2021 Environmental Social & Governance Report

CLIMATE RISK
Climate change is one of the most critical challenges facing 
society and the environment today. JPMorgan Chase is 
committed to understanding how climate change may 
influence the risks it manages. This includes evaluating how 
our businesses, and the activities of our clients and 
customers, could be impacted through transition or physical 
risks driven by climate change. Our resiliency planning 
approach focuses on preparing for the impacts to locations, 
people, technology and suppliers. 
We have developed an internal risk classification system that 
projects how various climate-risk drivers – including physical 
risks such as extreme weather events, and transition risk as 
society moves toward net-zero emissions – can translate into 
potential impacts for our clients, customers and Firm. This 
system informs our understanding of how climate risk could 
materialize across the four major risk types we manage: 
strategic, market, operational and credit and investment risk. 
We assess these impacts against considerations such as time 
horizon, business sector and geography to better understand 
how these risks may emerge within our Firm. 
The Firm has a dedicated Climate Risk team, which is led by 
our Firmwide Risk Executive for Climate Risk. The team 
establishes our internal approach to managing climate risk, 
including developing relevant policies and standards as well 
as building our approach to climate risk data. The Climate Risk 
team collaborates with stakeholders across the Firm to 
integrate climate considerations into line-of-business risk 
management frameworks. 
We plan to disclose additional detail on our efforts to 
integrate climate risk into our Firmwide risk management 
framework in a standalone climate report which we plan to 
publish later this year.