June 18, 2024

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Jamie Dimon takes a stand by signing JPMorgan up as the first big bank to reveal a key clean energy metric to investors

2 min read

The dean of Wall Street CEOs is green. JPMorgan Chase today struck an agreement with three New York City pension funds with investments in the bank valued at $478 million to disclose the ratio of its clean energy to fossil fuel financing. According to the NYC funds, the metric will give investors a more comprehensive view as to how the bank is progressing on its net-zero emissions goals and whether it is ratcheting up its clean-energy financing activities over time.  

JPMorgan’s settlement with the three NYC funds, which manage a combined $193 billion in assets, will result in the withdrawal of their shareholder proposal, which they have levied against six major banks. It makes JPMorgan the first of these banks to strike a deal with investors. The others—Bank of America, Citigroup, Goldman Sachs, Morgan Stanley, and Royal Bank of Canada—still have proposals pending and the NYC Comptroller’s office has been engaging with them. The pension funds in January announced that they were launching the drive to prod the banks to offer up more data on their climate transition commitments.

Bloomberg New Energy Finance research found that in order for average global temperature increases to remain below 1.5 degrees Celsius, which is optimum, the ratio of investments in low-carbon energy to fossil fuels needs to reach a minimum of 4 to 1 by 2030. From there, the ratio needs to increase to 6 to 10 in the subsequent decade, and 10 to 1 afterward. In 2021, Bloomberg research found that for every dollar spent supporting fossil fuels, 0.8 supported low-carbon energy. JPMorgan’s estimated ratio was 0.7.

A JPMorgan spokesperson said it would take time to figure out how best to disclose the metric investors are asking for.

“We found common ground with the NYC Comptroller on disclosing a clean energy financing ratio with an understanding that it is going to take us some time and resources to develop a decision useful approach,” said a spokesperson in a…

Amanda Gerut

2024-03-04 20:02:43

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