Addressing our Financed Emissions Through our Net Zero Aligned Targets:
A key aspect of JPMorgan Chase’s environmental sustainability strategy is how we engage with our clients who operate in carbon-intensive industries, with the goal of accelerating the low-carbon transition and encouraging near-term actions that will set a path for global net zero emissions by 2050.
In support of our strategy, we are aligning key sectors of our financing portfolio with net zero emissions by 2050. We have set net zero aligned targets for eight sectors — Oil & Gas, Electric Power, Auto Manufacturing, Iron & Steel, Cement and Aviation — and new for 2023, Shipping and Aluminum. We have published our Carbon CompassSM methodology detailing our approach. We revised baselines for the Oil & Gas Operational, Electric Power, Auto Manufacturing, Iron & Steel, and Cement sectors in 2023.
Our net zero aligned targets are currently constructed for 2030 as portfolio-level targets by sector, using an emissions intensity reduction metric. Learn more about our targets, methodology and process here. Learn more about 2022 progress toward our net zero aligned targets in our latest Climate Report.
We aim to continue expanding this work over time for additional carbon-intensive sectors in our financing portfolio, engaging with our clients on their decarbonization journeys, and aligning that work, as we deem appropriate for our firm and clients, with global climate goals, science-based scenarios, and evolving best practices for the financial sector. Progress towards our targets is subject to market conditions, along with technological and public policy advancements.
Our targets are based on available data and scenario projections available as at September 2023. Future updates to the IEA Net Zero Emission by 2050 Scenario and/or other inputs — for example, changes in global emissions, available technologies or economic conditions — may result in changes to the projected emissions trajectories, and we may therefore change our targets for these sectors. We monitor these changes, as well as improved visibility, quality or availability of data, and assess the need to revise our baselines and targets as appropriate. We revised baselines for the Oil & Gas Operational, Electric Power, Auto Manufacturing, Iron & Steel, and Cement sectors this year.
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