JPMorgan Chase has released carbon targets to align its financing activities with the climate goals of the Paris Agreement.
The firm has published 2030 carbon intensity targets for the Oil & Gas, Electric Power and Auto Manufacturing sectors. It has also released its new Carbon CompassSM methodology that describes how the firm set its targets and how it will monitor progress over time.
Key aspects of its portfolio targets include:
2030 target: 41% reduction in the carbon intensity from manufacturing of new vehicles, and tailpipe emissions from such vehicles. It covers global manufacturers of light duty vehicles, such as global passenger cars and U.S. light trucks.
2030 target: 69% reduction in carbon intensity from electric power generation, which accounts for the vast majority of the sector’s climate impact. It covers companies engaged in power generation.
Oil & Gas:
2030 targets: 35% reduction in operational carbon intensity, as well as a 15% reduction in end-use carbon intensity – reflecting a decrease in emissions from the combustion of oil & natural gas downstream and increase in renewable energy generation. It covers producers of oil & natural gas, as well as refiners and integrated companies. The firm intends to work with clients to address methane leakage and flaring activity, in addition to encouraging shifts to renewable electricity to reduce operational emissions.
JPMorgan Chase has built Carbon CompassSM, a methodology that guides its approach for Paris-aligned target setting, measuring clients’ carbon intensity, evaluating ongoing progress and integrating carbon performance considerations into business decision-making. The targets are based on credible third-party energy and emissions scenarios, including the International Energy Agency’s Sustainable Development Scenario.
“There must be collective ambition and cooperation by business and government to tackle climate change,” said Jamie Dimon, Chairman and CEO, JPMorgan Chase. “Setting our Paris-aligned targets is an important step toward accelerating the transition to a low-carbon economy and meeting the goals of the Paris Agreement. JPMorgan Chase is committed to doing its part by working with clients around the world to reduce emissions and by ensuring our own operations remain carbon neutral.”