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February 26, 2020

JPMorgan Chase to increase restrictions on global coal funding

Investment bank and financial services holding company JPMorgan Chase is set to limit financing for global coal funding and coal-fired power as it expands commitment to a low-carbon economy.

Investment bank and financial services holding company JPMorgan Chase is set to limit financing for global coal mining and coal-fired power as the company expands its commitment to a low-carbon economy.

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The company’s proposal to reduce its funding of coal follows similar commitments made by several European banks and by the US bank Goldman Sachs.

JPMorgan is also increasing restrictions on the funding of Arctic oil and gas projects.

In 2017, the company committed to facilitate $200bn in clean financing by 2025 and source renewable energy for 100% of its global power needs by 2020.

The additional steps announced now are aimed at addressing climate change and further promoting sustainable development.

The company said it will not provide lending, capital markets or advisory services to companies which obtain the majority of their revenues by extracting coal.

By 2024, it plans to phase out remaining credit exposure to such companies.

Additionally, JPMorgan will not provide project financing where the proceeds will be used to develop a new, or refinance an existing, coal-fired power plant.

In response to the company’s announcement, non-profit foundation As You Sow president Danielle Fugere said: “Funding of new coal, including coal-fired power plants, is incompatible with the goal of maintaining global temperature rises at 1.5°C.

“Yet, JPMorgan has not agreed to bring its full carbon footprint into alignment with the Paris goal. Until it agrees to do so, it’s fossil fuel funding remains a clear threat to the global goal of avoiding catastrophic warming.”

Last March, BNP Paribas Asset Management (BNPP AM) announced plans to stop investing in companies that are engaged in mining thermal coal, to tackle the growing threat of climate change.

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What’s missing from your IPO industry assessment?

IPO activity all but stopped in 2020, as the investment community grew wary of the effects of COVID-19 on economies. No matter how deserving a business was of flotation, momentum was halted by concerns of when a ‘new normal’ of working patterns and trade would set in. Recently, sentiment has changed. Flotations picked up again during the second half of 2021, and now in 2022 the mood is decidedly optimistic. Business leaders have their eyes on fast rebounding economies, buoyant market indices and the opportunity once again to take their businesses public. As a result, global IPOs are expected to hit back this year. With GlobalData’s new whitepaper, ‘IPOs in Consumer and Retail: 5 must-include elements for your prospectus industry report’, you can explore exactly what is needed in the essential literature. GlobalData’s focus lies in the critical areas to get right:
  • Macroeconomic and demographic environment
  • Consumer context
  • Industry environment
  • Competitive environment
  • Route to market
Interested to learn more about what to include in your IPO Industry Assessment report? Download our free whitepaper.
by GlobalData
Enter your details here to receive your free Report.

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