J.P. Morgan vows $2.5 tn for sustainable development

The US banking giant will bolster its sustainable development financing through to the end of the decade, including $1 trillion for green initiatives.

J.P. Morgan Chase & Co estimates that the allocation of capital needed to fund the net zero transition is around $150 tn.

In its recently released Environmental Social Governance Report 2023, the firm laid out its sustainable finance flows, as well as internal diversity and inclusion metrics for staff and management.

Its achievements so far include a 15% reduction in Scope 1 and Scope 2 greenhouse gas emissions compared to 2019 levels, towards the goal of carbon neutrality by 2030.

In 2023 the firm invested over $200 billion towards green financing initiatives, including clean energy projects and green bonds, as well as $120 bn towards development finance.

Fund flows to community development programs reached over $500 million, focusing on affordable housing and SME support in underserved communities.

J.P. Morgan aligned its oil and gas target with the International Energy Agency's net zero by 2050 target - by including a greater energy mix.

It updated its auto manufacturing, electric power and oil and gas operational emissions intensity reduction targets to align with net zero by 2050. It also added two sectors - shipping and aluminium.

The firm also included self-reported data from its more than 309,000 employees globally.

On the gender equity front, the bank achieved 49% women employees globally, including 45% women directors, and 28% senior level employees.

The firm reported on its US race/ethnicity data. It reported higher ethnic and racial diversity amongst lower-level employees, with higher-level staff being overwhelmingly white.

43% of US employees self-identified as white. However, in senior management, and on the board of directors, that figure sits at 75% and 82% respectively.

CEO and chair Jamie Dimon said in a statement that the firm was dedicated to sustainability and inclusive economic growth despite the political and economic headwinds of the past 12 months.

"We believe that economic growth, energy security and sustainability are interconnected.

"In 2023, amidst ongoing global uncertainty, we continued to support energy security and the ongoing transition to low-carbon energy sources."