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JPMorgan Chase Financed GHG Emissions 2013

Whereas:
 
JPMorgan Chase has invested $3.8 billion and arranged $3.9 billion in financing for renewable energy projects. It has also developed programs that promote best practices in hydraulic fracturing of shale, building energy efficiency, and carbon offsets. In addition, its investment and commercial banks conduct assessments of clients’ approaches to greenhouse gas (GHG) emissions if they are within specific financial products and services that are $10 million or greater.

JPMorgan Chase has emphasized the importance of climate change management, stating in its 2012 response to the Carbon Disclosure Project: “Climate change is an issue of growing importance to our clients and stakeholders around the world. As a global financial institution that is active in energy intensive
industries and has a large operational footprint, JPMorgan Chase faces potential risks to its reputation if it does not understand and mitigate the environmental impacts associated with its financial services and operational footprint, and capitalize on opportunities to advance deployment of low-carbon technologies.
Increasingly, action on sustainability and climate change can allow companies to positively differentiate themselves in the marketplace, as well as reduce exposure to financial risks. Negative perceptions of JPMorgan Chase's management of these issues could ultimately have financial impacts on the firm if they lead to lower customer demand for our financial services and products.”

Unfortunately, we believe that this statement sits in contrast with JPMorgan Chase’s activities. The company is one of the largest financiers in energy worldwide and engages in the storage, transportation, marketing or trading of several commodities, including fossil fuels and other GHG-intensive products.
According to Rainforest Action Network’s 2012 “Coal Finance Report Card,” JPMorgan Chase is the leading underwriter in the global coal industry. It also continues to be involved in mountaintop removal coal mining projects.

Banks and other financial institutions contribute to climate change through their financed emissions, which are the greenhouse gas footprints of loans, investments, and financial services. A bank’s financed emissions can dwarf its other climate impacts and expose it to significant reputational, financial, and
operational risks.
 
Investors are concerned that JPMorgan Chase may be taking a piecemeal approach to addressing climate change. JPMorgan Chase does not have a strategic company-wide framework to address the climate change implications of its lending, financing, and investing portfolio. Despite the above statement by
JPMorgan Chase, and other similar statements, it has not provided investors with sufficient information to permit the meaningful assessment of the risks presented by its financing of greenhouse gas-intensive businesses.

Resolved:
Given the broader societal implications of climate change, shareowners request that the Board of Directors report to shareholders by September 2013, at reasonable cost and omitting proprietary information, JPMorgan Chase’s assessment of, and programs to address, the greenhouse gas emissions
related to its lending, investing, and financing portfolios.