Shareholders of JPMorgan Chase & Co.
JPM,
On Tuesday, he defeated the company’s call for greater disclosure of credit activities affecting climate change.
The proposal was one of six resolutions, all opposed by the company, which were rejected by shareholders at the annual meeting. The environmental resolution received 48.6% of the votes from investors in the bank, which is the main lender in the oil sector, beforehand.
Despite the defeat, environmental activists argued that the close call reflected increased shareholder interest in the bank’s growing recognition of the risks associated with accelerating human-caused climate change. Globally, climate change losses are estimated to be between $ 150 and $ 790 trillion by 2100, according to certain measures.
As You Plant, an environmental and corporate social responsibility group, wanted the lender to publish a report “outlining if and how it was trying to reduce the greenhouse gas emissions associated with its lending activities in accordance with the global temperature targets established by the Paris Agreement. The Paris Pact called for keeping global warm ing well below 2 degrees Celsius.
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The company also opposed the latest resolution, declaring to shareholders in its proxy that it “prioritizes its commitment to finance sustainable development” and “supports companies that strive to make a strategic transition to an economy with less carbon and manage environmental and social risks responsibly. “
JP Morgan is the world’s largest financier of fossil fuels, having channeled more than $ 268.5 billion in space from 2016 to 2019, with an average of around $ 67 billion per year.
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Earlier this year, the bank announced that it would end or phase out loans to certain interests in fossil fuels, including those engaged in Arctic drilling and coal mining. JPMorgan said its goal will be to facilitate $ 200 billion in environmental and economic development agreements. But continued funding from major oil companies still annoyed environmentalists and certain shareholder groups.
With nearly 50% of the vote, “shareholders sent the message today that it is time for Chase to catch up with his peers, implement a strategy to decarbonize and eliminate risks from his loan portfolio, and help to build a safer future for all ”, argues Danielle Fugere, president of As You Sow.
While You Sow withdrew similar climate proposals with other big banks – Wells Fargo & Co.
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Morgan Stanley
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, Bank of America Corp.
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and Goldman Sachs Group Inc.
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– after the banks have agreed to recognize the urgency of finding systems for measuring greenhouse gas emissions associated with their financing activities in order to align with the Paris objectives. The main European counterparts BNP Paribas, Société Générale, BBVA, Standard Chartered and ING, with a combined portfolio of $ 2.7 trillion, have pledged to reduce the climate impact of their loans in accordance with Paris’ climate targets. More recently, Barclays, the largest fossil fuel financier in Europe, has announced its intention to align its funding with the Paris climate agreement and set a target for zero net emissions.
Fugere, who spoke at the annual meeting, also said he considers the increase in shareholders’ climate interest to be linked to growing concerns about COVID-19. “The investment community has not lost the parallels between COVID-19 and the global disruption that followed. The significant shareholder support for this proposal underscores their position that banks are as responsible as any other company for paying attention to climate science and taking swift action to reduce systemic and growing risks, “he said. .
JPMorgan CEO Jamie Dimon in previous appearances has criticized President Trump’s withdrawal from the Paris Pact. Dimon also said that the climate change initiatives set out in the Democrats’ New Deal Verde were pushing too quickly for complete decarbonization of the US economy.
The bank announced Tuesday that it is offering “transparent disclosure” of its strategy and environmental, social and governance performance via its website and directly to shareholders.
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Still at the annual meeting, a resolution calling on the chairman of the board of directors to be “an independent member of the board whenever possible” received 42% of the votes. Jamie Dimon is CEO and President, and Lee R. Raymond, former President and CEO of ExxonMobil Corp.
XOM
, is the main independent director.
The company called for a “no” vote on the resolution, stating to shareholders in a proxy statement: “The board of directors reviews and evaluates its management structure each year. By 2020, the Board of Directors has decided to maintain a combined role of President and Chief Executive Officer. “
Raymond has been criticized by some large pension funds, a group of state treasurers and environmental groups for his experience in fossil fuels, reports Pensions & Investments. Critical groups say his status as independent chief administrator raises questions about the bank’s commitment to improving the environment.
The company announced in a SEC filing on May 1 that it would choose a successor to Raymond, who has been a senior independent director since 2001, in this role “by the end of the summer”. The main independent director is elected by other independent directors of the board.
JPM shares have fallen 36% in the year to date and 20% lower in the past year. Dow Jones industrial average
DJIA
it has dropped 6% in the past year.
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