Media Release Contact: Annalisa Tarizzo, Green Century Capital Management, email@example.com, (617) 482-0800
Boston, April 8, 2021 – Green Century Capital Management° announced on Thursday that it has withdrawn its shareholder proposal for JPMorgan Chase’s 2021 Annual Shareholder Meeting after the firm agreed to expand its policies on deforestation. The commitment, which builds on JPMorgan Chase’s efforts to align some of its financing activities with the goals of the Paris Agreement, will help to raise performance standards for companies it finances in an effort to promote more sustainable commodity supply chains globally.
“We are heartened by JPMorgan Chase’s commitment to work to hold its clients accountable to help stop deforestation, which minimizes their impacts on biodiversity and natural landscapes,” said Annalisa Tarizzo, shareholder advocate at Green Century Capital Management. “Addressing emissions from deforestation and other land use changes is an integral part of addressing climate risk that companies are starting to understand. We believe these changes could position JPMorgan as a leader on deforestation.”
In response to the shareholder proposal, JPMorgan Chase will expand its current efforts by requiring its grower/refiner clients in the palm oil sector to comply with “No Deforestation, No Peat, No Exploitation” (NDPE) sourcing practices; develop or expand its policies on forest-risk commodities, including for cattle, paper/pulp, and cocoa; and increase forest management requirements for its clients in the mining and infrastructure sectors.
“We’re committed to doing our part to address climate change and that includes working with clients and other stakeholders to help strengthen industry best practices intended to protect forests and biodiversity,” said Marisa Buchanan, JPMorgan Chase’s global head of sustainability. “Through our constructive dialogue with Green Century, we’re taking some important steps and plan to continue exploring ways to enhance our efforts over time.”
Deforestation is responsible for approximately 10% of global anthropogenic emissions, making it a larger contributor to climate change than all the emissions created in the European Union. In addition to exacerbating the climate crisis, deforestation drives biodiversity loss, undermines the maintenance of healthy ecosystems, and plays an active role in the spread of infectious diseases.
In 2020, the UN Food and Agriculture Organization declared that deforestation and forest degradation are taking place at “alarming rates.” A total of 1,621,629 square miles of forest, an area larger than India, has been cleared since 1990. Agricultural expansion is the main driver of deforestation and associated biodiversity loss.
In October 2020, JPMorgan Chase announced it was adopting a financing commitment that is aligned with the goals of the Paris Agreement. As part of its strategy, the firm intends to help clients navigate the challenges and capitalize on the long-term economic and environmental benefits that come with transitioning to a low-carbon world. The firm also launched the Center for Carbon Transition (CCT) to provide clients in the Corporate & Investment Bank and Commercial Banking areas with centralized access to sustainability-focused financing, research and advisory solutions. More information about JPMorgan Chase’s sustainability initiatives can be found here.
Green Century Capital Management is the investment advisor to the first family of fossil fuel free, responsible, and diversified mutual funds in the U. S. As the foremost North American investor engaging companies on risks related to deforestation, Green Century has worked with dozens of corporations to mitigate their exposure to forest-related risks and secured some of the earliest corporate no-deforestation commitments. More information about Green Century’s work to prevent deforestation can be found here.
About Green Century Capital Management
°Green Century Capital Management, Inc. (Green Century) is the investment advisor to the Green Century Funds (The Funds). The Green Century Funds are the first family of fossil fuel free, responsible, and diversified mutual funds in the United States. Green Century Capital Management hosts an award-winning and in-house shareholder advocacy program and is the only mutual fund company in the U.S. wholly owned by environmental and public health nonprofit organizations.
*As of March 31, 2021, JP Morgan Chase & Co. comprised 0.00%, 0.00%, and 0.00% of the Green Century Balanced Fund, the Green Century Equity Fund, and the Green Century International Index Fund respectively. As of the same date, other securities mentioned were not held in the portfolios of any of the Green Century Funds. References to specific securities, which will change due to ongoing management of the Funds, should not be construed as a recommendation by the Funds, their administrator, or their distributor.
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The Green Century Funds are distributed by UMB Distribution Services, LLC. 235 W Galena Street, Milwaukee, WI 53212. 4/21