One of the great stories of our time is the emergence out of poverty of hundreds of millions of people in China, India and other large emerging markets. Together with industrialized countries, we can expect demand for natural resources to remain strong as living standards rise. An integral part of rising living standards is the use of natural resources that can sometimes have significant environmental impact. To incorporate environmental and social considerations into its decision-making process, JPMorgan Chase is a signatory to the Equator Principles, which embody global best practice in assessing the environmental impact of certain types of financial transactions. In assessing these impacts, the firm considers transaction specific factors such as impact on biodiversity, local people and ecosystems; employs the collective judgment of experienced and knowledgeable professionals; and conducts site visits when necessary.
Read our Environmental and Social Risk Assessment Policy .
JPMorgan Chase is an Associate Member of the Equator Principles. Based on the policies of the World Bank and its private sector arm, the International Finance Corporation, the Equator Principles serve as a framework for assessing and managing environmental and social risk in financing transaction with significant environmental impact in many emerging markets. The Principles apply to projects with a total capital cost of $10 million or more. The specific procedures including categorization of projects and application of safeguards can be viewed at equator-principles.com.
JPMorgan Chase adopted the Carbon Principles in February 2008. One of the few financial institutions to do so, JPMC joined in partnership with seven leading electric utilities and three environmental organizations in order to better assess the risks in financing greenhouse gas-intensive electricity generation. The Principles came into effect in August 2008. Thereafter, JPMorgan Chase began applying the Enhanced Diligence Process of the Carbon Principles to transactions that finance coal-fired power plants for investor owned utilities and, effective February 2009, for public power and electric cooperatives.
Since their adoption in February 2008, the Carbon Principles and the associated Enhanced Diligence Process have provided a useful framework for discussion with companies, which has better informed our financing decisions as lenders and underwriters to the utility industry. The framework does not set new rules or compliance standards. Rather, the Carbon Principles advance a view that the United States needs a balanced approach to meet its future electric power needs while addressing climate change and carbon cost risks. This balanced approach includes energy efficiency and renewable energy as important options along with advanced and conventional power generation. The Carbon Principles are intended to provide JPMorgan Chase and other signatories a framework to better assess the range of investment options open to power generation companies, including coal-fired power plants. The impacts of potential legislation, the possible imposition of a carbon tax (in whatever form it might take) and renewable energy portfolio requirements are all a part of the assessment.
United Nations Environment Program - Financial Institutions (UNEPFI)
JPMorgan Chase is a participant in the UNEP FI, which is a global partnership between the United Nations Environment Programme (UNEP) and the private financial sector. It provides practical research, technical expertise and exposure to sustainable development practices across regions in addition to networking services by convening international conferences and events that bring together professionals from around the globe.
United Nations Principles for Responsible Investment (UN PRI)
Launched in April 2006 by former UN Secretary General Kofi Annan, this initiative consists of a set of voluntary principles for asset owners and investment professionals. The six principles are not prescriptive, but instead provide a framework to incorporate environmental, social and governance issues into mainstream investment decision-making and ownership practices. J.P. Morgan Asset Management became a signatory in February 2007.
Carbon Disclosure Project
JPMorgan Chase supports the Carbon Discloure Project (CDP) in its mission to provide relevant greenhouse gas emissions information to business, policy, and investment decision makers. J.P.Morgan Asset Management is a signatory investor to the CDP's request for information, and JPMorgan Chase is a respondent to CDP's annual information request.