New Center for Carbon Transition will help clients navigate the challenges and capitalize on long-term economic and environmental benefits of a low-carbon world.
Firm commits to achieve operational carbon neutrality starting in 2020.
New York, NY, October 6, 2020 – JPMorgan Chase & Co. (NYSE: JPM) (“JPMorgan Chase” or the “Firm”) said today that it is adopting a financing commitment that is aligned to the goals of the Paris Agreement (“Paris”). As part of its strategy, the Firm intends to help clients navigate the challenges and capitalize on the long-term economic and environmental benefits of transitioning to a low-carbon world.
“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,” said Daniel Pinto, co-President of JPMorgan Chase and CEO of its Corporate & Investment Bank. “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.”
The Climate Challenge
While a growing number of companies have been working to align their business strategies to the goals of the Paris Agreement, significant challenges exist. This includes a lack of comprehensive and high-quality greenhouse gas (“GHG”) emissions data, as well as the need for robust policy solutions and new technologies.
The International Energy Agency has noted that one-third of the emission reductions needed in its Paris-aligned Sustainable Development Scenario will have to come from technologies that are not yet commercially available. While the use of lower-carbon technology is growing within the electric power and automotive sectors, currently there are not adequate commercially available solutions to replace oil and natural gas in critical applications such as long-distance transportation and heavy industry. As a result, these resources will continue to play a significant role as sources of energy.
JPMorgan Chase plans to help tackle these challenges by working with clients in key sectors to align its financing activities with the goals of Paris.