JP Morgan commits to carbon neutrality, wants clients to do the same

Author: faungg's photos. License: Creative Commons, Attribution-NoDerivs 2.0 Generic (CC BY-ND 2.0)

October 7 (Renewables Now) - US investment bank JPMorgan Chase & Co (NYSE:JPM) on Tuesday pledged to establish intermediate emission targets for 2030 for its financing portfolio as it wants clients to pursue low-carbon operations.

JP Morgan said in a statement it is adopting a financing commitment that aligns to the objectives of the Paris Agreement, including a pledge to point clients towards a low-carbon future. The bank noted it will focus on the oil and gas, electric power and automotive manufacturing sectors, with the intention of setting targets on a sector-by-sector basis. It plans to start communicating about its efforts next year.

“Over time, JPMorgan Chase will aim to support companies to advance the goals of Paris, including reducing GHG [greenhouse gas] emissions and expanding investment in low- and zero-carbon energy sources and technologies,” the company statement says.

The financial services firm also committed to achieve operational carbon neutrality, beginning in 2020 already. This concerns all direct carbon emissions from JP Morgan’s corporate buildings and branches, indirect emissions from the generation of purchased electricity, and emissions from employee travel.

Meanwhile, JP Morgan is creating the so-called Center for Carbon Transition (CCT), the purpose of which is to provide clients in the Corporate & Investment Bank and Commercial Banking with centralised access to sustainability-focused financing, research and advisory solutions. The CCT will be led by Rama Variankaval, who also heads the bank’s Corporate Finance Advisory team.

JP Morgan’s next climate report, containing more details about its plans, will be published in the spring of 2021.

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