JPMorgan Invests in Forestry and Minority-Led Projects

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Image of stack of logs lying in a forest area.

JPMorgan Chase has made two significant investments, one in forestry and another in minority-led businesses, as part of its 10-year sustainable finance goal. These investments are worth hundreds of millions of dollars.

JP Morgan's Timberland Fund focused on carbon credit forestry investments, has bought approximately 250,000 acres of forest in the Southern pine belt for over $500 million. The land will be used for both wood production and carbon offsetting, with a portion of the trees left standing for carbon credits.

Ariel Investments raised $1.45 billion for its new private equity fund, "Project Black," to acquire and create minority-led suppliers for Fortune 500 companies. JPMorgan Chase was the fund's lead investor, with a $200 million investment in 2021. JPMorgan's larger goal is to invest $2.5 trillion in Environmental, Social, and Governance (ESG) initiatives from 2020 to 2030.

In November, Oak Hill Advisors acquired 1.7 million acres of forest in 17 states for $1.8 billion. Most of the land will be used for carbon offsets, with only 10% to 20% of revenue generated from logging. According to a report by McKinsey & Co., US companies have pledged to spend at least $50 billion on minority- and women-owned suppliers over the next decade, with JPMorgan Chase committing $30 billion of that amount.

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Source: The Motley Fool

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