JPMorgan Chase has announced updates to its interim funded emissions reduction targets for three carbon-intensive sectors, including oil and gas, electric power and automotive manufacturing, raising the ambition for each to align with the trajectories needed to reach 2050 achieve net zero emissions.
The updated targets were unveiled with the release of the company’s 2023 climate report, which also included 2050 net-zero targets for two new sectors, a new Scope 3 “Energy Mix” target and the first revelations about the company’s financed emissions for sectors where objectives have been set.
Financing activities typically account for the vast majority of financial institutions’ climate impact, with financed emissions often many times greater than operational emissions. The new targets are part of the company’s commitment, announced in October 2020, to align its financing activities with the goals of the Paris Agreement, and to help clients meet the challenges and benefit from the long-term economic and environmental benefits of the transition to low energy consumption. -carbon world.
JPMorgan has set its first interim 2030 funded emissions reduction targets in 2021 for the oil and gas, electricity and automotive manufacturing sectors, with the targets announced for each sector aligned with the International Energy Agency’s Sustainable Development Scenario, which is consistent with the Paris Agreement. and targets to achieve net zero emissions by 2070.
In the new climate report, the company revealed that it has revised these targets with new targets to align with the IEA’s Net Zero Emission by 2050 Scenario (IEA NZE), a more ambitious standard that encompasses the necessary energy market transformation required to achieve the global goal. to achieve net zero emissions by 2050. For example, JPMorgan’s target for automotive production has been revised to a 48% reduction in tank-to-wheel emissions intensity by 2030, from the previous target of 41%.
JPMorgan also introduced two new NZE-aligned IEA 2030 sector targets in its report, including a 25% emissions intensity reduction target for aluminum production and tank-to-wake emissions for shipping sector by 33%. Last year, the bank introduced BEN-aligned targets for the Aviation, Iron and Steel and Cement sectors.
In addition to the new and revised targets, JPMorgan also announced a change to its oil and gas target, expanding the focus from its previous ‘Oil and Gas End Use’ target to a new ‘Energy Mix’ target, which now also includes a zero carbon target includes. power generation activity from the company’s Electric Power portfolio. The new target is also in line with the IEA’s more ambitious NZE scenario, aiming for a 36% reduction in emissions intensity by 2030 for the new category. In its report, JPMorgan explained the rationale behind the change, writing:
“We believe this updated target better reflects the shift in the fuel mix of the global energy complex and balances the tradeoffs between fossil fuel-based and low-carbon energy sources to achieve net zero emissions by 2050. Our approach enables further engagement with our oil and gas customers on their Scope 3 decarbonization plans, while also accelerating our financing of carbon-free energy generation, and enabling us to meet the needs of to balance energy transition with energy security concerns.
The report also provides, for the first time, information on JPMorgan’s absolute funded issues for the sectors for which the bank has set targets, including issues for both its lending and capital markets activities. The announcement shows that the new Energy Mix category accounts for by far the largest share of JPMorgan’s Scope 3 footprint, with absolute financed emissions of 179.5 million tonnes of CO2e, well ahead of the number 2 electric energy category with 34.2 million CO2e.
click here to access JPMorgan Chase’s 2023 Climate Report.