Mountain Top Removal Mining - Financing
2010 – J.P. Morgan Chase & Co.
WHEREAS: JP Morgan Chase & Co (JPM) "recognizes that balancing non-financial factors such as environmental and social issues with financial priorities is an essential part of good corporate citizenship, in addition to being fundamental to risk management and the protection of investors."
In furtherance of its goal "to make a positive contribution to sustainability by integrating environmental principles into our business model," JPM has adopted forestry and biodiversity policy commitments that recognize the critical importance of forests for water resources and carbon sequestration. (http://www.ipmorgan.com/pages/jpmc/community/env/policv/forest)
JPM, a signatory of the Carbon Principles Enhanced Environmental Diligence for financing new coal-fired power plants, has also committed to assume "a leadership role in the financial services industry by helping to reduce greenhouse gas emissions in our value chain."
Notwithstanding these policy commitments, JPM provides financing to coal companies that practice mountaintop removal (MTR) mining, a highly controversial practice that has serious adverse impacts on communities, the environment, and public health.
MTR causes massive environmental devastation. Forests are clear-cut, the tops of mountains blasted away to reveal coal seams and the rubble dumped in the valleys below, filling streams and destroying water resources.
The U.S. Environmental Protection agency (EPA) found that approximately 1,200 miles of headwater streams in the Appalachian coal region (2% of the streams in the study area) were directly impacted by MTR. (http://www.epa.gov/region3/mtntop/index.htm) By mid-century about 20% of the 12 million acres of mountains and forests will have suffered from MTR and 12% of the streams in that area will have been eliminated. EPA has placed 79 MTR projects on hold to review of the permits due to concerns about water quality and environmental health. (http:/hvww.bloomberg,com/apps/news?pid=email en&sid-a3jhGdHTDUH4)
MTR has reportedly leveled at least 474 mountains in Appalachia destroying forests that are among the world's richest in biodiversity. Between 1992 and 2012, EPA estimates MTR will have destroyed approximately 7% of Appalachian forests in coal mining regions studied. (http://www.epa.gov/Region3/mtntop/pdf/mtm-vf_fpeis_full-document.pdf)
Old growth forests, like those found in Appalachia, are important carbon sinks that store atmospheric carbon dioxide. Deforestation is the second leading source of GHG emissions worldwide. (http://www.gsfc.nasa.gov/gsfc/service/gallerv/fact_sheets/earthsci/green.htm) The carbon in forests destroyed by MTR each year roughly equals the annual emissions from two 800-megawatt coal-fired power plants.
MTR blights communities. Of the roughly half-million acres of land covered by surface-mining permits in Kentucky over the last decade, less than 14,000 acres are scheduled to be reclaimed for commercial, residential, industrial or recreational development, according to state mining authorities. (http://www.mcclatchyde.com/251/stoty/77358.html?stotv link=email_msg)
While JPM's competitors Citigroup and Bank of America have adopted policies on lending to companies engaged in MTR, JPM has not.
RESOLVED: Shareholders request that JPM's Board publish a report, at reasonable cost and omitting proprietary information, by September 2010 assessing (i) the impact of MTR mining by JPM's clients on the environment and people of Appalachia, and (ii) the adoption of a policy barring future JPM financing of companies engaged in MTR mining.