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

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

Can large banks ever be sustainable? The severa government loans funneled to the largest banks inside the U.S. indicate that entities like J.P. Morgan Chase and bank of the united states might not be absolutely economically sustainable, but they're at the least making strides in different types of sustainability. writer and investment adviser R. Paul Herman compares those banks within the new ebook The HIP Investor. under, we do the equal.

J.P. Morgan Chase deserves credit right off the bat for transparency. The enterprise gives a sustainability case look at (courtesy of Accenture) on its internet website online, as well as a complete environmental policy, a couple of CSR reviews, and a list of environmental projects. J.P. Morgan additionally subscribes to “The Equator principles“– a framework for evaluating risk

in social and environmental regions.

however J.P. Morgan nevertheless has some paintings to do. The business enterprise become recently given a grade of F on the Rainforest action community’s Mountaintop removal document Card for investment mountaintop removal in coal-mining initiatives. The bank has said, however, that it's going to offer up a announcement on mountaintop elimination coal mining later this year. J.P. Morgan may don't forget decreasing its CEO’s paycheck, that is currently 441 times that of the average worker inside the organisation. In such unsure financial instances, a touch modesty goes a long manner.

bank of the us, alternatively, gets points for paying its CEO 173 times what the common worker makes–substantially less than J.P. Morgan’s CEO-to-employee ratio. And the bank has a decent mountaintop elimination coverage, explaining (PDF record) on its web site that “bank of the usa is in particular concerned about floor mining conducted via mountain top removal in places together with imperative Appalachia. We consequently will segment out financing of corporations whose essential technique of extracting coal is thru mountain top elimination.” The financial institution also information numerous environmental tasks and commitments on its internet site–the most important being a $20 billion ten-12 months plan initiated in 2007 to growth environmentally sustainable commercial enterprise practices.

however like J.P Morgan, bank of the united states isn’t perfect. The agency doesn’t offer comprensive CSR, sustainability or social duty reporting–it released a 2007/2008 sustainability document, however hasn’t yet launched one for 2009. And at the same time as it claims to stick to The Equator standards, BoA changed into accused of greenwashing in 2008 for not offering great capital to these principles.

even as both J.P. Morgan Chase and bank of the united states have shortcomings, each banks are significantly enhancing at the sustainability front. till the sort of banks does some thing to clearly top the opposite, we must claim a tie in this war for sustainable domination (note: that is’s opinion, now not The HIP Investor‘s).advertisement


J.P. Morgan Chase


bank of the usa



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

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


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

billion revenue (2008); 283,000 employees



In 2007 and 2008, Chase helped save you

about 330,000 foreclosures, on the whole by way of modifying mortgage phrases; seeking

to enhance to 650,000 families by using the end of 2010


The Brighter Planet Visa card earns

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

ton of carbon offsets – for the reason that card become released in Nov. 2007,

cardholders have offset over 35 million kilos of CO2



21 of 25:

mounted office of corporate responsibility in 2007 to coordinate,

align, and articulate fine-impact and socially responsible activities

across the firm, led by using senior managers


11 of 25:

established Environmental Council in 2007, composed of senior bank leaders

reporting to the CEO; new regulations and methods, objectives to assist customers

take movement in opposition to global weather exchange



of 20%

  purchaser pride is 73%; worker retention statistics now not publicly available 


 patron pride is seventy three%; business enterprise keeps almost ninety% of all its




of 20%

component-time employees who work 20 hours in keeping with week are eligible to make

Roth 401(ok) contributions after 90 days of carrier; CEO repayment

is 441 times average worker


mounted qualified retirement plans overlaying extensively all complete-time

and certain component-time employees; CEO repayment is 173 instances common




of 20%

bought 127,000 MWh of 2007 antique green-e certified wind RECs, representing

approx. 5% of U.S. electricity use; nine.four metric heaps of CO2e emitted

according to $1MM in sales in 2008


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



of 20%

forty eight%

women managers; Over $1 billion spent with diverse providers, a fast

increase during the last years


50% ladies managers; severa variety awards but no quantifiable range




of 20%

complete HIP reporting; spent $48.04 in line with $1MM in revenue on lobbying



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


Human impact

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

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