GHG Emissions, Finance, Sourcing Renewables - May 14, 2021
JPMorgan Chase Aligns Financing with Paris Agreement, Achieves Carbon Neutrality
JPMorgan Chase announced on May 13 steps it is taking to align its financing activities with climate goals of the Paris Agreement, publishing 2030 carbon intensity targets for the electric power, oil & gas, and auto manufacturing sectors last fall as part of its Paris-aligned financing commitment. The firm also announced it has achieved carbon neutrality and has established new operational goals.
“There must be collective ambition and cooperation by business and government to tackle climate change,” said Jamie Dimon, Chairman and CEO, JPMorgan Chase in a statement. “Setting our Paris-aligned targets is an important step toward accelerating the transition to a low-carbon economy and meeting the goals of the Paris Agreement. JPMorgan Chase is committed to doing its part by working with clients around the world to reduce emissions and by ensuring our own operations remain carbon neutral.”
JPMorgan Chase introduced Carbon CompassSM, a methodology for its Paris-aligned target setting, which will measure clients’ carbon intensity, evaluate ongoing progress, and integrate carbon performance considerations into business decision-making. Portfolio targets, measured against a 2019 baseline call for a series of carbon intensity reductions including 41% in the auto manufacturing section from new vehicles and their tailpipe emissions; 69% from electric power generation; and 35% from oil and gas.
With the release of its 2020 ESG Report, JPMorgan Chase also announced that the firm achieved carbon neutrality across its operations in 2020. Among the methods used to achieve this goal were improved energy efficiency by installing LED lighting systems at 4,300 branches and 50 commercial offices; and energy-efficient building management systems at over 3,400 branches; installing 30 MW of solar across 900 branches, and executing long-term renewable energy agreements, which now provide about 14% of the firm’s energy needs.
To advance sustainability in operations, JPMorgan Chase announced the following new goals:
- Reduce GHG emissions from buildings operations, branches and data centers by 40% by 2030 from a 2017 baseline.
- Satisfy at least 70% of its renewable energy goal with on-site renewable energy and off-site long-term renewable energy contracts by 2025.
- Transition its entire owned fleet of vehicles to electric by 2025.