Commercial, GHG Emissions - October 7, 2020
JPMorgan Chase targets carbon neutrality by end of year
JPMorgan Chase announced Oct. 6 that they are committed to operational carbon neutrality starting in 2020 and will be pursuing ways to help clients reduce emissions by financing projects that have goals aligned with the Paris Agreement.
The financial institution intends to establish intermediate emissions targets for 2030 for its financing portfolio and begin sharing updates on these targets in 2021. The main industries that the company will focus on in these sustainable financing goals are oil and gas, electric power and automotive manufacturing sectors, setting targets on a sector-by-sector basis.
In addition to eliminating emissions from its corporate buildings and branches and indirect emissions like purchased electricity and employee travel, JPMorgan Chase will be launching the Center for Carbon Transition that will give clients access to a platform that helps them evaluate carbon intensity and assess sustainability-focused financing options.
“Climate change is a critical issue of our time. The goals set in the Paris Agreement are commendable and ambitious, but the world is not on track to meet them,” Daniel Pinto, co-President of JPMorgan Chase and CEO of its Corporate & Investment Bank, said in a statement. “While the world has a long way to go, we at JPMorgan Chase want to do more. That means working with clients, policymakers and advocates to transition our economy and turn the goals of Paris into a reality.”
JPMorgan Chase noted that the International Energy Agency expects that one-third of the emissions reductions needed will come from technologies that are not yet commercially available, including those within the electric power and automotive sectors. The company hopes to advocate for market-based policy solutions and the commercialization of new technologies that could help advance decarbonization across industries.