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Paris-Aligned Financing Commitment
In October 2020, JPMorgan Chase announced our commitment to align key sectors of our financing portfolio with the goals of the Paris Agreement. Our commitment towards Paris-alignment is an important step toward accelerating the low-carbon energy transition and encouraging near-term actions that will set a path for achieving net-zero emissions by 2050. By working directly with clients to develop and finance their transition strategies and goals, we will help them navigate the challenges and opportunities of decarbonization and the energy transition, while also helping accelerate new technologies and business strategies.
Our commitment means we are measuring the emissions of our clients in key sectors of our financing portfolio (our “financed emissions”) and are setting reduction targets for these sector portfolios that are Paris-aligned. To start, we have developed intermediate Paris-aligned targets to reduce the carbon intensity in our Oil & Gas, Electric Power and Auto Manufacturing portfolios by 2030.
Introducing Carbon CompassSM
To set our targets and measure and track progress against them, we developed Carbon CompassSM. We built this methodology to incorporate, but also expand on, existing approaches to define robust, decision-useful and science-based metrics and targets on a sector-by-sector basis. Learn more about our targets, methodology and process here.
Sustainable Development Target
In 2020, our firm set a target to finance and facilitate $200 billion to drive action on climate change and advance sustainable development. We exceeded this target – having facilitated more than $220 billion in transactions during the year, including more than $55 billion toward green initiatives.
Now, we have raised the bar for ourselves. JPMorgan Chase aims to facilitate more than $2.5 trillion over the next 10 years to address climate change and contribute to sustainable development, including $1 trillion for green initiatives.
Our sustainable development activities are focused in three areas:
- Green: Supporting climate action, with the goal of accelerating the deployment of solutions for cleaner sources of energy and facilitating the transition to a low-carbon economy.
- Development Finance: Mobilizing capital to advance the United Nations Sustainable Development Goals (SDGs) in emerging economies.
- Community Development: Advancing economic inclusion in developed markets.
This long-term target complements the firm’s Paris-aligned financing commitment and will help accelerate the transition to a low-carbon economy by encouraging actions that set a path for achieving net-zero emissions by 2050. The target will also further the J.P. Morgan Development Finance Institution's objective to promote economic and social development.
To learn more about our criteria for determining what business activity is eligible to count toward our sustainable development target and how we account for the value of transactions, see Our Approach to Our Sustainable Development Target.
JPMorgan Chase is committed to minimizing the environmental impact of our operations. To drive progress on our operational sustainability objectives, we’ve set a number of targets:
Starting in 2020, the firm pledged to achieve and maintain carbon neutral operations annually. Our commitment includes Scope 1 direct emissions from the operation of our 5,500 corporate buildings, retail bank branches and data centers, and company-owned aircraft and vehicles, Scope 2 indirect emissions from purchased electricity and Scope 3 indirect emissions associated with business travel.
As part of our operational carbon neutrality commitment, in 2020 we achieved our goal to source renewable energy for 100% of our global power needs. We met our goal by generating and purchasing renewable energy and corresponding Energy Attribute Certificates in an amount equivalent to the total megawatt hours of electricity that our firm consumed globally throughout the year. We will continue to support the development of renewable energy, including by installing on-site renewable energy systems and executing long-term renewable energy procurement agreements.
Responsible resource and waste management are also key components of our sustainability strategy. Our focus is on reducing our water and waste footprint, coupled with responsible disposal of the waste we produce.