JP Morgan has promoted environmental and ‘sustainable’ investment funds that have directed over £200m into mining giant Glencore, despite its controversial coal operations in South Africa, an investigation has revealed.
Sustainable investing is booming, with global ESG investments projected to exceed $40tn by 2030. However, questions are mounting over regulatory loopholes. JP Morgan’s sustainable funds must allocate at least 51% of assets to environmentally or socially positive investments, allowing up to 49% in unrestricted assets.
An inquiry by the Bureau of Investigative Journalism, Voxeurop, and Daily Maverick found that several JP Morgan ESG funds invest in Glencore, which has faced accusations of polluting local water supplies and breaching environmental laws since 2017 at its South African coal mines. The Tweefontein mine has been accused of contaminating a river, mishandling hazardous waste, and neglecting sewage repairs.
Residents in Phola, near Glencore’s mines, report health issues from contaminated water. “Most people get stomach aches when they drink this water,” said local resident Daisy Tshabangu. Campaigners claim regulators lack the will to hold Glencore accountable.
Chuka Umunna, JP Morgan’s head of sustainable solutions for investment banking, was urged to review the bank’s Glencore investments but did not respond. ESG investing is under growing scrutiny, with regulators working to define clearer standards.
Glencore, the world’s fifth-largest coal producer, denies wrongdoing and says it monitors water quality and addresses regulatory concerns. It insists on its commitment to ethical business and community engagement.
JP Morgan declined to comment.
