Sustainability Faceoff: J.P. Morgan Chase Vs. Bank Of America

Sustainability Faceoff: J.P. Morgan Chase Vs. Bank Of America

Can massive banks ever be sustainable? The numerous government loans funneled to the biggest banks within the U.S. suggest that entities like J.P. Morgan Chase and bank of the us might not be completely economically sustainable, however they are as a minimum making strides in different varieties of sustainability. author and funding adviser R. Paul Herman compares these banks in the new e book The HIP Investor. below, we do the identical.

J.P. Morgan Chase merits credit score proper off the bat for transparency. The company offers a sustainability case observe (courtesy of Accenture) on its net site, as well as a comprehensive environmental coverage, multiple CSR reviews, and a listing of environmental initiatives. J.P. Morgan also subscribes to “The Equator ideas“– a framework for evaluating danger

in social and environmental areas.

however J.P. Morgan still has some work to do. The business enterprise turned into currently given a grade of F on the Rainforest action community’s Mountaintop elimination record Card for funding mountaintop removal in coal-mining projects. The financial institution has said, however, that it's going to provide up a statement on mountaintop removal coal mining later this 12 months. J.P. Morgan may additionally don't forget lowering its CEO’s paycheck, that's presently 441 times that of the common worker in the organisation. In such unsure financial instances, a little modesty is going a protracted way.

financial institution of america, then again, receives factors for paying its CEO 173 instances what the common employee makes–extensively less than J.P. Morgan’s CEO-to-worker ratio. And the financial institution has a respectable mountaintop removal coverage, explaining (PDF report) on its net website online that “bank of america is in particular involved approximately floor mining carried out through mountain top elimination in locations including significant Appalachia. We consequently will phase out financing of agencies whose most important technique of extracting coal is thru mountain top elimination.” The financial institution also details severa environmental initiatives and commitments on its net site–the largest being a $20 billion ten-12 months plan initiated in 2007 to increase environmentally sustainable enterprise practices.

but like J.P Morgan, financial institution of the usa isn’t ideal. The corporation doesn’t offer comprensive CSR, sustainability or social responsibility reporting–it launched a 2007/2008 sustainability file, but hasn’t but released one for 2009. And at the same time as it claims to adhere to The Equator principles, BoA was accused of greenwashing in 2008 for now not offering extensive capital to those concepts.

while each J.P. Morgan Chase and bank of the us have shortcomings, each banks are appreciably improving at the sustainability the front. until this sort of banks does something to definitely pinnacle the other, we ought to declare a tie in this struggle for sustainable domination (notice: that is’s opinion, not The HIP Investor‘s).advertisement


J.P. Morgan Chase


bank of the us



 Over five,000 bank branches within the U.S.;

$112.2 billion sales (2008); 220,255 employees


 Over 6,000 places inside the U.S.; $124.1

billion sales (2008); 283,000 employees



In 2007 and 2008, Chase helped prevent

approximately 330,000 foreclosure, in most cases by modifying loan phrases; searching for

to enhance to 650,000 families by way of the give up of 2010


The Brighter Planet Visa card earns

EarthSmart™ reward factors wherein each $1,000 spent will fund an expected

ton of carbon offsets – because the card was launched in Nov. 2007,

cardholders have offset over 35 million pounds of CO2



21 of 25:

hooked up office of company duty in 2007 to coordinate,

align, and articulate superb-effect and socially responsible activities

across the firm, led by using senior managers


11 of 25:

mounted Environmental Council in 2007, composed of senior financial institution leaders

reporting to the CEO; new policies and strategies, pursuits to assist customers

take action in opposition to international weather change



of 20%

  patron pleasure is 73%; worker retention statistics not publicly to be had 


 consumer satisfaction is seventy three%; organization retains nearly 90% of all its




of 20%

part-time personnel who paintings 20 hours according to week are eligible to make

Roth 401(okay) contributions after ninety days of carrier; CEO reimbursement

is 441 times common employee


set up certified retirement plans protecting extensively all complete-time

and sure element-time employees; CEO repayment is 173 times common




of 20%

offered 127,000 MWh of 2007 vintage green-e licensed wind RECs, representing

approx. five% of U.S. electricity use; 9.4 metric tons of CO2e emitted

per $1MM in sales in 2008


12 metric heaps of CO2e emitted in line with $1MM in sales in 2008



of 20%

forty eight%

girls managers; Over $1 billion spent with various providers, a speedy

increase over the last years


50% ladies managers; numerous variety awards however no quantifiable diversity




of 20%

complete HIP reporting; spent $forty eight.04 consistent with $1MM in revenue on lobbying



No HIP reporting; Spent $39.36 according to $1MM in sales on lobbying sports


Human effect

table excerpted from The HIP Investor: increase earnings through building a higher world by R. Paul Herman Copyright (c) posted by means of John Wiley & Sons. Used with permission.

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