The financing will be provided over the next 10 years to help speed up the transition to a low-carbon economy
US-based investment bank JPMorgan Chase has pledged to finance and facilitate more than $2.5 trillion over the next decade to advance long-term solutions that address climate change.
As part of the 10-year target, the company will make available $1 trillion for green initiatives, such as renewable energy and clean technologies.
The new climate finance commitment is expected to support the firm’s Paris-aligned financing strategy, which was adopted in October last year.
JPMorgan Chase chief risk officer Ashley Bacon said: “We believe that a contribution at this scale will have a significantly positive impact. As a company, we commit to dedicating extensive time, expertise and focus to ongoing analysis and development of the role we play.
“It is necessary, but not sufficient that as financial institutions covering the whole economy, we play our part. We hope broader developments ranging from public policy to technological advancement will move us further towards a sustainable path.”
As part of the new target, JPMorgan Chase will focus on advancing economic inclusion in developed markets, through small business financing, home lending and affordable housing, education and healthcare.
The financial services firm intends to continue providing clients in its Corporate & Investment Bank and Commercial Banking unit with centralised access to sustainability-focused financing, research and advisory solutions.
Provided through its Center for Carbon Transition, the solutions are expected to help its clients to navigate the challenges in their transition to a low-carbon economy.
In addition, the new financing commitment is expected to support the objectives of the J.P. Morgan Development Finance Institution (DFI), which was established last year.
DFI was set up to grow the development finance activities undertaken by JP Morgan and attract additional investment to the emerging markets.
JPMorgan Chase said that it surpassed the annual sustainable development target set for last year. It facilitated more than $220bn in transactions, including over $55bn towards green initiatives.