Progress Toward the Target PROGRESS TOWARD 10-YEAR TARGET OUR APPROACH TO TRANSACTIONS THAT SUPPORT MULTIPLE OBJECTIVES We track progress toward our Target by attributing business activity across the $2.5T Firm that supports our Target’s objectives. These business activities include $285B $197B The three objectives of our Target—Green, Development Finance, 2021 2022 By the end of 2030 transactions fnanced or facilitated by the Firm and those for which we are pro- and Community Development—refect our belief that creating sus- viding advisory, risk management and other facilitation services. $482B | 19% tainable economic growth requires advancing environmental, eco- Since 2021 nomic and social goals. When tracking these transactions to our Progress toward our Target, like our other ESG-related initiatives, is subject to certain prerequisites, including market conditions, public policy and technological advance- Target, we count transactions only once and toward only one ment. Our fnancing and advisory initiatives are also subject to the same macroeco- objective in the following order (as applicable): Green, Develop- ANNUAL PROGRESS (2022) ment Finance or Community Development. With this approach, we INTRODUCTION nomic conditions that impact our franchise and the broader fnancial markets. seek to avoid double counting, simplify tracking toward our prog- In 2022, our progress toward our Target was characterized by a challenging mac- $14B ress, and create clarity in our disclosures. We disclose more infor- Message from Our Chairman roeconomic environment. Volatile market conditions, including rising rates con- CB mation on a few of these key areas in the coming sections, such as Company at a Glance tributed to slower progress toward our Target compared to 2021. T he challenging $40B $19B how we track and count Sustainability Bonds and certain JPM DFI Community $70B CCB Our Approach to ESG macroeconomic environment was not limited to sustainable development activi- Development TOTAL TOTAL activity toward our Green objective. We aim to be transparent in Green $95B ties. For example, according to Dealogic1, global investment banking fees in 2022 $197B $197B CIB our methodology and may recalibrate our approach over time. $87B Feature: $2.5T Sustainable $68B Investment Development Target were down 42% compared to 2021. We saw a similar, but lesser, decline in Invest- Development CIB Banking Finance Our work with the National Rural Utilities Cooperative Finance ment Banking activities counted toward our Target. Market conditions, public pol- Markets icy and technological advancement will continue to have an impact on our Corporation (“CFC”) provides an example of the mutual benefts ENVIRONMENTAL that can be created by simultaneously supporting the advance- results, and as such, we do not expect our progress over the decade to be linear. In line with the Firm’s approach for the rest of our business, we do not manage ment of environmental and social issues. CFC, created and owned SOCIAL by the U.S.’s electric cooperative network, is a nonproft, private the Target focused on short term results, but rather, focused on positioning our- selves to drive long term progress. At JPMorgan Chase, we are focused on sup- CUMULATIVE PROGRESS (2021–2022) lender focused on providing fnancing to over 900 rural electric GOVERNANCE cooperatives in the U.S. Electric cooperatives, which trace their porting our clients through the cycle in both good times and bad—including in their sustainable development ambitions—and remain committed to playing our origin back to the U.S. federal government’s New Deal Initiative, APPENDICES $30B were created by farmers and local residents to provide afordable part to advance sustainable development. CB $102B $54B and dependable electricity in rural communities. In August 2022, In 2022, our Firm fnanced and facilitated approximately $197 billion toward the Community CCB JPMorgan Chase served as joint book-running manager on CFC’s Target; $70 billion toward green, $87 billion toward development fnance and $40 Development TOTAL $176B TOTAL $482B Green $482B $229B $400 million sustainability bond, the proceeds of which CFC plans billion toward community development. Collectively, since 2021, we have fnanced $204B CIB to use to support broadband access for underserved and rural Development $169B Investment and facilitated $482 billion toward our Target, including $176 billion toward our Finance CIB Banking populations in the United States. Prior to this, in 2020, JPMorgan $1 trillion green target. In this section we discuss our progress in each objective Markets Chase also served as joint book-running manager and sustainabil- through December 31, 2022. ity bond structuring agent for CFC’s inaugural sustainability bond. To learn more about our criteria for determining what business activity is eligible These two issuances represent the only sustainability bonds so far to count toward our Sustainable Development Target and how we account for the Note: Totals may not sum due to rounding. in the electric cooperative sector. value of transactions, see Our Approach to Our Sustainable Development Target, updated and efective as of January 1, 2023. 1 Source: Dealogic Quarterly Rankings, IB Revenue, Full Year 2022 7