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

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

Can huge banks ever be sustainable? The numerous government loans funneled to the most important banks inside the U.S. imply that entities like J.P. Morgan Chase and financial institution of the us may not be absolutely economically sustainable, however they may be at the least making strides in other kinds of sustainability. author and investment adviser R. Paul Herman compares those banks within the new e book The HIP Investor. under, we do the same.

J.P. Morgan Chase deserves credit score proper off the bat for transparency. The company gives a sustainability case study (courtesy of Accenture) on its net web site, in addition to a comprehensive environmental policy, a couple of CSR reviews, and a listing of environmental tasks. J.P. Morgan also subscribes to “The Equator ideas“– a framework for evaluating hazard

in social and environmental regions.

however J.P. Morgan nevertheless has some work to do. The enterprise changed into lately given a grade of F on the Rainforest movement network’s Mountaintop removal report Card for investment mountaintop elimination in coal-mining tasks. The bank has stated, but, that it's going to offer up a declaration on mountaintop elimination coal mining later this year. J.P. Morgan can also consider decreasing its CEO’s paycheck, that's currently 441 times that of the average worker in the organisation. In such uncertain financial times, a little modesty is going a long way.

financial institution of the united states, however, gets points for paying its CEO 173 instances what the average worker makes–significantly much less than J.P. Morgan’s CEO-to-worker ratio. And the financial institution has a first rate mountaintop elimination coverage, explaining (PDF document) on its internet web site that “financial institution of america is specially worried about floor mining conducted via mountain pinnacle removal in places inclusive of primary Appalachia. We consequently will segment out financing of agencies whose fundamental technique of extracting coal is through mountain top removal.” The bank additionally info severa environmental initiatives and commitments on its internet website online–the largest being a $20 billion ten-year plan initiated in 2007 to growth environmentally sustainable commercial enterprise practices.

however like J.P Morgan, bank of the us isn’t perfect. The agency doesn’t provide comprensive CSR, sustainability or social responsibility reporting–it released a 2007/2008 sustainability file, but hasn’t yet launched one for 2009. And even as it claims to adhere to The Equator standards, BoA became accused of greenwashing in 2008 for not imparting considerable capital to those standards.

whilst both J.P. Morgan Chase and financial institution of america have shortcomings, both banks are notably improving on the sustainability front. until this kind of banks does some thing to truely top the opposite, we should claim a tie on this conflict for sustainable domination (observe: that is’s opinion, not The HIP Investor‘s).advertisement


J.P. Morgan Chase


bank of america



 Over 5,000 bank branches inside the U.S.;

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


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

billion revenue (2008); 283,000 personnel



In 2007 and 2008, Chase helped save you

about 330,000 foreclosure, generally via modifying loan phrases; looking for

to reinforce to 650,000 households by way of the stop of 2010


The Brighter Planet Visa card earns

EarthSmart™ reward points in which each $1,000 spent will fund an predicted

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

cardholders have offset over 35 million pounds of CO2



21 of 25:

established office of corporate duty in 2007 to coordinate,

align, and articulate advantageous-impact and socially responsible sports

across the firm, led via senior managers


eleven of 25:

established Environmental Council in 2007, composed of senior bank leaders

reporting to the CEO; new rules and processes, goals to assist customers

take motion in opposition to worldwide climate alternate



of 20%

  customer satisfaction is seventy three%; employee retention statistics no longer publicly to be had 


 consumer pleasure is 73%; organization retains almost ninety% of all its




of 20%

part-time personnel who work 20 hours in line with week are eligible to make

Roth 401(okay) contributions after 90 days of provider; CEO repayment

is 441 times average employee


set up qualified retirement plans covering notably all complete-time

and sure part-time personnel; CEO compensation is 173 instances common




of 20%

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

approx. five% of U.S. strength use; nine.4 metric tons of CO2e emitted

per $1MM in revenue in 2008


12 metric lots of CO2e emitted consistent with $1MM in sales in 2008



of 20%


women managers; Over $1 billion spent with various suppliers, a fast

boom over the past years


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



agree with

of 20%

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



No HIP reporting; Spent $39.36 consistent with $1MM in revenue on lobbying sports


Human impact

desk excerpted from The HIP Investor: enlarge profits by using constructing a better global via R. Paul Herman Copyright (c) published by way of John Wiley & Sons. Used with permission.

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