Now that JP Morgan Chase, America's largest bank, has signed a pledge to join the United Nations' “Net Zero" environmental pledge alongside several other giant banks across the globe, records have surfaced that indicate several of the banks recently purchased millions of dollars' worth of bonds from an oil and gas company with a record of past EPA violations.
The Net Zero Banking Alliance was started in April 2021 by 43 banks with one of the core agreements being to support and uphold the "Climate Action" provisions outlined in the Paris Climate Accords. In the following months, membership of the Net Zero Alliance has grown to 63 banks, which represents a quarter of banking assets worldwide.
In late September, an oil and gas company called Tap Rock Resources issued a bond sale worth $500,000,000. These bonds were purchased by several members of the Net Zero Banking Alliance, including JP Morgan Chase, Bank of America and Citibank, according to Cbonds.com.
"Climate change is a critical issue of our time, and we are committed to doing our part to address it," Marisa Buchanan, JP Morgan Chase's global head of sustainability, said in a statement to Utility Drive.
JP Morgan Chase's involvement with Tap Rock may be placing the financial corporation in hot water. A recent report by the New Mexico Sun claims that Tap Rock has been linked to multiple oil and gas infractions in the state.
This report came not long before JP Morgan Chase announced its signing of the Net Zero Alliance, and links Tap Rock to numerous accidents and regulatory violations in New Mexico's Delaware Basin.
The article highlights that two of Tap Rock's operating locations "are currently listed under the EPA’s enforcement and compliance history as 'high-priority violation(s)' with significant violations for at least the last four quarters," and that 14 of the company's 26 locations in New Mexico are in violation of EPA regulations.
Tap Rock's troubles do not stop with the EPA, however. The SE Texas Record recently examined court documents between the oil and gas operator and Texas Fabco Solutions, which "fabricates oil and gas production equipment and provides other services to oil and gas companies."
Texas Fabco has alleged that Tap Rock misused safety and environmental equipment resulting in a dangerous work environment and pollution issues, leading to a lawsuit ensuing between the two parties.
A representative from JP Morgan Chase did not respond to a request for comment before press deadline.