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US Banks Rank as Largest Global Fossil Fuel Financers

JPMorgan has invested over $430 billion in fossil fuels since the Paris Agreement

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  • Written by  Banking Exchange staff
 
 
US Banks Rank as Largest Global Fossil Fuel Financers

JPMorgan Chase, Citigroup and Bank of America rank as the top three biggest financers to fossil fuels in the world, according to the 15th Banking on Climate Chaos report.

Since the introduction of the Paris Agreement in 2016, JPMorgan Chase, Citigroup and Bank of America have invested $430.9 billion, $396.3 billion and $333.2 billion in fossil fuels, respectively.

The report revealed that JPMorgan Chase increased its financing of fossil fuels from $38.7 billion in 2022 to $40.8 billion in 2023, securing its position as the largest financier of fossil fuels for the year.

While 33 banks decreased their financing for companies with fossil fuel exposure from 2022 to 2023, JPMorgan Chase, Morgan Stanley and Goldman Sachs all increased their fossil fuel commitments.

In particular, JPMorgan Chase committed more investment to companies with fossil fuel expansion plans than any other bank in the world. The bank’s financing commitments reached $19.3 billion in 2023, which was a rise from $17.1 billion in the previous year.

The report also found the US’ six largest banks — JPMorgan Chase, Wells Fargo, Bank of America, Goldman Sachs, Citigroup and Morgan Stanley — ranked as the top six financiers of fracked gas activities in 2023.

Collectively, the 60 biggest global banks committed $705.8 billion to companies conducting business in fossil fuels in 2023, which brings to the total since the Paris Agreement to $6.9 trillion.

Adele Shraiman, senior strategist for Sierra Club Fossil-Free Finance and co-author of the report, said:  “As the crisis worsens, big US banks have stalled on making meaningful progress toward their own net-zero commitments by failing to set sufficient near-term emissions reduction targets and lay out credible plans for restricting financing for polluting companies.”

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