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1、Climate Report 2024A NOTE ON OUR BUSINESS JPMorgan Chase&Co.provides financial services for individuals and industries across geographies regardless of political,social or religious viewpoints.We deal in facts and dont describe our policies,procedures or progress differently based on whos asking.Our

2、 ambition is to work with shareholders,clients,customers and communities around the world to fulfill bankings essential purpose of helping people,businesses of all sizes and vital institutions like schools,hospitals and governments achieve their goals.Notes We make independent business decisions for

3、 the Firm.We make business decisions to advance the long-term interests of the Firm and its shareholders,including serving our clients,supporting our employees and helping our communities.We work with a broad array of organizations that advance those interests,even if we dont support every position

4、taken.Firm decisions are always made independently and based on business principles.We dont“boycott.”We support clients around the globe and in every state in the U.S.,across industries,religions and political affiliations.We proudly serve more than 82 million consumer customers in the U.S.,6.4 mill

5、ion small businesses and hundreds of thousands of companies in critical economic sectors.We do not make decisions based on political or social agendas.We manage risk.Managing risk is critical to the long-term success of our business and required by our regulators.We make risk-based assessments,inclu

6、ding legal,credit,market,reputational and regulatory,to drive decisions and advance the interests of our constituencies.We want to compete.Our ability to compete,in both established and new markets,is critical to the long-term success of our business.We decide where and how we choose to compete by a

7、ssessing risk and opportunity,not to further political or social agendas.We believe in free enterprise.Markets and economies of all sizes benefit when free and fair enterprise thrives creating innovation,competition and maximizing value for shareholders,clients,customers and communities.Government i

8、ntervention of free market principles,or attempting to use businesses to advance a political or social agenda,sets a dangerous precedent.We value engagement.We believe the best answers reside in engagement and discourse.When policymakers seek input to tackle challenges,we want to help.We know that o

9、ur success requires working closely with government and stakeholders on sound public policy that grows the economy and lifts up communities.Throughout our history,we have engaged with officials from all parties to address the worlds most pressing needs,and we look forward to continuing to do so.A NO

10、TE ON OUR TARGETS We set targets to do our part in seeking a sustainable and inclusive future using our own independent assessment of what we determine is reasonable,achievable and will serve the best interest of our business and our clients.We note that our targets are subject to other prerequisite

11、s and critical considerations,both within and outside our control,that may affect our ability to meet them.These include the necessity of technological advancements;data quality and availability;the evolution of consumer behavior and demand;the business decisions of our clients,who are responsive to

12、 their own stakeholders;the need for thoughtful public policies;the potential impact of legal and regulatory obligations;market conditions;climate science;commercial considerations;and the challenge of balancing short-term targets with the need to facilitate an orderly transition and energy security

13、 and affordability.We plan to continue to evaluate our targets and our approach to them and may make any adjustments we deem necessary in light of the aforementioned considerations.DISCLAIMERS The information provided in this report reflects JPMorgan Chase&Co.s approach to environmental-,climate-and

14、 governance-related matters as at the date of this report and is subject to change without notice.We do not undertake to update any of such information in this report.Any references to“sustainable investing”,“sustainable investments”,“ESG”or similar terms in this report are intended as references to

15、 the internally defined criteria of JPMorgan Chase or our businesses only,as applicable,and not to any jurisdiction-specific regulatory definition.Our approach to inclusion of disclosures in this report is informed by the Task Force on Climate-related Financial Disclosures(“TCFD”)recommendations and

16、 is different from disclosures included in mandatory regulatory reporting,including under Securities and Exchange Commission(“SEC”)regulations.While this report describes events,including potential future events,that may be significant,any significance does not necessarily equate to the level of mat

17、eriality of disclosures required under law,including U.S.federal securities law.This report is not intended to,nor can it be relied on,to create legal relations,rights or obligations.This report is intended to highlight some of the work of JPMorgan Chase in environmental including climate and govern

18、ance-related areas;it is not comprehensive or necessarily representative of all of our activities in those areas.As outlined in our public reporting,JPMorgan Chase continues to work with and has exposure to clients and organizations across industries,including Oil&Gas,Utilities,Metals&Mining,Transpo

19、rtation and Chemicals&Plastics.This report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.These statements relate to,among other things,our goals,targets,aspirations,approaches and objectives,and are based on the current beliefs and exp

20、ectations of JPMorgan Chases management and are subject to significant risks and uncertainties,many of which are beyond JPMorgan Chases control.Expected results or actions may differ from,and JPMorgan Chase makes no guarantee that it will meet or follow,the anticipated goals,targets and approaches s

21、et forth in the forward-looking statements.Factors that could cause JPMorgan Chases actual results to differ materially from those described in the forward-looking statements include the necessity of technological advancements;data quality and availability;the evolution of consumer behavior and dema

22、nd;the business decisions of our clients,who are responsive to their own stakeholders;the need for thoughtful public policies;the potential impact of legal and regulatory obligations;market conditions;and the challenge of balancing short-term targets with the need to facilitate an orderly transition

23、 and energy security and affordability.Additional factors can be found in JPMorgan Chases Annual Reports on Form 10-K,Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the SEC.Those reports are available on JPMorgan Chases website(https:/jpmorganchaseco.gcs- on the Securities

24、 and Exchange Commissions website(https:/www.sec.gov/).JPMorgan Chase does not undertake to update any forward-looking statements.This report does not include all applicable terms or issues and is not intended as an offer or solicitation for the purchase or sale of any financial instrument or as an

25、official confirmation of any transaction or a recommendation for any investment product or strategy.Any and all transactions(including potential transactions)presented herein are for illustration purposes only.This material does not and should not be deemed to constitute an advertisement or marketin

26、g of the Firms products and/or services or an advertisement to the public.No reports,documents or websites that are cited or referred to in this report shall be deemed to form part of this report.Information contained in this report that has been obtained from third-party sources,including those pub

27、licly available,is believed to be reliable,but no representation or warranty is made by JPMorgan Chase as to the quality,completeness,accuracy,fitness for a particular purpose or non-infringement of such information.Sources of third-party information referred to herein retain all rights with respect

28、 to such data and use of such data by JPMorgan Chase herein shall not be deemed to grant a license to any third party.The use of any third-party trademarks or brand names is for informational purposes only and does not imply an endorsement by JPMorgan Chase or that such trademark owner has authorize

29、d JPMorgan Chase to promote its products or services.Contents Introduction 1 Message from Our Chairman&CEO 1 Company at a Glance 2 Executive Overview 2 Strategy 6 Our Environmental Sustainability Strategy 6 Scaling Green Solutions 6 Balancing Environmental,Social and Economic Needs 8 Managing Our Op

30、erational Footprint 12 Accountability,Transparency and Engagement 14 Metrics&Targets 16 Measuring Our Progress 16 Scaling Green Solutions 16 Balancing Environmental,Social and Economic Needs 17 Managing Our Operational Footprint 23 Risk Management 25 Our Climate Risk Framework 25 Risk Governance 26

31、Scenario Analysis 26 Risk Identification 27 Risk Types 29 Other Risk Types 31 Appendices 32 Absolute Financed and Facilitated Emissions:PCAF-aligned Metrics 32 List of Acronyms 34 Governance 4 Board of Directors 4 Senior Management 4 At JPMorgan Chase,our financing helps power the global economy,sup

32、porting energy security and the ongoing transition to a low-carbon economy.As one of the worlds largest financiers of both low-carbon and traditional energy,we understand that economic growth,energy security and affordability,and sustainability are interconnected.We seek to enable inclusive,sustaina

33、ble economic growth because its good for business;when our clients,customers and communities do well,we do too.As society seeks to avoid the worst impacts of climate change,it also requires affordable and secure energy to thrive.Scaling zero-carbon energy is a critical path forward,but it will take

34、time and it critically must include technological innovation and public policy done well in addition to financial support to make it possible to meet the growing energy demand.This energy transition presents an enormous commercial opportunity.Its estimated that over$5 trillion is needed each year to

35、 scale low-and zero-carbon technologies,and we want to be the bank of choice for companies seeking advice and financing for those investments.Following extensive engagement with our shareholders,we are one of the first U.S.banks to publish an Energy Supply Financing Ratio,which provides additional i

36、nsight on our energy financing,specifically our financing of low-carbon energy supply relative to high-carbon energy supply.Our investors are interested in more insight into finance we are providing to support client demand for real economy investment in both low-carbon and high-carbon energy supply

37、 and how that relative share of investment is shifting over time.Introduction Jamie Dimon Chairman&CEO,JPMorgan Chase&Co.Message from Our Chairman&CEO We developed a data-driven and investment-focused methodology for calculating this ratio,to provide a forward-looking view on how our energy financin

38、g supports real economy investments in energy supply.As we continue to iterate this metric,we will engage investors,industry participants and other stakeholders about our approach.This Climate Report highlights our work with clients to support their goals and the global transition to a low-carbon-ec

39、onomy,and details how we are working to address emissions from our financing and facilitation activities.This includes reporting on our climate-related metrics,such as our goal to finance and facilitate$1 trillion to support the development and scaling of climate initiatives by 2030;our nine net zer

40、o-aligned targets for key sectors of our portfolio;and our absolute financed and facilitated emissions.While were proud of the progress weve made deploying our capital,data and expertise to support our clients,we also make our own decisions,use our judgment,make adjustments as needed and speak with

41、our own voice.This includes continuing to evaluate our targets and our approach to them,considering the latest science and technology,macroeconomic trends,commercial impacts and our clients business needs.We continue to strengthen our efforts across our businesses to support the climate-and sustaina

42、bility-related banking and investment needs of clients and individuals,and to contribute to the growth of the sustainable and green financing markets.We believe supporting our clients,through capital and advice,in their low-carbon transition objectives creates positive environmental benefits and gen

43、erates long-term financial returns for our shareholders.Technology,data quality,consumer behavior,clients business decisions and market conditions remain crucial prerequisites to making progress.Constructive government leadership and policy is also necessary,particularly on taxes,permitting,energy g

44、rids,infrastructure and technological innovation.We will continue to do our part.1 Executive Overview In this report,we provide details on our approach to climate-related efforts including:How our corporate governance practices are designed to support the identification and management of climate-rel

45、ated risks and opportunities;How our business is responding to climate risks and opportunities,including our evolving approach for supporting our clients climate goals and the global transition to a low-carbon economy;How we are measuring our performance and how we are making progress toward our cli

46、mate targets,including our actions to align key sectors of our lending and underwriting portfolio with net zero emissions;and How we identify,assess and manage climate risks within our risk management framework.We may adjust our efforts over time.This report has been informed by the Task Force on Cl

47、imate-related Financial Disclosures(“TCFD”)recommendations.Our Climate Report Data Tables include a TCFD Index that maps our disclosures to the TCFD recommendations.All data in this report is as of December 31,2023,unless otherwise noted.QUICK LINKS 1 Our financing portfolio is defined to include al

48、l lending,tax-oriented investments and capital markets activity with in-scope clients.ESFR methodology Our approach to setting net zero-aligned targets(Carbon Compass methodology)and progress as of December 31,2023 Our absolute financed and facilitated emissions Our operational GHG emissions Our 202

49、3 ESG Report Our Annual Sustainable Bond Report Energy Supply Financing Ratio We have developed our own methodology to calculate our Energy Supply Financing Ratio(“ESFR”).The ESFR metric compares the amount of financing supporting low-carbon intensive and zero-carbon(referred to as“Low-Carbon”)energ

50、y supply versus that supporting high-carbon intensive and unabated fossil-based(referred to as“High-Carbon”)energy supply.While this disclosure metric can provide more insight into the capital that we are providing,we are not aligning our financing to meet a specific target for this ratio.The decisi

51、on to disclose this ratio was made following engagement with our shareholders including the New York City Comptroller,which serves as the Trustee for each of the New York City Public Pension Funds.For the year ended December 31,2023,our ESFR of 1.29x shows that for each dollar supporting High-Carbon

52、 energy supply,1.29 dollars supported Low-Carbon energy supply.For more information on our approach,details on our methodology and resulting metric,refer to page 22 and our ESFR methodology.Our Net Zero-Aligned Targets We continue our efforts to align key sectors of our financing portfolio1 with net

53、 zero emissions outcomes.To date,we have set nine net zero-aligned targets for eight sectors Oil&Gas,Electric Power,Auto Manufacturing,Aviation,Shipping,Iron&Steel,Cement and Aluminum aligned with the International Energy Agencys Net Zero by 2050 scenario.We developed our Carbon Assessment Framework

54、(“CAF”)to help assess our clients decarbonization plans.CAF creates an opportunity for us to engage with our clients,understand their views,plans and constraints,as well as their capital needs.We use CAF as one element of our decision-making;for each new proposed in-scope transaction,our CAF provide

55、s decision-makers at the Firm with insights into how the transaction may impact a portfolios carbon intensity.At this time,we are not setting targets for additional sectors of our portfolio due to factors including data limitations,lack of available decarbonization pathways and commercial considerat

56、ions.Our focus remains on helping our clients decarbonization efforts,understanding their regional and business characteristics,and supporting todays energy needs while creating long-term value for our business and shareholders.We plan to continue playing our part in the energy transition by providi

57、ng strategic advice to our clients,leveraging our balance sheet and connecting capital seekers with providers.We also plan to continue engaging with the public sector,governments,regulators and policymakers on climate-related matters and to continue to report on details of our approach and progress.

58、To learn more about our net zero-aligned targets and our CAF,please refer to pages 911.Company at a Glance JPMorgan Chase&Co.(“JPMorgan Chase”,the“Firm”or“we”)is a financial services company based in the United States of America(“U.S.”),with U.S.branches in 48 states and Washington D.C.,309,926 empl

59、oyees in 65 countries worldwide and$3.9 trillion in assets as of December 31,2023.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 s

60、erves millions of customers,predominantly in the U.S.,and many of the worlds most prominent corporate,institutional and government clients globally.Effective in the second quarter of 2024,the Firm reorganized its reportable business segments by combining the former Corporate&Investment Bank and Comm

61、ercial Banking business segments to form one reportable segment,the Commercial&Investment Bank(“CIB”).As a result of the reorganization,the Firm now has three reportable business segments,as well as a Corporate segment.The Firms consumer business is the Consumer&Community Banking(“CCB”)segment.The F

62、irms wholesale businesses are the CIB and Asset&Wealth Management(“AWM”)segments.For further information,refer to the Business Segment Results of our Form 10-Q for the six month period ending on June 30,2024.2 The below table summarizes our performance against our net zero aligned targets,as of Dece

63、mber 31,2023.While we have made progress toward some of our targets,our progress on others remains relatively flat as compared to their respective baselines,and we recognize that year-on-year fluctuations will occur.Further detail on our performance is provided in pages 1720.Helping Grow the Market

64、for Green and Sustainable Finance We use our capital and expertise to support our clients and customers,as well as the growth of the green and sustainable markets,with the aim of helping accelerate the global transition to a low-carbon economy while also contributing to socioeconomic development and

65、 inclusive growth.Our$1 trillion Green objective which we set in April 2021 as part of our broader$2.5 trillion Sustainable Development Target(“SDT”)is intended to support the development and scaling of climate initiatives and sustainable resource management.Collectively,since setting our target in

66、2021 through December 31,2023,we have financed and facilitated$242 billion toward our$1 trillion Green objective(refer to page 6).While we pursue our SDT,including the Green objective,we note that it is subject to other prerequisites and critical considerations,both within and outside our control.We

67、 continue to strengthen our efforts across our lines of business(“LOBs”)to support the climate-and sustainability-related banking and investment needs of clients and individuals.Refer to page 7 for more information on our efforts.Our Own Operations and Supply Chain We strive to manage the environmen

68、tal impact of our own operations and supply chain.Our approach includes managing our energy and carbon footprint,constructing and operating more sustainable buildings and implementing leading practices in sustainable sourcing and resource management.Our strategy for energy and carbon footprint manag

69、ement is guided by the concept of the greenhouse gas(“GHG”)mitigation hierarchy,designed to prioritize actions with the largest potential impact on emissions reduction(refer to pages 1213).We also aim to engage with suppliers who are working to improve their environmental sustainability(refer to pag

70、e 15).Managing Climate Risks We aim to manage our business,and the associated risks,in service of the interests of our clients,customers and investors and to protect the safety and soundness of the Firm.Our climate risk framework outlines the capabilities we employ to identify,assess,manage and quan

71、tify the potential impacts of physical and transition risk,which we view as drivers of each of our four risk types.To assess the range of potential climate-driven paths and outcomes,we apply an array of scenarios to our internal risk processes,as appropriate.Refer to pages 2531 for additional inform

72、ation on how we are managing physical and transition risks through our existing risk types.SECTOR UNIT OF MEASUREMENT PORTFOLIO CARBON INTENSITY BASELINE 2030 NET ZERO-ALIGNED TARGETS JPMORGAN CHASE PROGRESS Portfolio Carbon Intensity as of December 31,2023 Change in Portfolio Carbon Intensity from

73、Baseline Energy Mix gCO2/MJ 45.9 29.5-36%from baseline 34.8-24.1%Oil&Gas Operational gCO2e/MJ 4.9 -45%from baseline 4.7-4.0%Electric Power kgCO2/MWh 342.6 105.3-69%from baseline 268.8-21.5%Auto Manufacturing gCO2e/km 164.8 86.1-48%from baseline 126.4-23.3%Aviation gCO2/RTK 972.6 625.0-36%from baseli

74、ne 808.0-16.9%Shipping gCO2/t-nm 11.4 8.4-26%from baseline 11.9 4.9%Iron&Steel tCO2e/t crude steel 1.412 0.981-30%from baseline 1.390-1.5%Cement kgCO2e/t cementitious product 639.3 460.0-28%from baseline 634.6-0.7%Aluminum tCO2/t aluminum 8.6 6.5-24%from baseline 8.8 2.2%3 JPMORGAN CHASE PROGRESS Ou

75、r corporate governance practices are designed to help us serve the diverse interests of our stakeholders,including customers,clients,employees,shareholders and communities in which we operate.We believe that our continued success is rooted in our steadfast adherence to our Business Principles,which

76、are centered around strengthening,safeguarding and growing our company over the long term.We assess and refine our governance structures,processes and controls,as appropriate.The illustration on the following page outlines how environmental sustainability and climate-related matters are overseen by

77、the Board of Directors(“the Board”)and senior management within the Firms LOBs.Governance Senior Management Our management structure is designed to encourage leadership that is consistent with our corporate standards.With respect to climate-related matters,senior managements responsibilities include

78、 consideration of climate-related risks in the Firms strategy and operations,implementation of strategic climate-related business initiatives and review of progress against climate-related public targets.The Firms most senior management body is the Operating Committee(“OC”),which is composed of our

79、Chief Executive Officer(“CEO”),Chief Risk Officer(“CRO”),Chief Financial Officer(“CFO”),General Counsel,CEOs of each of the LOBs and other senior executives,such as our Global Head of Corporate Responsibility.The OC and Board of Directors receive updates from the CRO,the Global Head of Sustainabilit

80、y,the Global Head of the Corporate Advisory2,LOB CEOs and other senior leaders on climate-related initiatives,as appropriate.For more information on the Corporate Advisory team,refer to page 7.Leveraging the Firms emerging expertise on environmental topics,various climate-related initiatives across

81、LOBs are periodically managed through LOB-led business reviews.The Firmwide Environmental Committee(“FEC”)provides senior oversight and decision-making on the Firms strategy,definitions,methodologies,standards and practices related to environmental(including climate)initiatives,products,targets and

82、public messaging.Co-chaired by the CRO and the Global Head of Sustainability,the FECs membership includes senior leaders from across the Firm and the firmwide Climate,Nature and Social Risk Executive,among others.The co-chairs of the FEC are responsible for escalating information to the Board of Dir

83、ectors and its committees,as appropriate.Board of Directors The Board is responsible for oversight of the business and affairs of the Firm on behalf of shareholders.Oversight of ESG matters,including those related to environmental sustainability and climate,is an important part of the Boards work.In

84、 2023,some of the topics discussed during Board and Committee meetings included climate risk,climate and ESG-related disclosures,and laws and regulations regarding access to financial services.In addition,the principal standing Board committees Public Responsibility Committee,Compensation&Management

85、 Development Committee,Risk Committee,Audit Committee and Corporate Governance&Nominating Committee operate pursuant to written charters and oversee ESG-related matters within their scope of responsibility.These charters and the Firms Corporate Governance Principles guide the Boards governance and o

86、versight functions.Our annual Proxy Statement includes additional information about the membership and responsibilities of each committee.Climate-and ESG-related matters are part of our director education program.In 2023,directors participated in programs on a number of subjects,including sustainabi

87、lity updates,the Firms climate risk management framework and climate-and ESG-related disclosures.2 In 2024,we renamed the Corporate Advisory&Sustainable Solutions(“CASS”)to Corporate Advisory.4 Organizational Illustration BOARD OF DIRECTORS RELEVANT OPERATING COMMITTEE MEMBERS Responsible for develo

88、ping and implementing corporate strategy and managing operations,including ESG and climate-related matters FIRMWIDE ENVIRONMENTAL COMMITTEE Provides senior oversight and decision making on the Firms strategy,definitions,methodologies,standards and practices related to environmental(including climate

89、)initiatives,products,targets and public messaging Head of Climate,Nature&Social Risk Global Head of Sustainability Chief Administrative Officer Head of ESG Investor Relations Head of Green Economy Banking Global Head of Corporate Advisory Head of Global Markets Sustainability Center Head of Busines

90、s Practices for Consumer Banking J.P.Morgan Asset Management Global Head of Sustainable Investing and Stewardship J.P.Morgan Global Private Bank Head of Sustainable Investing FIRMWIDE SENIOR SUSTAINABILITY LEADERS Responsible for strategy and execution on ESG and climate-related matters BUSINESS AND

91、 FUNCTIONAL TEAMS e.g.,J.P.Morgan Asset Management Sustainable Investing and Stewardship,Center for Carbon Transition,Green Economy Banking and Operational Sustainability 5 Strategy Our Environmental Sustainability Strategy ACCOUNTABILITY,TRANSPARENCY AND ENGAGEMENT Reporting regularly and engaging

92、with a diverse set of stakeholders to identify and advance best practices and new opportunities Managing the environmental footprint of our own operations,including in our buildings,branches and data centers 3 1 SCALING GREEN SOLUTIONS Focusing our efforts to meet client needs and on scaling solutio

93、ns the world will need for long-term environmental sustainability 2 BALANCING ENVIRONMENTAL,SOCIAL AND ECONOMIC NEEDS Supporting global efforts toward net zero GHG emissions by 2050 while balancing energy access,reliability,security and affordability MANAGING OUR OPERATIONAL FOOTPRINT Our Environmen

94、tal Sustainability Strategy We aim to help our clients navigate the challenges and realize the economic opportunities of the transition to a low-carbon economy.We believe supporting our clients,through capital and advice,in their low-carbon transition objectives creates positive environmental benefi

95、ts and generates long-term financial returns for our shareholders.We also strive to manage our own carbon footprint and the impact our corporate offices,bank branches and data centers have on the environment.These efforts are guided by the three pillars of our environmental sustainability strategy s

96、caling green solutions;balancing environmental,social and economic needs;and managing our operational footprint all of which is underpinned by our ongoing focus on accountability,transparency and engagement.Scaling Green Solutions To meet energy demand and global long-term climate and sustainability

97、 goals,the world will need to develop and deploy a host of clean technologies,business models and other solutions.As a global financial institution,we believe we can support these goals by providing financing and strategic advice to clients and by helping investors put their capital to work.Mobilizi

98、ng Capital to Support Climate and Sustainable Solutions Developing and implementing solutions to advance the transition to a sustainable,low-carbon economy will require significant capital,including capital to deploy and scale clean energy solutions to meet the worlds growing energy needs.At JPMorga

99、n Chase,we aim to support the transition by putting our capital and expertise to work.For example,our$1 trillion Green objective which we set in April 2021 as part of our broader$2.5 trillion Sustainable Development Target(“SDT”)is intended to support the development and scaling of climate initiativ

100、es and sustainable resource management.Refer to page 16 for details of our progress toward our$1 trillion Green objective.While we pursue our SDT,including the Green objective,we note that it is subject to other prerequisites and critical considerations,both within and outside our control.We plan to

101、 continue to evaluate the SDT and make our own decisions on our approach to it.We may make any adjustments to our targets that we deem necessary in light of considerations including the latest climate science and technology,macroeconomic trends,commercial impacts and our clients business needs.To le

102、arn more on our SDT,including the activities it is designed to support and amplify across our business,refer to pages 913 of our 2023 ESG Report.We aim to support the green and sustainable markets through our own sustainable bond issuances.In 2023,the Firm issued one Green Bond(one benchmark issuanc

103、e)for an aggregate total notional of$2 billion.For more information on our Sustainable Bond issuances,refer to our 2023 Annual Sustainable Bond Report and Sustainable Bond Framework.We also believe we can play a part in helping support a more robust and effective voluntary carbon market.Our Carbon M

104、arket Principles outlines our perspective on the role that the voluntary carbon market plays;current market challenges;and how we are working to support the integrity and functioning of the voluntary carbon market,including by purchasing high-quality carbon credits to address our residual operationa

105、l GHG emissions(refer to page 23)and engaging with clients on carbon credit-related transactions.6 1COMMERCIAL&INVESTMENT BANK At JPMorgan Chase,we are focused on helping our clients meet their climate goals.We aim to do this by providing our clients with strategic advice,by deploying our capital an

106、d expertise to help them in their efforts to reduce their operational emissions and,where appropriate,by advising them in their efforts in transitioning their business model toward a low-carbon future.Our Corporate Advisory team helps clients achieve their long-term strategic goals through the deliv

107、ery of holistic advice along with leading merger and acquisitions(“M&A”)and capital markets solutions.Comprised of six verticals Corporate Finance Advisory,M&A Structuring,Ratings Advisory,Infrastructure Finance Advisory,the Center for Carbon Transition(“CCT”)and Sustainable Solutions the Corporate

108、Advisory team partners with coverage and product teams across the CIB,as well as Corporate Sustainability,to deliver differentiated climate-focused solutions to our global client base.The team also works to develop and implement the Firms strategy to align,over time,our financing portfolio with net

109、zero emissions and oversees the implementation of our Carbon Assessment Framework(“CAF”).For more information on our targets and the CAF,refer to pages 811 and pages 1720.Within CIB Markets,the Global Markets Sustainability Center works with product teams and aims to accelerate the development of ta

110、ilored sustainability and climate solutions across asset classes by incorporating investors preferences and sustainability criteria into investment strategies.These efforts focus on helping clients gain exposure to distinct risk and reward profiles,while also helping to transition their portfolios t

111、o a low-carbon economy based on investors interests.Our Green Economy Banking team(“GEB”)provides subject matter expertise,banking solutions and specialized credit underwriting to companies primarily focused on decarbonization technologies,products and services.GEB serves businesses in North America

112、 and the Europe,Middle East and Africa regions across three coverage areas renewable energy,sustainable finance and climate tech.ASSET&WEALTH MANAGEMENT Our global and diversified franchise allows us to offer climate-conscious financial options to interested clients,including a growing range of clim

113、ate-and sustainability-related products and services through our AWM businesses.We aim to give individuals,families and institutions the tools they need to meet their goals.Our Global Sustainable Investing and Stewardship team at J.P.Morgan Asset Management(“JPMAM”)provides cross-asset research and

114、insights on thematic ESG issues,including climate risk;works with clients to build and implement sustainable investing solutions;and helps lead JPMAM investment stewardship activities,including proxy voting and investee company engagement.To learn more about these efforts,refer to the JPMAM 2024 Glo

115、bal TCFD Report and the JPMAM 2023 Investment Stewardship Report.Through J.P.Morgan Global Private Bank,which provides high-net-worth clients,endowments and foundations with access to a breadth of strategies across equities,fixed income,alternatives and multi-asset portfolios,we continue to expand o

116、ur Sustainable Investing offerings.To help clients achieve their sustainable investing goals,we have expanded our platform to include strategies focused on topics such as clean energy transition,sustainable transportation and circular economy.In 2023,we introduced new values-based investment offerin

117、gs through OpenInvest.These give clients the enhanced ability to personalize their investment strategies based on their values,including on topics such as deforestation,sustainable agriculture,greenhouse gas emissions and ocean-harming.SB ENERGY:HELPING BUILD A RENEWABLE ENERGY FUTURE We are providi

118、ng financing to support SB Energy(“SBE”),a utility-scale solar,energy storage and technology platform.SBE operates across the U.S.,with more than 25 GW of solar and storage projects in its pipeline.In 2024,JPMorgan Chase closed a$75 million4 participation in a$700 million corporate credit facility t

119、o support SBEs expansion.In addition to this financing,we also provide services to SBE through our tax-oriented investments and investment banking teams.CASE STUDY CASE STUDY Supporting Our Clients and Providing Climate-Related Solutions to Consumers and Investors We aim to provide clients with dive

120、rse and innovative solutions to support their business and climate goals,while helping to grow the market for green and sustainable financing.As such,we continue to strengthen our efforts across our LOBs to support the climate-and sustainability-related banking and investment needs of clients and in

121、dividuals.ELECTRIC HYDROGEN:SUPPORTING DECARBONIZATION THROUGH FINANCING GREEN HYDROGEN INNOVATION Green hydrogen is expected to serve as an alternative fuel in the energy transition,helping to decarbonize hard-to-abate industries including steel,fertilizer,shipping and aviation.With a gigafactory i

122、n Massachusetts and two operating plants in California,Electric Hydrogen manufactures,delivers and commissions electrolyzer plants that produce low-cost green hydrogen at scale.We are providing financing to help support the growth of Electric Hydrogen.In 2024,JPMorgan Chase participated in a$100 mil

123、lion5 credit facility to support Electric Hydrogens growth and operations.In addition,we continue to provide the company with treasury and investment banking solutions.3 Dealogic Sustainable Finance Review,Syndicated Bonds,Loans and Equity Full Year 2023.Note that third-party estimates of green,soci

124、al,sustainable and sustainability-linked(“GSSS”)bond underwriting may be different from JPMC-produced data for GSSS bond underwriting in our Sustainable Development Target(“SDT”).4 This transaction is eligible to count toward our SDT.Per our SDT methodology,only JPMorgan Chases apportioned share of

125、the transaction is counted toward our SDT progress.5 Reflects total credit facility value.This transaction is eligible to count toward our SDT.Per our SDT methodology,only JPMorgan Chases apportioned share of the transaction is counted toward our SDT progress.Our sustainable finance capital markets

126、teams continue to expand our capabilities in the sustainability-themed debt and debt-like markets to support our clients sustainability-related activities.With over$36.7 billion in green,social,sustainable and sustainability-linked bonds underwritten in 2023,3 we are one of the leaders in the market

127、 for sustainability-themed debt issuances.CONSUMER AND COMMUNITY BANK We continue to support our customers transition to electric vehicles(“EVs”)by helping them access financing to support their purchases.We provide financing for electric and hybrid vehicles,which consumers can find on our online au

128、to marketplace and through our private label relationships with EV manufacturers.We also offer an online EV Education Center,which helps consumers learn about,find and purchase electric and hybrid vehicles.7 Addressing Our Financed and Facilitated Emissions Through Our Net Zero-Aligned Targets We ar

129、e focused on doing our part to support the transition by helping our clients achieve their net zero objectives.Leveraging our expertise and balance sheet,we aim to provide strategic advice and financing solutions to help our clients achieve their decarbonization goals.We continue our efforts to alig

130、n key sectors of our financing portfolio6 with net zero emissions outcomes.To date,we have set nine net zero-aligned targets for eight sectors Oil&Gas,Electric Power,Auto Manufacturing,Aviation,Shipping,Iron&Steel,Cement and Aluminum aligned with the International Energy Agencys Net Zero by 2050 sce

131、nario.As a bank,we rely on global advancements in decarbonization technologies and strategies across various sectors to create opportunities to support our clients transition efforts.Without significant progress by both our clients and the wider economy,our ability to support the transition,and in t

132、urn progress toward our targets,is constrained.Specifically,our progress toward our targets is reliant on the diversification of energy supply and increased adoption of cleaner sources of energy by demand-side sectors.Furthermore,the necessary shift in global energy supply and demand requires a mult

133、i-faceted approach that includes not only capital deployment but also policy incentives,broader societal behavior changes,and rapid advancement of low-and zero-carbon technologies to support energy security and affordability.As policy incentives and societal demand for climate and industrial solutio

134、ns grow,more capital will begin to flow into these solutions.Since setting our first portfolio-level decarbonization targets in 2021,we have continued assessing additional carbon-intensive sectors of our portfolio for potential target setting,as well as enhanced our existing targets to reflect the c

135、hanging world around us.At this time,we are not setting targets for additional sectors of our portfolio due to factors including data limitations,lack of available decarbonization pathways and commercial considerations.Instead,we believe we can more effectively contribute by continuing to engage wit

136、h our clients,offering tailored,sector-specific advice that reflects their unique needs and decarbonization goals.As market dynamics,climate science and technology,and public policy evolve,we may revise our approach.We remain focused on supporting our clients decarbonization objectives and driving p

137、rogress toward our nine net zero-aligned targets.We plan to continue to evaluate our targets and make our own decisions on our approach to them.We may make any adjustments to our targets that we deem necessary in light of considerations including the latest climate science and technology,macroeconom

138、ic trends,commercial impacts and our clients business needs.On the following page,we summarize key elements of our approach and our strategy for progressing toward our targets,while in pages 1720 we provide baselines and performance to date toward our net zero-aligned targets.We also include disclos

139、ure of our financed and facilitated absolute emissions for selected sectors of our portfolio,refer to page 21.For more information on our approach to setting our net zero-aligned targets and calculating our absolute financed and facilitated emissions,refer to our Carbon Compass methodology.We are al

140、so disclosing our own Energy Supply Financing Ratio,for additional detail see our ESFR methodology and page 22.Balancing Environmental,Social and Economic Needs 6 Our financing portfolio is defined to include all lending,tax-oriented investments and capital markets activity with in-scope clients.Ach

141、ieving long-term inclusive and sustainable growth globally requires balancing environmental needs,societal advancement and economic stability.While the world needs to work toward environmental goals such as achieving net zero GHG emissions by 2050,it needs to do so in a way that supports the worlds

142、growing energy demand and fosters equitable energy access,reliability,security and affordability.For us,recognizing the balance needed to achieve long-term sustainability informs our approach to environmental initiatives.Our initiatives are rooted in how we do business:this means serving our custome

143、rs,clients and communities while running a healthy and vibrant company.Examples of this work include using our capital and expertise to support clients in advancing their low-carbon transition goals,and in turn,advancing progress toward our own net zero-aligned targets(refer to pages 811 and 1720);d

144、eploying our philanthropic capital to support initiatives that help vulnerable communities globally advance their resilience to climate change(refer to page 52 in our 2023 ESG Report);and evaluating and managing potential risks such as nature and social risks within our business(refer to page 31).8

145、2Our Carbon Assessment Framework We developed our Carbon Assessment Framework(“CAF”)with the aim of providing a consistent,comprehensive and data-driven approach to assess our clients emissions and decarbonization plans.For each new proposed in-scope transaction,our CAF provides decision-makers at t

146、he Firm with insights into how the transaction may impact a portfolios carbon intensity.The framework relies on two key scores that are assessed for each client:a quantitative score and a qualitative score(collectively known as the CAF scores).The quantitative score for each client comprises three p

147、illars:i.Current Carbon Intensity:we compare each clients most recently available carbon intensity to that of other clients within the same sector,which allows us to benchmark their performance within each respective sector portfolio.ii.Forecasted Carbon Intensity:we use our clients decarbonization

148、targets to forecast their carbon intensity for our target year(2030).This gives us insight into each clients decarbonization goals and pathway.iii.Historical Carbon Intensity Reduction:we measure the change in each clients carbon intensity to gauge their progress and continued focus on reducing carb

149、on intensity over time.The qualitative score,which considers a variety of factors,enables us to take a holistic view beyond just carbon intensity of how each client plans to advance their decarbonization strategy.Some of the factors we consider include governance and oversight of climate matters,cli

150、mate risk integration into corporate strategy,investments(e.g.,mergers and acquisitions,joint ventures,venture funding)to support transition and climate objectives,and supplier sustainability programs.Where applicable,we also consider specific factors;for example,in the Oil&Gas sector,we evaluate cl

151、ients flaring and fugitive methane emissions management plans.HOW WE ARE USING CAF We aim to align our capabilities and efforts to make progress toward our net zero-aligned targets.Our goal is to develop our knowledge and understanding of the complexities of navigating the low-carbon transition to s

152、upport our clients in thinking through and acting on their decarbonization plans,while also aiming to achieve emissions reductions across our financing portfolio.Decision-making and Portfolio Management:We consider the CAF as one element of our decision-making for new in-scope transactions in our ta

153、rgeted sectors.The CAF process,and corresponding governance,have been integrated into the various deal execution processes for each sector across credit and capital markets financing for all in-scope transactions.While all transactions are assessed on an individual basis with a holistic view of many

154、 factors,the CAF allows us to assess how each new transaction may impact our portfolio carbon intensity.Our CAF facilitates visibility and monitoring of progress toward targets by senior leaders of relevant banking teams at regional-and sector-specific levels.Client Engagement:Assessing our clients

155、decarbonization plans through our CAF creates an opportunity for us to engage with our clients,understand their views,plans and constraints,as well as their capital needs.The CCT,together with other banking teams,works closely with clients to offer financial solutions to advance clients decarbonizat

156、ion initiatives and goals.QUANTITATIVE ASSESSMENT QUALITATIVE ASSESSMENT CAF QUANTITATIVE SCORE(15)Client is scored relative to the applicable net zero aligned target Forecasted Carbon Intensity Historical Carbon Intensity Reduction Client is scored based on the 2-year change in its carbon intensity

157、 Client is scored relative to carbon intensity performance within the same sector portfolio Current Carbon Intensity CAF QUALITATIVE SCORE(15)Clients integration of climate risk and opportunities in corporate strategy Clients investments toward decarbonization Holistic view of the clients plans and

158、actions to achieve its decarbonization plans including:Clients Board oversight and corporate governance of climate-related matters Key Aspects of Our Carbon Assessment Framework We recognize that different factors beyond both our and our clients control such as technology development and scalability

159、 will pose challenges in the low-carbon journey.The table on the following page gives a few examples of areas where we are engaging with our clients to provide additional support by delivering strategic advice,as well as providing capital and structured financing solutions to help them in achieving

160、their decarbonization goals.We see these as levers that may help advance decarbonization of the different sectors where our clients operate and contribute to our progress toward our net zero-aligned targets.Risk Management:We also consider CAF scores in our risk assessments.The quantitative and qual

161、itative CAF scores are used in our Wholesale Credit Risk stress framework along with other climate-related factors,such as transition scenario outputs,to estimate the impact of different transition pathways on client financials and credit ratings.For more information on how we use CAF in our risk as

162、sessments,please refer to page 29.9 Examples of decarbonization levers across sectors SECTOR EXAMPLE OF DECARBONIZATION LEVER Oil&Gas Methane abatement projects(e.g.,venting and flaring)refer to page 11 for more information on how we engage with our clients on methane emissions management Use of alt

163、ernative fuels and renewable energy in operations Carbon capture,utilization,and storage(“CCUS”)for both operational and consumer carbon emissions Production of alternative fuels(e.g.,biofuels,synthetic fuels,etc.)Production of hydrogen,especially green hydrogen Production of renewable energy Electr

164、ic Power Renewable energy(solar,onshore/offshore wind farms geothermal,etc.)Nuclear Hydrogen,especially green hydrogen CCUS Auto Manufacturing Battery electric vehicles Plug-in hybrid electric vehicles Hydrogen fuel cell vehicles Efficiency improvements in internal combustion engines Iron&Steel Elec

165、tric arc furnaces Hydrogen for direct reduced iron production Use of renewable electricity Scrap recycling and direct re-use(without re-melting)CCUS Extended lifetime of steel output Cement CCUS Decreasing clinker-to-cement ratio of sold cementitious products Producing clinker replacements Use of al

166、ternative fuels(non-renewable waste,biomass,renewable waste)Electrification of equipment Aviation Sustainable Aviation Fuels(“SAF”)-learn more about our work in advancing SAF development on page 7 of our 2023 Climate Report Alternative propulsion systems(electric,hydrogen)Fleet replacement Engine ef

167、ficiency improvements and retrofits Load factor/demand management Flight control and ground operations efficiency Shipping Alternative fuels(biofuels,ammonia,hydrogen,methanol)Fleet replacement Electrification Engine efficiency improvements and retrofits Load factor/demand management Aluminum Use of

168、 renewable electricity Electrification of refining Recycling of aluminum Use of inert anodes 10 Supporting Methane Emissions Reduction As discussed in our 2023 white paper The Methane Emissions Opportunity,reducing methane emissions and flaring in the Oil&Gas sector can produce positive outcomes for

169、 businesses,the climate and energy security and affordability.By curbing methane emissions and flaring today,the Oil&Gas industry can make near-term contributions toward achieving global climate targets and,in certain cases,their own corporate-level emissions reduction targets.An area of focus with

170、our clients in the Oil&Gas sector is supporting their efforts to adopt direct methane emissions measurement technologies and robust accounting protocols.Historically,methane emissions have been difficult to address in part due to a lack of reliable,real-world data.Most Oil&Gas companies use factor-b

171、ased computer modeling to generate estimates of their methane emissions,which may substantially underestimate real-world methane emissions.Therefore,harnessing technology for methane measurement is an important step toward improving the accuracy and transparency of methane emissions data,which,in tu

172、rn,can help to mobilize targeted methane emissions reduction efforts globally.For the purposes of our own portfolio-level Oil&Gas Operational carbon intensity target,we are engaging with and assessing data providers that are focused on tackling methane emissions,particularly with those who are integ

173、rating a variety of measurement-based emissions into their data products.By supporting the industry in improving the availability and accuracy of methane emissions data,we hope to gain a more realistic picture of a clients carbon intensity,improve the quality of CAF scores for Oil&Gas clients and ha

174、ve better insights into the makeup of our financed emissions,while also informing our engagement efforts with clients.We also work to support our clients in identifying and implementing strategies that can have the greatest impact in their emissions reduction efforts.We use our learnings to engage w

175、ith our clients and provide advice and strategic capital to help support their decarbonization.For example,we support our Oil&Gas clients in participating in initiatives that aim to enhance measurement-based methane emissions reporting frameworks for the sector,when appropriate.We are also equipping

176、 our bankers with tools to guide their conversations with our clients on their methane reduction efforts.Refer to page 15 for more information on the climate-related resources and capacity building we are providing to our workforce.UPDATES TO OUR CAF METHODOLOGY Since launching CAF in 2021,we have b

177、roadened its scope to encompass new sectors.We have also refined our CAF methodology with the aim of implementing it across all in-scope transactions and generating a sector-specific assessment of a companys decarbonization plans.We aim to continue enhancing and maturing the CAF methodology over tim

178、e,including in line with additions and/or changes to our net zero-aligned targets.In 2023,we introduced key updates to our CAF methodologies,including:Launching and implementing CAF for in scope-transactions for sector targets set in 2023 Shipping and Aluminum,and Updating our CAF methodologies for

179、assessing clients in relevant sectors to reflect changes to our Energy Mix,Oil&Gas Operational,Electric Power and Auto Manufacturing sector targets.INTEGRATING CAF ACROSS OUR BUSINESS PROCESSES We continue to dedicate resources toward enabling a technology-based integration of our CAF throughout our

180、 relevant business processes.For example,we have integrated our CAF into our deal origination process completing a carbon assessment using CAF is now a requirement that is automatically triggered for new in-scope transactions.This integration makes CAF a standard component of the information submitt

181、ed to decision-making committees.It also provides our banking teams with tools to guide them in completing CAF at a transaction-level and to understand the impact of the proposed transaction to the relevant portfolios carbon intensity.Furthermore,it enables senior leaders across sector and product t

182、eams globally to have better visibility,through a dashboard,of various portfolio-level analytics.As part of our efforts to streamline our business process for calculating CAF scores,we are developing a proprietary ESG data management product.This product is currently used by multiple teams across th

183、e Firm and is designed to curate and host a wide range of internal and external ESG data sources.We are allocating resources toward further development and maturation of the product.This reference data can be used for calculating CAF scores and conducting climate risk scenario analysis and stress te

184、sting,among other things.11 In addition to helping meet the sustainability objectives of customers and clients through our business,we strive to manage the environmental impact of our own operations including our real estate and supply chain.Our reported operational footprint is driven primarily by

185、the energy and resources we use to run our global network of more than 5,500 corporate offices,bank branches and data centers,as well as regular activities such as business travel.Our approach includes managing our energy and carbon footprint,constructing and operating more sustainable buildings and

186、 implementing leading practices in sustainable sourcing and resource management.For details on our operational GHG emissions data and renewable electricity use,refer to pages 2324.Energy and Carbon Footprint Management Our strategy for energy and carbon footprint management is guided by the concept

187、of the GHG mitigation hierarchy,designed to prioritize actions with the largest potential impact on emissions reduction.We work to avoid or minimize emissions as close as possible to their source,both to maximize efficiency of our operations and reduce our contributions to atmospheric GHG concentrat

188、ions.Our approach also considers our current operational decarbonization targets,including reducing Scope 1 and Scope 2(location-based)GHG emissions by 40%by 2030 vs.a 2017 baseline,sourcing renewable electricity for 100%of our global electric power needs annually,and satisfying at least 70%of our r

189、enewable electricity with on-site generation and long-term renewable electricity contracts by the end of 2025.We continue to evaluate our energy and carbon footprint management strategy,including our targets,and we may adjust our approach taking into consideration market conditions,availability of t

190、echnology and the broader business interests of the Firm,among other factors.Managing Our Operational Footprint 7 To learn more about the criteria we prioritize when evaluating the quality and credibility of carbon credits,please refer to Carbon Market Principles and page 37 of our 2023 ESG Report.8

191、 Durability is defined as amount of time for which CO2 can be stored in a stable and safe manner.In this context,high-durability is defined as 1,000+years of anticipated CO2 storage.JPMorgan Chases GHG Mitigation Hierarchy STRATEGY AVOIDDesigning new activities to be low-carbon from the outset such

192、as by purchasing or constructing low-emissions equipment and buildings or deciding not to pursue new,high-emitting activities.REDUCE Upgrading or retrofitting existing equipment,buildings and processes to be more energy-efficient,and therefore,reduce emissions.REPLACE Substituting high-carbon energy

193、 sources with low-or zero-carbon alternatives,such as renewable electricity.REMOVE OR COMPENSATEAddressing residual emissions and/or support development of climate solutions through the purchase and retirement of high-quality carbon credits,with emphasis on high-durability carbon removal.7,8 12 3The

194、 following outlines some of the initiatives we are currently pursuing in line with our strategy for energy and carbon footprint management.To learn more about other strategies to enhance the environmental sustainability of our operations and supply chain,refer to pages 3340 of our 2023 ESG Report.IM

195、PROVING EFFICIENCY AND ACCELERATING ELECTRIFICATION Enhancing energy efficiency and pursuing opportunities for electrification are important elements of our strategy.To this end,in 2023,we:continued to streamline and consolidate our data centers,migrating toward more efficient facilities,and to expa

196、nd deployment of advanced hardware and software to support ongoing improvements in energy and operational efficiency.improved the energy efficiency of technology used by our employees by implementing a program to reduce standard brightness settings for newly deployed monitors,resulting in decreased

197、energy use and associated emissions.reduced energy use and GHG emissions associated with the amenities provided in our offices,by rolling out more sustainable drinking water taps across our sites in Europe,the Middle East and Africa that provide up to 60%energy savings when in standby mode.SOURCING

198、RENEWABLES In addition to minimizing total energy consumption,we are working to reduce operational GHG emissions by generating and sourcing renewable electricity for 100%of our global electric power needs annually.This includes aiming to increase our use of on-site solar energy systems,as well as ne

199、gotiating long-term electricity contracts and purchasing energy attribute certificates(“EACs”).On-site solar:we completed construction of two additional solar installations totaling over 12.3 MW capacity in our corporate office buildings,bringing us closer to a planned total of more than 90 MW of ca

200、pacity by the end of 2025.Long-term energy contracts:for our electricity needs that cannot be met with on-site renewables,we aim to procure additional renewable electricity via long-term power purchase agreements(“PPAs”),virtual power purchase agreements and renewable supply contracts.EAC Procuremen

201、t:to continue to meet our target to source renewable electricity for 100%of our global electric power needs,we purchase applicable EACs,e.g.,Renewable Energy Certificates(“RECs”)and International-RECs.We believe these instruments are an important lever in the commercialization of renewable electrici

202、ty,helping to foster market growth and sustainability of the electric power generation sector.PURCHASING HIGH-QUALITY CARBON CREDITS9 To complement our ongoing emission reduction efforts,we also seek to address our remaining unabated emissions by purchasing and retiring high-quality carbon credits t

203、hroughout the year.To learn more about core principles that we reference when evaluating carbon credits,please refer to our Carbon Principles Paper.In 2023,our portfolio included credits from nature-based,hybrid and engineered removal projects,including improved forest management(“IFM”),afforestatio

204、n,blue carbon,biochar and bio-oil sequestration.By supporting different kinds of carbon removal projects,we aim to help develop the broader market and scale emerging solutions.Over time,we will consider increasing procurement of long-term or permanent carbon dioxide removals(“CDR”)with the goal of h

205、elping to accelerate and scale the development of related technologies.Also in 2023,the Firm signed long-term agreements to purchase over$200 million in high-quality,durable CDR.The CDR from these agreements is intended to remove and store approximately 800,000 mtCO2e from the atmosphere and to enab

206、le us to match every ton of our unabated Scope 1 direct operational GHG emissions with durable carbon removal by 2030.9 Carbon credits and the market for them are evolving rapidly.Although we endeavor to source high-quality carbon credits verified by independent third parties,the ability to use carb

207、on credits to fully and permanently address unabated emissions relies on certain assumptions and is subject to debate among experts.13 Accountability,Transparency and Engagement Accountability We strive to leverage the Firms robust management structures to foster sound management and a culture of ac

208、countability on ESG matters.This includes defining oversight and management of climate-related initiatives within and across our LOBs(refer to page 4 for more information).We aim for transparency by reporting progress against key climate and ESG-related targets annually including processes and contr

209、ols for data disclosure and verification.Public Reporting We recognize stakeholders interest in timely information concerning our climate-related strategies and activities.We communicate information about our ESG practices and performance,including climate,through a number of channels that may inclu

210、de our Annual Report,Climate reporting,regulatory filings,website,press releases,direct conversations with stakeholders,and various other reports and presentations.We maintain a dedicated ESG information page on our website to facilitate access to information that we publish on these topics.We are a

211、lso closely monitoring and responding to regulatory developments related to mandatory climate reporting requirements in many jurisdictions around the world.Policy and Industry Engagement We recognize the need for thoughtful public policy on climate-and energy-related matters.Such public policy can h

212、elp accelerate the Firms progress on sustainability-related efforts and contribute to sustainable economic growth.It is among the prerequisites for achievement of our and others climate targets.We engage with external stakeholders and trade associations on policies that we believe can help make net

213、zero goals achievable and further the availability of affordable and secure energy while continuing to make our own independent decisions.We believe that no one company or sector can solve the challenges and complexities of climate change;rather,engagement between public and private actors and acros

214、s industries can help lead the development and implementation of solutions that address diverse stakeholder needs.The Firm also belongs to a number of trade associations that advocate on major public policy issues of importance to the Firm and the communities we serve.The Firms participation in thes

215、e associations comes with the understanding that we may not always align with all their positions or those of its other members.We make independent decisions as a Firm,and we may provide feedback on these associations efforts.A list of the Firms principal trade associations is disclosed in our Polit

216、ical Engagement Report.Similarly,we may engage with industry groups focused on complex global challenges,including climate change.We participate with these groups as long as they align with our objectives,enhance our ability to meet those objectives and have appropriate governance.When participating

217、 with these groups,we continue to exercise our own business judgment based on the best interest of the Firm and serving our clients.We also participate in a variety of initiatives focused on advancing sustainability,such as the following in the Oil&Gas sector:In 2024,select banking leaders of JPMorg

218、an Chase took part in the Methane Abatement Taskforces Financial Working Group,a COP28 initiated effort coordinated by the Climate Bonds Initiative,which aimed to produce voluntary guidelines for investments that result in a reduction of methane emissions aligned with the IEA NZE.In 2024,we engaged

219、the energy industry and financial communities at events across the U.S.,from Texas Christian Universitys Global Energy Symposium to the New York City Transition-IQ Forum to the Aspen Institutes Aspen ESG Summit.JPMorgan Chase sponsored the United States Hispanic Chamber of Commerces Energy Summit in

220、 June 2024,where we spoke about opportunities to enhance both decarbonization and energy security through methane abatement and carbon capture and storage technology,and ways that Hispanic-owned business can participate in associated supply chains.In 2024,at New York Climate Week,we hosted an event

221、with the Oil and Gas Climate Initiative,bridging together the public and private sectors,including representatives from energy and financial firms.The event focused on emissions reduction efforts,data and disclosure enhancements,and cross-sector opportunities.We have taken steps to respond to climat

222、e-related risks and opportunities in our business,but we are aware that there is more work we can do,and we will continue to learn including through the feedback we receive from our stakeholders.Our environmental sustainability strategy is supported and strengthened by our ongoing efforts to enhance

223、 accountability,transparency and engagement.14 Stakeholder Engagement Our stakeholders include customers and clients,shareholders,employees,communities,regulators and policymakers,research analysts and suppliers.We engage with stakeholders throughout the year to obtain insight into their needs and p

224、erspectives,as well as to gather feedback on our strategy and performance,including as they relate to climate change.EDUCATING OUR WORKFORCE ON CLIMATE We are enhancing our ability to support our clients in navigating their low-carbon transition journeys,achieving their climate goals and executing o

225、n value creation strategies.One way we do this is providing our banking teams across LOBs with climate-related resources covering a wide range of topics,such as methane abatement and measuring technologies;climate-related regulatory updates;key technologies,financing options and investment opportuni

226、ties of the energy transition;and sector-specific decarbonization pathways.Our Global ESG Research team also hosts an intranet site providing ESG&Sustainability Education research,training and resources that employees can access.Additionally,we offer a Climate Risk training course to our employees.T

227、his course includes training modules on a variety of topics,such as climate science,managing and quantifying climate risk at JPMorgan Chase and climate risk stress testing.We also offer a variety of training opportunities to our employees across ESG topics,such as on biodiversity loss,green and soci

228、al bonds,and inclusive leadership.STRENGTHENING OUR SUSTAINABILITY INITIATIVES THROUGH EMPLOYEE ENGAGEMENT We encourage our employees to think about how they can live more sustainably and how they can reduce their environmental impact both at work and at home.Through our Global Sustainability Series

229、 events,employees are invited to participate in discussions featuring external sustainability experts and the Firms sustainability leaders to learn about opportunities to take effective action.In addition,our GoGreen program,a global network of nearly 60 employee-led volunteer teams,works to foster

230、a community of informed,engaged and inspired employees who contribute to our sustainability culture.The mission of the GoGreen teams is to increase employee awareness of sustainability initiatives at the Firm including our operational sustainability targets and what we are doing to meet them as well

231、 as offer employees opportunities to learn about and engage in sustainable activities at work,at home and in their communities.To learn more,refer to page 39 of our 2023 ESG Report.REALIZING ENVIRONMENTAL BENEFITS THROUGH ENGAGEMENT WITH OUR SUPPLIERS We recognize that the environmental impact of ou

232、r operations extends to our suppliers practices.As such,we aim to engage with suppliers who are working to improve their environmental sustainability.For example,in 2023,the Firm collaborated with World Wide Technology a global technology solutions provider to help optimize the use of transit cases

233、to transport hardware to our data centers.By replacing pallets with transit cases and minimizing equipment packaging and other components,such as power cords and user manuals,we have reduced truck shipments and generated waste,resulting in an estimated 4,333 mtCO2 10 avoided during 2023.Our Supplier

234、 Environmental Sustainability Guidelines established in 2023 further highlight our efforts to engage with our suppliers on environmental issues.They are intended to establish a framework to further incorporate environmental considerations into our procurement process,as appropriate,and to encourage

235、our suppliers to integrate positive environmental practices within their own organizations.ELECTRIC TRUCK INNOVATION IN KANSAS In August 2024,our Chairman and CEO,Jamie Dimon,toured the recently opened Kansas City,Kansas headquarters and factory of Orange EV a company that builds electric terminal t

236、rucks for use in warehouses,ports and rail yards.The company manufactures all of its trucks in the U.S.,employing workers in Kansas City and around the country.Orange EVs electrification of trucks in the transportation sector is an example of the innovation taking place in the Heartland region of th

237、e U.S.Deployment of EV trucks in supply chains and at transportation hubs can reduce GHG emissions and result in cleaner air and public health benefits for communities,while saving customers money over time through reduced fuel and maintenance costs.10 Scope 3 GHG emissions,other than Category 6-bus

238、iness travel,fall outside of the scope of our reported operational GHG emissions(see page 23 for more information on our operational GHG emissions).15 Measuring Our Progress SCALING GREEN SOLUTIONS Including progress toward our goal of financing and facilitating$1 trillion to support climate solutio

239、ns,clean energy and sustainable resource management by the end of 2030.BALANCING ENVIRONMENTAL,SOCIAL AND ECONOMIC NEEDS Including progress toward our net zero-aligned targets and disclosing absolute financed and facilitated emissions for key sectors of our financing portfolio.MANAGING OUR OPERATION

240、AL FOOTPRINT Including our Scope 1,Scope 2 and Scope 3 Category 6-business travel GHG emissions and progress toward our operational decarbonization targets.Metrics&Targets We intend to measure and report our progress over time on climate-related matters,both to provide information to our stakeholder

241、s and to inform how we manage and implement our environmental sustainability strategy.We plan to continue to evaluate our targets and make our own decisions on our approach to them.We may make any adjustments to our targets that we deem necessary in light of considerations including the latest clima

242、te science and technology,macroeconomic trends,commercial impacts and our clients business needs.In this section,we provide details of the metrics and targets we are currently using in conjunction with each of the three pillars of our environmental sustainability strategy.Progress toward our climate

243、 and ESG-related targets is subject to a number of conditions and prerequisites,including market conditions,technological innovation and public policy changes;as such,we do not expect our progress to be linear.Scaling Green Solutions$1 Trillion for Green In 2023,we financed and facilitated approxima

244、tely$66 billion in support of our$1 trillion Green objective of our Sustainable Development Target(“SDT”),particularly through green bond underwriting and financing for renewable and clean energy,as shown in the table below.Collectively,since setting our target in 2021 through December 31,2023,we ha

245、ve financed and facilitated$242 billion toward our$1 trillion Green objective.While we pursue our SDT,including the Green objective,we note that it is subject to other prerequisites and critical considerations,both within and outside our control.To learn more about our progress toward our SDT and th

246、e activities it is designed to support and amplify across our business,refer to pages 913 of our 2023 ESG Report.Refer to Our Approach to Our Sustainable Development Target for more information on our criteria for determining which business activity is eligible to count toward our SDT and how we acc

247、ount for the value of transactions.2023 PROGRESS IN MULTIPLE CRITERIA Cumulative Green Progress by Eligibility Criteria 2022$B 2023$B CUMULATIVE TOTALi$B Renewables and Clean Energy$20$15$50 Clean Technology$4$4$9 Sustainable Transportation$2$6$30 Green Buildings$4$1$7 Water Management$2$2$10 Circul

248、ar Economy and Waste Management$1$0$1 Multiple Criteria$37$37$134 Total$70$66$242 Note:Totals may not sum due to rounding.i.Total as cumulative progress from 2021 to 2023.Note:Total may not sum due to rounding.16 1123Balancing Environmental,Social and Economic Needs Our Net Zero-Aligned Targets Our

249、net zero-aligned targets are currently constructed for 2030 as portfolio-level targets by sector,using output-based emissions intensity reduction metrics and aligned to the IEA NZE scenario.We set targets using our own independent assessment of what we determine is reasonable,achievable and science-

250、based,and what will serve the best interests of our business and clients.In this section,we provide performance to date toward our net zero-aligned targets and disclose our financed and facilitated emissions on an absolute basis for key sectors of our portfolio.PROGRESS TOWARD OUR TARGETS While we h

251、ave made progress toward some of our targets,we have not made progress on others to date as compared to their respective baselines,and we recognize that year-on-year fluctuations will occur.Our focus is on continuing to help our clients on their decarbonization efforts,addressing their financing and

252、 banking needs,while seeking opportunities to create long-term value for our shareholders.While we believe the actions we are taking today will facilitate our continued progress in the years ahead,our progress toward and ability to achieve our targets is dependent on the pace of global decarbonizati

253、on and other factors outside our control along with commercial considerations.The world will need time to implement effective decarbonization solutions while maintaining the availability of affordable and secure energy to meet economic and societal needs.Global policy action that drives the adoption

254、 of clean energy,promotes the development of clean technology supply chains and attracts private sector investment,coupled with market and consumer behavioral changes,are prerequisites for our progress.To learn more about how we work to support our clients in their decarbonization efforts and in tur

255、n progress toward our net zero-aligned targets,please refer to pages 811.The table on the right summarizes our progress toward our net zero-aligned targets as of December 31,2023.Additional detail on our progress in each of our targets follows on pages 1820,including macroeconomic trends that may im

256、pact our ability to meet our targets consistent with business needs.SECTOR DETAILS BASELINEi 2030 TARGET JPMORGAN CHASE PROGRESS Scope(s)Included Unit of Measurement Baseline Year Portfolio Carbon Intensity Baseline Portfolio Carbon Intensity as of December 31,2023 Change in Portfolio Carbon Intensi

257、ty from Baselineiv Energy Mix Scope 3(end use)gCO2 /MJ 2019 45.9 29.5-36%from baseline 34.8-24.1%Oil&Gas Operational Scopes 1 and 2 gCO2e/MJ 2019 4.9 -45%from baseline 4.7-4.0%Electric Power Scope 1 kgCO2/MWh 2019 342.6 105.3-69%from baseline 268.8-21.5%Auto Manufacturing Scopes 1,2 and 3(tank-to-wh

258、eel)gCO2e/km 2019 164.8 86.1-48%from baseline 126.4-23.3%Aviation Scope 1(tank-to-wake)gCO2/RTK 2021 972.6 625.0-36%from baseline 808.0-16.9%Shipping Scope 1(tank-to-wake)gCO2/t-nm 2021 11.4(revisedii)8.4-26%from baseline(revised)11.9 4.9%Iron&Steel Scopes 1 and 2 tCO2e/t crude steel 2020 1.412 0.98

259、1-30%from baseline 1.390-1.5%Cement Scopes 1 and 2 kgCO2e/t cementitious product 2020 639.3 460.0-28%from baseline 634.6-0.7%Aluminum Scopes 1 and 2 tCO2/t aluminum 2021 8.6(revisediii)6.5-24%from baseline(revised)8.8 2.2%PROGRESS ON NET ZERO-ALIGNED TARGETS11 i.To calculate portfolio baseline carbo

260、n intensities,we use client carbon intensity data for the baseline year and exposure data from the following year,except for the Aviation sector,where the baseline year and exposure year are the same(2021).ii.Revised 2021 portfolio baseline for Shipping to 11.4 g CO2/t-nm from previously disclosed 1

261、2.5 g CO2/t-nm.iii.Revised 2021 portfolio baseline for Aluminum to 8.6 g CO2/t aluminum from previously disclosed 8.7 g CO2/t aluminum.iv.Percentage change may not calculate as shown due to rounding.11 Our targets are based on data and scenario projections available as of September 2023.Future updat

262、es to the IEA NZE scenario and/or other inputs for example,changes in global emissions,available technologies or economic conditions may result in changes to the projected emissions trajectories,and we may therefore update our targets.We monitor these changes,as well as improved visibility,quality o

263、r availability of data,and assess the need to revise our baselines and targets as appropriate.We revised baselines for the Shipping and Aluminum sectors this year.17 2DETAILS BASELINEi JPMORGAN CHASE PROGRESS ENERGY MIX(SCOPE 3 EMISSIONS)As of December 31,2023,the carbon intensity of our Energy Mix

264、portfolio has decreased by 24.1%,compared to the 2019 baseline.Our progress is mainly attributable to our increased financing of zero-carbon power generation coupled with a reduction in our exposure to the Oil&Gas sector as the industrys external financing needs have reduced in recent years.Although

265、 the substitution of oil and natural gas supply with zero-carbon power generation in our financing portfolio has outpaced global trends between 2019 and 202212,additional effort will be needed to maintain our progress toward meeting our portfolio-level target.These efforts will involve us continuing

266、 to finance zero-carbon investments,our clients adopting and expanding zero-carbon solutions,and policymakers implementation of policies and incentives to support the transition.Given that the carbon intensity of our Energy Mix portfolio reflects the distribution of the financing we provide to each

267、energy type,changes in macroeconomic factors such as market demand and energy prices can negatively impact the rate of progress toward our target.We remain focused on using our capital to support the decarbonization of the overall energy supply while continuing to support our clients in both expandi

268、ng clean energy sources and maintaining an affordable and reliable energy supply.ELECTRIC POWER As of December 31,2023,the carbon intensity of our Electric Power portfolio has decreased by 21.5%,compared to the 2019 baseline.This decrease is driven by a combination of our clients transitioning their

269、 generation mix to lower emissions sources and the Firm increasing financing to companies and projects with zero-carbon power generation.Our continued focus on supporting the rapid build out of renewables has resulted in our portfolios progress outpacing the carbon intensity reduction trend observed

270、 in the OECD region between 2019 and 202214.Our continued focus on helping accelerate capital deployment,especially through tax-oriented investments,and providing our clients with differentiated solutions has helped move our portfolio closer to our target.At the same time,global demand for reliable

271、and affordable electricity continues to rise,which may impact our and our clients ability to meet decarbonization targets.We plan to continue to support our clients with advice and innovative financing solutions.12 Global progress estimated using energy supply and emissions data for 2019 sourced fro

272、m World Energy Outlook 2021 published in October 2021(Table A.1d:World energy supply and Table A.4d:World CO2 emissions,respectively);and energy supply and emissions data for 2022 sourced from World Energy Outlook 2023(Table A.1c:World energy supply and Table A.4c:World CO2 emissions,respectively)pu

273、blished in October 2023.13 Global progress estimated using energy supply and emissions data for 2019 sourced from World Energy Outlook 2021 published in October 2021(Table A.1d:World energy supply and Table A.4d:World CO2 emissions,respectively);and energy supply and emissions data for 2022 sourced

274、from World Energy Outlook 2023(Table A.1c:World energy supply and Table A.4c:World CO2 emissions,respectively)published in October 2023.14 Global progress estimated using generation and emissions data for 2019 sourced from World Energy Outlook 2021 published in October 2021(Table A.3d:World electric

275、ity sector and Table A.4d:World CO2 emissions,respectively);and for 2022 sourced from World Energy Outlook 2023 published in October 2023(Table A.3c:World electricity sector and Table A.4c:World CO2 emissions,respectively).OIL&GAS OPERATIONAL As of December 31,2023,the carbon intensity of our Oil&Ga

276、s Operational portfolio has decreased by 4.0%,compared to the 2019 baseline.This decrease is mainly driven by clients in our portfolio making progress toward their decarbonization goals as the industry continues to focus on key operational areas like methane emissions,in part due to current public p

277、olicy and legislation.When compared to the global decarbonization of Oil&Gas Operational sector,our portfolio reflects a relatively similar rate of carbon intensity reduction13.For more detail on how we support our Oil&Gas clients in reducing their operational emissions through targeted efforts towa

278、rd methane emissions reduction,refer to page 11.18 AUTO MANUFACTURING As of December 31,2023,the carbon intensity of our Auto Manufacturing portfolio has decreased by 23.3%,compared to the 2019 baseline.This decrease is driven mainly by banking new and emerging pure-play EV manufacturers and the gro

279、wing portfolio of EV offerings by legacy auto manufacturers that produce traditional internal combustion engines(“ICE”),hybrid and alternative drivetrain vehicles.The sectors overall effort to transition to an all-EV future,as well as the policy,legislative and market behavior changes that are catal

280、yzing the shift,are prerequisites in allowing us to continue to make progress toward our target.Additionally,improvements in fuel efficiency and the introduction of more hybrid engine product offerings continue to reduce the carbon intensity of ICE vehicles being sold.Our portfolios rate of decarbon

281、ization outpaces the progress being made by the sector at a global-level15.However,challenges in the pace of EV adoption suggests a need for more efforts globally by the public and private sectors to deploy and scale solutions across the value chain especially in areas such as battery manufacturing

282、and EV charging to support the sectors decarbonization.We will continue to engage with our clients and seek to provide them with financing opportunities to support the transition of the sector.SHIPPING We have revised our 2021 baseline for our Shipping portfolio to 11.4 gCO2/t-nm to account for data

283、 quality improvements.As of December 31,2023,the carbon intensity of our Shipping portfolio has increased by 4.9%,compared to the revised 2021 baseline.This increase is mainly due to changes in our exposure to the sector toward clients with higher carbon intensity.The Shipping sector globally experi

284、enced a modest improvement in aggregate carbon intensity between 2021 and 202217,however,our portfolio has not benefited from this trend given the small and highly concentrated nature of our financing to the sector,which may also impact our ability to meet our sector target.After announcing our sect

285、or target in 2023,we began implementation of our CAF across the portfolio,starting with the largest portions of exposure and gradually extending it to additional segments.During this initial phase,fluctuations in the portfolios carbon intensity are expected as we implement our CAF across in-scope tr

286、ansactions.We anticipate that we will continue to refine our CAF methodology as we continue to engage with our clients and learn more about the sectors decarbonization strategies and constraints.We will continue to engage with our clients on areas such as operational efficiency and alternative fuels

287、 to support them on their decarbonization journeys.We also recognize that decarbonization efforts within the shipping industry are largely driven by international regulatory bodies,which set the trends and targets for our shipping portfolio clients.AVIATION As of December 31,2023,the carbon intensit

288、y of our Aviation portfolio has decreased by 16.9%,compared to the 2021 baseline.Client carbon intensity improvements and changes in our exposure to the sector including increased financing to new and existing clients as well as decreased exposure to certain high-carbon intensity clients contributed

289、 to our progress.When compared to the global decarbonization trend of the sector16,our portfolio reflects a relatively similar rate of carbon intensity reduction.We will continue to engage with our clients to seek to provide them with financing opportunities to support the transition of the sector.W

290、e anticipate that drivers for achieving significant decarbonization of the sector will include changes in consumer behavior and operational efficiencies such as maximizing flight occupancy.Another driver is scaling the availability of SAF by accelerating the buildout of the SAF value chain and airli

291、nes successfully securing SAF offtakes.We are helping advance the development of SAF as founding members of the Sustainable Aviation Buyers Alliance and as investors in the United Airlines Venture Sustainable Flight Fund.To learn more about these efforts,refer to page 7 of our 2023 Climate Report.15

292、 Global progress estimated using sector activity and emissions data for 2019 sourced from Net Zero Roadmap:A Global Pathway to Keep the 1.5 C Goal in Reach(Table A.5:Economic and Activity Indicators)published in September 2023 and World Energy Outlook 2021(Table A.4d:World CO2 emissions)published in

293、 October 2021,respectively;sector activity and emissions data for 2022 sourced from World Energy Outlook 2023(Table A.5c:World economic and activity indicators and Table A.4c:World CO2 emissions,respectively)published in October 2023.16 Global progress estimated using sector activity and emissions d

294、ata for 2021 and 2022 sourced from World Energy Outlook 2023(Table A.5c:World economic and activity indicators and Table A.4c:World CO2 emissions,respectively)published in October 2023.17 Global progress estimated using sector activity and emissions data for 2021 and 2022 sourced from World Energy O

295、utlook 2023(Table A.5c:World economic and activity indicators and Table A.4c:World CO2 emissions,respectively)published in October 2023.19 IRON&STEEL As of December 31,2023,the carbon intensity of our Iron&Steel portfolio has decreased by 1.5%,compared to the 2020 baseline.This decrease primarily re

296、sults from changes in our exposure to the sector,which,relative to the distribution of our baseline portfolio,now tilts slightly toward clients with lower carbon intensity.Although the sector has made progress in emissions reduction through energy efficiency improvements and increased use of scrap m

297、aterial,the carbon intensity of the global Iron&Steel sector has remained relatively flat from 2020 to 202218.Significant,long-term reduction in the carbon intensity of the sector relies partly on the deployment and scale of decarbonization technologies,such as hydrogen-based production and CCUS.Our

298、 portfolio carbon intensity remains lower than the global average,as it was at the time of our portfolio baseline.This is due to our financing to the sector being concentrated in North America,where electric arc furnace penetration is higher than the global average.We will continue to engage with ou

299、r clients and seek to provide them with financing opportunities to support the transition of the sector.CEMENT As of December 31,2023,the carbon intensity of our Cement portfolio has decreased by 0.7%,compared to the 2020 baseline.This decrease is mainly due to an increase in financing provided to c

300、lients with lower carbon intensity.When compared to the global decarbonization trend of the sector19,our portfolio reflects a slightly slower rate of carbon intensity reduction.The Cement sector is unique in its reliance on technological advancements namely CCUS to enable broad scale decarbonization

301、.While some of our clients have started to reduce their carbon intensity,the impact of their actions on our overall portfolio carbon intensity has been small relative to that of exposure changes.We will continue to use our capital and to engage with our clients to support their decarbonization effor

302、ts and the development of CCUS technologies and their value chains.ALUMINUM We have revised our 2021 baseline for our Aluminum portfolio to 8.6 tCO2/t aluminum as a result of data quality improvements and an increase in data coverage from our data vendors.As of December 31,2023,the carbon intensity

303、of our Aluminum portfolio has increased by 2.2%,compared to the revised 2021 baseline.This increase is mainly driven by changes in our exposure to the sector,which now skews lightly toward clients with higher intensity.As with the Shipping sector target,our progress reflects the initial phase of imp

304、lementing our CAF to assess in-scope transactions within the Aluminum portfolio.We expect we will continue to refine our CAF methodology as we continue to engage with our clients and learn more about the sectors decarbonization strategies and constraints.Globally,the sector saw a moderate improvemen

305、t in its carbon intensity between 2021 to 202220.Our portfolio did not benefit from this trend,however,given the small and highly concentrated nature of our financing to the sector,which may also impact our ability to meet our sector target.In addition,clients in our Aluminum portfolio have disperse

306、d carbon intensities due to the sectors reliance on grid power and the varying rates of decarbonization in the Power sector between developed and emerging market countries.Acknowledging the importance of our continued support to clients in emerging markets,we expect our portfolio intensity to contin

307、ue to fluctuate in the coming years as the world decarbonizes power grids.We will also continue to engage with our clients and support the industrys efforts to decarbonize,such as increasing the share of secondary(recycled)aluminum produced.18 Global progress estimated using sector activity data for

308、 2020 sourced from Global steel production in the Net Zero Scenario,2010-2030,last updated 2 Nov 2021,and emissions data for 2020 sourced from World Energy Outlook 2021 published in October 2021(Table A.4d:World CO2 emissions),and sector activity and emissions data for 2022 sourced from World Energy

309、 Outlook 2023 published in October 2023(Table A.5c:World economic and activity indicators and Table A.4c:World CO2 emissions,respectively).19 Global progress estimated using sector activity data for 2020 and 2022 sourced from Global cement production in the Net Zero Scenario,2010-2030,IEA(2023),last

310、 updated in June 2023;and emissions data for 2020 sourced from World Energy Outlook 2021 published in October 2021(Table A.4d:World CO2 emissions)and 2022 sourced from World Energy Outlook 2023(Table A.4c:World CO2 emissions)published in October 2023.20 Global progress estimated using sector activit

311、y and emissions data for 2021 and 2022 sourced from Primary Aluminum Production,2005 2023,International Aluminum Institute,issued August 2024;and Greenhouse Gas Emissions Aluminum Sector,2005 2023,International Aluminum Institute,issued in January 2023.20 ABSOLUTE FINANCED AND FACILITATED EMISSIONS

312、AS OF DECEMBER 31,2023 Measuring Our Absolute Financed and Facilitated Emissions Measuring and reporting our financed and facilitated emissions on an absolute basis is a growing area of interest for our stakeholders and can be useful metrics in understanding the impact of our emission reduction effo

313、rts.As such,we have taken steps to quantify and disclose absolute financed and facilitated emissions for sectors of our financing portfolio for which we have set net zero-aligned targets.OUR APPROACH TO CALCULATE OUR ABSOLUTE FINANCED AND FACILITATED EMISSIONS Our methodology for calculating absolut

314、e financed and facilitated emissions builds on international standards and guidance while also aiming to align with the principles and methodology underlying our sector-specific net zero-aligned targets.We tailored our approach to focus on what we consider to be the most important sources of emissio

315、ns for each sector,accounting for our financing exposure to each of our clients in those sectors.To address one of the most significant challenges of measuring absolute financed and facilitated emissions,we also seek to minimize the distortion that may result from the effect of short-term market vol

316、atility on client valuations.We believe our approach calculates absolute financed and facilitated emission figures that correlate with real-world emissions performance of clients in our applicable sector portfolios.We plan to continue to monitor evolving best practices on absolute financed and facil

317、itated emissions measurement to inform our methodology.While we believe that our approach correlates with real-world emissions performance,we also disclose a version of this metric aligned to PCAF within the appendix section of this report(refer to pages 3233).For more information on our approach,re

318、fer to the“Absolute Financed Emissions”section in our Carbon Compass methodology.SECTOR SCOPE(S)INCLUDED ABSOLUTE FINANCED AND FACILITATED EMISSIONS(million tCO2e)ECONOMIC INTENSITY(per US$1 million of lending/capital markets)DATA QUALITY SCORES(1-5)iFor Committed Lending(Financed Emissions)For Capi

319、tal Markets(Facilitated Emissions)For Committed Lending(Financed Emissions)For Capital Markets(Facilitated Emissions)Energy Mixii Scope 3(end use)96.5 36.2 2,134.6 2,556.2 3.1 Oil&Gas Operational Scopes 1 and 2 6.2 2.0 256.6 274.8 3.2 Electric Power Scope 1 31.9 8.9 852.4 658.1 3.1 Auto Manufacturin

320、g Scopes 1,2 and 3(tank-to-wheel)2.0 1.1 460.8 420.1 3.2 Aviation Scope 1(tank-to-wake)1.0 0.7 680.8 596.4 3.0 Shipping Scope 1(tank-to-wake)0.2 0.1 506.2 259.4 1.5 Iron&Steel Scopes 1 and 2 2.6 1.2 1,378.9 1,473.9 1.4 Cement Scopes 1 and 2 1.9 1.0 1,405.0 1,626.1 1.3 Aluminum Scopes 1 and 2 0.4 0.6

321、 727.6 1,578.0 3.0 i.Data quality scores are assigned depending on the quality of data available for each client,with 1 representing highest quality and 5 representing lowest quality.We calculate and report a weighted average data quality score for each sector based on the financing provided to each

322、 client relative to our total financing to the sector.Refer to section 4.5 of our Carbon Compass methodology to learn more.ii.Due to the integrated nature of our Energy Mix target and its partial overlap with our existing Electric Power target,we will include our financing of zero-carbon power gener

323、ation activities in both targets calculations.21 ABSOLUTE FINANCED AND FACILITATED EMISSIONS(million tCO2e)ECONOMIC INTENSITY(per US$1 million of lending/capital markets)Energy Supply Financing Ratio We have developed our own methodology to calculate our Energy Supply Financing Ratio(“ESFR”).The ESF

324、R metric compares the amount of financing supporting low-carbon intensive and zero-carbon(referred to as“Low-Carbon”)energy supply versus that supporting high-carbon intensive and unabated fossil-based(referred to as“High-Carbon”)energy supply.While this disclosure metric can provide more insight in

325、to the capital that we are providing,we are not aligning our financing to meet a specific target for this ratio.The decision to disclose this ratio was made following engagement with our shareholders including the New York City Comptroller,which serves as the Trustee for each of the New York City Pu

326、blic Pension Funds.For the year ended December 31,2023,our ESFR of 1.29x shows that for each dollar supporting High-Carbon energy supply,1.29 dollars supported Low-Carbon energy supply.The ESFR disclosure can provide insight into capital formation in the real economy,but it also has limitations.Firs

327、t,it is a disclosure metric,not a mechanism to drive energy transition.Banks operate in competitive markets and do not control the absolute or relative level of financing opportunities available for energy supply.Rather,the energy transition is driven by a range of factors largely outside of an indi

328、vidual banks control,including the implementation of policy mechanisms,technological advancements and changing consumer preferences.Second,while this metric can provide further insight into the financing we are providing,it is not a direct proxy for decarbonization activity happening in the economy,

329、or for total energy supply investment dollars.Financing provided by banks only reflects a portion of the total capital deployed by companies engaged in the supply of energy to power the global economy.Capital provided through companies retained earnings,state and federal governments,venture capitali

330、sts and private equity firms also plays a key role in supporting the investments needs of energy supply sectors.We aim to support the energy transition while recognizing the need to continue supporting traditional energy sectors to help their decarbonization efforts and promote global energy securit

331、y,availability,affordability and accessibility.We are focused on helping our clients achieve their business objectives,including their efforts to responsibly reduce their emissions today,while diversifying their use of different energy sources over time.For more information on our approach,details o

332、n our methodology and resulting metric,refer to our ESFR methodology.Data Challenges Improving the quality,timeliness and availability of data is important for properly measuring emissions and monitoring progress over time.This section summarizes the key points on data considerations and ongoing cha

333、llenges that we face.MEASUREMENT VS.ESTIMATION There are well-known challenges with the quality and reliability of emissions data in many sectors.This means we sometimes rely on estimated versus directly measured emissions data.For example,in the Oil&Gas sector,there are inconsistencies in the measurement,management and reporting of data across companies,as well as lack of reliable and standardize