JPMorgan Chase published its 2024 Climate Report on 14 November 2024, introducing a new Energy Supply Financing Ratio, which compares the bank's financing of low-carbon energy supply with its financing of high-carbon energy supply. The report disclosed that for 2023, 1.29 dollars supported low-carbon energy supply for every dollar supporting high-carbon energy supply under the new ratio.
JPMorgan described the ratio as a disclosure metric that provides more insight into the capital it provides, and said it was not aligning its financing to meet a specific target for the ratio.
SUSTAINABLE DEVELOPMENT TARGET
Beyond the financing ratio, the 2024 Climate Report documented JPMorgan's cumulative progress towards its Sustainable Development Target, a commitment to facilitate $2.5 trillion in sustainable financing between 2021 and 2030. The bank reported that from 2021 to the end of 2023 it had financed and facilitated $242 billion towards the $1 trillion Green objective within that target. The report also showed that approximately $66 billion had been financed and facilitated in 2023 alone, counting towards the bank's $1 trillion Green objective, part of the Sustainable Development Target.
SHAREHOLDER ENGAGEMENT
The introduction of the Energy Supply Financing Ratio followed engagement with shareholders, including the New York City Comptroller.
The report also set out limits of the ratio: it is a disclosure metric, not a mechanism to drive the energy transition, and not a direct proxy for decarbonisation activity in the economy.
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