JPMORGAN CHASE & CO. | Adopt policy financing no new fossil fuels at JP Morgan
Previous AGM date
How other organisations have declared their voting intentions
|Organisation name||Declared voting intentions||Rationale|
|Kutxabank Gestion SGIIC SAU.||For|
|EFG Asset Management||For||The company has committed to the Paris Agreement, has achieved carbon-neutrality, set emissions reductions goals for some industries in its portfolio and is financing $1 trillion by 2030 to accelerate the transition to a low-carbon, sustainable economy. By joining the Net-Zero Banking Alliance, it is committing to set a 2050 target. The company has banned project financing of new coal mines and plants and prohibits financing gas development in the Arctic.
In the summer of 2021, the Intergovernmental Panel on Climate Change (IPCC) issued an updated report on the status of the climate emergency. This report, combined with mounting evidence from other sources, stressed that swift and decisive action must be taken in order to limit global warming to 1.5 C. The IPCC and U.N. Secretary General have continually emphasized that GHG-intensive activities must be reduced to near-zero in all climate scenarios consistent with a 1.5 C pathway.
While the company has taken some steps to move towards a low-carbon economy and has an environmental and social risk framework and mechanisms for managing environmental, social, and financial risks, adoption of the resolution would not only serve to enhance and complement the company's current commitments to net zero activities, but also help ensure stronger alignment between the company's net zero goals and its policies and actions. In addition, it would also provide shareholders with a better understanding of the company's management and oversight of related risks. Accordingly, support for this proposal is considered warranted.
|Legal & General Investment Management (Holdings)||For||We have carefully considered the proposal against our own expectations of the sector, as well as the bank’s current practices, commitments and disclosures. While we recognise JPMorgan’s recent commitments and improved disclosures, reiterated in its 2021 ESG report, we note that these currently only include interim targets for emissions intensity covering a small number of sectors. We are yet to see the Company’s Scope 3-financed emissions disclosure to determine the strength of its targets and the trajectory of emissions reductions, to enable us to ensure these targets can indeed achieve 1.5C alignment.
Notwithstanding these commitments and disclosures, we consider that the call for the Board to set a policy to ensure its fossil-fuel financing is aligned with the IEA NZ2050 scenario is desirable and in line with our expectations, while leaving the Board room to determine its own path to 1.5C alignment.