JP MORGAN CHASE & CO. | Report on climate transition planning at JP MORGAN CHASE & CO.

Status
Filed
AGM date
Previous AGM date
Resolution details
Company ticker
JPM
Lead filer
As You Sow
Resolution ask
Report on or disclose
ESG theme
  • Environment
ESG sub-theme
  • Climate change
  • GHG targets / emissions
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Financials
Company HQ country
United States
Resolved clause
RESOLVED: Shareholders request that, for each of its sectors with a 2030 target, JPMorgan Chase annually disclose the proportion of sector emissions attributable to clients that are not aligned with a credible Net Zero pathway, whether this proportion of unaligned clients will prevent JPMorgan from meeting its 2030 targets, and the actions it proposes to address any such emissions reduction shortfalls.
Whereas clause
WHEREAS: JPMorgan Chase has established a Net Zero by 2050 goal and aligned 2030 emission reduction targets for financing activity in nine sectors, including electric power, oil and gas, and auto manufacturing. Despite investor demand for clearer disclosure of banksÕ transition planning,[1] shareholders lack information as to whether JPMorgan is on a path to meet its 2030 targets.

Critically, JPMorganÕs annual disclosures fail to disclose the impact that high-emitting sectors will have on its ability to meet its 2030 targets. Independent assessments show that most companies in these sectors are failing to align with a Net Zero-aligned 2030 pathway. The Transition Pathway Initiative has assessed that no public companies in the oil and gas sector have 2030 targets aligned with a 1.5oC scenario;[2] and no public auto manufacturers, besides dedicated electric vehicle manufacturers, are on a Net Zero aligned 2030 pathway.[3] Similarly, the cement and steel sectors are not on track with a Net Zero by 2050 Scenario.[4],[5]

As the Institutional Investors Group on Climate Change explains, to deliver on their targets, banks should disclose protocols and strategies specific to each business activity, including Òphasing out financing of inconsistent activities which present particular risksÉ while pivoting financing towards climate solutions.Ó[6]

JPMorgan is the largest global funder of fossil fuels, with nearly $39 billion in fossil fuel financing in 2022 and $434 billion between 2016 and 2022.[7] JPMorgan provides a heatmap of carbon intensity for its lending portfolio, which shows significant credit exposure to high carbon assets.[8] It further states that it uses a Carbon Assessment Framework to assess its clientsÕ emissions and decarbonization plans. Yet, JPMorgan does not disclose information on client progress in transitioning in alignment with Net Zero by 2050 goals or provide sufficient information to assess the potential for misalignment between JPMorganÕs 2030 targets and its clientsÕ transition progress.

The potential for misalignment carries significant risk. If JPMorgan fails to meet its targets, it faces the possibility of reputational harm, litigation risk (including greenwashing), and financial costs.[9] Failure to meet targets also contributes to systemic climate risk that harms JPMC and investorsÕ portfolios.
Supporting statement
SUPPORTING STATEMENT: At managementÕs discretion, the assessment should take into account all material financing mechanisms and asset classes that contribute to JPMorganÕs emissions, including direct lending, underwriting, and investments. Emissions attributable to unaligned clients can be measured using estimates or other appropriate methods.

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Any voting recommendations set forth in the descriptions of the resolutions and management proposals included in this database are made by the sponsors of those resolutions and proposals, and do not represent the views of the PRI.

Information on the shareholder resolutions, management proposals and votes in this database have been obtained from sources that are believed to be reliable, but the PRI does not represent that it is accurate, complete, or up-to-date, including information relating to resolutions and management proposals, other signatories’ vote pre-declarations (including voting rationales), or the current status of a resolution or proposal. You should consult companies’ proxy statements for complete information on all matters to be voted on at a meeting.