American investment giant JPMorgan Chase & Co announced on Thursday its intention to contribute up to $2.5 trillion over the next decade to companies and projects investing in climate change and social justice initiatives. During an official statement, the company declared that $1 trillion of this investment package would go to green initiatives, making it the largest environmental, sustainable, and governance (ESG) financing target announced by a U.S. bank to date.
During an interview with Reuters, Marisa Buchanan, the head of sustainability at JPMorgan & Chase, revealed that much of the bank’s funds could go towards the development of clean energy technology for the trucking and aviation sectors. This bank’s initiative is the latest in a wave of motions by banks aimed at providing solutions to climate change and inequality issues.
JP Morgan Chase & Co’s $2.5 trillion budget for green and social initiatives presents a stark contrast to the company’s current status as a leading U.S. lender to fossil fuel companies. To date, the bank has contributed $317 billion in the form of lending and underwriting since 2016.
This move is not the first environmentally inclined motion proposed by the bank in recent years. Previously, JPMorgan Chase & Co led a $2.2 billion initial public offering of renewable energy company Shoals Technologies.
