JPMorgan Chase’s global head of sustainability, Heather Zichal, was hired in October 2022 for her energy policy chops. Her mandate: Guide the largest U.S. financial services firm in its quest to finance and facilitate $2.5 trillion over the next decade in sustainable development and low-carbon technologies.
That money is split into two pledges. JPMorgan has already facilitated $309 billion toward its 2021 goal to orchestrated $1 trillion by 2030 in financing for renewable energy, electric vehicles, climate adaptation and other “green” initiatives. A second target to finance $1.5 trillion for security and resilience investments over 10 years was adopted last October; energy will factor heavily.
“What’s top of mind for our clients is first that energy demand is rising, and clients need to meet it without putting the system at risk,” said Zichal during the latest episode of our Climate Pioneers interview series. “At the same time, energy reliability and affordability are non-negotiables. So everything — whether that’s cleaner generation, new technologies, new fuels — has to be able to prove it can support those outcomes at scale.”
Nuclear technology, batteries and grid upgrades are “real bright spots” that are helping JPMorgan connect with new clients around the globe.
“I think there are a lot of players in the financial services sector that similarly view this space as investable and profitable,” she said. “I think you’re going to see not only JPMorgan Chase but other banks continue to double down on this opportunity as well.”
Policy maven
Zichal started her career as a legislative adviser, joining President Barack Obama’s energy and climate team in 2011, where she helped create his administration’s Clean Power Plan. She pivoted to the nonprofit sector in 2013, holding posts at The Nature Conservancy and the American Clean Power Associations, among others.
At JPMorgan, Zichal spends time on an almost-daily basis with key bankers and strategists across the bank, helping them interpret fast-moving developments, including the war with Iran and how the closure of the Strait of Hormuz is affecting clients’ climate strategies.
She also guides the bank’s strategic priorities related to policy advocacy.
“I’m a firm believer that business needs to be at the table early, not just reacting after the fact, because geopolitics, rising energy demand and system risk are not going to be solved by governments alone,” Zichal said.
Voluntary standards vs. regulatory guidance
Despite its decision to step away from the high-profile Net Zero Banking Alliance, now defunct, in January 2025, JPMorgan believes the initiative had value initially.
Zichal pushes back on the notion that the alliance was little more than for show, and said that one positive legacy of that initiative was its role in helping the industry develop a “common language” for discussing the concept of “financed emissions,” a phrase used to describe investments in assets related to fossil fuels and emissions-intensive industries.
“As a former government official trying to figure this out, we are all in a much stronger position when we can take the knowledge we have gleaned and work together to find workable solutions,” she said.
Financed emissions are the largest portion of any financial firm’s greenhouse gas emissions. JPMorgan has set portfolio-level carbon intensity goals for eight key economic sectors, including auto manufacturing, iron and steel and aviation.
‘Targets don’t build projects’
JPMorgan also discloses how it is financing the evolving energy mix. For 2024, its last reporting year, the bank financed $1.13 in low-carbon investments for every $1 it put into high-emissions projects or initiatives.
That has helped show clients and investors where the bank is deploying capital across the energy system. “I think at the end of the day, climate outcomes aren’t going to be achieved by restricting financing or dictating outcomes,” Zichal said. “They’re going to be achieved by mobilizing capital to support clients’ transition objectives across sectors.”
JPMorgan made waves in late 2025 when it moved away from “time-bound” emissions reduction goals for its bank branches, data center and other operations. The company now uses benchmarks such as the cost of renewable energy or expense of high-quality carbon credits to prioritize the projects that deliver the biggest emissions-per-dollar reductions possible in the short term.
The shift was largely pragmatic and adopted after consultations with JPMorgan shareholders, Zichal said, pointing to skyrocketing demand for power and other factors that have changed the economics of sourcing more renewable electricity.
“Targets don’t build projects or change the physics of the energy system,” she said. “One of the lessons here is that we probably spent too much time debating the targets themselves because targets, on their own, are not going to move the needle.”
Editor’s note: This article was updated April 23 to clarify JPMorgan’s financing commitments.
