JPMorgan Sets 2030 Emissions Targets for Polluting Industries

• Aims to cut emissions intensity of iron, steel by 31%

• Seeks cut of 29% for cement, 36% for aviation

• Emissions tied to oil & gas usage up 1%

JPMorgan had set targets to cut emissions tied to its finance and deal making in the iron and steel, cement and aviation sectors, as those emissions linked to oil and gas usage rose.

Investors and activists closely monitor JPMorgan's climate efforts as the globe transitions to a low-carbon economy. JPMorgan is the largest bank in the United States and a key financier of the fossil fuel industry.

The new sector targets imply the bank now has plans to cut emissions from all of the sectors most responsible for climate-damaging carbon emissions, following the release of targets for oil and gas, electric power, and automobiles in 2021.

The bank stated its goal to reduce emissions per tonne of crude steel produced by 31% by 2030 for iron and steel. It aims to lower costs by 29% for cement and 36% for aviation.

According to the bank, every goal was in line with the Net Zero Emissions (NZE) scenario proposed by the International Energy Agency.

Although Lucie Pinson, director of the nonprofit Reclaim Finance, praised the goals, she cautioned that "the jury is still out" on how effective they will be in achieving net-zero emissions.

Jamie Dimon, CEO of the bank, reaffirmed the need for energy security and the bank's support of the oil and gas business in a year defined by the conflict in Ukraine and increasing energy costs.

"It is a horrible idea to restrict the flow of cash needed to produce and transport fuels, especially as the war in Ukraine rages on. Oil and natural gas are still needed by the world today.

The bank provided an update on the industry's development, noting that while emissions related to the operational performance of its clients remained constant as of June 30, 2022, emissions related to the consumption of oil and gas increased by 1%.

When the most recent emissions data were collected in 2020, JPMorgan said that the increase in emissions intensity—a measure of emissions per unit of output—was caused by the bank's clients producing a higher proportion of oil than natural gas goods.

Reclaim Finance, on the other hand, claimed that the bank's report demonstrated that its oil and gas aims had "done little to modify (the bank's) unflinching support for the sector's largest fossil fuel companies."

(Source : ESG News)