and communities to be America’s socially responsible bank and to lead the charge in balancing profits with purpose, which means it is essential that we take this next important step as the first public bank to amend our Organization Certificate in line with our B Corp values,” said Keith Mestrich, President and CEO of Amalgamated Bank. “Even more so, we are thrilled to see the groundswell of shareholder support in this movement, which is a true testament to our long held belief that profits and purpose can, and should, go hand in hand.”
Amalgamated Bank is one of over 3,400 B Corps in the world, and one of a select few that are publicly traded. The bank’s new Organization Certificate reads that Amalgamated’s purpose while engaging in commercial banking “shall include creating a material positive impact on society and the environment, taken as a whole, from the business and operations of the Bank.”
It notes that in considering the best interest of the Bank, directors may consider what’s best for multiple stakeholders, including stockholders, employees, customers, community and society factors, local and global environment, and more.
"In order to return from an economic crisis caused by the COVID-19 epidemic, we must build a more resilient economic system led by companies that can balance profit and purpose,” said Andrew Kassoy, Co-founder and CEO of B Lab Global. "In passing this resolution, Amalgamated Bank and its shareholders have created a blueprint for other public companies to embed stakeholder consideration in their governance structure, not just a mission statement. Just like some banks followed Amalgamated’s lead in paying all workers a living wage, we hope all financial services companies, so crucial to our economic recovery, will follow their courageous leadership here and adopt stakeholder governance."
About Amalgamated Bank
For nearly a century, Amalgamated Bank has served as America’s socially responsible bank, supporting forward-thinking organizations, companies, and individuals across the country. We are an advocate for those working to make the world more just, compassionate and sustainable. Our extensive experience, financial knowledge and community of like-minded customers offer a unique set of financial tools to customers. Amalgamated is the country’s largest B Corp® bank and a proud member of the Global Alliance for Banking on Values. We don’t just have a mission. We are on a mission: to support those who support others, to invest in progressive and impactful causes and to advocate true financial opportunity for all.