JPMorgan Breaks Silence on MTR
The megabank finally goes public on its financing of mountaintop removal coal mining.
For the first time, megabank JPMorgan Chase publicly announced its position on financing companies that engage in mountaintop removal (MTR) coal mining, a particularly destructive—to nearby water sources, wildlife, and communities—practice that involves the demolition of mountain summits. As I've previously reported, JPMorgan has financed close to 20 deals worth $8.5 trillion for companies that engage in MTR mining. For that, various environmental groups have blasted the bank for not cutting off financing for these companies, and for refusing to make public its policy on MTR.
When I was reporting my story, JPMorgan declined multiple requests to interview James Fuschetti, managing director of the bank's Office of Environmental Affairs. Then, when the article came out, Fuschetti emailed me to say his office had no record of my requests and that my story "would have substantially benefitted" had I spoken to someone at JPMorgan. When I emailed Fuschetti back to say I'd asked several times (a fact his office did indeed have a record of), I said I'd be happy to speak with someone at the bank and update my story. Again, the request was turned down.
Now, with its 2009 Corporate Responsibility Report (pdf), JPMorgan has finally opened up about its MTR policy. The bank says in November 2008 its environmental affairs office began an "in-depth and comprehensive examination" of MTR and its impact on Appalachia. And starting in early 2009, the report says JPMorgan's environmental and social risk management team has been reviewing all deals involving companies engaged in MTR. As new state and federal regulations on MTR are developed, the bank says it will "continue to follow the actions" of those regulators to stay in line with the latest MTR rules.
Environmental groups praised JPMorgan for its first public MTR disclosure. Rainforest Action Network, which has consistently pressured the bank to completely phase out all MTR-related financing, called the statement "a welcome step forward." RAN tempered that praise, though, by saying JPMorgan needed to get tougher on MTR companies by cutting them off altogether. "If JPMorgan wants to lead instead of follow on environmental responsibility," the group said in a statement, "the way forward is a complete phase-out of mountaintop removal coal financing."