One of the world’s biggest banks – JPMorgan Chase has announced this month that it will align its financial portfolio to meet the needs of the Paris Climate Agreement, once again reinstating the urgency of united action against climate change.
The multinational financial service provider said it will principally focus on the three main sectors — the oil, gas, and electricity to begin their ambitious goal to partake in the Paris Climate Agreement that seeks to avert the scheduled rise of global temperature.
Oil, gas, electricity and automotive manufacturing are among the top sectors which contribute massively to the global share of emissions.
JPMorgan Chase works with the Fortune 500 companies and many of them are involved in the energy sector. Aligning their financial portfolio with the Paris agreement, Morgan chase will help its clients to navigate the long-term climate change goals.
“Climate change is a critical issue of our time. The goals set in the Paris Agreement are commendable and ambitious, but the world is not on track to meet them,” said Daniel Pinto, co-president of JPMorgan Chase and CEO of its Corporate & Investment Bank in a release.
“While the world has a long way to go, we at JPMorgan Chase want to do more. That means working with clients, policymakers and advocates to transition our economy and turn the goals of Paris into a reality.”
According to the firm, restrict a rise in the global average temperature, would enable them ‘to take a giant step toward a safer, greener, more sustainable future.’
But the challenges to the mission are multiferous, and there are setbacks that the company will need to topple before it can achieve the goals.
In order to meet the global net-zero emissions by 2050, an unbarred and fair access to emerging technologies will be imperative.
But these solutions are commercially and economically unavailable as of now, the company noted, which is stemming the progress.
A lack of technologically-advanced and commercially-viable climate-friendly solutions means the industries will continue to depend on oil and gas, which are major contributors to climate change.
Another hurdle the firm as a financial service provider face is the dearth of data that helps to track the progress and enable financial markets to make more informed decisions about climate risk.
These hurdles are significant, JPMorgan says, but are not insurmountable. The company will focus on the intermediate emissions target of 2030 and beginning in 2021, it will start communicating the progress.
Unless the gap of more accurate data needed to align businesses with climate goals is overcome, JPMorgan will initially depend on measuring carbon intensity and other indicators and get insights on business strategies to adopt best-practices.
The firm by itself is committed to achieve carbon-neutrality across its global presence by 2030, a move it says goes beyond its original promise to source renewable energy for its global operations.
“It has taken a global pandemic to prompt dramatic changes to the way we work, live, and consume. We’re optimistic that industry and governments will harness the momentum and rise to the challenge. Our bank intends to, and our shared future depends on it,” Daniel Pinto wrote on Fortune.
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