JPMorgan to Stop Financing Arctic Drilling, Coal Mining

"These announcements serve to strengthen our ongoing commitment to sustainability," said George Gatch, CEO of J.P. Morgan Asset Management, in a statement. "ESG considerations are an integral part of investing at J.P. Morgan with over 200 buy-side research analysts applying ESG factors into the buy/sell decisions on securities."

"This first step is significant," said Danielle Fugere, president of As You Sow, a nonprofit shareholder advocacy group that advocates for corporate responsibility, about JPMorgan's announcement nixing financing for Arctic drilling and coal mining. It signals "JPMorgan Chase may be ending its outsize level of fossil fuel financing in the face of growing climate concern." 

But Fugere tells ThinkAdvisor that the bank's plans do not go far enough because they don't  address all its investments in oil and gas development, in pipelines and liquid natural gas.

As You Sow has introduced a shareholder proxy asking for JPMorgan to commit to aligning its financing with the Paris Agreement on climate change. The bank has asked the SEC for permission to omit that proposal and others related to climate change from consideration during the upcoming proxy season.

— Related on ThinkAdvisor:

• Goldman Sachs Won't Finance Arctic Drilling or New Thermal Coal Mines
• Why Proxy Votes Are Important for ESG Investing
• World's Largest Asset Manager Doubles Down Against Climate Change