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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
JPMorgan Chase set a target to finance and facilitate more than $2.5 trillion over 10 years – from 2021 through the end of 2030 – to advance long-term solutions that address climate change and contribute to sustainable development. In 2021, our Firm financed and facilitated approximately $285 billion towards the Target. Across our three objectives, 41% went towards development finance, 37% towards green, and 22% towards community development. In this section we discuss our progress in each objective through December 31, 2021.
Our Sustainable Development Target aims to grow and strengthen our business activities across three important areas:
- Green: Accelerating the deployment of solutions for cleaner sources of energy and facilitating the transition to a low-carbon economy. Our goal is to facilitate $1 trillion in this area alone, through a wide range of activities including underwriting green bonds, lending to support construction of sustainable infrastructure and raising capital for innovative clean technology companies.
- Development Finance: Mobilizing capital to advance the United Nations Sustainable Development Goals ("SDGs") in emerging economies. The J.P. Morgan Development Finance Institution ("JPM DFI") works to assess the anticipated development impact of transactions with the goal of attracting institutional investors interested in environmental and socioeconomic impact in developing countries.
- Community Development: Advancing economic inclusion in developed markets. We are working to bolster inclusive growth by supporting areas such as small business, homeownership, affordable housing, education and health care, with a focus on low-to moderate income ("LMI") individuals and communities, as well as Black, Hispanic and Latino individuals and communities. This includes many of the actions we are taking as part of our five-year, $30 billion Racial Equity Commitment.
To learn more about the criteria for determine what business activity is eligible to count towards the target, 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 committed to achieve and maintain carbon neutral operations annually. Our commitment includes Scope 1 direct emissions from the operation of our more than 6,000 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 aim to continue to support the development of renewable energy, including by installing on-site renewable energy systems and executing long-term renewable energy procurement agreements. To build on our commitment to carbon neutral operations, in 2021 we announced a new target to reduce our Scope 1 and Scope 2 (location-based) emissions by 40% by 2030 versus a 2017 baseline.
Responsible resource and waste management are also key components of our sustainability strategy. We are focused on reducing our water and waste footprint, along with appropriately managing the waste we generate.
2021 Environmental Data