JPMorgan Chase, the largest lender in the United States, revealed it provided $1.29 in financing to green energy projects for every $1 directed to high-carbon energy supply in 2023.
This disclosure, a first for the bank, follows engagement with New York City Comptroller Brad Lander, who manages public pension funds and has pushed for transparency in climate-related financing.
The bank's newly released Energy Supply Financing Ratio reflects its efforts to support the energy transition by considering the capital investments of its clients, rather than just their current assets.
Financing activities included loans, debt underwriting, green bonds, and tax-oriented investments. Mixed-energy clients, such as utilities with both natural gas and renewable assets, were classified based on forward-looking data like capital expenditures.
JPMorgan, a significant funder of traditional energy firms, noted the ratio aligns with its broader commitment to finance $2.5 trillion in sustainable development by 2030, with $1 trillion earmarked for climate solutions.
The bank attributed the improved ratio to a deliberate strategy of increasing low-carbon financing, alongside reduced demand for external funding from cash-rich oil companies. “Our focus has been, and will continue to be, on scaling the technologies the world needs and supporting our clients as they adapt to a rapidly changing economy,” said Heather Zichal, JPMorgan's Global Head of Sustainability.
While no target ratio was set, the bank expressed optimism about the long-term prospects for low-carbon energy both in the U.S. and globally. This disclosure comes as international negotiations at the UN conference in Baku explore accelerating the shift away from fossil fuels.
Source: Reuters
