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 severa authorities loans funneled to the most important banks in the U.S. imply that entities like J.P. Morgan Chase and bank of america may not be completely economically sustainable, but they're at least making strides in other types of sustainability. writer and investment adviser R. Paul Herman compares these two banks in the new ebook The HIP Investor. below, we do the same.

J.P. Morgan Chase merits credit proper off the bat for transparency. The organisation gives a sustainability case examine (courtesy of Accenture) on its web web page, as well as a comprehensive environmental coverage, a couple of CSR reviews, and a listing of environmental tasks. J.P. Morgan also subscribes to “The Equator standards“– a framework for comparing danger

in social and environmental regions.

however J.P. Morgan nevertheless has some paintings to do. The employer became lately given a grade of F on the Rainforest movement network’s Mountaintop elimination record Card for investment mountaintop elimination in coal-mining initiatives. The bank has said, but, that it'll provide up a assertion on mountaintop removal coal mining later this 12 months. J.P. Morgan can also don't forget reducing its CEO’s paycheck, that is presently 441 times that of the average employee in the company. In such unsure monetary instances, a bit modesty goes an extended way.

financial institution of america, alternatively, gets points for paying its CEO 173 times what the common employee makes–appreciably much less than J.P. Morgan’s CEO-to-worker ratio. And the bank has a first rate mountaintop removal policy, explaining (PDF report) on its web site that “bank of the usa is especially concerned approximately surface mining performed via mountain pinnacle elimination in places such as vital Appalachia. We therefore will section out financing of agencies whose principal technique of extracting coal is thru mountain pinnacle elimination.” The bank additionally details numerous environmental tasks and commitments on its internet web page–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 us isn’t ideal. The agency doesn’t provide comprensive CSR, sustainability or social duty reporting–it launched a 2007/2008 sustainability report, however hasn’t but launched one for 2009. And while it claims to stick to The Equator principles, BoA turned into accused of greenwashing in 2008 for not supplying big capital to these ideas.

even as both J.P. Morgan Chase and financial institution of the united states have shortcomings, both banks are extensively improving on the sustainability front. till any such banks does some thing to definitely top the other, we should claim a tie in this warfare for sustainable domination (be aware: that is’s opinion, not The HIP Investor‘s).commercial


J.P. Morgan Chase


financial institution of america



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

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


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

billion sales (2008); 283,000 personnel



In 2007 and 2008, Chase helped prevent

approximately 330,000 foreclosures, usually by means of modifying mortgage terms; in search of

to enhance to 650,000 households by the end of 2010


The Brighter Planet Visa card earns

EarthSmart™ reward points wherein every $1,000 spent will fund an predicted

ton of carbon offsets – since the card turned into launched in Nov. 2007,

cardholders have offset over 35 million kilos of CO2



21 of 25:

established workplace of company responsibility in 2007 to coordinate,

align, and articulate fantastic-effect and socially responsible activities

across the firm, led by using senior managers


eleven of 25:

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

reporting to the CEO; new guidelines and processes, pursuits to help clients

take motion towards worldwide climate change



of 20%

  client pride is seventy three%; employee retention records not publicly available 


 consumer satisfaction is seventy three%; organisation retains almost ninety% of all its




of 20%

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

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

is 441 times average employee


established certified retirement plans protecting substantially all full-time

and positive element-time personnel; CEO repayment is 173 times common




of 20%

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

approx. five% of U.S. power use; 9.four metric heaps of CO2e emitted

according to $1MM in revenue 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 speedy

increase over the past years


50% girls managers; severa diversity awards however no quantifiable range



agree with

of 20%

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



No HIP reporting; Spent $39.36 in keeping with $1MM in sales on lobbying sports


Human effect

table excerpted from The HIP Investor: make bigger income by way of constructing a better international via R. Paul Herman Copyright (c) posted via John Wiley & Sons. Used with permission.

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