Climate warning
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J.P. Morgan & Co.

Climate warning

Align Banking with Climate Change Mitigation

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The banking sector will play a critical role in the success or failure of climate change mitigation. Perhaps major banks will continue financing and facilitating carbon-intensive projects and businesses, helping to exacerbate the crisis past some terrible tipping point. Or maybe they will drive the transition to a net-zero economy by setting ambitious decarbonization targets and aligning their financing and investment decisions with those goals.

In fact, many banks have made net-zero commitments and established decarbonization targets. However, as detailed in this report from the London School of Economics’ Transition Pathway Initiative, current assurances are insufficient and much remains to be done. Specifically:

* The scope of decarbonization targets must be expanded to include all relevant banking client activities.
* Disclosure of finance-enabled emissions must become comprehensive and transparent.
* Commitments must include specific plans to phase out the financing of fossil fuel projects and specific proportions of investment portfolios must be allotted for climate solutions.
* Banks must commit to aligning their policy advocacy with climate change mitigation.

The LSE report covers “26 major international banks, 10 US super-regional banks and two US custodian banks.” I wanted to make a climate warning for a bank, any bank, that was acting truly egregiously. But the fact is that none of them score well on the proposed Net Zero Banking Assessment Framework (NZBAF) in this report.

Some are worse than others, none are acceptable.

So, instead, I decided to send this warning to JP Morgan Chase. This is not because JPMC stands out in terms of its climate actions, neither for good nor bad. Rather, JPMC is the largest, most powerful bank analyzed in this report and, more importantly, has acknowledged the importance of climate change mitigation and banks’ role therein.

For that reason, I would like to challenge JPMC to become a true climate leader in banking. Given its size and importance as an institution, the impact it could achieve is hard to overstate.

For the banking sector to truly support the global climate agenda, it must adopt recommendations like those outlined by the NZBAF. In doing so, JP Morgan Chase could lead the way for the banking sector, guiding the global economy to rapid, comprehensive, and profitable transition that would resonate around the world.

Do you agree?

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  • Munene Mugambi

    7 w

    The banking sector's role in climate change mitigation is crucial. Banks like JP Morgan Chase must adopt comprehensive decarbonization targets and phase out fossil fuel financing to lead the way in the transition to a net-zero economy.

    1
    • We Don't Have Time

      7 w

      Dear Weston Wilson Your climate warning has received over 50 agrees! We have reached out to J.P. Morgan & Co. by email and requested a response. I will keep you updated on any progress! To reach more people and increase the chance of a response, click the Share button above to share the review on your social accounts. For every new member that joins We Don't Have Time from your network, we will plant a tree and attribute it to you! /Adam, We Don't Have Time

      2
      • walter lungayi

        7 w

        As financial institutions play a significant role in funding various industries, aligning their practices with climate goals can drive impactful change. It's essential for banks to prioritize investments in renewable energy, green infrastructure, and sustainable businesses to effectively combat climate change.

        3
        • Munene Mugambi

          7 w

          @walter_lungayi Aligning banking practices with climate goals is crucial for driving the transition to a sustainable economy. By investing in renewable energy and green initiatives, banks can significantly contribute to combating climate change.

          1
        • Rashid Kamau

          7 w

          They must play an active role in steering global capital toward the green transition, and public accountability will be essential to driving this change​

          6
          • Munene Mugambi

            7 w

            @rashid_kamau Public accountability will be vital in ensuring that financial institutions prioritize sustainable investments and actively support the green transition. This transparency can help hold them responsible for their commitments to combat climate change.

            1
          • Princess

            7 w

            It’s frustrating to see that while banks have the potential to make a huge difference in climate change mitigation, they often prioritize short -term profits over long term sustainability.

            7
            • Rashid Kamau

              7 w

              @princess_nel_268 Shifting focus from short-term profits to long-term environmental and financial sustainability is crucial for banks to become part of the solution.

              5

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