GreenYes Archives

[GreenYes Archives] - [Thread Index] - [Date Index]
[Date Prev] - [Date Next] - [Thread Prev] - [Thread Next]

Re: [greenyes] JP Morgan Goes "Green" - Power of Activists

My reading of this is that JP Morgan's decision has nothing to do with environmental group pressure and everything to do with better control of the risks associated with their investments.

With Kyoto in effect, factors such as carbon emissions (and their control or the purchase of emissions rights) already have real financial effects in many countries. For long-term investments, such as a coal-fired power plant for example, failure to integrate these costs into plant economics (and lending assumptions) would be a rather substantial mistake. It is probably not a coincidence that we are starting to see changes in bank policies now.

Whether the other changes in JP Morgan's lending criteria represent true successes of environmental and shareholder pressure as the WSJ implies, rather than PR-oriented changes with far less bit than GHG costing, will depend on the details of their 10-page policy soon to be released. If others on the list read it through, I'd be interested in hearing your verdicts.

-Doug Koplow

Doug Koplow
Earth Track, Inc.
2067 Massachusetts Avenue - 4th Floor
Cambridge, MA 02140
Tel: 617/661-4700
Fax: 617/354-0463

This message, and all attachments thereto, is for the designated recipient
only and may contain privileged, proprietary, or otherwise private
information. If you have received it in error, please notify the sender
immediately and delete the original. Any other use of the email by you
is prohibited.

>>> "Peter Anderson" <anderson@no.address> 04/25/05 12:35PM >>>
[With the total blackout from power in Congress and the White House, it is
good to see how concerted organized action can still produce solid
constructive results for change, a fact which shows how out of phase the
current occupants in power are from the people. JP Morgan would not change
its stripes for activists had they not perceived it as necessary to be a
viable player in the marketplace.- Peter]


J.P. Morgan
Adopts 'Green'
Lending Policies
April 25, 2005

Following pressure by ecological activists and shareholder groups, J.P.
Morgan Chase & Co. will adopt sweeping guidelines that restrict its lending
and underwriting practices for industrial projects that are likely to have
an environmental impact.
The New York banking giant -- third largest in assets in the U.S. -- is
expected to issue a 10-page environmental policy today that takes an
aggressive stance on global warming, including tying carbon-dioxide
emissions to its loan-review process for power plants and other large
polluters. The bank also plans to calculate in loan reviews the financial
cost of greenhouse-gas emissions, such as the risk of a company losing
business to a competitor with lower emissions because it has a better public
And J.P. Morgan plans to lobby the U.S. government to adopt a national
policy on greenhouse-gas emissions, becoming the first big American bank to
pledge that kind of activism on such a contentious issue, according to
shareholder activists.
The bank's move, on the heels of activist campaigns that produced similar
pledges from Citigroup Inc. and Bank of America Corp., suggest that a shift
in tactics by the environmental movement is paying off. Green groups have
largely failed in efforts to lobby the Bush administration on oil drilling
and other issues. So they are pressuring corporations directly, hoping to
counter business activity that could harm the environment.
Large banks are a particularly important target because of their potential
role in financing activity such as energy development and logging. By
agreeing to put some limits on lending, banks could forgo some profitable
activity. But activists argue that eco-friendly policies can help banks
sidestep loan defaults and costly litigation associated with businesses such
as logging and mining.
"This is increasingly becoming the way all banks operate," says Steve
Lippman, vice president of social research at Trillium Asset Management, a
socially oriented investment firm based in Boston that helped lobby J.P.
Morgan. "J.P. Morgan is now raising the bar for the sector."

FOR FULL ARTICLE.,,SB111438883473915625,00.html
Peter Anderson, President
4513 Vernon Blvd. Suite 15
Madison, WI 53705-4964
Ph: (608) 231-1100
Fax: (608) 233-0011
Cell: (608) 698-1314
eMail: anderson@no.address

This message, and all attachments thereto,
is covered by the Electronic Communications
Privacy Act, 18 U.S.C., Sections 2510-2521.
This message is CONFIDENTIAL. If you are
not the intended recipient of this message,
then any retention, dissemination, distribution
or copying of this communication is strictly
prohibited. Please notify me if you received
this message in error at anderson@no.address
and then delete it.

[GreenYes Archives] - [Date Index] - [Thread Index]
[Date Prev] - [Date Next] - [Thread Prev] - [Thread Next]