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 authorities loans funneled to the largest banks within the U.S. indicate that entities like J.P. Morgan Chase and financial institution of america may not be absolutely economically sustainable, however they're at the least making strides in other styles of sustainability. writer and funding adviser R. Paul Herman compares these two banks inside the new book The HIP Investor. underneath, we do the identical.

J.P. Morgan Chase merits credit score proper off the bat for transparency. The enterprise gives a sustainability case have a look at (courtesy of Accenture) on its web web site, in addition to a comprehensive environmental policy, multiple CSR reviews, and a listing of environmental initiatives. J.P. Morgan additionally subscribes to “The Equator standards“– a framework for comparing hazard

in social and environmental areas.

however J.P. Morgan still has some paintings to do. The organisation changed into lately given a grade of F on the Rainforest action community’s Mountaintop removal record Card for investment mountaintop elimination in coal-mining tasks. The financial institution has said, but, that it's going to offer up a declaration on mountaintop elimination coal mining later this 12 months. J.P. Morgan may also take into account lowering its CEO’s paycheck, that is presently 441 instances that of the common worker inside the business enterprise. In such uncertain financial instances, a little modesty is going an extended manner.

financial institution of the us, on the other hand, gets points for paying its CEO 173 instances what the common employee makes–extensively less than J.P. Morgan’s CEO-to-worker ratio. And the bank has a decent mountaintop elimination policy, explaining (PDF report) on its net website online that “bank of the usa is particularly involved about surface mining performed via mountain pinnacle removal in places such as critical Appalachia. We therefore will section out financing of companies whose most important technique of extracting coal is thru mountain top elimination.” The financial institution additionally details numerous environmental tasks and commitments on its net website online–the largest being a $20 billion ten-yr plan initiated in 2007 to growth environmentally sustainable enterprise practices.

but like J.P Morgan, financial institution of the usa isn’t perfect. The business enterprise doesn’t provide comprensive CSR, sustainability or social responsibility reporting–it launched a 2007/2008 sustainability file, but hasn’t yet released one for 2009. And whilst it claims to adhere to The Equator ideas, BoA changed into accused of greenwashing in 2008 for now not imparting huge capital to these standards.

while both J.P. Morgan Chase and financial institution of america have shortcomings, each banks are considerably enhancing at the sustainability the front. until any such banks does some thing to actually pinnacle the other, we should declare a tie in this battle for sustainable domination (note: this is’s opinion, now not The HIP Investor‘s).commercial


J.P. Morgan Chase


bank of the us



 Over 5,000 financial institution branches within the U.S.;

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


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

billion sales (2008); 283,000 personnel



In 2007 and 2008, Chase helped prevent

approximately 330,000 foreclosure, commonly via modifying loan phrases; searching for

to boost to 650,000 families with the aid of the quit of 2010


The Brighter Planet Visa card earns

EarthSmart™ reward factors where each $1,000 spent will fund an envisioned

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

cardholders have offset over 35 million kilos of CO2



21 of 25:

set up workplace of company duty in 2007 to coordinate,

align, and articulate fantastic-impact and socially responsible sports

throughout the company, led with the aid of senior managers


11 of 25:

set up Environmental Council in 2007, composed of senior bank leaders

reporting to the CEO; new policies and techniques, ambitions to assist customers

take motion towards global climate exchange



of 20%

  customer pleasure is 73%; employee retention information now not publicly to be had 


 customer delight is 73%; corporation retains nearly ninety% of all its




of 20%

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

Roth 401(ok) contributions after ninety days of service; CEO repayment

is 441 times average worker


mounted certified retirement plans overlaying appreciably all full-time

and sure part-time personnel; CEO repayment is 173 times common




of 20%

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

approx. five% of U.S. energy use; nine.four metric lots of CO2e emitted

in line with $1MM in revenue in 2008


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



of 20%

forty eight%

women managers; Over $1 billion spent with various providers, a rapid

boom during the last years


50% girls managers; numerous range awards however no quantifiable variety



accept as true with

of 20%

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



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


Human impact

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

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