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JPMorgan Seeks To Partner With Industry On Carbon Reduction

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As part of its Paris-aligned financing commitment announced last fall, JPMorgan Chase has published 2030 carbon intensity targets for the oil and gas, electric power and auto manufacturing sectors.

JPMorgan Chase’s approach for the oil and gas industry targets a 2030 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 and natural gas downstream and increase in renewable energy generation.

This covers producers of oil and 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 will also work with clients to address end-use emissions, including by shifting to lower-carbon fuels and exploring other business diversification strategies.

To help its clients access capital needed for innovation, JPMorgan Chase announced in April 2021 a target to finance and facilitate more than $2.5tn over 10 years, including $1tn for green activities, to advance long-term solutions that address climate change and contribute to sustainable development.

JPMorgan Chase first announced its Paris-aligned financing commitment in October 2020, aiming to work with clients to drive near-term actions that help set a path for achieving net-zero emissions by 2050. As part of this effort, JPMorgan Chase also created the Center for Carbon Transition to engage with clients on sustainability-focused financing, research, and advisory solutions.

JPMorgan Chase has built Carbon Compass, 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.

Over time, the firm intends to integrate additional sectors into its Paris-aligned financing commitment. As a next step, JPMorgan Chase is analyzing target setting for the Aviation and Pulp & Paper sectors by the end of 2022.

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