JPMorgan finances $285B for ESG goals

In its ESG report for 2021, JPMorgan announced that it had financed and facilitated $285B toward various ESG goals, including development finance, green projects, and community development. It’s part of its larger goal to commit $2.5T toward ESG initiatives over ten years.

Why should we care?
Following Mastercard’s ESG announcement discussed yesterday, JPMorgan’s report showcases the various ways financial institutions are responding to their social obligations. The report said JPMorgan had committed $106B over the past year toward green initiatives like renewable energy, energy efficiency, and sustainable transportation. But, at the same time, JPMorgan has facilitated more than $295B in bond sales and loans for fossil-fuel companies since 2015—more than any other bank. Some may interpret that dual investment as proof that green projects have a ways to go to be viably financed, but it may also warn us that ESG goals can be more successful as marketing tools than wholesale business strategies. “Climate fintech” is still a nascent and vague field. Regardless, players within that space can use this inconsistency as a way to differentiate themselves from established banks like JPMorgan and woo climate-conscious funders in the process.