JPMorgan Chase announced the release of its first Green Bond Annual Report, indicating that the firm has completed the allocation of the proceeds from its inaugural green bond issue. According to the report, the firm directed the proceeds into renewable energy projects across the US, expected to enable the annual avoidance of over 4.7 million tons of CO2 emissions, with JPMorgan’s share of the projects representing more than 1.9 million tons avoided.
The bonds were issued in September 2020, in an offering co-managed by Minority and Women-Owned Business Enterprise and Service-Disabled Veteran-Owned Business firms. In August 2021, JPMorgan Chase completed its second green bond issuance, raising $1.25 billion, with proceeds expected to be allocated to green buildings and renewable energy.
According to the report, 89% of the green bond proceeds were allocated to onshore wind projects, with the remainder targeting residential photovoltaic (PV) solar systems. Key investments included a commitment of over $120 million to help finance Enel Green Power’s Diamond Vista Wind Farm in Kansas, and tax equity financing of nearly $100 million in a portfolio comprised of approximately 10,000 residential PV rooftop solar systems developed by Vivint Solar.
The renewable energy investments will hep support JPMorgan in the achievement of its sustainability goals. In May 2021, the company announced that it reached carbon neutrality in 2020, and unveiled a series of targets for its operations, including a goal to satisfy at least 70% of its renewable energy goal with on-site renewable energy and off-site long-term renewable energy contracts by 2025, and 2030 targets to cut greenhouse gas emissions from the operation of its buildings, branches and data centers by 40%, among others.
At $23.7 billion in green, social and sustainability bonds underwritten in 2020, JPMorgan Chase is a leading underwriter of sustainable bonds, and was the largest underwriter of green bonds last year. In April, the company set a sustainable finance goal to finance and facilitate more than $2.5 trillion over 10 years to advance climate action and sustainable development.