JPMorgan sets climate financing goals

US financial services company JPMorgan Chase is seeking reductions in greenhouse gas (GHG) emissions from clients in the energy and automotive sectors as it pushes to reach net-zero emissions in its financing portfolio by midcentury.

JPMorgan on 13 May unveiled a set of GHG targets for the automotive, electricity and oil and natural gas sectors, with the goal of shifting its clients away from fossil fuels and toward zero- and low-emission sources, where possible.

For the oil and gas sector, JPMorgan is aiming for a 35pc decline in operational CO2 intensity and a 15pc decrease in end-use CO2 intensity, both by 2030, from oil and gas producers as well as refiners and integrated companies. The bank said it intends to work with its clients to curb methane leakage and flaring activity, while "encouraging" the use of more renewable energy to cut GHGs from operations.

JPMorgan will also help those clients explore lower-carbon fuels and "business diversification strategies."

In the automotive sector, JPMorgan is pursuing a 41pc by 2030 reduction in the carbon intensity of new-vehicle manufacturing, as well as tailpipe emissions from new vehicles. The goal covers the bank's relations with companies that make light-duty vehicles and US light trucks, which JPMorgan will assist in hastening the adoption of electric vehicles (EVs) and, down the road, in reducing the emissions from their supply chains.

And the bank wants to cut the carbon intensity of its electricity sector clients around the world by 69pc by 2030, pushing those companies to adopt wind, solar and other low- and zero-emissions resources.

JPMorgan said it plans to set targets for other sectors. The bank is analyzing the aviation and paper industries with plans to establish goals by the end of 2022.

"We have carefully chosen our targets and put the resources in place to help our clients transition to a low-carbon world," JPMorgan chief risk office Ashley Bacon said.

For its own operations, JPMorgan set new goals, including a pledge to reduce its scope 1 and 2 emissions – those from its operations and power use – by 40pc from a 2017 baseline by 2030. The bank will also transition its entire vehicle fleet to EVs by 2025.

The company in 2020 began sourcing 100pc of its electricity from resources like wind and solar. It plans to use on-site projects and long-term contracts with off-site generators for 70pc of its renewables by 2025, relying less on renewable energy certificates (RECs) and carbon offsets than it has in recent years.

By Patrick Zemanek