JPMorgan joins Net-Zero Banking Alliance

JPMorgan Chase & Co. signed a pledge to align its lending and investment portfolios with net-zero emissions by 2050, joining more than 40 rival financial firms in the Net-Zero Banking Alliance.

Companies including Morgan Stanley, Citigroup Inc. and UBS Group became part of the alliance when it started in April. The group represents the banking element of the Glasgow Financial Alliance for Net Zero, led by former Bank of England Governor Mark Carney.

“Climate change is a critical issue of our time, and we are committed to doing our part to address it,” Marisa Buchanan, JPMorgan’s global head of sustainability, said in a statement Friday. 

The banking industry has been criticized for contributing to the climate crisis by providing financing to the oil and gas sector. JPMorgan is the No. 1 arranger of bonds for fossil-fuel companies this year and also ranks as the leading underwriter of green bonds, according to data compiled by Bloomberg.

JPMorgan, led by Chief Executive Jamie Dimon, said in May that it plans to report a 35% reduction in “operational carbon intensity” for its oil and gas portfolio by the end of the decade. The commitment followed the company’s announcement last year that it was aligning its financing activities with the United Nations’ Paris climate agreement.

“We are joining the Net-Zero Banking Alliance because we support the ambition for greater climate action, the sharing of best practices and a collaborative approach between the public and private sectors to reach this goal,” Buchanan said in Friday’s statement. “Thoughtful policy, technology and behavioral advancements are all prerequisites in realizing our common goals around net-zero emissions by 2050.”

[More: Climate report to add pressure on governments to decarbonize]