Project Details
Project
JPMorgan Chase & Co. Sustainable Bond Framework Second-Party Opinion (2022)
Client
JPMorgan Chase & Co.
Project Type
Sustainability Bond/Loan
Industry Group
Banks
Use of Proceeds
Renewable energy; Green buildings; Clean transport; Affordable housing; Education; Health; SME finance and microfinance; Socio-economic advancement;
Location
U.S.
Evaluation Date
Oct 2022
Evaluation Summary
Sustainalytics is of the opinion that the JPMorgan Chase & Co. Sustainable Bond Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021 and Social Bond Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds –Green Buildings, Renewable and Clean Energy, Sustainable Transportation, Small Business, Affordable Housing, Home Ownership, Education and Healthcare – are aligned with those recognized by both the Green Bond Principles and the Social Bond Principles. Sustainalytics considers that investments in the eligible categories are expected to lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDGs 3, 4, 7, 8, 9, 10 and 11.
PROJECT EVALUATION / SELECTION
JPMorgan Chase & Co.’s Sustainability Group will be responsible for evaluating and selecting projects in line with the eligibility criteria under the Framework. The Sustainability Group consists of internal teams that are responsible for JPMorgan Chase & Co.’s sustainability initiatives, such as groups in JPMorgan Chase & Co.’s corporate responsibility organization. The Firm separately carries out an environmental and social risk review based on internal frameworks for environmental and social risk management. This applies to all projects selected for inclusion in the Sustainable Asset Portfolio. Based on the presence of cross-functional oversight for project selection and the presence of risk management processes, Sustainalytics considers this to be in line with market practice.
MANAGEMENT OF PROCEEDS
The Sustainability Group will be responsible for the management and allocation of proceeds to eligible projects. The proceeds will be tracked on a portfolio basis in accordance with the JPMorgan Chase & Co.’s internal framework for attestation, control and governance. JPMorgan Chase & Co. has communicated to Sustainalytics that it intends to reach full allocation to the Sustainable Asset Portfolio within one year of each issuance. Pending allocation, proceeds will be held in cash, cash equivalents or other high quality liquid assets. Sustainalytics is of the opinion that JPMorgan Chase & Co.’s processes for management of proceeds are in line with market practice.
REPORTING
JPMorgan Chase & Co. intends to report on the allocation of proceeds on its website on an annual basis while issuances are outstanding. This may include management’s assertion that an amount equal to the net outstanding proceeds from all outstanding issuances either has been allocated to the Sustainable Asset Portfolio or invested temporarily. In addition, JPMorgan Chase & Co. will report, where feasible, on environmental and social impact metrics. Sustainalytics considers this to be in line with market practice.