383 Madison Avenue, New York City, New York
Tel: (212) 270-6000
Fax: (212) 270-1648
- #3 Global 2000 2020
- #43 America’s Best Banks 2020
- #275 World’s Best Employers 2020
- #6 Just Companies 2021
- #63 Best Employers for New Grads 2020
- #76 Best Employers for Women 2020
- #3 America’s Largest Public Companies 2018
CHIEF SUSTAINABILITY OFFICER
Report created by Cec Ehrhard
J.P. Morgan & Co is a large investment firm that ranges from investment banking to commercial banking to assets management.
Originally founded by J.P. Morgan in 1871, the brand has undergone numerous mergers and acquisitions over the past century. The brand is now known for its investment banking operations for JPMorgan Chase.
In 1895, the first merger occurred with Morgan & Co and Drexel which services at the time the booming railroad and steel industry. The firm was renamed into J.P. Morgan & Co, and they continued this pattern of mergers. In 2000, the most notable merger of Chase Manhattan Bank and JP Morgan occurred which transferred the brand into one of the largest banks in the US. The newly named company, JPMorgan Chase & Co, offers an extensive range of services from retail banking to private equity, to asset management. The brand J.P. Morgan & Co is still a separate subsidiary of JPMorgan Chase & Co.
J.P. Morgan & Co is headquartered in New York City and continues to offer services for capital raising, risk management, and trade finance services for corporations, institutions, and governments.
Company Sustainability Activity
JP Morgan has done minimal work within environmental, social, and governance activities. The annual reports are provided by the parent company JPMorgan Chase & Co. The ESG report is limited and contains few targets set in place and does not outline any specific SDGs.
REDUCING ENVIRONMENTAL FOOTPRINT
- 100% renewable energy by 2020
- Net-zero emissions by 2050 in line with goals of the 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, the company had sourced renewable energy for 22% of its 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
JP Morgan has done limited action to add to SDG goals. The firm has not shown any progress related to climate action, there are 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 SDG goals. Given their information, JP Morgan is doing more harm than good for the environment and has been rated a D.
Analyst Outlook: Neutral
While JP Morgan has touched upon sustainability through its initiative to become 100% renewable, they do not go above and beyond to incorporate sustainability within their business model.
Analyzing companies based on their SDG compliance, certificates, CSR listings and corporate operations is integral to understanding the sustainability of a company. However, it is important to consider windows of opportunity for improvement and key unanswered questions when evaluating a company. The following section addresses points of contention, any unanswered questions, discrepancies, and areas of improvement.
- The firm should engage in trying to achieve certificates which will add to their sustainable progress
- 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, they are 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