NEW YORK (AP) — JPMorgan Chase & Co. will no longer do business with coal companies and will restrict financing to companies that drill in the Arctic, the company announced Tuesday.
The announcement came in tandem with the bank announcing it would extend $200 billion in financing to clean and renewable energy companies by 2025. The bank is currently holding its annual investor day in San Francisco, where the announcement was made.
JPMorgan still provides some loans to coal companies, but plans to phase those out by 2024. Further the bank will only lend to power companies to build coal power plants when the design includes carbon capture technology.
JPMorgan’s Arctic drilling financing ban focuses on any project financing where the underlying assets would come from new oil and gas development. Existing oil and gas development in the Arctic would still be eligible for financing, the company said.
Despite the announcement, JPMorgan still has sizable exposure to the fossil fuel industry. The New York-based company provides significant financing to oil and gas companies. One of JPMorgan’s directors is the former head of Exxon Mobil Corp., Lee R. Raymond.