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JP Morgan, Citi Disclose Green Financing Ratios

Citigroup has joined JP Morgan Chase in agreeing to disclose relative financing levels for low-carbon energy versus fossil fuels — or energy supply financing ratio — in response to resolutions filed by New York City (NYC) Comptroller Brad Lander and three NYC pension schemes. The comptroller has emphasised the need for banks to increase financing for low-carbon energy and decrease financing for fossil fuel expansion to align with the goals of the Paris Agreement. JP Morgan’s and Citi’s decisions also mean they will now align more closely with major European banks, such as BNP Paribas and Société Générale, which are already required by the European Banking Authority to disclose green asset ratios detailing their financing for environmental objectives. The comptroller withdrew the filings at Citi and JP Morgan, but similar resolutions will be subject to a vote at Bank of America, Goldman Sachs and Morgan Stanley – none of which have not yet agreed to disclose their energy supply financing ratio. Ben Cushing, Campaign Director of Sierra Club’s Fossil-Free Finance campaign, welcomed the decisions by JP Morgan and Citi – “the world’s two largest financiers of fossil fuels” – saying that they had made little progress on their own net zero commitments, continued to finance polluting energy companies refusing to transition, and failed to sufficiently finance clean energy technologies and climate solutions. “We applaud Comptroller Lander and NYC’s pension funds for their leadership to drive climate progress in the banking sector,” he added. “Now, all eyes are on the remaining Wall Street banks to also commit to disclosing this important baseline information, and then take the necessary steps to rapidly scale up clean energy financing and reduce fossil fuel financing, aligning with climate goals.”

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