J.P. Morgan Asset Management
J.P. Morgan Asset Management is the brand name for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide. J.P. Morgan Asset Management joined the Net Zero Asset Managers Initiative in November 2021 and made its Initial Target Disclosure in November 2022.
Percentage of assets covered by the Net Zero Asset Managers Commitment Statement
45% of total AUM (USD $1216 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Baseline(s):
We currently have approximately 20% of our in-scope AUM in investments with science-based targets.
Target(s):
Our interim 2030 target is for approximately 55% of our in-scope AUM to be in investments where the issuer has set science-based net zero targets (SBTi-validated or equivalent, as determined by JPMAM).
GHG scopes included:
N/A as we are using portfolio coverage as our metric.
Methodology:
Own/other methodology
Scenario(s):
Our approach relies on achieving 100% of in-scope AUM covered by science-based targets by 2040, which is in line with achieving net zero by 2050.
Additional information
Proportion of AUM committed:
We have identified investments in listed equities and corporate bonds and certain direct investments in forestry that we manage on behalf of our clients being in scope for the interim net zero target. We selected these asset classes because their relevant data and methodologies are relatively more established. As data availability and methodologies improve, we will consider expanding our targets to other asset classes, which account for a substantial part of our AUM. Net zero portfolio alignment tools and frameworks are expected to evolve and converge in coming years, and we expect to update our methodologies and data sources to reflect this evolving space, which may lead to changes in reported metrics and interim targets reported herein. Assets are determined to be in scope at the instrument level rather than strategy level.
We have elected to include in scope certain direct investments in forestry. Specifically, we have continued to make progress managing climate risk across our Alternatives product suite, supplemented by our recent acquisition of Campbell Global forestry, which will provide carbon capture and offset solutions to help our clients seek to achieve their net zero goals. Furthermore, we plan to help our Alternatives clients meet their decarbonization and climate risk management goals through equity and debt investments in renewable energy, energy transition projects, climate change technology, and carbon reduction enhancers. We expect to reach over $75B in these client investments in 5 years.
We plan to engage with investee companies to achieve our net zero target. We plan to grow our sustainable product suite and increase AUM in these types of strategies. We also will work with our clients who have themselves set net zero targets to support them in achieving their objectives.
Policy on coal and other fossil fuel investments:
No. While we do not have a firm-wide policy that excludes coal and other fossil fuel investments, certain strategies (e.g., most of our EU Article 8 and 9 Funds) do not invest in companies that derive a certain percentage or more of their revenue (as determined by JPMAM) from thermal coal mining, which we apply in accordance with our fiduciary duty and the applicable strategy. Certain products are only available in specific jurisdictions.
Further information:
Methodology used: Portfolio Coverage guided by SBTi guidance for Financial Institutions
Please see our TCFD report.
We are a fiduciary to our clients with a singular focus to act in their best interests. The money we manage is not our own and our role is to help clients meet their investment objectives. We see managing climate risk as an important part of our investment processes today. We take a thoughtful approach when making investment decisions and look to consider the impact of the net zero transition where we believe such impact to an investment is financially material to the long-term performance of a client portfolio and where consistent with the account’s strategy and investment guidelines. Our net zero commitments do not change our existing portfolio strategies and do not constrain the investment universe of client accounts. We do not boycott fossil fuel companies or pursue a firm-wide policy of divestment from carbon-intensive companies. We may remain long-term investors in carbon-intensive companies in order to meet our clients’ investment objectives, in accordance with our fiduciary duty. Our net zero target is dependent on sustained and consistent government policy, accelerated technological breakthroughs, and substantial adaptation in corporate business models. Our ability to meet specific targets is reliant on action from all a range of parties. We aim to achieve the interim targets through engagement with issuers on setting their own credible science-based net zero targets. We will support these companies in the process of setting these science-based (SBTi-validated or equivalent, as determined by JPMAM) net zero targets. We will review emissions associated with our portfolios and expect them to decline over time as our issuers set and act on their net zero targets. We will track their performance against their net zero commitments.