JP Morgan Chase

The finanical institution discloses its approach to lobbying and political engagement through a policy statement and assigns decision-making and oversight for its sustainability strategy to its highest governance body. The stewardship policy encompasses client and stakeholder engagement, advocacy, and partnerships, including criteria for successful stewardship outcomes, escalation routes for unsuccessful efforts, and definitions for when escalations should occur. A publicly available policy statement commits to respecting human rights, and a list of trade associations is disclosed.

Time-bound and measurable targets are set for providing products, services, and capital for climate solutions, alongside transparent identification of key sectors, clients, and investees for engagement on climate and nature-related impacts. Monitoring of scope 1-2 emissions is conducted, with interim targets aligned with a 1.5C trajectory set for 2025 and 2030.

The institution also discloses the monetary amounts or shares of products, services, and capital provided to usually excluded groups and to small- and medium-sized enterprises.

While the institution identifies and prioritizes material sustainability impacts, it could enhance transparency by disclosing the objective criteria and evidence used in its materiality analysis. Furthermore, it could link performance criteria for remuneration at the senior executive level to specific sustainability targets. It has an approach to stewardship that considers ESG factors but could establish a stewardship policy that supports environmental transitions and social best practices in line with its sustainability strategy. Although the financial institution refers to the protection and restoration of nature, it has the opportunity to disclose a strategy for this area covering at least its priority sectors and areas. Furthermore, it discloses the aggregate amount and/or share (in monetary terms) of its provision of products, services and capital linked to its priority sectors and areas representing its highest negative impact on nature and climate but could further detail what this disclosure covers for nature specifically.

It is recommended that the institution disclose the breakdown of clients or beneficiaries by income group and clarify processes to prevent divestment from low-income and lower-middle-income countries due to its sustainability strategies and targets. The financial institution commits to respecting the ILO’s fundamental rights at work but could strengthen this commitment by formalising it in a policy document. It expects suppliers to uphold specific workers’ rights but should reference all ILO fundamental rights. Although it states no political contributions are made, this commitment is not formalised publicly. Its risk assessment process should incorporate risks related to ILO fundamental rights at work for those affected by its products and services, with a mitigation process for identified risks.

Additionally, the institution could strengthen its disclosure by providing an example of actions taken in the past three years to address salient human rights issues identified through risk assessments related to the products, services, and capital it offers.

This scorecard refers to information in English which was publicly available by July 15 2024. AuM and Total assets are stated in USD for comparability and have been calculated based on reported local currency values multiplied by applicable IMF currency converter values.