JP Morgan Chase & Co. is a global financial services firm with assets of USD 3.7 trillion and operations worldwide. The firm operates across investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. Headquartered in New York, NY, JP Morgan Chase & Co. serves millions of customers in the United States and many global corporate, institutional and government clients under its J.P. Morgan and Chase brands.
In terms of its approach towards impact management, JP Morgan Chase & Co acknowledges that its financing activities have both positive and negative impacts. It assigns the responsibility for sustainability issues to the board of directors. It’s subsidiary, J.P. Morgan Asset Management publishes case studies describing where it has engaged successfully and unsuccessfully with investees on sustainability themes and impact topics. Furthermore, the financial institution discloses a list of trade associations of which it is a member including sustainability- and non-sustainability-related organisations.
As a member of the Net-Zero Banking Alliance, JP Morgan Chase & Co has set a target of net-zero financed emissions by 2050. The financial institution discloses the key sectors it has identified as priorities to engage with on climate change. As a member of Climate Action 100+, the financial institution’s subsidiary J.P. Morgan Asset Management discloses that it collectively engages with its investees on the topic of climate change. Furthermore, the financial institution discloses that it facilitated more than USD 55 billion in green financing and that it aims to finance USD 1 trillion in climate solutions by 2030. JP Morgan Chase & Co discloses the financing criteria it uses to ensure the protection of nature and biodiversity in soft commodities sectors as well as that nature- and biodiversity-related impacts are among its engagement topics with the sector.
JP Morgan Chase & Co has a publicly available policy statement committing it to respect human rights and has a grievance mechanism accessible to all workers, external individuals and communities to raise human rights complaints or concerns. Furthermore, it discloses the proportion of its total direct operations workforce for each employee category by gender, race and ethnicity. It also has a policy prohibiting bribery and corruption and takes steps to identify and address them. The financial institution discloses that it invested USD 100 million in black, Hispanic and latino-owned or -led financial institutions and lent more than USD 6 billion to low- and moderate-income households for affordable housing. The financial institution discloses that it provided a total of USD 30.3 billion to small businesses during 2020 and USD 146 billion towards low-income developing countries.
In terms of its approach to senior leadership accountability, JP Morgan Chase & Co has an opportunity to link the remuneration of its executive or management teams to sustainability performance criteria. Furthermore, no evidence was found that the financial institution is committed to gender equality and women’s empowerment. It also has an opportunity to reach 40% of women in senior leadership roles as well as describe actions it takes to address any gender pay gaps. The financial institution has an opportunity to describe its engagement approach on sustainability themes and impact topics with clients and investees, across its financing activities.
JP Morgan Chase & Co could disclose interim absolute emissions reduction targets across its financing activities. Furthermore, the financial institution has an opportunity to disclose it engages on the topic of alignment with the Paris Agreement with its clients and investees. It could also align all its green financing with internationally recognised frameworks and track progress against the targets it has set for its climate solutions. No evidence was found regarding the financial institution’s approach to fossil fuels that spans across the fossil fuel value chain and its financing activities, such as the amount or share of finance it directs towards fuels, or its stance on financing companies with new fossil fuel projects. Moreover, the financial institution could commit to minimising the negative impacts it has on nature and biodiversity.
JP Morgan Chase & Co has an opportunity to describe a comprehensive process for identifying its human rights risks and impacts across all its activities, especially its financing activities. It could also disclose the proportion of its total direct operations workforce for each employee category by age group.