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Over 30% investors at the biggest U.S. bank JPMorgan Chase have backed a resolution on Indigenous rights, which was presented by a Peruvian Amazon leader facing death threats over her opposition to oil drilling. 

Similar resolutions attracted investor support at Citi and Wells Fargo last month amid a greater focus on Indigenous Peoples rights among bank investors. 

The JPMorgan Chase resolution, filed by investors United Church Funds, calls on the bank to assess the impact of its funding of oil, gas, and coal projects on Indigenous communities. The bank told the annual general meeting the majority of questions on proposals received were about the Indigenous resolution. In response to these questions it said it would not drop clients which operate without the consent of Indigenous communities, with questions referring to Petroperú and Santos, the Australian company building the Barossa gas project which is opposed by members of the Tiwi Traditional Owners.

JPMorgan Chase funds Petroperú, which is responsible for oil spills, undermining Indigenous Peoples rights and wants to drill for oil in Block 64, a pristine area of the Amazon. Olivia Bisa, president of the Autonomous Territorial Government of the Chapra Nation in Peru, spoke out during the JPMorgan Chase annual shareholders meeting today against the bank’s funding of Petroperú on behalf of the Chapra, Achuar, and Wampis nations who inhabit the region under threat. She and her family have faced threats of violence and death because of her opposition to oil activities and illegal loggers into her territory.

She urged investors to back the resolution: “Indigenous peoples have the right to say no to oil in our territories. However, Chase makes this reality impossible. Instead of listening to us, it invests billions of dollars in companies that destroy our lives and our Mother Earth.” She also referred to JPMorgan Chase’s decision to cancel a scheduled meeting with her and two other Indigenous leaders from Peru when they travelled to New York in April to meet banks financing Petroperú.

Petroperú is in violation of Interamerican Commission principles on the rights of Indigenous people to be consulted. The Achuar Nation has a current petition on the Interamerican Commission on Human Rights requesting the annulment of Block 64. 

JPMorgan Chase is the second biggest foreign funder of Amazon oil and gas, with fresh data showing it has pumped $1.6 billion into the sector since 2016. It has been part of a $1.3 billion syndicated loan and a $1 billion bond deal with Petroperú. The company’s pipeline through Peru’s Amazon has resulted in 87,751 barrels of oil spilled as of May 2023. A new report projects approximately over 3,500 oil spills nationwide by 2030, posing significant threats to ecosystems and Indigenous peoples. 

JPMorgan Chase in March exited the Equator Principles, a global agreement which set minimum standards on risks to the environment and local communities in countries where they finance oil, gas, coal, infrastructure and mining projects. 

Bank funding of Petroperú has been in the spotlight as evidence mounts of environmental damage and Indigenous community opposition linked to the company. At the same time Petroperú is desperate for refinancing and JP Morgan is reported to be considering a $1 billion bond deal. Petroperú has taken six lawsuits against Ms. Bisa, all of them discarded by the Peruvian prosecutors. 

The resolution was filed for the first time at JPMorgan Chase and also includes details on the bank’s $1.8 billion funding for Enbridge, which is behind controversial pipelines Lines 3 and 5, which are opposed by Indigenous communities and which have led to litigation. 

Quotes

Matthew Illian, Director of Responsible Investing at United Church Funds said he would like to see JPMorgan demonstrate a clear commitment to investors that the voices of indigenous leaders like Ms. Bisa will be heard: 

“Olivia Bisa is a brave leader of her nation and we are privileged that she presented our resolution. Her testimony shows that there is a serious risk to JP Morgan investors through its financial backing of Petroperú, given the company’s many environmental and human rights controversies. No investors want to be associated with repeated oil spills in the Amazon rainforest.”

Matthew Illian, Director of Responsible Investing at United Church Funds

“Petroperú is too overleveraged to be profitable unless it can increase oil production. Oil debt provided by banks is setting the conditions for a conflict between indigenous leaders and those who see oil extractions as a profitable business.”

Ricardo Pérez, Peru Communications Advisor at Amazon Watch

“JPMorgan needs to listen to Olivia’s voice. Clients like Petroperú are repeat violators of Indigenous Peoples rights and they expose investors to significant litigation, reputational, and regulatory risk. JPMorgan remains a top financier of oil and gas operations in the Amazon, despite its published commitments to mitigate negative human rights impacts. JPMorgan finances multiple clients with poor track records on Indigenous Peoples rights, exposing clear gaps in the bank’s policies.”

Jillianne Lyon, Investor Advocates for Social Justice

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