Solving climate change is a complex global challenge that will impact all sectors, including financial services. Severe climate events - combined with underlying socio-economic trends - have the potential to cause major economic disruptions that undermine the value of business assets, impact investment viability and stress business profitability. (2)
At the same time, global efforts to tackle greenhouse gas emissions are creating new opportunities. Major financial services firms anticipate value creation across a spectrum that includes asset management, investment performance, project financing, advisory services, and more. JPMorganChase sees economic potential in the low-carbon transition. Alongside internal sustainability efforts, the firm has positioned itself to help clients navigate the challenges and the benefits of a lower carbon world. (3)
Snapshot
Company overview
Leading financial services firm based in the United States with operations worldwide and over 300,000 employees.
Operational sustainability highlights
The firm has made progress around renewable electricity, energy efficiency and toward reducing scope 1 and scope 2 (direct) greenhouse gas emissions by 40% by 2030. (1) To complement its sustainability strategy, the firm has purchased carbon credits to address unabated emissions, with a plan to progressively increase procurement of permanent, high-quality carbon removals.
Carbon removal highlights
Signed agreements in 2023 intended to remove and store 800,000 tons of carbon dioxide from the atmosphere, including one of the largest ever purchases of carbon dioxide removal via direct air capture and storage (DAC + S) with Climeworks. (1)
The Challenge
Complement the firm’s ongoing emissions reduction efforts while supporting effective voluntary carbon markets.
Minimizing operational impact is a key pillar of JPMorgan Chase’s wider sustainability strategy. While the firm continues to reduce its direct operational (scope 1 and 2) emissions, it is also addressing its remaining unabated or hard to abate emissions with carbon credits.
JPMorganChase identified specific needs and value drivers for purchasing carbon credits:
Over time, JPMorganChase intends to progressively increase procurement of carbon removal with the aim of helping to accelerate and scale the development of related technologies. It will also seek to match every ton of unabated Scope 1 direct operational GHG emissions with durable carbon removal by 2030.
The firm strives to procure high-quality carbon credits, utilizing a science-based approach to carbon procurement.
JPMorganChase saw value in directly engaging with the voluntary carbon markets, including as a buyer of innovative and high-quality engineered carbon removal like Climeworks’ direct air capture solution.
The Solution
A diversified portfolio of carbon removal credits
To help speed and scale the growth and development of carbon removal technologies, JPMorganChase in 2023 signed long-term agreements to purchase over $200 million in high quality, durable carbon removal.
This included one of the largest ever purchases of direct air capture + storage services to remove 25,000 tons of carbon dioxide from the atmosphere with Climeworks
Alongside facilitating sustainable finance and supporting clients in the energy transition, within our operations, we’re first reducing emissions to minimize our environmental impact and then addressing what we can’t yet abate. Our goal is to remove and durably store one ton of CO₂ for every ton of unabated direct operational emissions by 2030. Working with partners like Climeworks supports these objectives and helps bring innovative solutions to market at scale.
Brian DiMarino, Head of Operational Sustainability
The Results
A carbon removal portfolio with multiple layers of value
A diversified portfolio of carbon removal solutions, rather than just one solution, enables JPMorganChase to align with a wider set of corporate sustainability objectives:
JPMorganChase’s carbon removal portfolio helps support a more robust voluntary carbon market. National and international bodies - including the Integrity Council for the Voluntary Carbon Market (ICVCM) and, most recently, the United States government - expect carbon removal credits to represent a greater share of the offsetting market over time. (4)
The firm’s diversified carbon removal portfolio allows JPMorganChase to support the scale-up of several innovative climate solutions by sending a strong market signal. Investing in projects via the purchase of carbon credits also provides opportunities for companies and investors to support other important objectives beyond carbon abatement, such as pollution reduction, job creation, community development and technology advancement.
Financing promising technologies needed to help accelerate the low-carbon transition requires capital and expertise. We’re working to drive scalable development of carbon removal and storage as commercial solutions and aim to send a strong market signal.
Daniel Pinto, President and Chief Operating Officer
Support clients in navigating carbon markets: through the Corporate & Investment Bank (CIB), JPMorganChase provides advice to support clients’ strategies for transitioning to a low-carbon economy, which can include purchasing and/ or generating carbon credits. The company is also expanding its capabilities to enhance liquidity through credit trading, to facilitate relationships between developers of carbon credit projects and buyers of those credits, and to develop capital in support of decarbonization, including in ways that increase the supply of high-quality credits over time. By participating in the voluntary carbon market as a buyer of high-quality carbon removal services, JPMorganChase can leverage first-hand insights to support clients.
Lead the race toward net zero
High-quality carbon removal for your climate strategy.
¹ Target is based on a 2017 baseline. JP Morgan Chase 2023 Environmental Social Governance Report.
² U.S. Department of the Treasury. Climate-related Financial Risk: 2023 Staff Progress Report.
³ JP Morgan Chase 2023 Climate Report.
⁴ US Government. Voluntary Carbon Markets Joint Policy Statement and Principles. May 2024.