Jonathon Berman, jonathon.berman@sierraclub.org
New York, NY — Today, JPMorgan Chase announced a goal to finance and facilitate $2.5 trillion into climate solutions and sustainable development over the next ten years, but the bank failed to make any new commitments to reduce its financing of fossil fuels and overall climate impact.
Last October, JPMorgan Chase announced it would adopt a financing commitment “aligned to the goals of the Paris Agreement” and pledged to announce 2030 emissions targets on a sectoral basis for its financing portfolio, starting with oil and gas, electric power, and auto manufacturing. These initial targets are expected to be released this spring, though the bank has indicated that its key metric will be reductions in carbon intensity, rather than absolute emissions.
However, since the Paris Agreement was adopted in late 2015, JPMorgan Chase has provided $317 billion in fossil fuel financing ― 33% more than any other private bank in the world. In that time, JPMorgan Chase has also been the world’s largest financier of companies actively engaged in expanding fossil fuel operations. Just last week, JPMorgan Chase’s CEO Jamie Dimon, sought to excuse the bank’s continued financing of fossil fuels.
Last September, a coalition of more than 60 climate and human rights organizations around the world issued a set of Principles for Paris-Aligned Financial Institutions that details what true climate leadership from banks and other financial institutions would look like to meet the Paris Agreement’s goal of limiting global warming to 1.5°C.
Ben Cushing, Sierra Club financial advocacy campaign manager, said: “Investments in clean energy and climate solutions are good, but addressing the climate crisis cannot be a ‘both, and’ approach. If we are to complete the transition to an economy powered by 100% clean energy, then banks must end the practice of financing fossil fuels while claiming to care about achieving the goals of the Paris Agreement. We look forward to JPMorgan Chase providing 2030 targets for key energy sectors soon, but it is essential that the bank has a plan for total emissions reductions — which is the only metric that matters for the climate crisis — not just on a per unit intensity basis.”
Jason Opeña Disterhoft, Rainforest Action Network climate and energy senior campaigner, said: "The single most important thing JPMorgan Chase can do to address climate change and advance sustainable development is to phase out its fossil and deforestation financing, starting immediately. Like all carbon majors, it must cut its climate impact in line with what the science demands -- over the next ten years, that means cutting absolute global emissions in half. Activists, investors and regulators will judge its forthcoming 2030 targets against that clear benchmark."
About the Sierra Club
The Sierra Club is America’s largest and most influential grassroots environmental organization, with more than 3.5 million members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.