JPMorgan Chase

RATING

SECTOR

Banking

WEBSITE

CONTACT

270 Park Avenue
New York
NY 10017
United States

Tel: 1-212-270-6000

STOCK EXCHANGE

LISTING

Forbes Lists

  • #286 Best Employers for Diversity 2021
  • #137 America’s Best Employers 2021
  • #51 America’s Best Banks 2021
  • #137 Best Employers for Veterans 2020
  • #275 World’s Best Employers 2020
  • #6 Just Companies 2021
  • #63 Best Employers for New Grads 2020
  • America’s Best Employers By State 2020
  • #76 Best Employers for Women 2020
  • #3 Global 2000 2020
  • Blockchain 50 2019
  • #182 Top Regarded Companies 2018
  • #3 America’s Largest Public Companies 2018

Other Lists

  • 2020 Gender-Equality Index
  • #2 Job seekers’s Top 50 Employers for People with Disabilities
  • Black Enterprise’s 50 Best Company For Diversity 2018
  • Working Mothers’ Best Company for Multicultural Women 2020
  • #2 Latina Style Top 50 Best Companies for Latinas to Work for in the U.S

EMPLOYEES

255,351

Global Head of Sustainable Finance

Matthew Arnold

AWARDS

Visit JPMorgan’s awards & recognition page here

  • In 2020, HITEC named two JPMorgan Chase employees to the HITEC 100, its list of the 100 most influential Hispanic leaders in technology, and three employees to the HITEC 50, its list of the 50 most influential technology professionals in Latin America.
  • The Women’s Business Enterprise National Council (WBENC) includes JPMorgan Chase on the 20th annual list of America’s Top Corporations for Women’s Business Enterprises (WBEs).
  • J.P. Morgan honored at 2019 Disability Matters Europe Conference.
  • Military Times recognizes the JPMorgan Chase’s commitment to post-military career success for veterans.
  • Global Supplier Diversity lands JPMorgan Chase in “Billion Dollar” hall of fame: The Billion Dollar Roundtable (BDR) inducts JPMorgan Chase into the exclusive group of 28 corporations that achieved at least $1 billion in spending with diverse suppliers.
  • In 2020, the HRC awarded JPMorgan Chase a 100% perfect score on its HRC Corporate Equality Index.
  • JPMorgan Chase scored 100 on the Disability Equality Index.

CONTENT SOURCE

FURTHER READING

Report created by Youmna Abdallah

 

JP Morgan Chase

SECTIONS :  Sustainability •  Targets    Evaluation   •  Key Points •  Overview

Company Activity

JPMorgan Chase & Co. is an American investment bank and financial services holding company headquartered in New York City and incorporated in Delaware.

As a “Bulge Bracket” bank, it is a major provider of various investment banking and financial services. It is one of America’s Big Four banks, along with Bank of America, Citigroup, and Wells Fargo. JPMorgan Chase is considered to be a universal bank and a custodian bank. The J.P. Morgan brand is used by the investment banking, asset management, private banking, private wealth management, and treasury services divisions. 

Fiduciary activity within private banking and private wealth management is done under the aegis of JPMorgan Chase Bank, N.A.—the actual trustee. The Chase brand is used for credit card services, retail banking activities, and commercial banking. It is considered a systemically important bank by the Financial Stability Board.

The current company was originally known as Chemical Bank, which acquired Chase Manhattan and assumed that company’s name. The present company was formed in 2000, when Chase Manhattan Corporation merged with J.P. Morgan & Co.

 

Company Sustainability Activity

JPMorgan Chase integrates environmental, social and governance (ESG) considerations in their policies and principles in all areas they operate. Their sustainable development activities are focused in three areas:

  • Green: Supporting climate action, with the goal of accelerating the deployment of solutions for cleaner sources of energy and facilitating the transition to a low-carbon economy
  • Development Finance: Mobilizing capital to advance the United Nations Sustainable Development Goals (SDGs) in emerging economies
  • Community Development: Advancing economic inclusion in developed markets

JPMorgan Chase’s long-standing emphasis on running their business in this manner has evidently made them strong and well positioned to support their clients, employees and communities across the globe as well as promoting environmental sustainability.

The bank is committed to the following Global Initiatives:

Highlights

Serving their customers:

  • Originated over 1.1 million small business loans for a total of $18.4 billion in the states where JPMorgan Chase has a branch presence, an increase of 19% in capital extended from the year before.
  • Helped women start and grow businesses through their Women on the Move global initiative, including a goal to provide $10 billion in credit to women business owners through 2021.
    • By the end of 2019, JPMorgan Chase had extended approximately $4 billion toward this goal, putting them ahead of pace.
  • Committed $150 million in philanthropic capital to help underserved entrepreneurs build and grow their businesses.
  • Through the Entrepreneurs of Color Fund, JPMorgan Chase supports community lending organizations that provide minority entrepreneurs with access to capital, education and other resources.
  • JPMorgan Chase is a member of The Billion Dollar Roundtable—a nonprofit that recognizes corporations that spend at least $1 billion with minority and women-owned suppliers—for their commitment to supplier diversity.
  • Made a five-year commitment to finance $50 billion of mortgages in low and moderate-income communities.
    • By the end of 2019, JPMorgan Chase had financed $22 billion of those mortgages or 44% of the five-year goal. 
  • Committed in 2018 to lend $7 billion over five years to commercial and nonprofit housing partners to help maintain, rehabilitate and build affordable units.
    • By the end of 2019, JPMorgan Chase had already lent $5.6 billion toward that commitment, including more than $3.3 billion in 2019 alone.

Investing in its employees

  • Continued to maintain best-in-class diversity hiring for their 2020 intern class, which was 47% female globally and in the U.S., 13% black and 16% Hispanic.
  • More than 55% of the managing directors hired were diverse (defined by groups of ethnicity and race, as outlined by the U.S. Census Bureau, and inclusive of women globally), an increase of nearly 15% compared to 2018.
  • Launched an effort to expand opportunities for individuals with criminal backgrounds to pursue careers at the firm through their Second Chance initiative.
    • This means qualified applicants with criminal histories receive the same consideration as any other applicant, and in 2019 it resulted in approximately 3,000 people with criminal backgrounds hired—roughly 10% of their new hires.
    • JPMorgan Chase also launched a pilot program to further build their pipeline for hiring people with criminal histories.
  • 325 employees from 14 countries contributed nearly 20,000 hours working with about 70 nonprofits organizations through the JPMorgan Chase Service Corps, their signature skills-based program through which employees volunteer their skills and expertise to help their nonprofit partners build capacity.
    • Through their Force for Good program, 1,300 employee volunteers gave nearly 60,000 hours of their time to develop sustainable tech solutions for 200 nonprofit organizations. 

Supporting its communities:

  • In response to COVID-19, JPMorgan Chase made an initial $200 million commitment to assist those most affected by humanitarian challenges, as well as create sustainable solutions to help communities recover when the crisis subsides.
    • This commitment included $150 million in low-cost capital to help underserved small businesses and nonprofits access funding through community partners and a $50 million philanthropic investment to help address immediate and long-term impacts of COVID-19.
  • Announced a $350 million investment over five years to equip young people and adults with the skills to succeed in a rapidly changing economy.
  • Developed AdvancingCities, their firm’s $500 million, five-year effort to expand economic opportunity in the world’s cities through low-cost, long-term loans and philanthropic investments.
  • Through their AdvancingCities effort, they announced a $27 million investment to develop and preserve affordable housing in San Francisco and Oakland.
  • Hosted six Partnerships for Raising Opportunity in Neighborhoods (PRO Neighborhoods) competitions, awarding more than $131 million to over 95 community development financial institutions across the U.S. As of 2019, the winners have raised over $870 million in outside capital and made over 35,000 loans worth over $475 million dedicated to low and moderate-income communities.
  • Made a $25 million commitment to the Financial Solutions Lab, which supports technology-based innovations that address the needs of underserved consumers

Advancing sustainability:

  • Aimed to facilitate $200 billion in financing in 2020 to drive action on climate change and advance the objectives of the UN SDGs, as part of their commitment to creating a more sustainable future.
  • Underwrote $14.6 billion in green bonds and bonds with sustainable use of proceeds.
    • For example, JPMorgan Chase served as joint bookrunner on ReNew Power’s $525 million Restricted Group green bond issuance.
  • Provided financing and risk management solutions to support clients’ renewable energy projects and to facilitate new energy, technology, transportation, waste management and water treatment innovations.
    • For example, since 2003, JPMorgan Chase has committed or arranged over $24 billion in tax equity financing for wind, solar and geothermal energy projects in the U.S., including $3 billion for wind and solar projects in 2019.
  • Published approximately 115 reports assessing the macro- and sector-level impact of climate change and outlining different approaches to integrating ESG into investment strategies.
    • In addition, through J.P. Morgan ESG (JESG) (a suite of indices JPMorgan Chase launched in 2018 that integrates ESG factors into a composite benchmark), the firm provides scoring coverage for over 4,500 global corporate issuers across 14 sectors.
  • Expanded its dedicated ESG research capabilities, adding ESG specialists in both their Equity Research and Global Index Research groups.
  • Their Asset Management business had more than $1.3 trillion of AUM in ESG-integrated strategies and $2.4 billion in their suite of 11 dedicated sustainable investing products.
  • Joined the Climate Action 100+ investor initiative to enhance its engagement with companies on climate-related risks and opportunities.
  • Installed energy-efficient building management systems at 2,600 branches.
  • Purchasing the equivalent of more than 10% of their global annual electricity consumption from a 100.5 MW wind farm in Texas and over 15% of the electricity JPMorgan Chase consume annually in India through a solar PPA in Bangalore.
  • Constructed rooftop solar systems at approximately 200 branches in Arizona, Michigan and Nevada, which are on track to be completed in 2020. 
  • Offset 100% of the greenhouse gas emissions from employee air and rail travel. JPMorgan Chase achieved this by purchasing 189,327 Verified Emission Reduction (VER) credits from forest management projects in the U.S., such as Hawk Mountain Sanctuary in Pennsylvania.

Targets

Operational Sustainability Targets

  • Maintain carbon-neutral operations annually, starting in 2020.
  • Source renewable energy for 100% of global power needs annually, starting in 2020.
  • Reduce Scope 1 and Scope 2 greenhouse gas emissions by 40% by 2030 vs. a 2017 baseline.
  • Satisfy at least 70% of renewable energy goal with on-site renewable energy and off-site long-term renewable energy contracts by 2025.
  • Transition entire owned fleet of vehicles to electric vehicles by 2025.
  • Reduce global water consumption by 20% by 2030 vs. a 2017 baseline.
  • Reduce office paper use by 90% by 2025 vs. a 2017 baseline.
  • Purchase 100% of paper from certified sources by the end of 2021.
  • Divert 100% of e-waste from landfills.

Progress

Progress by the end of 2019:

  • JPMorgan Chase financed $22 billion of mortgages in low and moderate-income communities or 44% of the five-year goal.
  • JPMorgan Chase already lent $5.6 billion toward their commitment to lend $7 billion over five years to commercial and nonprofit housing partners, including more than $3.3 billion in 2019 alone.
  • JPMorgan Chase extended approximately $4 billion toward their goal to provide $10 billion in credit to women business owners, putting them ahead of pace.

Certificates

UN Sustainable Development Goals

UN SDGs Compliance

The Impakter Index team aligns current company-wide sustainability initiatives with the UN Sustainable Development Goals in the following section.

SDG 3: Good Health and Well-Being

  • In response to COVID-19, JPMorgan Chase made an initial $200 million commitment to assist those most affected by humanitarian challenges, as well as create sustainable solutions to help communities recover when the crisis subsides
    • This commitment included $150 million in low-cost capital to help underserved small businesses and nonprofits access funding through community partners and a $50 million philanthropic investment to help address immediate and long-term impacts of COVID-19.

SDG 7: Affordable and Clean Energy

  • JPMorgan Chase provided financing and risk management solutions to support clients’ renewable energy projects and to facilitate new energy, technology, transportation, waste management and water treatment innovations.
    • For example, since 2003, JPMorgan Chase has committed or arranged over $24 billion in tax equity financing for wind, solar and geothermal energy projects in the U.S., including $3 billion for wind and solar projects in 2019.

SDG 10: Reduced Inequalities

  • JPMorgan Chase continues to maintain best-in-class diversity hiring for their 2020 intern class, which was 47% female globally and in the U.S., 13% black and 16% Hispanic.
    • This included efforts as part of their Advancing Black Pathways (ABP) initiative.
    • In 2019, more than 55% of the managing directors hired were diverse (defined by groups of ethnicity and race, as outlined by the U.S. Census Bureau, and inclusive of women globally) an increase of nearly 15% compared to 2018.

SDG 13: Climate Action

  • JPMorgan Chase aims to facilitate $200 billion in financing in 2020 to drive action on climate change and advance the objectives of the UN SDGs, as part of its commitment to creating a more sustainable future.

Evaluation

JPMorgan Chase evidently works towards sustainable development through their efforts to mitigate climate change, empower minorities and their female workforce, and support their customers through various sustainable and innovative solutions.

They have implemented remarkable measures to mitigate climate change such as the sourcing of renewable energy for 100% of the firm’s power needs starting in 2020, and offsetting 100% of their Scope 3 emissions from employee travel. Their commitment to financing $200 billion in 2020 to drive action on climate change is noteworthy.

JPMorgan Chase has also proven to be best-in-class in diversity hiring through effort to expand opportunities for individuals with criminal backgrounds and their managing director positions being 55% diverse – an effort validated by their numerous listings and awards. Their commitment to global initiatives such as the Equator Principles, the United Nations-supported Principles for Responsible Investment (PRI) and CDP as an investor signatory demonstrates that JPMorgan Chase aims to pave the way towards sustainable development.

However, JPMorgan Chase remains the largest financer of the fossil fuel industry and was branded by Forbes as the ‘dirtiest bank to fund fossil fuels. Since 2016, JPMorgan Chase has invested $316.735 B in fossil fuels

For these reasons, JPMorgan Chase has been rated a D.

Analyst Outlook: Neutral

Whilst JPMorgan Chase is demonstrating a remarkable effort towards sustainable development, the firm does not explicitly comply with the UN Sustainable Development Goals and has not yet published clear targets and measures for us to evaluate their progress.

 

Key Points

  • Sourcing renewable energy for 100 percent of the firm’s power needs starting in 2020.
  • Aimed to facilitate $200 billion in financing in 2020 to drive action on climate change and advance the objectives of the UN SDGs, as part of their commitment to creating a more sustainable future.
  • Continued to maintain best-in-class diversity hiring for their 2020 intern class.
  • Underwrote $14.6 billion in green bonds and bonds with a sustainable use of proceeds.
  • Does not explicitly comply with UN SDGs as of yet.
  • Unclear targets for current evaluation.
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