On Tuesday, executives from JPMorgan Chase & Co plan on announcing new climate-change initiatives, which includes restrictions on drilling in the artic and financing coal mining projects along with a $200 billion target to provide financing for sustainable projects.
JPMorgan will detail the initiative at its investor day.
The development follows years of criticism from environmentalists for its relationships with fossil-fuel companies – a scrutiny it has sought to avoid at events such as its annual shareholder meeting, which are open to the public.
JPMorgan’s investor day is an invitation-only event.
Many big U.S. banks have also announced similar initiatives.
In a statement, JPMorgan said for 2020, it will facilitate $200 billion in transactions that “support climate action” and advance the United Nations’ sustainable development goals. These transactions will include a mix of advisory services, loans, underwriting, and investments, and will include $50 billion of financing for green initiatives, which was earmarked to count toward a 2017 target.
The bank will also stop financing for new oil and gas developments in the Arctic, and will expand restrictions on its financing of coal mining and coal-fired power.
“Their coal mining financing represented less than 1% of their overall fossil financing” in recent years, said Jason Disterhoft, a climate and energy senior campaigner with Rainforest Action Network. “We need to see much more from them, particularly in terms of phasing out their fossil financing.”
Incidentally, JPMorgan has separately asked regulators for permission to skip a vote on a shareholder resolution seeking a review of its voting on climate-related proposals put to companies in which it holds stakes. Among other things the bank has argued its board does not directly control proxy voting by its asset management division.