(MENAFN- Baystreet.ca) JPMorgan Chase (NYSE:JPM) said Thursday it will commit more than $2.5 trillion over the next decade toward long-term solutions that tackle climate action and contribute to sustainable development.
Within the initiative, $1 trillion is earmarked for green projects, including renewable energy and clean technologies that are focused on speeding the transition to a low-carbon economy.
The $2.5-trillion target, which begins this year and runs through the end of 2030, will also finance and facilitate transactions that support socioeconomic progress in developing countries, as well as economic inclusion in developed markets.
The latter effort will focus on small business financing, home lending and affordable housing, education and health care. Included within this category is the $30 billion JPMorgan committed last October to closing the racial wealth gap in the U.S.
Thursday's announcement comes after JPMorgan said last fall it will establish emission targets for its financing portfolio. The firm said targets would be set on a sector-by-sector basis, and will first focus on the oil and gas, electric power, and automotive manufacturing sectors.
The targets, which the firm said it would begin setting in 2021, will be within the parameters outlined by the 2015 Paris Agreement.
Dimon also addressed the enormous opportunity created by the energy transition in his 2020 annual letter to shareholders.
The bank facilitated in 2020 more than $220 billion in transactions related to sustainable development, more than $55 billion of which was for green initiatives. The total exceeded the firm's initial $200 billion target for the year.
JPM shares dipped 74 cents to $150.47.
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