Sylvie Willis
JPMorgan Chase has been criticized for its involvement in fossil fuel financing. According to reports, the bank has contributed billions of dollars to fossil fuel companies since the signing of the Paris Agreement in 2015. Despite public pressure and its recent climate report, Chase continues to face accusations of greenwashing and inaction, with critics calling for an end to its fossil fuel financing. As public awareness grows, Chase and other banks are facing increasing scrutiny for their role in the climate crisis.
| Characteristics | Values |
|---|---|
| Chase's rank among fossil fuel investors | Ranked first among the top 35 fossil fuel-funding banks |
| Amount invested in fossil fuels | $268 billion since the Paris Agreement; $316 billion between 2016 and 2020; $434 billion through 2022 |
| Fossil fuel industries funded | Coal, oil, and gas firms |
| Companies funded | Enbridge, Teck, TransCanada, ExxonMobil, and Saudi Arabian Oil |
| Projects funded | Line 3 tar sands pipeline, Frontier open-pit tar sands megamine, Keystone XL pipeline, Rio Grande LNG project |
| Action taken against climate change | Cut back funding of coal, dumped financing of Arctic oil and gas projects, joined Net Zero Banking Alliance, pledged to reach net-zero emissions by 2050 |
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What You'll Learn
- JPMorgan Chase is the world's worst banker of climate chaos
- Chase's $102 billion in finance for fossil fuel expansion
- Chase's funding of coal, oil and gas firms
- Chase's $268 billion contribution to fossil fuels since the Paris Agreement
- Chase's $316 billion investment in the fossil fuel industry from 2016 to 2020
JPMorgan Chase is the world's worst banker of climate chaos
JPMorgan Chase has been labelled the world's worst banker of climate chaos. Since the Paris Agreement was signed in 2015, the bank has channelled $268 billion into coal, oil and gas firms. This is a staggering amount, but it is not the only shocking statistic. In 2023 alone, JPMorgan Chase financed $434 billion for the fossil fuel industry, and it has also been the largest financier of fossil fuel expansion.
The Rainforest Action Network has been particularly vocal in its criticism of JPMorgan Chase, citing the bank's funding of fossil fuel expansion projects that devastate the environment and violate human rights, especially Indigenous rights. JPMorgan Chase has backed companies like Enbridge, which is attempting to build the Line 3 tar sands pipeline, despite explicit opposition from impacted Indigenous nations. The bank has also invested in at least three companies that drill for oil in the Amazon rainforest, causing devastating impacts on local communities and the rainforest ecosystem.
In response to public pressure, Chase released a new fossil fuel policy in February 2020, reducing its funding of coal and ending its financing of Arctic oil and gas projects. However, this has been criticised as insufficient, with Chase's economists warning of "catastrophic consequences" if emissions are not drastically reduced in the next 30 years.
In 2021, JPMorgan Chase announced a pledge to reach net-zero emissions from its lending and investment portfolios by 2050, but this has been met with scepticism due to a lack of evidence of changing financing practices. The bank's 2023 Climate Report has been described as greenwashing, with critics arguing that it falls far short of the urgent action needed to address the climate crisis.
JPMorgan Chase's actions, or lack thereof, have significant implications for the environment, communities, and the planet as a whole. As the world's worst banker of climate chaos, the bank has a responsibility to take meaningful steps towards ending its financing of fossil fuels and mitigating the impacts of climate change.
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Chase's $102 billion in finance for fossil fuel expansion
JPMorgan Chase has been the world's largest banker of fossil fuels, contributing more money towards fossil fuel industries than any other bank. According to a report by Forbes, JPMorgan Chase put a total of $268 billion into coal, oil and gas firms in the four years since the signing of the Paris Agreement in 2015. In 2023, JPMorgan Chase committed $40.8 billion to fossil fuel companies, retaining its position as the #1 fossil fuel financier in the world.
JPMorgan Chase's $102 billion in finance for fossil fuel expansion is 43% higher than that of Citi, which is in second place. Chase has consistently funded fossil fuel expansion projects that damage the environment and violate human rights, especially Indigenous rights. For instance, Chase and other banks backed Enbridge, which is trying to build the Line 3 tar sands pipeline despite explicit opposition from impacted Indigenous nations.
In February 2020, Chase released a new fossil fuel policy due to pressure from RAN supporters and partners. Chase has cut back its funding of coal, ended its financing of Arctic oil and gas projects, and demoted Lee Raymond, a climate change denier, from his leadership position on the board of directors. However, this recent climate policy is insufficient to prevent a climate crisis that Chase has financed for decades.
In 2021, JPMorgan Chase announced a pledge to reach net-zero emissions from its lending and investment portfolios by 2050 and to join the Net Zero Banking Alliance (NZBA). However, critics argue that without a plan to stop funding the expansion of fossil fuels, such commitments are inadequate.
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Chase's funding of coal, oil and gas firms
JPMorgan Chase has been criticized for its funding of coal, oil, and gas firms. According to a report by Forbes, the bank has contributed $268 billion to these industries over the last four years, making it the top contributor among 35 banks that have collectively invested $2.7 trillion in fossil fuel companies since the signing of the Paris Agreement in 2015. This has led to protests outside Chase Bank branches and calls for the bank to take responsibility for its role in the climate crisis.
In response to these criticisms, JPMorgan Chase has announced plans to expand its commitment to low-carbon and clean energy. The bank has stated that it will increase restrictions on financing for coal mining, coal-fired power, and Arctic oil and gas projects. However, some activists argue that these efforts fall short of what is needed to address the climate crisis. For example, JPMorgan Chase's new fossil fuel policy does not include a complete halt to funding fossil fuel expansion projects that violate human rights and contribute to environmental degradation.
One of the most controversial projects backed by JPMorgan Chase is the Keystone XL pipeline, which would transport tar sands from Alberta, Canada, to the Gulf of Mexico. This project has faced fierce opposition from Indigenous people, farmers, and scientists who argue that it would have devastating consequences for the climate. Despite this, the pipeline company, TC Energy, has been Chase's single biggest fossil fuel client, receiving 6.7% of all of Chase's energy financing.
In addition to the Keystone XL pipeline, JPMorgan Chase has also funded Enbridge's Line 3 tar sands pipeline, which would double the capacity of current pipes and reroute them through land sacred to Ojibwe bands and other Indigenous groups. This project has similarly sparked protests and concerns about the violation of Indigenous rights and the destruction of the environment.
While JPMorgan Chase's lending to the oil and gas industry is vast, it reportedly only accounts for about 7% of its business. This suggests that the bank has the capacity to transition away from funding fossil fuels and towards more sustainable investments. As public pressure mounts and the impacts of the climate crisis become increasingly evident, there are growing calls for JPMorgan Chase and other banks to take decisive action to align their practices with the goals of the Paris Agreement and protect the planet.
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Chase's $268 billion contribution to fossil fuels since the Paris Agreement
Chase has been a major contributor to the fossil fuel industry, with investments totalling $268 billion since the Paris Agreement in 2015. This makes it the world's largest banker of fossil fuels, with its investments in coal, oil, and gas firms far exceeding those of other banks. According to the Banking on Climate Change 2020 report, Chase has consistently invested in projects that harm the environment and violate human rights, particularly Indigenous rights.
In response to public pressure, Chase released a new fossil fuel policy in February 2020, reducing its funding for coal and Arctic oil and gas projects. Despite this, Chase's recent climate policy has been criticised as inadequate to address the climate crisis. Chase has also been accused of greenwashing, with its net-zero emissions pledge by 2050 being seen as disingenuous without an immediate end to financing fossil fuel expansion.
Since the Paris Agreement, Chase has continued to finance the most climate-damaging fossil fuel practices. In 2023, Chase was the top funder of fracking, committing $6 billion, and provided $122 million for oil and gas projects in the Arctic. Chase was also among the worst funders of tar sands extraction and fracked oil and gas, contributing to the degradation of sensitive biomes.
In total, Chase has financed fossil fuels with over $316 billion from 2016 to 2023, making it the worst banker of climate chaos. Chase's investments have fuelled climate destruction and contributed to the greatest threat to the global economy. As a result, Chase has faced protests and calls for it to defund climate change and align its financing with the Paris Climate Agreement.
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Chase's $316 billion investment in the fossil fuel industry from 2016 to 2020
JPMorgan Chase has been the world's largest banker of fossil fuels, investing over $316 billion in the fossil fuel industry from 2016 to 2020. This is a significantly larger amount compared to other banks, with Chase's financing of fossil fuels being 36% higher than the second-placed bank, Wells Fargo. Chase has also provided $102 billion in finance for fossil fuel expansion, which is 43% higher than that of Citi, the next highest investor.
As a result, Chase has faced criticism and pressure from environmental organisations and activists, who have called for the bank to stop funding the expansion of fossil fuels and to take responsibility for the climate destruction it has fuelled. In February 2020, due to this pressure, Chase released a new fossil fuel policy, cutting back its funding of coal and ending its financing of Arctic oil and gas projects. Despite these changes, critics argue that Chase's actions are insufficient to prevent a climate crisis and that the bank must end its financing for fossil fuel expansion immediately.
In addition to its investments in coal, oil, and gas firms, Chase has also been criticised for its funding of Russian gas and oil companies, such as Gazprom, which is majority-owned by the Russian government. This has led to accusations that Chase is complicit in the climate crisis and is funding war efforts.
In response to the growing concerns and pressure, JPMorgan Chase has pledged to reach net-zero emissions from its lending and investment portfolios by 2050 and has joined the Net Zero Banking Alliance (NZBA). However, critics argue that this pledge is inadequate without a concrete plan to stop funding the expansion of fossil fuels.
Overall, Chase's $316 billion investment in the fossil fuel industry from 2016 to 2020 has made it the world's largest banker of fossil fuels, and the bank is now facing increasing pressure to align its practices and policies with its net-zero commitments.
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Frequently asked questions
Yes, Chase has contributed $268 billion to coal, oil and gas firms since the Paris Agreement.
Chase is the world's biggest banker of fossil fuels. In total, the world's biggest banks have put $2.7 trillion into those industries since the 2015 Paris Agreement.
Chase has provided funding to fossil fuel companies like TransCanada Pipelines, ExxonMobil, Saudi Arabian Oil, Enbridge and Teck.
Chase has pledged to reach net-zero emissions from its lending and investment portfolios by 2050 and has joined the Net Zero Banking Alliance (NZBA). However, critics argue that this pledge is inadequate without a plan to stop funding the expansion of fossil fuels.
Public pressure and regulatory action can play a role in pushing Chase to stop investing in fossil fuels. Individuals can participate in protests and support organisations like the Rainforest Action Network and the Sierra Club, which are working to hold banks accountable for their climate commitments.
