Transcription of 2020 Environmental Social & Governance Report - JPMorgan …
1 Environmental Social & Governance Report2020 Table of ContentsIntroduction 3 Message from Our Chairman & CEO 3 Our Approach to ESG 4 How We Do Business 9 Governance 10 Risk Management 14 Human Capital 19 Customer Service 25 Operational Sustainability 28 How We Put Our Business to Work for Our Stakeholders 33 Driving an Inclusive Recovery 34 Building Careers and Skills 35 Fueling Business Growth and Entrepreneurship 38 Strengthening Financial Health and Wealth Creation 41 Catalyzing Community Development 43 Accelerating Climate and Sustainability Solutions 47 Resources and Endnotes 5822020 Environmental , Social & Governance ReportMessage from Our Chairman & CEOThis past year has brought tremendous personal loss, economic hardship and a host of other challenges for so many.
2 Throughout the pandemic, our firm has worked tirelessly to fulfill our most fundamental responsibility: supporting our employees, customers, clients and have been able to do so because of the actions and investments we ve made over many years to build a strong, resilient company. This includes maintaining robust risk, financial and operating controls; having an unwavering devotion to our customers and communities; investing in our employees and fostering a diverse and inclusive workplace; upholding a culture that reinforces integrity, fairness and responsibility; and advancing sustainability in our business and operations. We also continually challenge ourselves to find ways to put our business to work for the benefit of all of our stakeholders, including those who are struggling the most.
3 That is why we re fully engaged in trying to help solve some of the world s biggest challenges including racial inequality, climate change and the need to advance an inclusive economic recovery. Today, this is frequently described as Environmental , Social and Governance or ESG management. I think of it simply as the smart way to do business. Our firm s strategy to help accelerate the shift to a more sustainable, low-carbon future is one example of our work in action. We are targeting to finance and facilitate more than $ trillion over 10 years to advance climate action and sustainable development. In addition, we are aligning key financing portfolios with the goals of the Paris Agreement and working with our clients to finance their decarbonization strategies efforts that are intended to drive near-term actions that will help set the world on a path to achieving net-zero carbon emissions by 2050.
4 We also committed $30 billion to advance racial equity. Structural barriers in the have created profound racial inequities, which the COVID-19 pandemic has exacerbated. JPMorgan chase is working to do our part by harnessing our expertise in business, policy and philanthropy to address key drivers of the racial wealth divide and provide economic opportunity to underserved communities, especially Black and Latinx communities. We are also redoubling our efforts to build a more equitable and representative workforce within our own , our long-term business success depends on the success of the communities we serve. In this Report , I invite you to learn more about the ways we strive to operate a thriving company that we can be proud of, and all the ways JPMorgan chase is putting its business to work for our stakeholders.
5 Jamie DimonChairman & CEO, JPMorgan chase & Environmental , Social & Governance ReportOur Approach to ESGJPM organ chase & Co. (together with its subsidiaries, JPMorgan chase , we or the firm ) has built its reputation on being there for our clients, customers and communities. The events of 2020 the global COVID-19 pandemic, a societal reckoning with systemic racism and the increasingly visible effects of climate change underscore why understanding, anticipating and effectively managing Environmental , Social and Governance (ESG) matters is critical to delivering on our mission to serve our clients, customers and communities. Now, more than ever, a strong focus on ESG is a business imperative and a key driver of long-term business success.
6 At JPMorgan chase , ESG matters are an important consideration in how we do business, including our corporate Governance systems, risk management and controls, human capital management, approach to serving clients and customers, support for local communities and management of our physical operations. We recognize the potential for ESG-related risks, which we work to identify and manage just as we manage risk in all areas of our business. Equally important, we believe companies like ours have an obligation to put their businesses to work for all of their stakeholders. For our firm, this means we are leveraging our business and policy expertise, data, capital and global presence to help drive an inclusive recovery, expand access to economic opportunity and accelerate sustainability and climate solutions.
7 About This Report JPMorgan chase communicates regularly about how we manage and conduct our business. We share information about our ESG performance through a number of channels including our Annual Report and Proxy Statement, various other reports and presentations, regulatory filings, press releases and direct conversations with stakeholders. We maintain a dedicated ESG Information page on our website to facilitate access to information that we publish on these topics. This annual ESG Report is designed to consolidate and summarize our work on key topics that are important to our business and stakeholders, and guide readers to where they can access more detailed information about specific topics of interest.
8 All data in this Report are as of Dec. 31, 2020, unless otherwise Reporting Frameworks The topics covered in this Report have been informed by the Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board (SASB) reporting standards. This Report has also been informed by the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and serves as an update to JPMorgan chase s Understanding Our Climate-related Risks and Opportunities Report from May 2019. The appendices to this Report include indices that map our firm s disclosures in relation to these frameworks indicators and recommendations. 42020 Environmental , Social & Governance ReportCompany at a GlanceJPMorgan chase & Co.
9 Is a leading financial services company and has operations worldwide with assets of $ trillion as of Dec. 31, 2020. The firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. A component of the Dow Jones Industrial Average, JPMorgan chase serves millions of customers in the , as well as many of the world s most prominent corporate, institutional and government clients, under its Morgan and chase brands. JPMorgan chase s activities are organized, for management reporting purposes, into four major reportable business segments, as well as a Corporate segment.
10 The business segments are referred to as lines of business. For further information, refer to Business Segment Results on pages 68-84 of our Annual Report on Form 10-K for the year ended Dec. 31, & Community Banking Consumer & Community Banking (CCB) offers services to consumers and businesses through bank branches, ATMs, and digital (including mobile and online) and telephone banking. CCB is organized into Consumer & Business Banking (including Consumer Banking, Morgan Wealth Management and Business Banking), Home Lending (including Home Lending Production, Home Lending Servicing and Real Estate Portfolios) and Card & Auto. Consumer & Business Banking offers deposit and investment products; payments and services to consumers; and lending, deposit, and cash management and payment solutions for small businesses.