Our Approach to Environmental Sustainability

Company Banner

Our Approach to Environmental Sustainability

For over 200 years, JPMorgan Chase has worked to help our employees, customers and communities turn their aspirations into realities. Our longstanding commitment to integrity, fairness and responsibility continues to guide our work today as we help to power the global economy.

  • We're using our capital and expertise to assist clients around the world, who are working to transition their business model and operations to reduce emissions.

1. Scaling green solutions

Appaloosa solar energy

As a global financial institution, we are meeting the demands of customers and clients around the world that are seeking financing and strategic advice, and helping investors put their capital to work.

  • One example — our Green Economy team acted as coordinating lead arranger, committing $142 million to a series of syndicated project finance loans last year, to support the Appaloosa Solar project in Cedar City, UT, expected to provide enough clean energy each year to the equivalent of around 40,000‑45,000 Utah homes.

The Appaloosa Solar Project, owned by Greenbacker Renewable Energy Corporation and rPlus Energies, is expected to:

  • Generate approximately 500-550 million kWh of clean energy annually.

  • Support the local economy by utilizing local vendors.

  • Create around 250 jobs for its construction.

  • Generate property tax revenue for Cedar City over 35 years.

Go deeper on our $2.5 trillion Sustainable Development Target and how we're meeting demands for sustainable development.

As we expand our capabilities, we'll provide clients with more innovative solutions like these while working to grow the market for green and sustainable financing.

2. How we're meeting client needs responsibly...

Solar power

We help clients in carbon-intensive industries pursue their sustainability goals — like our work providing the Danish energy company Ørsted with diversified services across our firm to meet their needs as they have made their energy transition.

  • When Ørsted was formed, the result of a merger among six Danish energy companies, including Danish Oil & Natural Gas, their power and heat production mix was 85% fossil fuel.

  • Over a decade ago, their leadership decided to become a renewable energy company.

  • Ørsted reported carbon emissions reductions by 89% since 2006 and the share of green energy in their energy generation rose to 90% by the end of 2021.

  • At the same time, the company reported that their operating profit has almost doubled since 2007, and the share of that profit coming from renewables has increased to 98%.

The bottom line: Our collaboration with Ørsted exemplifies how JPMorgan Chase helps service the needs of clients in their transitions, whether it be through cash management, tax equity or M&A guidance.

In nearly every sector, from transportation to manufacturing, we're providing critical financing and have grown the size of the investment and commercial banking teams serving clients' carbon transition objectives.

3. ...and minimizing our own impact

JPMC building

Our state-of-the-art headquarters is expected to be New York City's largest all-electric tower with net zero operational emissions, and aims to exceed the highest industrial standards in sustainability, health and wellness.

Why it matters: The new HQ will help minimize emissions and meet the needs of our workforce decades into the future.

Our strategy to minimize the impact from our operations focuses on...

  • Optimizing how we source and use energy.

  • Reducing direct and indirect GHG emissions.

  • Enhancing resource management in both our buildings and supply chains.

We also purchase carbon credits in an effort to neutralize emissions we have not yet eliminated, and our recent commitment to purchase over $200 million of high quality carbon removals was one of the world's largest to date.

  • These agreements, intended to remove and store more than 800,000 metric tons of CO2 equivalent from the atmosphere, were intended to help speed and scale the development of high quality carbon removal technologies.

4. Expert voices informing our future

Scottsdale Action Forum

We convened CEOs, policymakers, clean-tech pioneers and investors at our first Scottsdale Action Forum, exploring ways to advance clean energy and drive economic growth while addressing energy and food security.

What we heard:

  • The world must develop energy infrastructure at a rate most people alive today have not experienced to scale clean energy while ensuring energy and food security and affordability.

  • Public support, awareness and education are necessary to enable the bipartisan agreement and regulatory reforms that are essential to facilitate infrastructure development.

  • Workforce training initiatives will play an important role in meeting increased demand for existing professions and upskilling workers for new professions.

  • Public and private actors should work together on projects in the real world — at speed and with scale.

Bold change, connection and catalytic capital are needed to meet climate goals while generating economic benefits.

Closing thought from Heather Zichal, Global Head of Sustainability:

  • "JPMorgan Chase is well positioned as a global leader for the generational opportunity that today's challenges present — forging ahead to leverage our scale, capital and expertise to support our clients and advance the transition to affordable, reliable and lower-carbon energy solutions around the world."

This newsletter is powered by Axios HQ.

To learn more about JPMorgan Chase's approach to sustainability, please visit JPMorganChase.com/impact/sustainability

If you received this email from a friend, subscribe now to receive future updates.

To unsubscribe, please click here.

© 2023 JPMorgan Chase & Co. | 383 Madison Avenue, New York, New York


Popular posts from this blog

Acquisitions or Alliances: What's Your Growth Strategy?