JPMorgan Chase announced that it has joined the Net Zero Banking Alliance, joining its Wall Street peers Bank of America, Citi and Morgan Stanley in signing on to the coalition of banks dedicated to advancing global net zero goals through their financing activities.
Marisa Buchanan, Managing Director, Global Head of Sustainability at JPMorgan Chase & Co., said in a statement:
“While thoughtful policy, technology, and behavioral advancements are all prerequisites in realizing our common goals around net zero emissions by 2050, we are joining the Net Zero Banking Alliance because we support the ambition for greater climate action, the sharing of best practices and a collaborative approach between the public and private sectors to reach this goal.”
The Net Zero Banking Alliance was launched in April 2021, with a group of banks committing to align operational and attributable emissions from their portfolios with pathways to net-zero by 2050 or sooner. The alliance has already grown to over 60 banks from 30 countries representing more than $39 trillion in assets, more than a quarter of global banking assets. The coalition forms part of the Glasgow Financial Alliance for Net Zero (GFANZ), along with the Net Zero Asset Managers Initiative, the Net-Zero Asset Owner Alliance and the Net Zero Financial Service Providers Alliance.
Mark Carney, GFANZ Chair, and Financial Advisor for COP 26 for the UK Prime, tweeted:
“Banks will help fund the transition to net zero. With the world’s largest banks committing to credible, science-based targets, meeting the $100+ trillion needed for net zero is within reach. Welcome @JPMorgan to the Net Zero Banking Alliance and GFANZ.”
JPMorgan’s Net Zero Banking Alliance membership follows a series of moves by the bank to incorporate climate considerations in its business activities. In October 2020, the bank committed to align its financing activities with the goals of the Paris Agreement, and to help clients navigate the challenges and capitalize on the long-term economic and environmental benefits of transitioning to a low-carbon world. Earlier this year, the company unveiled a series of interim carbon intensity targets for several high-emitting sectors that it finances, including Oil & Gas, Electric Power and Auto Manufacturing. In April, JPMorgan announced a goal to facilitate $2.5 trillion of sustainable finance over the next ten years, earmarking $1 trillion for green initiatives that support climate action, with the goal of accelerating the deployment of solutions for cleaner sources of energy and facilitating the transition to a low-carbon economy.
“Climate change is a critical issue of our time, and we are committed to doing our part to address it.”