2011 Corporate Responsibility Report - JPMorgan Chase

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In cases of transactions that do involve
asset-specific finance, the GESRM team
strives to apply Equator Principles standards
to the fullest extent possible.
Of the 268 transactions reviewed by
GESRM in 2011, 30 received an assetspecific
review built on the structure of
the Equator Principles, but tailored to our
business in capital markets and corporate
loans. These reviews took place as follows:
Asset-Specific Reviews Based on the Equator Principles, by sector
EP
CATEGORY
JPMORGAN CHASE & CO.
AGRICULTURE INFRASTRUCTURE
MINING AND
METALS
Client Engagements
In addition to performing environmental
and social risk assessments at a client
or asset level, GESRM may actively
engage with clients to help enhance their
environmental and social performance.
When the GESRM team identifies issues, it
focuses its efforts on proactively engaging
with clients to develop Action Plans that
address and mitigate specific issues, as
well as meet relevant international or
industry standards. GESRM’s engagement
approach not only helps focus attention
OIL AND GAS POWER TOTAL
A 1 0 0 7 3 1 11
B 2 3 1 8 5 2 19
C 3 0 0 0 0 0 0
TOTAL 3 1 15 8 3 30
Asset-Specific Reviews Based on the Equator Principles, by region
EP CATEGORY NORTH AMERICA EMEA LATIN AMERICA ASIA PACIFIC TOTAL
A 1 2 5 1 3 11
B 2 1 8 2 8 19
C 3 0 0 0 0 0
TOTAL 3 13 3 11 30
on environmental and social performance,
but also plays a strong part in enhancing
a client’s overall business performance.
JPMorgan Chase does not disclose the
transactions we decline, but an important
indicator of our approach to environmental
and social issues are the transactions we
determine not to participate in.
Of the 268 transactions approved by
GESRM in 2011, we undertook a more
detailed engagement process with 27
of these companies, in order to better
understand their risk profiles and the
options to address environmental and
social challenges. On the basis of our
engagement, we believe that we played an
active part in improving the environmental
and social practices of these companies.
In the following case study we have
highlighted one such example.
Case Study: Joint bookrunner for the IPO
of a mining company operating in Africa
In 2011, J.P. Morgan acted as joint
bookrunner for the IPO of a company
with African assets. The environmental
and social due diligence process identified
labor, health and safety issues associated
with the client’s operations. These issues
involved risks to employees’ health and
safety, including long working hours,
and attracted media and government
attention. The stock exchange in question,
recognizing the potential for these issues
to affect the company’s performance,
specifically asked for J.P. Morgan’s view on