Scope

This document has been prepared to meet JPMorgan Chase & Co.’s reporting obligations under the Equator Principles.

The reporting period covered is the calendar year 2016.

Data Reportingfootnote 1

Project Finance Advisory Services Data
A summary of Project Finance Advisory Services mandated during the reporting period is presented below:

Sector

Region

Total

Oil & Gas

Americas (North America)

 

Oil & Gas

Americas (North America)

 

Oil & Gas

Americas (North America)

 

 


3

 

Project Finance Data
No Project Finance transactions reached financial close during the reporting period.

Project-Related Corporate Loans Data
A summary of Project-Related Corporate Loan transactions that reached financial close during the reporting period is presented below:

Categoryfootnote 2

Sector

Region

Country Designationfootnote 3

Independent Reviewfootnote 4

Total

A

Others (Petrochemicals)

Europe, Middle East & Africa (Middle East)

Non-Designated

Yes

 

A

Others (Petrochemicals)

Europe, Middle East & Africa (Middle East)

Non-Designated

Yes

 

A

Oil & Gas

Asia Pacific

Non-Designated

Yes

 

A

Power

Europe, Middle East & Africa (Africa)

Non-Designated

Yes

 

B

Power

Europe, Middle East & Africa (Africa)

Non-Designated

Yes

 

 

 

 

 

 

5

 

Implementation Reporting

JPMorgan Chase & Co. 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 eight full-time employees. GESRM 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 a potential material reputation risk, related to a specific Equator Principles transaction, is identified by GESRM, the transaction may be escalated to the relevant Reputation Risk Committee for discussion and consideration in line with the firm’s internal Risk Policies and Proceduresfootnote 5.

Additional Information

In 2016, JPMorgan Chase & Co. continued to participate as a member of the Equator Principles Association Steering Committee. The Steering Committee coordinates the administration, management and development of the Equator Principles on behalf of the Equator Principles Financial Institutions. The firm has also continued to be an active member of the Management Review Task Force.

1
All definitions are referenced directly from The Equator Principles wording and Exhibit I: Glossary of Terms.
2
The 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.