Rajan Wilcox
JPMorgan Chase & Co. (JPMC) is the world's largest banker of fossil fuels, having invested over $316 billion in the fossil fuel industry from 2016 to 2020. Despite pledging to reach net-zero emissions by 2050 and joining the UN's Net-Zero Banking Alliance, JP Morgan has been criticized for its continued financing of fossil fuel expansion and human rights violations. With a recent climate report showing a lack of urgent action, JP Morgan Chase's commitment to net-zero has been questioned, and the company is facing pressure to align its practices with the Paris Climate Agreement and address the climate crisis.
| Characteristics | Values |
|---|---|
| Amount invested in fossil fuels from 2016-2019 | $250 billion |
| Amount invested in fossil fuels from 2016-2020 | $316 billion |
| Amount invested in fossil fuels from 2016-2022 | $434 billion |
| Fossil fuel expansion finance higher than Citi by | 43% |
| Fossil fuel finance higher than Wells Fargo by | 36% |
| Fossil fuel lending higher than next highest bank by | 63% |
| Fossil fuel finance for expansion projects | Yes |
| Indigenous rights violations | Yes |
| Joined UN's Net-Zero Banking Alliance | Yes |
| Committed to reducing carbon financing | Yes |
| Committed to reducing carbon financing and investment activities | Yes |
| Mid-term carbon reduction goals for clients | Yes |
| Net-zero emissions pledge by | 2050 |
| Phasing out fossil fuel clients | No |
| Phasing down finance for fossil fuels | No |
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What You'll Learn
- JPMorgan Chase is the world's biggest fossil fuel financier
- Chase has financed fossil fuel expansion projects that violate human rights
- Chase has released a new fossil fuel policy and cut back its funding of coal
- JPMorgan Chase has pledged to reach net-zero emissions by 2050
- Chase is the largest financier of fossil fuel expansion
JPMorgan Chase is the world's biggest fossil fuel financier
JPMorgan Chase is the world's biggest financier of fossil fuels, investing hundreds of billions of dollars into the industry. Since the Paris Climate Agreement went into effect in 2016, the bank has channelled over $316 billion into fossil fuels, with one source placing the figure at a staggering $434 billion. This makes JPMorgan Chase the world's largest banker of fossil fuels, outpacing competitors like Wells Fargo and Citi by a significant margin.
The bank has a history of funding fossil fuel expansion projects that have detrimental effects on the environment and violate human rights, particularly Indigenous rights. Despite recent efforts to address these concerns, including a new fossil fuel policy in February 2020, JPMorgan Chase's actions have been criticised as insufficient. The bank has been accused of greenwashing and inaction, with its net-zero emissions pledge by 2050 seen as disingenuous without immediate steps to halt financing for fossil fuel expansion.
JPMorgan Chase has been a significant lender to the most expansionary parts of the fossil fuel industry, including new pipelines, Arctic drilling, and deep-sea exploration. It has also backed companies like Enbridge, which has faced opposition from Indigenous nations for its attempts to build the Line 3 tar sands pipeline. The bank's financing of fossil fuels has continued even as other financial institutions have begun to distance themselves from the industry, recognising the urgent need to address climate change.
As the world's top funder of fossil fuel expansion, JPMorgan Chase faces increasing pressure from activists, environmental organisations, and the public to align its practices with the goals of the Paris Climate Agreement and respect Indigenous rights. While the bank has taken some steps towards reducing its carbon financing, it has yet to commit to a comprehensive plan to stop funding the expansion of fossil fuels. As a result, critics argue that JPMorgan Chase's actions fall short of what is necessary to address the climate crisis and protect the rights of those affected by fossil fuel projects.
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Chase has financed fossil fuel expansion projects that violate human rights
JPMorgan Chase has been criticized for its involvement in the fossil fuel industry and its impact on climate change. Chase has financed fossil fuel expansion projects, contributing to the climate crisis and violating human rights, particularly Indigenous rights.
One notable example is the bank's backing of Enbridge, a company attempting to build the Line 3 tar sands pipeline despite opposition from impacted Indigenous nations. By supporting such projects, Chase is complicit in the violation of Indigenous sovereignty and the right to require free, prior, and informed consent for developments that affect their communities.
In addition to Indigenous rights violations, Chase's financing of fossil fuel expansion has been linked to environmental destruction and climate change. The bank has invested heavily in companies like TransCanada Pipelines, ExxonMobil, and Saudi Arabian Oil, which are expanding their fossil fuel capacity. Chase's actions contradict its commitments to the Paris Climate Agreement and demonstrate a lack of urgency in addressing the climate crisis.
Environmental activists and land defenders working to address climate change, pollution, and nature loss face threats, abuse, and even violence due to the actions of companies like Chase and their fossil fuel clients. Chase's funding harms communities and devastates biospheres from the Gulf South to the Amazon, Arctic, and Appalachia.
While Chase has recently shown some signs of progress, such as scaling up financing for renewables and setting emissions reduction goals, these efforts fall short of what is needed. Chase's new "energy mix target" metric, which combines zero-carbon and fossil fuel financing, has been criticized as greenwashing. The bank must take more significant steps to align its practices with its net-zero emissions pledge and respect human rights by ending its financing of fossil fuel expansion projects.
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Chase has released a new fossil fuel policy and cut back its funding of coal
JPMorgan Chase & Co. (JP Morgan Chase) is the largest US bank and a major lender to the fossil fuel industry. In February 2020, Chase released a new fossil fuel policy and cut back its funding of coal. The bank has also stopped financing Arctic oil and gas projects. This move came as a result of pressure from supporters and partners of the Rainforest Action Network (RAN).
Despite this policy shift, Chase has been criticised for not going far enough to address the climate crisis. Between 2016 and 2020, the bank poured more than $316 billion into the fossil fuel industry, with $102 billion going towards fossil fuel expansion projects. Chase has been labelled as the "world's worst banker of climate chaos" by the Rainforest Action Network.
In October 2021, JPMorgan joined the United Nation's Net-Zero Banking Alliance, committing to reducing its carbon financing and investment activities. The bank also set mid-term carbon reduction goals for clients, including asking oil and gas clients to reduce their direct and indirect emissions.
However, critics argue that without a comprehensive plan to stop funding the expansion of fossil fuels, these commitments are inadequate. JPMorgan has been called upon to disclose its climate impact and align its lending practices with global efforts to limit heating to 1.5°C.
While JPMorgan Chase's recent moves towards reducing its funding of fossil fuels are a step in the right direction, the bank still has a long way to go to make up for its contribution to climate destruction and human rights abuses, particularly those of Indigenous peoples.
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JPMorgan Chase has pledged to reach net-zero emissions by 2050
JPMorgan Chase has been the world's largest banker of fossil fuels, pouring more than $316 billion into the fossil fuel industry from 2016 to 2020. Chase has funded fossil fuel expansion projects that have devastated the environment and violated human rights, particularly Indigenous rights.
In February 2020, Chase released a new fossil fuel policy due to pressure from supporters and partners. The company cut back its funding of coal, dumped the financing of Arctic oil and gas projects, and demoted Lee Raymond, a known climate change denier, from his leadership position on the board of directors. However, this recent climate policy falls short of what's needed to prevent a climate crisis that Chase has financed for decades.
In October 2021, JPMorgan Chase announced a pledge to reach net-zero emissions from its lending and investment portfolios by 2050 and that it would join the Net Zero Banking Alliance (NZBA). The company established its first interim 2030 financed emissions reduction targets in 2021 for the oil and gas, electric power, and auto manufacturing sectors, with the goals announced for each sector aligned with the International Energy Agency Sustainable Development Scenario, which is consistent with the Paris Agreement, and targets achieving net-zero emissions by 2070.
In November 2023, JPMorgan Chase announced updates to its interim financed emissions reduction targets for three carbon-intensive sectors: oil and gas, electric power, and auto manufacturing. The updated targets were unveiled with the release of the firm's 2023 Climate Report, which also included net-zero 2050-aligned targets for two new sectors and first-time disclosures on the firm's financed emissions for sectors where targets have been set. The company's approach allows for further engagement with its oil and gas clients on their Scope 3 decarbonization plans while also accelerating its financing of zero-carbon power generation.
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Chase is the largest financier of fossil fuel expansion
JPMorgan Chase is the world's largest financier of fossil fuel expansion. Between 2016 and 2020, the bank poured over $316 billion into the fossil fuel industry, with $102 billion of that going towards fossil fuel expansion projects. Chase's financing of fossil fuels in 2016-2019 was 36% higher than that of the second-placed bank, Wells Fargo.
Chase has been criticised for funding fossil fuel expansion projects that devastate the environment and violate human rights, particularly Indigenous rights. For example, Chase has backed companies like Enbridge, which is trying to build the Line 3 tar sands pipeline despite explicit opposition from impacted Indigenous nations. Chase has also financed methane liquefaction facilities in the US Gulf, polluting local communities and the environment without consequences.
Despite some recent efforts to address its impact on the climate, Chase's actions have been criticised as insufficient. In February 2020, Chase released a new fossil fuel policy due to pressure from supporters and partners. The policy included cutting back funding for coal and demoting a known climate change denier, Lee Raymond, from his leadership position. However, this policy falls short of what is needed to prevent a climate crisis. Chase has also 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 without a plan to stop funding the expansion of fossil fuels, these commitments are inadequate.
As the world's largest funder of fossil fuel expansion, Chase bears a significant responsibility for causing the climate crisis and must take urgent action to address its impact on the planet and people.
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Frequently asked questions
Yes, JP Morgan Chase has been the world's largest banker of fossil fuels, investing over $316 billion in the fossil fuel industry between 2016 and 2020.
JP Morgan Chase has pledged to reach net-zero emissions from its lending and investment portfolios by 2050. However, critics argue that this pledge is inadequate without a concrete plan to stop funding the expansion of fossil fuels.
JP Morgan Chase's investment in fossil fuels has been linked to climate destruction, human rights violations, and the violation of Indigenous rights. The bank has been criticized for funding fossil fuel expansion projects and companies that negatively impact the environment and communities.
