Ada Recinos, Deputy Press Secretary, Federal Communications, ada.recinos@sierraclub.org
NEW YORK, NY – This week, the last two major US banks, JPMorgan Chase and Morgan Stanley, held their Annual General Meetings (AGMs), where shareholders voted on several investor proposals calling for stronger transparency on energy financing and impacts on Indigenous Peoples' rights. So far this season, investors have consistently demanded more transparency on similar resolutions at other major US banks.
The resolutions voted on at JPMorgan Chase & Morgan Stanley included:
- Clean Energy Financing Ratio - Resolution filed by the New York City Comptroller and pension funds requesting annual disclosure of the bank’s clean energy supply financing ratio:
- Morgan Stanley preliminary voting result: 23% support
- Report on Indigenous Peoples Policy - Resolution requesting a report on the effectiveness of policies for respecting the rights of Indigenous Peoples in regards to financing decisions:
- JPMorgan Chase preliminary voting result: 30.4% support
In response to the news, Adele Shraiman, Senior Strategist for the Sierra Club’s Fossil-Free Finance campaign, issued the following statement:
“This year, investors have consistently demanded more transparency from major US banks on key climate issues, from impacts of business activities on Indigenous communities to financing for clean energy and fossil fuels. This week’s results at JPMorgan Chase and Morgan Stanley are a decisive conclusion to this year’s bank AGM season, demonstrating that investors are serious about pushing banks to deliver on their climate commitments.”
Background:
In the lead up to this AGM season, Citigroup, JPMorgan Chase, and Royal Bank of Canada agreed to disclose their relative levels of financing for low-carbon energy versus fossil fuels — also known as an energy supply financing ratio — in response to shareholder resolutions filed by the New York City Comptroller Brad Lander and three New York City pension systems. The Comptroller has emphasized the need for banks to increase financing for low-carbon energy and decrease financing for fossil fuel expansion in order to align with the goals of the Paris Agreement. Bank of America, Goldman Sachs, and Morgan Stanley failed to reach similar agreements. Investors showed strong support for this resolution at all three AGMs.
Last year, JPMorgan Chase and Morgan Stanley, among other major US banks, faced several climate-related shareholder proposals calling for progress on implementing their climate and human rights commitments. The 2023 resolutions included a proposal filed by the New York City Comptroller asking the bank to disclose 2030 absolute greenhouse gas (GHG) emissions targets for its energy portfolio (JPMorgan Chase: 12% support).
According to the International Energy Agency, in order to meet the goals set out in the Paris Agreement — net-zero emissions by 2050 and limit global temperature rise to 1.5C — development of new fossil fuel projects and associated infrastructure must end. Accordingly, financial institutions must stop financing and facilitating further fossil fuel expansion.
About the Sierra Club
The Sierra Club is America’s largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.