CBIS Works with JPMorgan Chase To Create Environmental Policies

JPMorgan Chase unveiled for the first time environmental policies that impact the bank's loans and investments, its research and lobbying activities, training for employees, as well as its internal operations. The policies focus primarily on the bank's role in ensuring that the projects and companies it finances are not promoting unsustainable practices that negatively impact on biodiversity, forest health, and climate change. Christian Brothers Investment Services, Inc. (CBIS) and the dialogue group that it led, assisted the bank with the development of the policy and will continue to provide expertise in one of the most challenging aspects of any policy, its implementation.

As part of its policy, the bank has agreed to follow the "Equator Principles," which were created by the world's largest banks, based on the environmental guidelines of the World Bank and the International Finance Corporation. The Equator Principles are intended to impact private banks' financing of large projects like pipelines, mines and dams. In its announcement, JPMorgan has stated that it will surpass the requirement of the Equator Principles and apply the guidelines to projects that are over $10 million in environmentally sensitive industries, exceeding Equator's current threshold of $50 million.

JPMorgan Chase's new policies include the establishment of "no-go" zones - - areas that are considered extremely environmentally sensitive and critically important to the health of an ecosystem that no development should occur there. In addition, the bank has included policies to protect the land and livelihood of indigenous peoples, ensuring that these communities consent to projects before the bank will finance operations. Other notable policies also encourage clients that are large greenhouse gas emitters to develop carbon mitigation plans that will include measurement and disclosure of emissions and descriptions of plans to reduce or offset emissions.

In announcing its policy, JPMorgan Chase noted that it had carefully considered the viewpoints of environmental groups such as Rainforest Action Network and the shareholder dialogue group led by Christian BrothersInvestment Services, Inc. that has met with senior management over the past two years. Other members of the dialogue group include F&C Asset Management, Domini Social Investments, Trillium Asset Management, and the Green Investments Program of Friends of the Earth. In April 2004, the dialogue group withdrew a shareholder proposal calling upon the bank to incorporate environmental factors into its financing decisions after JPMorgan Chase's Office of the Chairman agreed to create for the first time the position of Director of Environmental Affairs, to assign the board with oversight of environmental matters, and to review the bank's role as an underwriter, lender and financial adviser for transactions in environmentally and socially sensitive sectors.

Christian Brothers Investment Services, Inc.and members of the dialogue group have provided input to Citigroup, Bank of America, Merrill Lynch, and other financial institutions, which have adopted similar policies to protect the environment and the bank's bottom line.

To view the policy, click here.

Back To Top