JPMorgan Chase Headquarters
270 Park Avenue, New York, NY
- World’s Most Valuable Brands 2020
- World’s Best Banks 2020
CHIEF SUSTAINABILITY OFFICER
Report created by Cec Ehrhard
JPMorgan Chase Bank is a national bank headquartered in Manhattan, New York City, that constitutes the consumer and commercial banking subsidiary of the U.S. multinational banking and financial services holding company, JPMorgan Chase.
Chase is the U.S. consumer and commercial banking business of JPMorgan Chase & Co. (NYSE: JPM), a leading global financial services firm with $2.6 trillion in assets and operations worldwide.
Chase’s roots trace back to the 18th century when it was founded under the name of the Bank of the Manhattan Company. Today it serves as the U.S. consumer and commercial banking business of JPMorgan Chase and operates in more than 60 countries.
The brand services nearly half of American households through its credit cards, home, auto and small business loans, nearly 5,000 branches and 16,000 ATMs. It’s the largest bank in the U.S. by assets. The bank’s name will adorn the new home of the Golden State Warriors, which is set to open in 2019. The 20-year deal is worth roughly $15 million annually and is the second richest naming rights deal ever for a North American arena.
The following sections are derived from JP Morgan Chase & Co sustainability activity and 2019 ESG Report.
Company Sustainability Activity
JPMorgan Chase establishs intermediate emission targets for 2030 for its financing portfolio. They focus on the oil and gas, electric power, and automotive manufacturing sectors and set targets on a sector-by-sector basis.
- By the end of 2018, JP Morgan Chase & Co had sourced renewable energy for 22% of their global power use
Reducing Environmental Footprint
- 100% renewable energy by 2020
- Net zero emissions by 2050 in line with goals of Paris Agreement
- In October 2020, JPMorgan Chase announced they are adopting a financing commitment that is aligned to the goals of the Paris Agreement
Cumulatively, between 2016 and 2018, JP Morgan Chase & Co has facilitated more than $100 billion in clean financing in the following categories:
- Clean Technology/ Sustainable Transportation
- Green Buildings/ Energy Efficiency
- Water Quality/ Waste Management
- Renewable Energy
By the end of 2018, JP Morgan Chase & Co had sourced renewable energy for 22% of their global power use
UN Sustainable Development Goals
UN SDGs Compliance
The following section aligns current company-wide sustainability initiatives with the UN Sustainable Development Goals.
- Expanded Women on the Move initiative
- Increasing the gender employment gap, almost 50/50
- $200 billion in “environmental and economic development deals and will pull back from advising and lending to the coal-mining industry”
- JPMorgan will put restrictions on financing new coal-fired power plants, phase out “credit exposure” to the industry by 2024 and will stop funding new oil and gas drilling projects in the Arctic
- Partnered hiring programs like Emerging Talent Program, Advancing Black Leaders, and Advancing Black Pathways
- Continuously improve cybersecurity and partnered with leading technology companies
Secondary SDGs: 17
Chase Bank, a subsidiary company of JP Morgan Chase & Co, has done limited action to address sustainability. Using JP Morgan’s sustainability framework and reports, one can conclude that the firm has not shown progress related to climate action, there’s only statements that the firm is looking to reduce emissions.
The information provided by the company is very basic and surface level as they do not go into depth about how they will follow through with their targets, or describing how they are achieving compliance with the UN Sustainable Development Goals.
Additionally, Chase Bank has no certificates, limited listings and no awards. For these reasons Chase has been given a “D” rating.
Analyst Outlook: Negative
While JP Morgan Chase & Co has touched upon sustainability through their initiative to become 100% renewable, they do not go above and beyond to incorporate sustainability within their business model. Additionally, Chase has not declared their commitment to sustainability.
- The firm should engage in trying to achieve certificates which will add to their sustainable progress.
- There’s limited information on their pages, short ESG report, and the websites do not provide substance, repetitive information across both subsidiary and parent company.
- Given its large platform, large revenue, and engagement with several other companies and firms, JP Morgan should take more initiative and responsibility to become more sustainable (i.e. put more targets into place within different SDG goals).
- As part of this commitment, Chase is launching the Center for Carbon Transition (“CCT”) to provide clients in the Corporate & Investment Bank and Commercial Banking with centralized access to sustainability-focused financing, research and advisory solutions.