Global Warming Affects the Market

Global Warming Affects the Market

Environmental and climate problems, which are also on the agenda of this year's World Economic Forum, raise concerns about the effects of global warming. JPMorgan Chase, one of the most criticized environmental activists, plans to end loans for oil extraction in the Arctic completely, and gradually for coal mining. Following these, JPMorgan aims to give $ 200 million credit for environmental and economic development agreements, which aim to help clean energy and sustainability projects. According to activists from various environmental groups, these efforts remain very weak in addition to the bank's financing for fossil fuels. According to Banktrack's 2019 fuel financing report, the biggest financier of fossil fuel manufacturers was JPMorgan Chase. JPMorgan, which has no restrictions on climate to provide financing, provided $ 196 billion in financing to companies that produce fossil fuels and want to open new facilities in this sector. CLIMATE SUBJECT IN OIL AND ENERGY COMPANIES On the other hand, various oil and energy companies are making long and medium-term sustainability plans with the aim of reducing carbon and greenhouse gas emissions. Royal Dutch Shell plans to reduce the carbon footprint left by 2035 in its energy transition report by 20% and aims to cut this track in half by 2050. In 2070, it envisages the whole society to reach its zero carbon emission target. Aiming to increase the low carbon emission product they provide to customers by changing their portfolios besides the carbon emissions they create, Shell says that consumer demands and the desire of the society to progress are effective in the formation of these targets. French oil giant Total, on the other hand, aims to reduce the emissions of Scope 1 and Scope 2 types, which include indirect and direct carbon emissions, from 20 million to 40 million tons in 2025. Total and Shell cut their ties with the trade organization “American Fuel and Petrochemical Manufacturers” in April of last year, and BP, which followed these companies, broke their ties with this organization. This decision came after BP's new CEO, Bernard Looney, set an ambitious goal of zero carbon emissions for 2050. On the mining side, the world's second-largest mining company, Rio Tinto, announced that it would reduce carbon emissions by 15% by 2030 and aim to achieve zero carbon emissions by 2050. The criticism of some of these companies is that the restriction targets do not cover their customers, which are the subjects of the actual carbon emission.