Scope

This document has been prepared to meet JPMorgan Chase Bank, N.A. reporting obligations under the Equator Principles.

The reporting period covered is the calendar year 2013. JPMorgan Chase Bank, N.A. has chosen to report under Equator Principles III (EP III) reporting requirements.

Data Reporting

Project Finance Advisory Services
JPMorgan Chase Bank, N.A. was not mandated on any Project Finance Advisory Service roles during the reporting period.

Project Finance
A summary of Project Finance transactions that reached financial close in 2013 is presented belowfootnote 1:

Categoryfootnote 2

Sector

Region

Country Designation footnote 3

Independent Reviewfootnote 4

A

Chemicals

EMEA

Non-Designated

Yes

B

Oil & Gas

North America

Designated

Yes

 

Project-Related Corporate Loans
JPMorgan Chase Bank, N.A. did not reach financial close on any Project-Related Corporate Loan during the reporting period.

Implementation Reporting

JPMorgan Chase Bank, N.A. has a Global Environmental and Social Risk Management team (GESRM), which is responsible for the implementation of the firm's commitments articulated in the public Environmental and Social Policy Framework and the firm's internal Environmental and Social Risk Policy. Both documents refer to the firm's obligations in relation to the Equator Principles as well as to the firm's broader approach to managing environmental and social risk. In addition, internal procedures are in place to provide additional guidance on Equator Principles requirements and due process.

GESRM consists of seven full-time employees and serves as one of the control groups in the firm wide transaction risk review and approval process. In this capacity, GESRM leads all Equator Principles reviews, working with and guiding the relevant deal teams to ensure that reviews are undertaken appropriately. Other internal control groups that review such transactions include credit and legal.   Respective deal teams are responsible for escalating relevant transactions to GESRM for consideration and review, and working with GESRM and the client to fulfill Equator Principles obligations. The deal teams escalate directly to GESRM or via the firm's internal conflicts management process, which generates a referral to the GESRM team when a relevant transaction is entered into the system. Where GESRM identifies a potential material reputational risk related to a specific Equator Principles transaction, the transaction may be escalated to the relevant Reputational Risk Committee for discussion and consideration in line with the firm's internal risk policies and proceduresfootnote 5.

In 2013, JPMorgan Chase Bank, N.A. rolled out a new formal online training module on the firm's internal Environmental and Social Risk Policy to all front office banking roles. This training includes reference to the Equator Principles. Additional formal training sessions are run by GESRM for the banking teams that are most likely to be involved in relevant transactions (e.g., commodities, export finance, credit, and risk). This training is tailored to the specific anticipated requirements of each team's activities.

Additional Information

In 2013, JPMorgan Chase Bank, N.A. became a full member of the Equator Principles, changing its status from the previous status of Associate Member, as a result of the revisions made to the expanded scope of EP III.

In addition, in 2013 JPMorgan Chase Bank, N.A. joined the Equator Principles Association Steering Committee by way of a Steering Committee vote, joining 13 other Equator Principles Financial Institutions (EPFIs). The Steering Committee coordinates the administration, management and development of the Equator Principles on behalf of the EPFIs.

1
All definitions below are referenced directly from The Equator Principles wording and Exhibit I: Glossary of Terms.
2
he category is based on the magnitude of the Project's potential environmental and social risks and impacts. Such screening is based on the environmental and social categorization process of the International Finance Corporation.
3
Designated Countries are those countries deemed to have robust environmental and social governance, legislation systems and institutional capacity designed to protect their people and the natural environment. The list of Designated Countries can be found on the Equator Principles Association website.
4
Independent Review is a review of the Assessment Documentation including the Environmental and Social Management Plans, Environmental and Social Management System and Stakeholder Engagement process documentation carried out by an Independent Environmental and Social Consultant.
5
The firm's internal escalation process is further articulated in the Environmental and Social Policy Framework.