$2.5 trillion to advance climate action and sustainable development

Governments and companies worldwide are pledging to achieve net-zero emissions of greenhouse gasses, but the world is short of meeting these goals by 2050.

• A new UN Intergovernmental Panel on Climate Change (IPCC) report found that to meet the Paris Agreement’s temperature target — 1.5°C of warming above preindustrial levels — global carbon dioxide emissions would have to peak by 2025. 

Here’s the deal:

Far greater public and private sector investments are needed to scale up renewable energy technologies.

• Studies estimate climate finance must increase to $4.5 trillion annually by 2030 to meet global climate objectives.

The financial sector, in partnership with government, has a unique and important role to play in financing the transition to a low-carbon and sustainable future.

What you need to know:

JPMorganChase is targeting more than $2.5 trillion over 10 years to advance long-term solutions that address climate change and contribute to sustainable development.

• This target includes $1 trillion to support green initiatives that advance renewable energy and other innovative technologies. 

The strategy:

The firm’s Sustainable Development Target aims to grow and strengthen its business activities across three important areas:

• Green: Accelerating the deployment of solutions for cleaner sources of energy and facilitating the transition to a low-carbon economy.
• Development finance: Mobilizing capital to advance the United Nations Sustainable Development Goals (SDGs) in emerging economies.
• Community development: Advancing economic inclusion in developed markets.

“Climate change and inequality are two of the critical issues of our time, and these new efforts will help create sustainable economic development that leads to a greener planet and critical investments in underserved communities,” says Jamie Dimon, chairman and CEO of JPMorgan Chase.

The impact:

JPMorgan Chase is applying its capital and global expertise to seed, fund and scale solutions and innovations needed to address climate change and contribute to sustainable development.

• In 2021, the company financed and facilitated approximately $285 billion towards its target and more than $100 billion for green activities like renewable energy, energy efficiency and sustainable transportation.

An example: In October 2021, JPMorgan Chase acted as Joint Placement Agent on a $1 billion equity placement to capitalize a new passenger electric vehicle (EV) subsidiary for Tata Motors.

• The transaction was designed to attract investors seeking exposure to the EV segment and enable Tata Motors to accelerate its plans.

Even better:

This $2.5 trillion target complements the firm’s pledge to align key sectors of its financing portfolio with the goals of the Paris Agreement.

• The background: JPMorgan Chase was the first large U.S. financial institution to set Paris-aligned 2030 portfolio-level emission intensity reduction targets for the oil and gas, electric power and auto manufacturing sectors.

The takeaway:

The firm is committed to collaborating with a diverse range of stakeholders to create long-term solutions that advance economic inclusion, bolster sustainable development and further the transition to a lower-carbon economy.

This story was written in partnership with the Smart Brevity Studio.

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