J.P. Morgan Chase signed a pledge to align its lending and investment portfolios with net-zero emissions by 2050, joining more than 40 rival financial firms in the Net-Zero Banking Alliance.
Companies including Morgan Stanley, Citigroup and UBS Group became part of the alliance when it started in April. The group represents the banking element of the Glasgow Financial Alliance for Net Zero, led by former Bank of England Governor Mark Carney.
"Climate change is a critical issue of our time, and we are committed to doing our part to address it," said Marisa Buchanan, J.P. Morgan's global head of sustainability, in a statement Friday.
The banking industry has been criticized for contributing to the climate crisis by providing financing to the oil and gas sector. J.P. Morgan is the No. 1 arranger of bonds for fossil-fuel companies this year and also ranks as the leading underwriter of green bonds, according to data compiled by Bloomberg.
J.P. Morgan, led by CEO Jamie Dimon, said in May that it plans to report a 35% reduction in "operational carbon intensity" for its oil and gas portfolio by the end of the decade. The commitment followed the company's announcement last year that it was aligning its financing activities with the United Nations' Paris Agreement.
Mr. Carney said in a statement Friday that banks will play a vital role in funding the climate transition. With the inclusion of banks such as J.P. Morgan, "meeting the $100-plus trillion financing need for net-zero is within reach," he said.
"We are joining the Net-Zero Banking Alliance because we support the ambition for greater climate action, the sharing of best practices and a collaborative approach between the public and private sectors to reach this goal," Ms. Buchanan said in her statement. "Thoughtful policy, technology and behavioral advancements are all prerequisites in realizing our common goals around net-zero emissions by 2050."