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

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

Can big banks ever be sustainable? The severa government loans funneled to the largest banks inside the U.S. imply that entities like J.P. Morgan Chase and bank of the usa may not be completely economically sustainable, but they're at least making strides in different kinds of sustainability. author and funding adviser R. Paul Herman compares these banks inside the new e book The HIP Investor. underneath, we do the equal.

J.P. Morgan Chase merits credit right off the bat for transparency. The enterprise gives a sustainability case have a look at (courtesy of Accenture) on its net website, as well as a complete environmental coverage, a couple of CSR reviews, and a listing of environmental projects. J.P. Morgan additionally subscribes to “The Equator ideas“– a framework for evaluating threat

in social and environmental regions.

but J.P. Morgan nonetheless has some paintings to do. The enterprise become these days given a grade of F at the Rainforest movement network’s Mountaintop removal file Card for funding mountaintop removal in coal-mining projects. The financial institution has stated, but, that it'll offer up a announcement on mountaintop removal coal mining later this 12 months. J.P. Morgan may remember reducing its CEO’s paycheck, that is presently 441 instances that of the common worker within the enterprise. In such unsure economic instances, a bit modesty is going a long manner.

financial institution of the united states, on the other hand, gets points for paying its CEO 173 times what the average employee makes–substantially less than J.P. Morgan’s CEO-to-employee ratio. And the bank has a respectable mountaintop elimination coverage, explaining (PDF document) on its net site that “bank of the us is specially concerned approximately surface mining conducted via mountain pinnacle removal in places inclusive of significant Appalachia. We therefore will section out financing of businesses whose most important technique of extracting coal is through mountain pinnacle elimination.” The financial institution additionally info numerous environmental projects and commitments on its internet web page–the biggest being a $20 billion ten-12 months plan initiated in 2007 to increase environmentally sustainable commercial enterprise practices.

however like J.P Morgan, bank of america isn’t best. The corporation doesn’t provide comprensive CSR, sustainability or social responsibility reporting–it released a 2007/2008 sustainability report, but hasn’t yet launched one for 2009. And at the same time as it claims to adhere to The Equator concepts, BoA was accused of greenwashing in 2008 for now not imparting big capital to those standards.

while both J.P. Morgan Chase and financial institution of america have shortcomings, each banks are notably improving on the sustainability the front. until this sort of banks does some thing to definitely top the opposite, we should declare a tie in this warfare for sustainable domination (be aware: this is’s opinion, not The HIP Investor‘s).commercial


J.P. Morgan Chase


bank of the us



 Over five,000 financial institution branches within the U.S.;

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


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

billion sales (2008); 283,000 personnel



In 2007 and 2008, Chase helped prevent

approximately 330,000 foreclosure, commonly by editing mortgage terms; looking for

to boost to 650,000 households via the end of 2010


The Brighter Planet Visa card earns

EarthSmart™ reward factors in which every $1,000 spent will fund an expected

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

cardholders have offset over 35 million kilos of CO2



21 of 25:

mounted office of company duty in 2007 to coordinate,

align, and articulate high-quality-effect and socially responsible activities

across the firm, led through senior managers


11 of 25:

hooked up Environmental Council in 2007, composed of senior financial institution leaders

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

take movement in opposition to worldwide weather change



of 20%

  client pleasure is 73%; employee retention facts now not publicly to be had 


 customer delight is seventy three%; organisation retains nearly ninety% of all its




of 20%

component-time employees who work 20 hours according to week are eligible to make

Roth 401(k) contributions after ninety days of service; CEO reimbursement

is 441 instances average employee


set up certified retirement plans covering extensively all full-time

and sure component-time employees; CEO reimbursement is 173 instances average




of 20%

sold 127,000 MWh of 2007 antique inexperienced-e certified wind RECs, representing

approx. five% of U.S. strength use; 9.4 metric lots of CO2e emitted

in step with $1MM in revenue in 2008


12 metric tons of CO2e emitted according to $1MM in sales in 2008



of 20%

forty eight%

girls managers; Over $1 billion spent with numerous providers, a rapid

increase during the last years


50% women managers; severa diversity awards but no quantifiable variety



accept as true with

of 20%

comprehensive HIP reporting; spent $forty eight.04 according to $1MM in sales on lobbying



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


Human impact

table excerpted from The HIP Investor: increase profits by using building a better global by way of R. Paul Herman Copyright (c) published through John Wiley & Sons. Used with permission.

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