Story at a glance

  • JPMorgan announced a new plan to help clients invest sustainably by tracking emissions data within financial portfolios.
  • The plan aligns with the goal of the Paris Agreement.

One of the world’s leading financial institutions, JPMorgan, has joined its corporate counterparts in adopting a long-term plan to commit to overhauling its business practices to help halt climate change. 

Announced on Oct. 6, the bank said that it will be adopting a climate plan in accordance to the Paris Agreement, a global commitment outlined by the United Nations that aims to reduce the emissions of greenhouse gases in the atmosphere and stop the harmful effects of climate change.

More companies have taken steps to reduce their carbon footprint following President Trump taking steps to remove the U.S. from the Paris Agreement in 2017.


READ MORE LIKE THIS FROM CHANGING AMERICA

POLL FINDS 7 OF 10 VOTERS FAVOR STRONG GOVERNMENT ACTION ON CLIMATE CHANGE

ICE IN BERING SEA HITS LOWEST LEVEL IN THOUSANDS OF YEARS

ANTARCTIC GLACIER RETREATED 3 MILES IN 22 YEARS

10 THINGS WE CAN ALL DO ABOUT CLIMATE CHANGE


Part of JPMorgan’s plan includes helping its clients make environmentally responsible financial decisions, particularly by including information on the carbon impact their business decisions have. This stems from a lack of greenhouse gas emissions data that accompany new technologies and investments.

To help the firm reach these goals, JPMorgan is creating its Center for Carbon Transition to help clients transition to sustainable financing. This will rely on data reporting that tracks the emissions for each client’s fiscal portfolio. 

One of the tangible goals JPMorgan has set is to establish emission targets for 2030 for its financial portfolio, disclosing those efforts by 2021. It will focus on reducing emissions within sectors like oil and gas, electric power, and automotive manufacturing.

“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,” Daniel Pinto, the co-President of JPMorgan Chase and CEO of its Corporate & Investment Bank, said in a press release. “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.”

By reducing the greenhouse gas emissions in its financial portfolio and shifting toward environmentally friendly investing, JPMorgan will help advance the goal of the Paris Agreement, and aims to reach net-zero emissions by 2050 with additional investment in green technologies. 

Prior to this commitment, JPMorgan previously dedicated $200 billion in financing to sustainable projects. The pledge comes from a larger movement for powerful and wealthy institutions to divest from fossil fuels in the form of stocks, funds and bonds. 


READ MORE LIKE THIS FROM CHANGING AMERICA

WE DON’T BELONG ON MARS, WE HAVEN’T LANDED ON EARTH YET

HALF THE WORLD’S SANDY BEACHES COULD BE WASHED AWAY BY CLIMATE CHANGE

SAVE THE ENVIRONMENT AND SAVE AMERICA’S SOUL

THE GREENLAND ICE SHEET IS MELTING TO A POINT OF NO RETURN: STUDY

Published on Oct 07, 2020