In a development that is likely to have a huge impact, JPMorgan Chase & Co said, it “aims to support its clients in expanding investment in clean energy and work towards net zero-emissions by 2050”.
The potential move aligns the lender with proposals outlined in the Paris climate pact of reducing carbon dioxide.
The landmark Paris agreement has been adopted by nearly 200 countries, with the aim of limiting global warming to “well below” 2 degrees Celsius and ideally to 1.5 degrees.
“While the use of lower-carbon technology is growing within the electric power and automotive sectors,” said JPMorgan, “few options are available to replace oil and natural gas in long-distance transportation and heavy industry.”
“To track the progress towards the goals set in the Paris Agreement,” said JPMorgan it aims to evaluate its clients’ carbon footprint relative to their output and thus “provide insight into changes in performance.”
“The goals set in the Paris Agreement are commendable and ambitious, but the world is not on track to meet them,” said Daniel Pinto, co-president of JPMorgan Chase. “While the world has a long way to go, we at JPMorgan Chase want to do more.”