Texan by Nature is excited to recognize JP Morgan Chase as a 2023 TxN 20 honoree for their leadership in conservation and sustainability. JP Morgan’s commitment to conservation, their projects, programs, best practices, and lessons learned are an example and inspiration for us all.
Honoree Industry and Size: Financial Services –Enterprise
Company Overview: JPMorgan Chase & Co. (NYSE: JPM) is a leading financial services firm based in the United States of America (“U.S.”), with operations worldwide. JPMorgan Chase had $3.9 trillion in assets and $313 billion in stockholders’ equity as of June 30, 2023. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. Under the J.P. Morgan and Chase brands, the Firm serves millions of customers predominantly in the U.S., and many of the world’s most prominent corporate, institutional and government clients globally. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.
The Firm’s environmental sustainability strategy includes: scaling green solutions, meeting needs responsibly, and minimizing operational impact. Pictured: Dallas, Texas
What is JP Morgan’s conservation and sustainability mission and why is it important to your culture?
JPMorgan Chase helps our clients navigate the challenges and realize the economic opportunities of the transition to a low-carbon economy. We believe helping our clients finance and accelerate their transition objectives creates positive environmental benefits and generates long-term financial returns for our shareholders. These efforts are guided by the three pillars of our environmental sustainability strategy — scaling green solutions, meeting needs responsibly, and minimizing our operational impact — all of which is underpinned by our ongoing focus on accountability, transparency and engagement, which helps us continue to evolve and remain responsive to stakeholder interests.
How is conservation and sustainability a part of JP Morgan’s business strategy?
To meet client demand and global climate and sustainability goals, the world will need to develop and deploy a host of new technologies, business models and other solutions. As a global financial institution, we have an important role to play by providing financing and strategic advice to clients and by helping investors put their capital to work.
Our global and diversified franchise allows us to offer climate-conscious financial options to those customers who want them, under both the J.P. Morgan and Chase brands. This includes a growing range of climate- and sustainability-related products and services through our Consumer Banking and Wealth Management businesses, including the J.P. Morgan Global Private Bank. We aim to give individuals and families the tools they need to meet their goals. We continue to broaden our efforts to support the climate- and sustainability-related banking needs of wholesale clients, from early stage and small companies through to multinationals and other large corporations. We deploy our capital and expertise to assist clients working to transition their business model and operations to reduce emissions. As we expand our capabilities across our lines of business, we aim to provide clients with increasingly diverse and innovative solutions while helping to grow the market for green and sustainable financing.
What are JP Morgan’s short and long-term goals as they relate to conservation and sustainability?
In April 2021, we announced a target to finance and facilitate $1 trillion toward green initiatives that support climate action by the end of 2030, as part of our broader $2.5 trillion Sustainable Development Target. Our $1 trillion green target is aimed at accelerating the deployment of solutions for cleaner sources of energy and facilitating the transition to a low-carbon economy. This includes supporting activities which advance climate action (such as renewable energy, clean technology and sustainable transportation) and other environmental objectives (such as water, waste management and conservation).
The $2.5T target reflects the opportunities that we see to support our clients’ goals, deploy capital and invest in solutions that can help to advance a more sustainable and inclusive future. By drawing awareness to the work happening across the firm to advance sustainable development, the target is designed to contribute toward scaling solutions for the world’s toughest challenges.
While we work to scale green technologies and solutions, we also seek to use our capital and expertise to meet client demands and support societal and economic needs. A sustained move to greener energy sources will not happen without a plan to allocate financing resources. Examples of this work include aligning our lending and underwriting decisions with our portfolio-level emissions intensity reduction targets in key carbon-intensive sectors, managing climate risks thoughtfully in our business and deploying our philanthropic capital to support initiatives that help vulnerable communities globally advance their resilience to climate change.
A key aspect of our 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 achievement of net-zero emissions. In 2020, we committed to align key sectors of our financing portfolio with what we consider to be the primary goals of the Paris Agreement, which aims to limit the global average temperature rise to well below 2 degrees Celsius, and ideally 1.5 degrees Celsius, above pre-industrial levels. In May 2021, we became the first large U.S. bank to set 2030 portfolio-level emissions intensity reduction targets, which we set for three sectors — Oil & Gas, Electric Power and Auto Manufacturing — and published our Carbon Compass methodology detailing our approach. We also announced our plans to expand our targets to additional sectors of our financing portfolio over time. In December 2022, we set net-zero aligned targets for three additional sectors — Iron & Steel, Cement and Aviation — building on the approach and foundation we set with our initial three sectors.
Another key component of our approach to sustainability is managing our GHG footprint by reducing our direct and indirect emissions, which stem primarily from the operation of our more than 6,000 corporate offices, bank branches and data centers. To guide our efforts, we have developed a set of operational sustainability targets, many of which are focused on reducing our contribution to climate change. For example, in 2020, we committed to achieve carbon neutrality across our operations annually. To build on our commitment to carbon-neutral operations, in 2021 we announced a new target to reduce our Scope 1 and Scope 2 (location based) emissions by 40% by 2030 versus a 2017 baseline. As of the end of 2021, we had reduced Scope 1 and Scope 2 location-based emissions by 17%. Moving forward, we intend to make further progress by increasing our direct use of renewable energy, upgrading existing heating and cooling systems, and optimizing building space.
“JPMorgan Chase is well positioned as a global leader for the generational opportunity that today’s challenges present — forging ahead to leverage our scale, capital and expertise to support our clients and advance the transition to affordable, reliable and lower-carbon energy solutions around the world.”
– Heather Zichal, Head of Global Sustainability, JPMorgan Chase
Who at JP Morgan is leading your conservation and sustainability efforts and what are some examples of employee engagement in conservation and sustainability at your company?
Heather Zichal is Global Head of Sustainability at JPMorgan Chase. Throughout her more than 20-year career, she’s worked across sectors to champion the acceleration of renewable energy and investments in green technology and infrastructure to drive business objectives, promote sustainable economic growth, strengthen energy security and generate good jobs. Her team is tasked with building upon JPMC’s firmwide sustainability strategy, partnering with key leaders across our lines of business, external stakeholders, and policymakers and regulators on energy security and climate issues around the world.
Brian DiMarino, Head of Operational Sustainability at JPMorgan Chase, oversees sustainability employee engagement. Brian leads the development and implementation of the Firm’s global operational sustainability strategy and manages its commitments to carbon neutrality, greenhouse gas (GHG), water, and paper reductions, and transition to electric vehicles. His team is responsible for calculating, mitigating, and offsetting, via Renewable Energy Certificates (RECs) and carbon credits, the Firm’s ~1mm metric tons of annual emissions. In 2021, Brian established the Operational Sustainability Team at JPMorgan Chase and has worked to minimize the Firm’s environmental impact from operations across its footprint and value chain.
At JPMorgan Chase, we recognize the important role we have to play in tackling sustainability challenges, including climate change. One way we can do our part is by fostering a community of informed, engaged and inspired employees through GoGreen (internal employee engagement organization) to collaboratively drive positive environmental change in the communities where we live and work.
Our employees are offered the opportunity to engage in sustainability activities around the globe. Highlights of GoGreen efforts include:
With more than 800 GoGreen team members leading the way, employees across our Texas footprint are making a difference at work, at home and in the communities where they live. In 2023, they have focused on lessening their personal use of plastics, learning how to support native pollinators, building awareness of clean water resources, and helping keep their community green through lake and highway clean-ups.
The Firm supports solutions that help address climate change and contribute to sustainable development. Pictured: Dallas, Texas
What conservation and sustainability programs and projects does JP Morgan lead and participate in?
Our new HQ in midtown Manhattan (270 Park) will be one of the greenest towers in the world becoming New York City’s largest all-electric skyscraper with net zero operational emissions. The building will be 100% powered by renewable energy sourced from a New York State hydroelectric plant. State-of-the-art building technology and systems will ensure it operates as efficiently as possible, including: Intelligent building technology that uses sensors, AI and machine learning systems to predict, respond and adapt to energy needs, advanced water storage and reuse systems to reduce water usage by more than 40%. In addition, we recycled, reused or upcycled 97% of the building materials from the demolition – far exceeding the 75% requirement of the leading green building standard.
With the growing role of technology in financial services, data centers are an important component of our operations.
To help manage the energy footprint from our data centers, we are implementing a global strategic data center configuration designed to an optimum size to serve our overall portfolio, and we continue to enhance the efficiency of individual data centers. Our strategy includes migrating to newer, more efficient hardware and software to increase utilization and sharing of physical infrastructure. This drives down the size and number of servers needed to process our business, which lowers power consumption. We are also expanding the collection of detailed, real-time performance data to inform how we design, build and operate data centers, this has allowed us to operate our data centers at warmer temperatures and save energy. In addition, we have implemented modern cooling technology that increases our energy efficiency.
JPMorgan Chase’s new headquarters is expected to be Manhattan’s first all-electric tower. Image courtesy of DBOX / Foster + Partners
How do you see the future of conservation and sustainability evolving, and what role will JP Morgan play in that progress?
As a global financial institution, we can play an important role in helping to respond to the climate challenge and meeting the world’s energy needs. We are supporting clients across sectors and building our own capabilities to help accelerate the transition to a low-carbon economy. We will continue:
How does JP Morgan quantify investment and return on conservation and sustainability?
As a global financial institution, we are meeting the demands of customers and clients around the world that are seeking financing and strategic advice, and helping investors put their capital to work.
One example of our impact — our Green Economy team acted as coordinating lead arranger, committing $142 million to a series of syndicated project finance loans last year, to support the Appaloosa Solar project in Cedar City, UT, expected to provide enough clean energy each year to the equivalent of around 40,000–45,000 Utah homes.
The Appaloosa Solar Project, owned by Greenbacker Renewable Energy Corporation and rPlus Energies, is expected to:
What is the one lesson that JP Morgan has learned from your conservation and sustainability efforts that others can take back and think about applying within their own space?
We have learned that we are only as strong as the communities we serve – so we help people and vital institutions innovate for Texas. We supported $1.8 billion in public financing for green deals improving public infrastructure in the state of Texas between 2021 and 2023. For example, our financing included $563.8 million in municipal credits to help cover the principal and interest associated with green notes issuances for capital improvements to the Dallas Water & Waterworks Sewer Systems. We also entered into private-label financing partnerships led by Chase Auto in Plano, TX with electric vehicle (EV) manufacturers Rivian Automotive Inc. and Fisker Inc. to support affordable EV adoption.
Why is Texas an important home or base of operations for JP Morgan?
Our approach has enabled us to invest with lasting impact across the Dallas-Fort Worth metro area for more than 100 years. As one of the largest energy producers in the country, Texas contributed more than 10% of total net energy generation for the United States in 2021 – including 43% of all oil, 25% of all natural gas and 26% of all wind-powered electricity.
As one of the largest financial institutions in the world, we work closely with energy producers in Texas to help meet our urgent, global need to provide energy resources securely, reliably and affordably while also addressing long-term clean energy solutions and strategies to reduce our carbon footprint.
Learn more about JP Morgan’s conservation and sustainability efforts here.
engaging more than 13,000 members.
in support of JP Morgan’s green objective, particularly through green bond underwriting and for renewable energy.
San Antonio, Texas
San Antonio, Texas
San Antonio, Texas
Dallas-Fort Worth, Texas