JPMorgan said on Thursday it had set targets to cut emissions tied to its finance and dealmaking in the iron and steel, cement and aviation sectors, as those emissions linked to oil and gas usage rose.
As the largest U.S. bank and major funder to the fossil fuel industry, investors and campaigners keenly watch JPMorgan’s climate efforts as the world shifts to a low-carbon economy.
After releasing targets for oil and gas, electric power and autos in 2021, the new sector targets mean the bank now has plans to reduce emissions from all of the sectors most responsible for climate-damaging carbon emissions.
For iron and steel, the bank said it aims to cut emissions per tonne of crude steel produced by 31% by 2030. For cement it is targeting a 29% cut and for aviation a cut of 36%.
The bank said all the targets were in line with the International Energy Agency’s Net Zero Emissions (NZE) scenario.
Lucie Pinson, director of non-profit Reclaim Finance, welcomed the targets, but said “the jury is still out” on their effectiveness, with mid-term targets not enough to get to net-zero emissions.