JPMorgan sets climate targets for financing in energy, auto sectors

US investment bank JPMorgan Chase & Co (NYSE:JPM) has set 2030 carbon intensity targets for its involvement in three sectors.

The targets concern the bank's financing portfolios in the oil and gas, electric power and auto manufacturing sectors and are set against a 2019 baseline.

JPMorgan will pursue a 69% reduction in carbon intensity from power generation by working to speed up the sector's transition to green sources such as solar and wind.

In its auto manufacturing portfolio, the bank will aim to achieve a 41% reduction in the carbon intensity from the production of new vehicles and their tailpipe emissions. It said it will work with clients to support the shift to electric vehicles, and quantify and address supply chain emissions.

For oil and gas, the target is a reduction of operational carbon intensity by 35% and end-use carbon intensity by 15%.

JPMorgan plans to include more sectors in its Paris Agreement-aligned financing commitment, which was announced in October 2020. By the end of next year, the aviation and pulp and paper sectors may be added.

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

JPMorgan also announced on Thursday it has achieved carbon neutrality across its operations in 2020 through measures such as improved energy efficiency, on-site solar and a partnership on a 108-MW wind farm. It has also set new sustainability targets, including cutting greenhouse gas emissions from its buildings, branches and data centres by 40% by 2030, compared to 2017, and a move to an electric fleet by 2025.

In April, the bank said it aimed to finance and facilitate more than USD 2.5 trillion (EUR 2.1trn) over 10 years to support the fight against climate change and sustainable development activities. This includes USD 1 trillion for green initiatives.

(USD 1 = EUR 0.828)

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