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 JPMorgan Chase announced on April 25, 2005 that it has adopted a comprehensive policy that applies high environmental standards to the firm's global business activities. As part of its broad commitment, the company has adopted the Equator Principles, guidelines that promote environmental and social responsibility in project financing. In addition, the company 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.
Highlights of the company's new policy include:
• JPMorgan Chase advocates the reduction of greenhouse gas emissions. In addition to reducing its own emissions, the company 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.
• JPMorgan Chase is taking significant steps in protecting biodiversity and critical habitats by instituting certain "no-go" criteria in forests whose high conservation values are endangered. In addition, the company will not finance companies or projects that are knowingly engaged in illegal logging.
• The policy is the first of any financial institution to incorporate environmental risk management into the due diligence process of its private equity divisions. "A policy of this magnitude illustrates our commitment to preserve and protect the world around us," said Amy Davidsen, director of environmental affairs. "We recognize that the policies and practices we adopt today will shape not only our lives, but also those of future generations."
JPMorgan Chase set up its Office of Environmental Affairs in April 2004 in order to evaluate the company's own use of resources and to integrate environmental and social awareness into its risk management process. The office carefully considered the viewpoints of various constituents before developing the policy, including customers, business and community leaders, environmental groups such as Rainforest Action Network, and a shareholders group, which includes Christian Brothers Investment Services, Domini Social Investments, F&C Asset Management, Friends of the Earth, and Trillium Asset Management.
"Conducting business with the highest standards and supporting the communities we serve is part of our company's culture," said William B. Harrison, Jr., Chairman and CEO. "As a leader in global finance, we recognize our responsibility to the environment and will support and encourage projects aimed at sustainable development. This is a policy that our employees, shareholders, and clients can be proud of."
JPMorgan Chase & Co. is a leading global financial services firm with assets of $1.1 trillion and operations in more than 50 countries. The firm is a leader in investment banking, financial services for consumers and businesses, financial transaction processing, asset and wealth management, and private equity. Under the JPMorgan, Chase and Bank One brands, the firm serves millions of consumers in the United States and many of the world's most prominent corporate, institutional and government clients.
JPMorgan Chase's new environmental policy can be viewed in full at http://www.jpmorganchase.com/environment.
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