Risk Management Risk is an inherent part of JPMorgan Chase’s business activities. When the Firm extends a loan, advises customers and clients on their investments, makes markets in securities, or offers other products or services, we take on some degree of risk. Our overall objective is to manage our businesses, and the associated risks, in a way that serves our clients, customers and investors while protecting the safety and soundness of the Firm. We focus on understanding different types of risk, as well as what drives such risks and their potential impacts. We generally divide risks into four categories: strategic risk, credit and investment risk, market risk and operational risk. Each line of business and Treasury and CIO is responsible for the ongoing identifying of risks, as well as the design and execution of controls to manage those risks. The Independent Risk Management ("IRM") function establishes the Firm’s risk- management frameworks. It also reviews and challenges risks identified by the lines of business and corporate risk management areas. IRM also implements policy and standards with respect to its own processes. The independent status of the IRM function is supported by a governance structure that provides for escalation of risk issues to senior management, the Firmwide Risk Committee and the Board of Directors, as appropriate. For more information on the Firm’s overall approach to risk management, see our Annual Report and Form 10-K. Managing Environmental and Social Risks Our world today faces serious environmental and social challenges, such as climate change, deforestation, lack of water quality and availability, waste generation, human rights issues and the impact of development on communities, that if not adequately addressed could create risks for society and businesses. We recognize that our business decisions have the potential to impact the environment and surrounding communities. This is why understanding our clients’ approach to, and performance on, environmental and social matters is an important component of our risk management process, as it helps us make more informed risk decisions, serve our customers responsibly and safeguard our financial resilience. Internal risk policies and standards indicate certain sectors, activities and financial products (primarily for capital markets and lending transactions) subject to environmental and social due diligence, which are evaluated as part of the first and second line of defense processes. IRM may recommend measures to mitigate environmental and social risk – such as enhanced disclosure, changes to transaction documentation or improved performance standards. 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. HUMAN RIGHTS RISK Identifying and managing human rights risk is another key area of interest for our stakeholders. JPMorgan Chase supports fundamental human rights across our lines of business and in each region of the world in which we operate. We are guided by the United Nations Universal Declaration of Human Rights and the Guiding Principles on Business and Human Rights as the overarching framework for corporations to respect human rights in their own operations and through their business relationships. We have a range of policies and procedures that pertain to human rights issues, including modern slavery and Indigenous Peoples, across our business and supply chain. We also publish a Modern Slavery Act Statement annually, which outlines practices and policies we have in place to mitigate the potential risk of modern slavery occurring in our business and supply chain. Additional information on our management of environmental and social risks, including publicly available policies and statements, can be found on our website . 54 INTRODUCTION ENVIRONMENTAL SOCIAL GOVERNANCE Corporate Governance and ESG Oversight Stakeholder Engagement Risk Management Data Privacy and Cybersecurity Business Ethics Political Engagement and Public Policy ESG REPORT APPENDICES