Following pressure by environmental NGOs and shareholder groups, JPMorgan Chase announced it has adopted the Equator Principles, guidelines that restrict its lending and underwriting practices for industrial projects that negatively impact the environmental impact.
The firm will apply the Principles to projects that are $10 million or above in environmentally sensitive industries, exceeding the threshold of $50 million set by the Equator Principles.
In addition to the Equator Principles, the company’s new policy also addresses issues including climate change, sustainable forestry, the protection of critical natural habitats, illegal logging, and the needs and concerns of indigenous peoples.
JP Morgan has committed to the following:
* the firm will work with clients to develop new financial products that facilitate emissions reductions, conduct research into the financial implications of the rising cost of carbon, and deploy investment capital to businesses that reduce or mitigate greenhouse gases.
* institute certain “no-go” criteria in forests whose high conservation values are endangered. In addition, the firm will not finance companies or projects that are knowingly engaged in illegal logging.
Rainforest Action Network led the NGO effort. Shareholder groups involved include: Christian Brothers Investment Services, Domini Social Investments, F&C Asset Management, Friends of the Earth, and Trillium Asset Management.
JPMorgan Chase’s policy can be viewed in full at:
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