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1、Environmental Social&Governance Report2020Table of ContentsIntroduction 3Message from Our Chairman&CEO 3Our Approach to ESG 4How We Do Business 9Governance 10Risk Management 14Human Capital 19Customer Service 25Operational Sustainability 28How We Put Our Business to Work for Our Stakeholders 33Drivi
2、ng an Inclusive Recovery 34Building Careers and Skills 35Fueling Business Growth and Entrepreneurship 38Strengthening Financial Health and Wealth Creation 41Catalyzing Community Development 43Accelerating Climate and Sustainability Solutions 47Resources and Endnotes 5822020 Environmental,Social&Gove
3、rnance ReportMessage from Our Chairman&CEOThis past year has brought tremendous personal loss,economic hardship and a host of other challenges for so many.Throughout the pandemic,our firm has worked tirelessly to fulfill our most fundamental responsibility:supporting our employees,customers,clients
4、and communities.We have been able to do so because of the actions and investments weve 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 emplo
5、yees 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 st
6、akeholders,including those who are struggling the most.That is why were fully engaged in trying to help solve some of the worlds biggest challenges including racial inequality,climate change and the need to advance an inclusive economic recovery.Today,this is frequently described as environmental,so
7、cial and governance or ESG management.I think of it simply as the smart way to do business.Our firms 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$2.5 trillion over 10 years to a
8、dvance 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
9、 path to achieving net-zero carbon emissions by 2050.We also committed$30 billion to advance racial equity.Structural barriers in the U.S.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 busine
10、ss,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 company.Ultimatel
11、y,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.Jamie Dimo
12、nChairman&CEO,JPMorganChase&Co.32020 Environmental,Social&Governance ReportOur Approach to ESGJPMorgan 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 p
13、andemic,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 comm
14、unities.Now,more than ever,a strong focus on ESG is a business imperative and a key driver of long-term business success.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
15、,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 our
16、s 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
17、climate solutions.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 filing
18、s,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
19、 business and stakeholders,and guide readers to where they can access more detailed information about specific topics of interest.All data in this report are as of Dec.31,2020,unless otherwise noted.External Reporting Frameworks The topics covered in this report have been informed by the Global Repo
20、rting 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 Chases Understanding Our Climate-related Risks
21、 and Opportunities report from May 2019.The appendices to this report include indices that map our firms disclosures in relation to these frameworks indicators and recommendations.42020 Environmental,Social&Governance ReportCompany at a GlanceJPMorgan Chase&Co.is a leading financial services company
22、 and has operations worldwide with assets of$3.4 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,JPMorg
23、an Chase serves millions of customers in the U.S.,as well as many of the worlds most prominent corporate,institutional and government clients,under its J.P.Morgan and Chase brands.JPMorgan Chases activities are organized,for management reporting purposes,into four major reportable business segments,
24、as well as a Corporate segment.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.31,2020.Consumer&Community Banking Consumer&Community Banking(CCB)offers servic
25、es 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,J.P.Morgan Wealth Management and Business Banking),Home Lending(including Home Lending Production,Home Le
26、nding 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.Home Lending includes mortgage origination and servicing act
27、ivities,as well as portfolios consisting of residential mortgages and home equity loans.Card&Auto issues credit cards to consumers and small businesses and originates and services auto loans and leases.Corporate&Investment Bank The Corporate&Investment Bank(CIB)offers a broad suite of investment ban
28、king,market-making,prime brokerage,and treasury and securities products and services to a global client base of corporations,investors,financial institutions,and government and municipal entities.Commercial Banking Commercial Banking(CB)provides comprehensive financial solutions,including lending,wh
29、olesale payments,investment banking and asset management products across three primary client segments:Middle Market Banking,Corporate Client Banking and Commercial Real Estate Banking.Asset&Wealth Management Asset Management offers multi-asset investment management solutions across equities,fixed i
30、ncome,alternatives and money market funds to institutional and retail investors,providing for a broad range of clients investment needs.Wealth Management1 provides retirement products and services,brokerage,custody,trusts and estates,loans,mortgages,deposits and investment management to high-net-wor
31、th clients.The majority of Asset&Wealth Managements(AWMs)client assets are in actively managed portfolios.Corporate The Corporate segment consists of the Treasury and Chief Investment Office(CIO)and Other Corporate,which includes corporate staff functions and expense that is centrally managed.Treasu
32、ry and CIO is predominantly responsible for measuring,monitoring,reporting and managing the firms liquidity,funding,capital,structural interest rate and foreign exchange risks.The major Other Corporate functions include Real Estate,Technology,Legal,Corporate Finance,Human Resources,Internal Audit,Ri
33、sk Management,Compliance,Control Management,Corporate Responsibility and various Other Corporate groups.Information about JPMorgan Chases financial performance is available in our quarterly earnings materials,as well as quarterly and annual reports on Form 10-Q and Form 10-K,respectively.52020 Envir
34、onmental,Social&Governance ReportOur Key Environmental,Social and Governance Topics JPMorgan Chase manages a broad range of ESG topics across our global business and operations.We assess and identify new or emerging ESG issues that could impact or be impacted by our firm on an ongoing basis.This inc
35、ludes discussions with subject matter experts from across our business and analysis of feedback we receive through our regular engagement with stakeholders(see page 7).We also monitor ESG trends and policy developments,disclosure standards and industry best practices.The following are the ESG topics
36、 we have identified as the most relevant to our business and of greatest interest to our stakeholders:Environmental Developing financial solutions that drive action on climate change and generate other positive environmental impacts Managing environmental risks,including climate-related risks Minimi
37、zing the environmental impacts of our physical operations Partnering with organizations to advance sustainable development Social Acting in the best interest of our customers Addressing human rights-related risks Developing financial solutions that improve quality of life and generate other positive
38、 social impacts Expanding economic opportunity in the communities where we do business Investing in our human capital Promoting diversity,equity and inclusion Strengthening consumer financial health Governance Cultivating a strong risk and control environment Fostering a culture of transparency and
39、ethical behavior Maintaining effective Board leadership and management processes Participating in political engagement and public policy Safeguarding privacy and cybersecurity More information about how these topics align with the GRI Standards reporting framework,including how we define topic bound
40、aries and the GRI topics and disclosures we report,can be found in our GRI Index.62020 Environmental,Social&Governance ReportStakeholder Engagement Our firm has a broad range of stakeholders,including customers and clients,employees,members of the communities we serve,regulators and policymakers,res
41、earch analysts,shareholders and suppliers.We engage with these groups on an ongoing basis to gain insight into their needs and perspectives,as well as to share information about our firms strategy,practices and performance.Responsibility for engaging with stakeholder groups is widely shared across o
42、ur firms lines of business and corporate functions,and we engage through numerous channels.CommunitiesWithin our communities,we engage with nonprofit organizations on issues important to consumers and our business.For example,through the Chase Advisory Panel program,senior executives engage with nat
43、ional consumer policy groups to discuss issues related to the firms products,policies,customer-facing practices and communications,as well as public policy issues.Additionally,in 2020 we established a Community Engagement team to focus on deepening relationships with business,civic,advocacy and nonp
44、rofit leaders to support the needs of local residents where we operate,as well as to solicit feedback to shape local initiatives.In the first quarter of 2021,the Community Engagement team worked with over 150 groups around the firms Path Forward commitment,which aims to advance racial equity and pro
45、vide economic opportunity to underserved communities.Customers and Clients We use multiple channels to solicit and respond to consumer banking customers feedback about our products,services and organization as a whole.Customers may communicate with us directly in our branches,via surveys,through our
46、 website and our various social media channels,and by phone or mail.We also regularly engage with and solicit feedback from our corporate,institutional,public sector and other clients through multiple channels,including individual meetings,conferences and other forums.Employees our intranet;and othe
47、r forums.In 2020,we developed a range of resources to answer employee questions about COVID-19 and keep them informed on our firms policies,plans and safety measures for returning to work.We also have a variety of mechanisms through which employees can fulfill their obligation to report any known or
48、 suspected violation of our Code of Conduct,company policies or laws that govern our business.This includes the Conduct Hotline,which is operated by an independent third-party reporting service and offers translation services.Employees can contact the hotline by phone or online to report concerns,an
49、onymously if they choose,24 hours a day,seven days a week.We share information with our employees and gather their input through surveys,including our global Employee Opinion Survey and Exit Surveys;regular town hall and small group meetings;focus groups;blogs,articles and newsletters;online feedbac
50、k tools via Regulators and Policymakers We strive to maintain an open,ongoing dialogue with our global supervisory regulators and a broad array of other policymakers.Our senior leaders and Board commit a significant amount of their time to meeting with our regulators and policymakers,providing oppor
51、tunities for us to hear firsthand about their priorities and to keep them informed about developments in our businesses.In addition,our businesses and control functions engage with regulators in a variety of ways,such as exams and continuous monitoring,regular meetings and ad hoc requests.We share r
52、eports with regulators on a range of matters and seek feedback about whether they are getting the right level,quality and frequency of information.Research Analysts We provide a wide range of information to members of the investment community,including both financial and ESG analysts and researchers
53、,through reports,presentations,regulatory filings,conferences and publications on our website.In addition,we respond to surveys and specific information requests,and engage with analysts and researchers through calls and meetings.72020 Environmental,Social&Governance Report Shareholders We communica
54、te to shareholders through our Annual Report and Proxy Statement,Securities and Exchange Commission filings,press releases and the firms website.In addition,we engage with shareholders through quarterly earnings calls,investor meetings and conferences,annual shareholder meetings and other forums.We
55、conduct a formal shareholder outreach program focused on topics including corporate governance,shareholder rights,executive compensation and sustainability.In these meetings,management shares information and provides updates on these topics,addresses questions,and solicits shareholders perspectives
56、and feedback.Directors participate in these meetings as appropriate.Following each shareholder outreach program,shareholders areas of focus and feedback are shared with the Board.In 2020,we had approximately 100 engagements with nearly 60 shareholders,representing approximately 45%of the firms outst
57、anding common stock.We also engage in dialogue with shareholders outside these more formal channels.These engagements provide us with useful feedback,which we consider when developing the firms processes,practices and strategic direction.SuppliersWe interact with our key suppliers on a frequent basi
58、s through various channels,including regular business reviews,ad hoc meetings,phone and email.We also host periodic town hall forums to communicate key information.Through these interactions,we engage in dialogue with our key suppliers on topics of importance to our firm,including our ability to ope
59、rate efficiently and effectively,deliver products and services that meet our clients and customers needs,manage risk and controls,and drive our diversity,equity and inclusion agenda.We are committed to holding our suppliers to the highest standards of business conduct and integrity,and we work toget
60、her to make a positive impact in the communities where we do business.82020 Environmental,Social&Governance ReportHow We Do BusinessIN THIS SECTIONGovernance 10Risk Management 14Human Capital 19Customer Service 25Operational Sustainability 2892020 Environmental,Social&Governance ReportGovernanceOur
61、governance structures and processes strive to promote accountability,transparency and ethical behavior and we regularly evaluate and enhance them to help us operate at the highest levels of performance in everything we do.Board of Directors Our Board brings a strong combination of executive experien
62、ce and skills aligned with our business and strategy.Apart from our CEO,all our Directors are independent,under the standards established by the New York Stock Exchange and the firms Corporate Governance Principles.Our Board has a Lead Independent Director who is appointed annually by the independen
63、t Directors and facilitates independent Board oversight of management.As of May 2021,there are 10 Directors on our Board,including four women Directors and one Black Director.Our Board oversees the firm through five principal standing committees:The Compensation&Management Development Committee;Corp
64、orate Governance&Nominating Committee;Risk Committee;Audit Committee;and Public Responsibility Committee.The firms Corporate Governance Principles and the charters of the Boards standing committees establish a framework for the governance of the Board and oversight of the firm.Each of the Boards com
65、mittees also plays a role in reinforcing our commitment to doing business in accordance with our corporate standards and Business Principles.Our annual Proxy Statement includes information about the membership and responsibilities of these committees.In addition,each of the Boards standing committee
66、s oversees a range of matters pertaining to ESG topics,in accordance with the scope of their charters.For example,the Compensation&Management Development Committee reviews and approves the firms compensation and benefit programs and oversees the firms culture,including reviewing diversity programs.T
67、he Public Responsibility Committee provides oversight of the firms positions and practices on public responsibility matters such as community investment,fair lending,sustainability,consumer practices and other public policy issues that reflect the firms values and character and could impact its repu
68、tation among its stakeholders.The Risk Committee assists the Board in its oversight of managements responsibility to implement a global risk management framework reasonably designed to identify,assess and manage the firms risks.Senior Management Our management structure is intended to encourage effe
69、ctive leadership that is consistent with our corporate standards and promotes a strong corporate culture.We manage our firm on a line-of-business basis,while also maintaining strong corporate functions and appropriate governance of our subsidiaries.Our firms most senior management body is the Operat
70、ing Committee,which is responsible for developing and implementing corporate strategy and managing operations.As of Dec.31,2020,women held 44%of the seats on the Operating Committee.102020 Environmental,Social&Governance ReportManagement of Climate-related IssuesMany of our stakeholders are especial
71、ly interested in how the firm manages topics related to climate change.Matters related to climate change are an important component of our sustainability strategy and efforts,which are led and managed by several parts of our firm,including teams across our corporate functions and lines of business,a
72、s well as our Risk Management organization.Our corporate sustainability and operational sustainability teams lead the integration of climate-related considerations into the firms overall sustainability strategy.Our Corporate Sustainability team which reports to the head of Corporate Responsibility w
73、orks across the firm and is responsible for advising on the firms approach to managing environmental-and human rights-related issues,supporting the development of sustainability-and climate-focused business strategies and financing opportunities,and engaging with stakeholders and external reporting
74、on these matters.Our Operational Sustainability team which reports through the Chief Administrative Officer coordinates groups across our Chief Administrative Office,which includes Global Real Estate,Global Supplier Services and Firmwide Business Resiliency,among other groups,to develop and execute
75、the firms strategy to minimize the environmental impact of our operations and supply chain.This team is responsible for achieving our operational sustainability targets,including our commitment to maintain carbon neutral operations and source renewable energy for 100%of our global power needs annual
76、ly.In addition,our lines of business drive sustainability-focused opportunities.We have functions dedicated to providing our clients with financing capabilities,advisory services,and research on environmental sustainability and climate-related business opportunities(see page 55).In 2020,we further e
77、xpanded these capabilities.For example,we established the Center for Carbon Transition(CCT)to manage our Paris-aligned financing commitment and engage with clients on sustainability-focused financing,research and advisory solutions to help guide their long-term business strategies.The CCT has accoun
78、tability to senior leadership in the CIB and CB and will work in close partnership with teams across our business to drive achievement of the commitment.Our Risk Management organization is leading efforts to integrate climate-related considerations into our firmwide processes for identifying,assessi
79、ng and managing risks.For example:The firm has a dedicated Climate Risk team,which is led by our newly appointed Firmwide Risk Executive for Climate Risk.The team is responsible for establishing our internal approach to managing climate risk,including developing relevant policies and standards as we
80、ll as building our approach to climate risk data.The Climate Risk team collaborates with stakeholders across the firm to integrate climate considerations into line-of-business risk management frameworks.Additionally,our Global Environmental and Social Risk Management(GESRM)team establishes the firms
81、 environmental and social risk standards,reflected in our public Environmental and Social Policy Framework,to determine transactions and activities that may present increased environmental and social risks.At the transactional level,GESRM assesses a clients commitment and capacity to manage the risk
82、s relevant to its activities,including assessments of the clients operating approaches and track records.The Chief Risk Officer provides updates on climate-related initiatives to the firms Operating Committee and Board of Directors.See the Risk Management section(page 14)for more information on how
83、we identify and manage environmental and social risks,including those driven by climate change.112020 Environmental,Social&Governance ReportEthical Culture Earning and maintaining the trust of customers,clients and other stakeholders is essential to our business.To do this,we strive to maintain the
84、highest ethical standards,as encompassed by our Business Principles,Code of Conduct and other internal policies.Every employee is responsible for upholding these standards in their work.We reinforce these expectations through various channels,including our Code of Conduct and Culture of Respect trai
85、nings,and by encouraging our senior leaders to communicate about these issues clearly and frequently with employees.In addition,as part of the annual review process,all employees are evaluated against common performance dimensions that include delivering business results;addressing the needs of clie
86、nts,customers and stakeholders;fostering a collaborative and inclusive environment;driving a robust risk and control environment;and acting with integrity.We recognize that clear expectations,policies and processes are critical to supporting ethical behavior,and building a culture that reinforces th
87、ose expectations is equally important.We work to create an environment that not only supports ethical behavior but also allows employees to feel safe and empowered to speak up if they have concerns about unethical behavior.We have implemented employee training,protocols and reporting mechanisms to h
88、elp prevent behavior that is not in line with our Business Principles,Code of Conduct and other internal standards.The firm prohibits retaliation against any individual who reports a concern or assists with an inquiry or investigation.We have a Conduct Hotline,which is a channel for employees,custom
89、ers,clients and vendors to raise conduct concerns if they see,hear or suspect something violates our firmwide Code of Conduct.The Conduct Hotline is open 24/7,with the option to submit inquiries by phone or online.The Conduct Hotline helps promote integrity,fairness and accountability.The firms Code
90、 of Conduct is our shared commitment to preserve and build on these values and to maintain exceptional relationships with our customers,clients,shareholders,colleagues and our communities.Ethics and culture are key focus areas of our Board of Directors.The Boards Compensation&Management Development
91、Committee oversees the governance framework that underpins our firmwide culture of ethics and receives regular updates from management,including on significant conduct issues if any should occur.In addition,the Compensation&Management Development Committee holds a periodic joint session with the Ris
92、k Committee in which Directors are briefed by senior management on conduct-related matters.Political Engagement and Public Policy JPMorgan Chase believes that responsible corporate citizenship demands a strong commitment to a healthy and informed democracy through civic and community involvement.Our
93、 business is subject to extensive laws and regulations,and changes to such laws can significantly affect how we operate,our revenues and the costs we incur.Because of the impact public policy can have on our businesses,employees,communities and customers,we engage with policymakers on a range of iss
94、ues including banking,financial services,cybersecurity,workforce development,small business,tax,trade and inclusive economic growth,among others to advance and protect the long-term interests of the firm.In 2019,we launched the JPMorgan Chase PolicyCenter to develop and advance sustainable,evidence-
95、based policy solutions that drive inclusive economic growth in the U.S.and around the world.In response to COVID-19,in 2020 we turned our focus to the unprecedented health,employment,housing and economic consequences resulting from the pandemic.In particular,through our advocacy we are working to su
96、pport policies that address existing structural barriers and racial inequalities in the U.S.worsened by the current crisis.For example,we are in support of economic relief to address the immediate impacts of COVID-19 on families,small businesses and communities and advocating for longer-term househo
97、ld and small business financial health and resilience that supports an equitable economic recovery.We belong to a number of trade associations that advocate on major public policy issues of importance to the firm and the communities we serve.The firms participation as a member of these associations
98、comes with the understanding that we may not always agree with all the positions of an association or its other members,and that we are committed to voicing our concerns as appropriate.The Public Responsibility Committee of our Board of Directors provides oversight of our positions and practices on
99、public responsibility matters,including significant policies and practices regarding political contributions,major lobbying priorities and principal trade association memberships.We aim to operate with the highest standards of public transparency in political spending.Our efforts have been recognize
100、d by the 2020 CPA-Zicklin Index of Corporate Political Disclosure and Accountability,which credited our firm as a Trendsetter for the second year in a row in its 2020 report.122020 Environmental,Social&Governance ReportSPOTLIGHTCybersecurity As the pace of technological change continues to accelerat
101、e and digital solutions become more integrated into our daily lives,the cyber threat landscape continues to evolve,becoming increasingly pervasive and sophisticated.As such,cybersecurity continues to be a top priority for our firm.Our strategy is designed to securely enable new business and technolo
102、gy initiatives,while maintaining a relentless focus on protecting the firm,our clients and customers,and our third-party vendors.We devote significant resources to protecting and continuously improving the security of our systems.Our Information Technology Risk and Security Management policies and s
103、tandards provide the foundation of our cybersecurity program,which is focused on protecting the confidentiality,integrity and availability of the firms infrastructure,resources and information.Through these policies and standards,we inform our employees about their responsibilities to protect custom
104、er and client information and the security of our systems.We also require that our third-party vendors providing certain services adhere to minimum security and control standards,our Supplier Code of Conduct,and applicable laws and regulations.In partnership with the firms lines of business and corp
105、orate functions,our Cybersecurity and Technology Control(CTC)organization identifies technology and cybersecurity risks and is responsible for the intelligence-driven delivery and operation of controls that enable us to effectively manage these threats.CTC closely assesses changes in the global thre
106、at landscape and monitors our operations through world-class intelligence and 24/7 operations to protect against,detect and respond to potential threats.And because every employee serves as the first line of defense,we educate,train and test all our employees on how to identify potential cybersecuri
107、ty risks and protect the firms resources and information.Every employee receives mandatory security awareness training on a periodic basis.The CTC functions are responsible for governance and oversight of the firms Information Security Program.The CTC functions efforts are overseen by management at
108、multiple levels including technology management,greater firmwide management and the firms Operating Committee.The Audit Committee of the Board of Directors is updated periodically on our Information Security Program and any recommended changes,cybersecurity policies and practices,ongoing efforts to
109、improve security,as well as on our efforts regarding significant cybersecurity events.Internal and external auditors continually review our IT programs and processes and regulators periodically inspect and review our program.PROTECTING THE FINANCIAL SYSTEMWe understand the potential for a cyber inci
110、dent to impact global financial stability,and we work to do our part to build and maintain systemic resiliency.We are a member of the Financial Services Information Sharing&Analysis Center,an intelligence-sharing cooperative for the financial services sector.Its members,representing over$35 trillion
111、 in assets under management,with 15,000 users in more than 70 countries,share intelligence,best practices and exercises to better secure the sector for the benefit of the public and the resiliency and integrity of financial institutions.Our firm also helped drive the creation of the Analysis and Res
112、ilience Center for Systemic Risk(ARC,formerly known as the Financial Systemic Analysis and Resilience Center,or FSARC),which is an industry-funded nonprofit organization designed to mitigate systemic risk to the nations most critical infrastructure from existing and emerging threats.The ARC brings t
113、ogether the financial and energy sectors and seeks to establish a unified,cross-sector coalition that applies consistent approaches to assess,prioritize and mitigate risk to critical systems,assets and functions that are interconnected,interdependent and digitally exposed.HELPING OUR CLIENTS PROTECT
114、 THEMSELVESIn addition to our efforts to protect our own firm from cyber threats,we have an education program for clients who are likely to be targets of cybersecurity attacks.As part of this program,in 2020,we reviewed high-risk cyber and fraud scenarios and shared best practices with more than 1,0
115、00 clients,helping them better protect themselves and reduce the risk of fraud.132020 Environmental,Social&Governance ReportRisk ManagementJPMorgan Chases overall objective is to manage our businesses and associated risks in a manner that balances serving the interests of our clients,customers and i
116、nvestors while protecting the safety and soundness of the firm.We focus on understanding not just types of risk,but also their drivers and potential impacts.The firms risks are generally categorized in four risk types:strategic risk,credit and investment risk,market risk and operational risk.As part
117、 of the firms risk identification process,each line of business and corporate function is responsible for the ongoing identification of risks as well as the design and execution of controls to manage those risks.The Independent Risk Management(IRM)function establishes the firms risk management frame
118、works as well as reviews and challenges risks identified by the lines of business and corporate risk management areas on a regular basis.These identified risks inform broader firmwide risk management processes such as scenario design,risk appetite refinement and strategic planning.IRM is also respon
119、sible for the implementation of policy and standards with respect to its own identified risks,processes and controls.In this section we discuss the firms approach to managing environmental and social risks,including climate-related risks.For more information on the firms overall approach to risk man
120、agement,see our Annual Report on Form 10-K.Managing Environmental and Social RisksUnderstanding our clients approach to,and performance on,environmental and social(i.e.,human rights)matters including those related to climate change is an important component of the firms risk management process that
121、helps us make more informed risk decisions,continue to serve our customers responsibly and safeguard our financial resilience.The firms risk management and oversight framework,including for environmental,social and climate-related risks,is managed on a firmwide basis.Our publicly available Environme
122、ntal and Social Policy Framework(Framework)provides an overview of our approach to evaluating risks posed by environmental and social matters,including articulating certain sectors,activities and financial products subject to our internal environmental and social due diligence and standards.In 2020,
123、we updated our Framework to expand restrictions on financing for coal mining and coal-fired power and to introduce limitations for project financing for new oil and gas development in the critical habitat of the Arctic.Transactions and activities covered by our environmental and social standards are
124、 evaluated by our dedicated Global Environmental and Social Risk Management team.These reviews focus on assessing a clients commitment and capacity to manage the risks relevant to its activities,including assessments of the clients operating approaches and track records.The nature and depth of due d
125、iligence is determined by a variety of factors but can include reviewing publicly available information,reviewing relevant transaction documentation,directly engaging with clients and hiring third-party consultants.Following those reviews,the team may make recommendations to help mitigate environmen
126、tal and social risk such as enhanced disclosure,changes to transaction documentation and improved performance standards or reject transactions.Identifying and Managing Human Rights RisksJPMorgan Chase supports fundamental principles of human rights across all our lines of business and in each region
127、 of the world in which we operate.As outlined in our Human Rights Statement,our approach to protecting and preserving human rights is guided by the United Nations Universal Declaration of Human Rights.We also acknowledge the Guiding Principles on Business and Human Rights as the recognized framework
128、 for corporations to respect human rights in their own operations and through their business relationships.We have a range of policies,procedures and trainings that pertain to human rights issues,including modern slavery and Indigenous Peoples,across our business and supply chain.See our Environment
129、al and Social Policy Framework for more detail.142020 Environmental,Social&Governance ReportIdentifying,Assessing and Managing Climate-related RisksClimate change is among the most critical challenges facing society today.JPMorgan Chase is committed to understanding how climate change may drive or i
130、nfluence the risks we identify and manage.As illustrated in the chart below,we have developed an internal classification system that describes how climate-related risks can translate into potential impacts for our clients,customers and firm such as changes in supply or demand,financial costs and/or
131、business disruptions,among others and how those impacts could manifest as risks to our firm.We also assess these impacts against considerations such as time horizon,business sector and geography as a means of better understanding how these risks emerge within our firm.This classification framework i
132、nforms our risk identification process,which will continue to evolve as we deepen our understanding of how climate-related drivers could manifest as risks to the firm.TRANSLATING CLIMATE-RELATED RISK DRIVERS INTO POTENTIAL RISKS TO OUR FIRM Climate Risk Drivers*Potential factors that could cause a r
133、isk to occurImpact Transmission Channels*Avenues of potential impacts through whichclimate risk drivers manifest into risk typesJPMorgan Chase Risk TypesCategories of risks as outlined inJPMorgan Chases Annual Report on Form 10-KClimate RiskPhysical RiskAcute Physical Risk(e.g.,floods,cyclones,wildf
134、ires)Chronic Physical Risk(e.g.,sea level,water stress,temperature warming)Transition RiskRegulatory and/orGovernmental Policy ChangeTechnological EvolutionMarket PreferenceSupply/Demand/PriceFinancial CostsMacroeconomicCountry and/or BusinessCompetitivenessPhysical DamagesBusiness DisruptionSocioec
135、onomicReputational Damage and/or LitigationCredit&Investment RiskOperational RiskMarket RiskStrategic Risk*List is not exhaustive.We continue to refine our taxonomy based on an evolving understanding of how climate-related risk drivers may manifest as risks to the firm.Over the past year,we have ide
136、ntified a number of climate-related risks the firm could face,and we will continue to evaluate new risks and the materiality of identified risks in terms of financial and nonfinancial impact to the firm.As a global financial institution,we have determined our businesses,and the activities of our cli
137、ents and customers,could be impacted through transition or physical risks driven by climate change.Transition risks cover a range of potential impacts that stem from how society responds to climate change.These include possible changes in energy and climate policy as well as financial regulation,whi
138、ch could lead to economic impacts or drive other changes,such as the development of low-carbon technologies.Transition risks also include shifts in consumer preferences toward low-carbon goods and services.All of these risks could impact our clients.Transition risks could also be further accelerated
139、 by changes in the physical climate.Physical risks include both acute weather events and chronic shifts in the climate,such as altered distribution and intensity of rainfall,prolonged droughts or flooding,increased frequency of wildfires,rising sea levels or extreme heat.These physical risks could h
140、ave an impact on the firms own operations and our clients operations(e.g.,interruptions to business operations or supply chains).The physical effects of climate change are likely to increase in frequency and severity over time.152020 Environmental,Social&Governance ReportIn the absence of significan
141、t global action to curtail the effects of climate change,risk drivers such as extreme heat,sea level rise and increased frequency of extreme weather events are expected to impact and exacerbate existing risks to infrastructure,ecosystems and social systems.Transition and physical climate-related ris
142、ks could also lead to financial impacts such as interruptions to supply chains,declines in asset values or significant shifts in demand for certain products or services.As noted above,the key drivers of transition risk and physical risk can manifest themselves in a variety of ways.The table below pr
143、ovides selected examples of different types of climate-related transition and physical risks and how they could materialize across the four major risk types we manage:strategic risk,credit and investment risk,market risk and operational risk.EXAMPLES OF IMPACTS OF CLIMATE-RELATED RISKS BY RISK TYPEC
144、LIMATE RISKTransition RiskPhysical RiskJPMORGAN CHASE RISK TYPESStrategic RiskRisk to earnings,capital,liquidity or reputation associated with poorly designed or failed business plans or inadequate response to changes in the operating environment.Stakeholder perceptions of business(e.g.,supply chain
145、,lending,investments)with companies in carbon-intensive sectors could result in reputational impactsBusinesses operating in areas susceptible to climate-related events face inability to obtain appropriate insurance for their properties Credit&Investment RiskRisk associated with the default or change
146、 in credit profile of a client,counterparty or customer;or loss of principal or a reduction in expected returns on investments,including consumer credit risk,wholesale credit risk and investment portfolio risk.Shift in consumer preference jeopardizes the viability of certain business modelsTemporary
147、 disruption in a businesss operations leads to loss in profitabilityMarket RiskRisk associated with the effect of changes in market factors,such as interest and foreign exchange rates,equity and commodity prices,credit spreads or implied volatilities,on the value of assets and liabilities held for b
148、oth the short and long term.Changes in demand for carbon-intensive products or services lead to price volatilityLocal weather event causes variability in agriculture output and leads to commodity price volatilityOperational RiskRisk associated with an adverse outcome resulting from inadequate or fai
149、led internal processes or systems;human factors;or external events impacting the firms processes or systems.New legislation and/or regulatory requirements lead to significant changes in business processes and costsExtreme weather causes damage to direct operations and/or infrastructureClimate Scenar
150、io AnalysisScenario analysis is a useful tool for understanding risks across a variety of economic,market and other conditions.Scenarios can be designed to monitor a wide range of stress events to give risk managers insight into the drivers or potential losses.An effective scenario analysis framewor
151、k creates transparency into the scale and source of hypothetical losses,in order to make business decisions and compare risk appetite with business opportunities.The firm has a robust set of scenarios that are relevant to our businesses,risk positions,funding and capital management practices.They re
152、present a wide range of severities as well as both broad drivers(e.g.,general economic downturn)and specific events(e.g.,credit squeeze,equity market collapse).Leveraging scenario analysis to better understand climate-related risks is a relatively new and rapidly evolving area.We are continuing to c
153、onsider comprehensive climate-based scenarios as we build our knowledge of climate-related drivers,impacts and potential losses,and we plan to evolve our approach to climate scenario analysis over time,especially as data availability and modeling techniques progress.162020 Environmental,Social&Gover
154、nance ReportWe recognize our business is exposed to both transition and physical climate risks,and are working to understand how climate-driven impacts may emerge.The financial impacts of climate-related risks can differ across industries,products,clients and geographies due to numerous factors incl
155、uding but not limited to:A clients strategy for developing low-carbon transition plans Time horizon associated with the transition and physical risks Impacts on the specific markets where clients have business activity Susceptibility to market value fluctuations of financial products(e.g.,commoditie
156、s,bonds,equity)Geographical concentrations of operations Availability of low-carbon technologies Changes in policy landscapeTRANSITION RISK As part of the firms work to evaluate its transition risk to select carbon-intensive industries,a pilot exercise was conducted on a segment of our business in s
157、even industries automotive,chemicals and plastics,industrials,metals and mining,oil and gas,transportation and utilities.Our main objective in this pilot was to explore the extent to which companies within the identified industries could be affected by transition risk.For the purposes of this pilot
158、exercise only,the analysis utilized assumptions from the International Energy Agencys 2019 Sustainable Development Scenario(IEA SDS),and the scenarios were structured to align with the representative scenarios released in 2020 by the Network for Greening the Financial System.The pilot considered imp
159、acts of both abrupt and smooth transitions consistent with the Paris Agreement goals and reflected the pace and timing of policy action through changes in the price of carbon emissions.The table below shows the firms wholesale credit exposure to the pilot sectors.It is important to note total credit
160、 exposure to these sectors also includes subsectors,business models and companies that may not be significantly carbon intensive and/or may have minimal exposure to transition risk.WHOLESALE CREDIT EXPOSURE TO SELECT INDUSTRIES(a)2020On Balance SheetDecember 31,(in millions)Credit Exposure%of Total
161、Wholesale Credit ExposureCredit Exposure%of Total Wholesale Credit ExposureAutomotive$43,331 3.8%$23,123 3.7%Chemicals&Plastics$17,176 1.5%$5,740 0.9%Industrials$66,470 5.9%$22,994 3.6%Metals&Mining$15,542 1.4%$5,736 0.9%Oil&Gas$39,159 3.5%$12,910 2.1%Transportation$16,232 1.4%$8,061 1.3%Utilities$3
162、0,124 2.7%$8,214 1.3%Above Industries Total Credit Exposure(b)$228,03420.2%$86,77813.8%Total Wholesale Credit Exposure(c)$1,127,261100%$629,688100%(a)For additional disclosures about the composition of this table,see our Annual Report on Form 10-K.(b)Loans held-for-sale and loans at fair value are n
163、ot attributed in the Above Industries Total Credit Exposure,but are included in Total Wholesale Credit Exposure.(c)Per our Annual Report on Form 10-K.2020172020 Environmental,Social&Governance ReportThe resulting impacts were considered at a client level,with considerations for:Potential earnings er
164、osion the company could face related to the higher carbon price and reduced demand for fossil fuels.We looked at how the evolution of technology and market preferences could drive changes in consumer preferences in relation to potential higher costs for offered goods and services,recognizing that th
165、e degree of pass-through cost increase varies by industry.The companys likely resilience to these reduced earnings based on company-specific factors,including scale,jurisdiction,leverage and liquidity.By adding these considerations,we integrated a view of how companies can take actions to reduce the
166、 financial impact from low-carbon transition.A qualitative analysis of the companys transition aptitude based on the credibility of its low-carbon transition strategy,including its emissions reduction targets,governance structures and emissions track record.In the pilot approach,companies with a cre
167、dible low-carbon transition strategy avoid future carbon costs as they reduce their emissions.The outcomes of this pilot exercise informed our initial understanding of the sensitivity of our internal risk ratings to transition risk and enhanced our understanding of the different methodologies and da
168、ta needs for climate-based scenario analysis.We are working to further improve and scale our insights as we explore how to integrate the risks associated with a low-carbon transition into our risk management framework.Going forward,we intend to undertake a deeper evaluation of leading physical clima
169、te models and data to enhance our analysis of the potential material impacts to clients,customers and our own operations.This will allow us to identify concentrations of physical risk and to further develop our risk management expertise in this area.Our pilot studies are subject to ongoing change,an
170、d as we refine the approaches we are evaluating the long-term impacts and,where relevant,what potential mitigants to consider.PHYSICAL RISKOver the past year,we have analyzed concentrated exposures to physical climate risks in pilot studies.For example,the CCB and CB have started to model the effect
171、s of sea-level rise on home lending and commercial real estate lending portfolios.These efforts have deepened our understanding of the potential financial impacts that such events could have on those portfolios and helped us begin to assess potential losses if sea-level changes make a property unusa
172、ble or a home uninhabitable.As a lender we have been considering the potential geographical impacts in sample metropolitan areas that are particularly susceptible to the impacts of sea-level rise.Our work to this point has used National Oceanic and Atmospheric Administration scenarios of projected a
173、reas that will be impacted by sea-level rise from 1 to 10 feet,to assess property level impacts and inform our approach to understanding losses if rising sea levels were deemed imminent and were accelerating,subsequently driving home prices downward over 10 years.We are also exploring the need to as
174、sess longer-term consequences at the local level such as forecast damage,localized recessions or mass community migrations that may be exacerbated by climate change.Additionally,we conducted an initial analysis of our home and commercial real estate lending exposure in California,exploring how econo
175、mic,socioeconomic,pandemic and climate-related risks build on one another and could potentially impact the firms credit portfolios in the state.Mapping Our Path to Integrated Climate Risk ManagementJPMorgan Chase is on a journey to integrate climate risk into our existing firmwide risk management fr
176、amework.We have identified the following deliverables that will be used to define success:Enhance climate risk capabilities to include robust climate risk identification and scenario analysis Incorporate data and analytics to assess,monitor and measure climate risk Adapt existing risk management fra
177、meworks to incorporate climate-based transition and physical risks where appropriate Include,where relevant,climate risk in policies and standards to provide effective governance Evaluate representative stress scenarios across transition and physical risk to add to the firms established scenarios We
178、 will accomplish this by:Investing in talent,data and technology to support climate risk integration efforts Building out the Climate Risk Firmwide Risk Executive function to drive a transparent and scalable operating model that will enable all Risk Management functions managing some aspect of clima
179、te risk to own and execute their respective integration efforts Engaging with our clients and stakeholders proactively to inform the evolution and the ongoing incorporation of climate-related considerations into our portfolio risk assessments182020 Environmental,Social&Governance ReportHuman Capital
180、At JPMorgan Chase,our people are integral to our success.Our human capital strategy is focused on attracting,developing and retaining the high-performing global,diverse workforce we need to deliver exceptional service and innovative solutions to our clients,customers and communities.Globally,our fir
181、m had over 255,000 employees in 62 countries as of Dec.31,2020,with over 60%of those employees located in the U.S.GLOBAL OVERVIEWU.S.OVERVIEWOPERATINGCOMMITTEEEXECUTIVETEAMBOARD OFDIRECTORSOVERALLCAMPUS&INTERNSHIPCLASSWomen60%56%74%40%44%26%MenWomenMenWomenMenWhite10%17%21%90%83%79%EthnicWomen51%49%
182、MenWhite52%48%EthnicWhiteEthnicWhiteEthnic55%45%WomenMen58%42%WhiteEthnicNote:All information about Gender globally and Ethnicity in the U.S.is reported as a percentage of only those employees who self-identify in these categories.Ethnicity in the U.S.for the Executive Team is reported based on thos
183、e U.S.employees who self-identify in these categories as a percentage of the total U.S.population that self-identified for purposes of EEO-1 reporting.Ethnic includes Asian,Black,Hispanic,Other Ethnicity.Ethnicity data is as of Dec.31,2020.2020 Workforce CompositionCreating a Culture of Diversity,Eq
184、uity and InclusionWe believe that a talent-driven company is a diverse one.We are working hard to drive a culture of diversity,equity and inclusion across everything we do from how we serve our clients and develop products and services,to the ways we help communities and support our employees.To lea
185、d the development and execution of a holistic internal and external strategy for doing this,in 2020 we created the new position of Global Head of Diversity,Equity&Inclusion,which reports to the firms Co-Presidents.We know that our commitment to diversity,equity and inclusion must start within our ow
186、n workplace,so we are taking steps to further incorporate diversity into how we recruit,train and develop our employees;create opportunities for their advancement;and foster an environment in which all of our employees feel they belong and can succeed.As part of these efforts,we are taking actions t
187、o build a more diverse workforce,including establishing an executive accountability framework,which strengthens the way we incorporate diversity and inclusion priorities and processes into year-end performance evaluations and compensation decisions for senior executives.Additionally,we have implemen
188、ted qualitative feedback on key leadership attributes to capture inclusive leadership behaviors.Building on our existing anti-harassment awareness and diversity and inclusion training programs,in 2020 we rolled out a new mandatory firmwide training program,You Belong Here.The new program is designed
189、 to engage all our employees in understanding the firms mission to strengthen our culture of diversity and inclusion and to identify ways everyone can contribute to creating this culture.During the year,over 250,000 employees completed the You Belong Here course.In addition,in 2020 approximately 25,
190、000 employees participated in our unconscious bias and inclusion training program for managers,Journey to Inclusive Teams.192020 Environmental,Social&Governance ReportSupport and Allyship for Diverse Employee PopulationsWe have a variety of longstanding initiatives,forums and programs designed to ad
191、vance diversity and inclusion within our firm,while creating a sense of community and allyship for diverse employee populations.Our Business Resource Groups(BRGs)are groups of employees who volunteer to serve as ambassadors to drive inclusiveness,mentor junior talent and help facilitate advancement
192、opportunities while advancing our firms position in the global marketplace.With approximately 43%of our employees participating in one of our 10 BRGs,they are the key firm culture carriers,providing a unique bridge between the organization and our people that helps drive firmwide diversity and inclu
193、sion strategies and connect employees to the firms business priorities.Our BRGs focus on providing support for various communities:Access Ability(employees with disabilities)Adelante(Hispanic/Latinx)AsPIRE(Asian/Pacific Islander)BOLD(Black)NextGen(early career professionals)PRIDE(LGBT+)Sage(administ
194、rative professionals)VETS(military,veterans and their families)Women on the Move Interactive Network Working Families NetworkIn addition to our BRGs,the firms Asian,Black,Hispanic and LGBT+Executive Forums,which bring together the senior leaders of these communities to act as ambassadors and thought
195、 leaders for firmwide initiatives,are another critical way we support and foster diversity and inclusion within JPMorgan Chase.We also have dedicated branded strategies focused on specific communities not only within our workforce,but also more broadly in the communities we serve.These include the f
196、ollowing:Women on the Move(WOTM)is our initiative to provide women with opportunities to succeed in their professional and personal lives.Initially launched in 2013 with a focus on career development for women within our firm,the program broadened in 2018 to also include women clients,consumers and
197、the communities we serve.The programs key objectives are to expand women-run businesses,improve womens financial health and advance womens career growth.Within our own firm,the initiative is helping drive efforts to advance womens career growth and representation at all levels.For example,in 2020 WO
198、TM rolled out Fast Forward,a development program that offers video courses,coaching sessions and small discussion groups to help women define and achieve their professional and personal goals.Nearly 2,700 participants registered in the first global cohort of the program.More than 25,000 employees pa
199、rticipated in various WOTM-curated career development programs,events and volunteer groups during 2020.Advancing Black Pathways(ABP)seeks to leverage JPMorgan Chases business and philanthropic resources to accelerate economic empowerment and opportunity for the Black community.Launched in 2019,ABP b
200、uilds on the firms existing efforts to help communities of color,by focusing on three key areas in which the Black community have historically trailed other ethnic groups:wealth creation,educational outcomes and career success.As part of this effort,we created the ABP Fellowship Program,which is ded
201、icated to helping Black college underclassmen get on a path to internships and entry-level roles with the firm after graduation.The inaugural 2019 class of 50 students worked on real-time business challenges for the firms Business Banking clients in Plano,Texas;Columbus,Ohio;and Wilmington,Delaware.
202、We have since expanded the ABP Fellowship Program to include 74 students in 2020 and more than 170 students in 2021.ABP is helping drive the firms efforts to hire at least 4,000 Black students as apprentices,interns and full-time analysts by 2024;by the end of 2020,we were halfway to that goal.Outsi
203、de the U.S.,our efforts to provide opportunities for internships and early career support for Black students and employees include the ABP Coaching program in the U.K.and our Black Future Leaders program in Brazil.Our Office of Disability Inclusion,which was launched in 2016,drives consistent access
204、ibility processes and standards across the firm so employees can receive the reasonable accommodations they need to perform their jobs.It also provides strategic direction on recruiting,hiring and advancing individuals with disabilities.Of the firms U.S.-based employees,approximately 4%self-identifi
205、ed as having a disability.During the COVID-19 pandemic,we leveraged existing technology to deliver high-quality services to employees with disabilities working remotely.For example,we provided U.S.employees who are deaf and hard-of-hearing with live captioning for internal events,as well as CART(Com
206、munications Access Real-time Translation)services,a point-to-point delivery of the captions.We also shifted how we provide accommodations,by streamlining the process for requesting a medical-related health or technological accommodation.Our Office of Military and Veterans Affairs,established in 2011
207、,drives our firmwide initiatives to position veterans,service members and their families for long-term,post-military success.Since 2011,JPMorgan Chase has hired more than 16,000 U.S.veterans,including over 890 in 2020.In 2020 this included 202020 Environmental,Social&Governance Reportwelcoming 105 n
208、ew hires into our Military Pathways Development Program,which recruits exceptional veteran talent for rotational and direct-hire positions and provides comprehensive career development support.Other signature programs we offer to support veteran employees include the Pathfinder Veteran Mentoring pro
209、gram,which had nearly 600 active participants at the end of 2020,and the Veteran Manager Training program,which had over 400 participants in 2020.In addition,more than 2,000 veteran employees participated in a training series focused on career planning and promotion last year.The Office of LGBT+Affa
210、irs is developing and driving a unified global strategy for the LGBT+community.This new program will amplify and build on the success and work of our LGBT+Executive Forum,as well as our PRIDE BRG.Our employees who have self-identified as LGBT+increased by more than 21%over the past year.Our firm con
211、tinues to receive recognition for various workplace equality benchmarks,such as our 100%score on the Human Rights Campaign Corporate Equality Index for the 18th consecutive year.In addition,to help advance equity for the LGBT+community more broadly,in early 2021 we announced a$5 million commitment t
212、o five U.S.-based nonprofit organizations that are helping break down barriers to inclusion for the most vulnerable members of the LGBT+community.We are also engaged with LGBT+organizations across the globe,including providing financial support to LGBT+focused nonprofit organizations across various
213、countries,with a number of these relationships dating back two decades.The Office of Latinx Affairs is implementing a unified global strategy to support the Hispanic and Latino communities.This new program will build on the success and progress of our Hispanic Executive Forum,Hispanic Leadership For
214、ums and Adelante,our BRG for Hispanic and Latinx employees.In addition,in 2021,we plan to launch a program focused on supporting the Asian and Pacific Islander(API)community.The program will expand on the efforts of our Asian Executive Forum,as well as AsPIRE,our BRG for API employees.See page 34 fo
215、r more on how the firm is advancing its commitment to diversity and inclusion and supporting communities of color across four key areas:Careers and Skills;Financial Health and Wealth Creation;Business Growth and Entrepreneurship;and Community Development.Attracting and Retaining Top TalentWe are foc
216、used on attracting and hiring talented individuals in all roles and career levels,from internship programs for students to full-time positions for experienced professionals.During 2020,approximately two-thirds of the firms 44,000 employment opportunities were filled by external candidates,with the r
217、emainder filled by existing employees.To achieve diverse hiring and representation outcomes at all levels,diverse slates are an important consideration in our comprehensive recruiting efforts,and we track and monitor data about the use of diverse slates accordingly.In hiring new employees in the U.S
218、.,recruiters and managers are expected to consider a diverse slate of candidates of no less than one woman and one U.S.ethnically diverse candidate.Globally,diverse slates are defined as including no less than one woman.We continuously monitor our progress to determine where adjustments or other mod
219、ifications need to be implemented.Our public reporting on workforce representation,including consolidated EEO-1 and related data,can be found in our Workforce Composition Disclosure.Skills-based VolunteerismWe provide employees with opportunities to develop and apply their skills to support communit
220、ies and causes that are personally important to them amplifying the impact of both the firms philanthropic efforts and the work of our nonprofit partners.Through our signature skills-based program,the Service Corps,nearly 220 global employees volunteered their skills and expertise for consulting pro
221、jects delivered virtually,due to the COVID-19 pandemic that helped nearly 50 nonprofits expand their impact in 2020.In addition,during the year we delivered 138 sustainable technology solutions for nonprofits,with more than 1,300 employee volunteers contributing over 38,000 hours of their time throu
222、gh our Force for Good program.Our employees put their expertise to work to support the communities we serve in many other ways during the year as well.For example,over 120 JPMorgan Chase employees globally used their professional experience to mentor minority-led small businesses through our Founder
223、s Forward program.212020 Environmental,Social&Governance ReportEarly Career Talent PipelinesWe know that having a strong pipeline of diverse future leaders is essential to creating a more representative workforce.In 2020,through our campus recruiting efforts,we hired 3,200 full-time analysts and ass
224、ociates and 3,500 summer interns.Of the firms campus hires globally that self-identified,50%self-identified as women across both groups.Of the U.S.-based campus hires,18%self-identified as Black,14%as Hispanic and 26%as Asian.In addition,to help us build our pipeline,we leverage a number of Emerging
225、 Talent programs and pipelines focused on recruiting and training cognitively,experientially and representatively diverse talent that is often underrepresented in typical talent channels.In 2020,approximately 1,500 individuals participated in one of the more than 90 Emerging Talent programs we opera
226、te around the world.In the U.S.,where diversity data was available,63%of the individuals hired through our Emerging Talent programs self-identified as Black or Hispanic.As part of these programs,JPMorgan Chase partners with nonprofit organizations,workforce development programs,bootcamps and other t
227、alent sources to train,hire and develop underrepresented talent through internships,apprenticeships and direct-to-full-time programs.For example,as a member of the recently formed NY Jobs CEO Council,we are partnering with employers across New York City to foster collaboration among business,educati
228、on and community leaders to prepare New Yorkers in diverse,low-income communities for the future of work and to meet employer needs.Through this initiative,we will work with fellow employers to create economic opportunity for New Yorkers by collaborating closely with educational institutions as well
229、 as community and nonprofit organizations to help maximize our collective impact on students and workers in New York.Skills-based HiringAs part of our commitment to broadening the applicant pool for opportunities within our firm and building a diverse workforce,we take a skills-based approach to hir
230、ing for many jobs.This means we are proactively evaluating degree requirements for roles and,where appropriate,focusing on the skills of job candidates rather than degrees held.To support this,we are increasingly partnering with community colleges and looking to apprenticeship programs,bootcamps and
231、 other training programs to source the talent we need.In addition,we are taking steps to broaden our applicant pool by actively working to reduce barriers to employment for individuals with criminal backgrounds.In 2020,our firm hired approximately 2,100 individuals with criminal histories approximat
232、ely 10%of our new hires in the U.S.Through our Second Chance hiring initiative,we are collaborating with community and legal services organizations to develop a pipeline of potential employees to fill open roles and grow with the firm.Learn more about how JPMorgan Chase is advancing policies and par
233、tnering with nonprofits and a cross-sector group of employers to create more workforce opportunities for individuals who need a second chance on page 37.Developing Our Employees Supporting our employees professional development and career growth is core to our human capital strategy.We invest approx
234、imately$200 million in employee training each year,including structured mandatory curricula for new hires and existing employees,along with a range of training programs focused on topics from leadership development and technology to risk and compliance and business processes.We delivered over 7 mill
235、ion hours of training globally in 2020.We are committed to developing a strong,diverse bench of talent across the firm,with a dedicated focus on the pipeline for our senior leadership positions.Our global leadership development program,Leadership Edge,helps train managers and leaders to drive result
236、s,support their teams,lead inclusively and grow talent.Since the programs launch in 2015,73%of our approximately 40,000 managers have attended one or more Leadership Edge programs;in 2020,we achieved global attendance of approximately 19,000 across Leadership Edge programs,which were delivered almos
237、t entirely virtually.We are also committed to internal mobility across the firm,with approximately one-third of all positions filled with internal candidates and over 20%moving across lines of business or functions in 2020.In addition,over 75%of senior-level positions were filled internally during 2
238、020.Below is the composition of our employees who were promoted in 2020.Note:All information about Gender globally and Ethnicity in the U.S.is reported as a percentage of only those employees who self-identify in these categories.Promotion data is for Vice President-level and above.GLOBALPROMOTIONSO
239、VERVIEWU.S.PROMOTIONSOVERVIEWWomen38%62%Men2,5314,151U.S.Ethnic39%61%U.S.White1,6482,6262020 Promotion Data222020 Environmental,Social&Governance ReportUpskilling and ReskillingOver the past few years,our firm has significantly expanded our efforts to help ensure all our employees have access to the
240、 training and education they need to prepare them for the future of work and pursue roles within our firm.Our strategy is driven by the recognition that investing in upskilling and reskilling our existing employees who already know our culture and are committed to our company to help them adapt to c
241、hanges in our business is the most effective and efficient way we can ensure we have the talent we need to compete.Equally important,it is among the most impactful ways we can put our commitment to diversity,equity and inclusion into action.Our firms front-line and entry-level employees,whose roles
242、are most vulnerable to technological disruption,are disproportionately women and diverse.By taking proactive steps to create meaningful and accessible opportunities for career mobility,we are strengthening our culture of diversity and inclusion.One way we are doing this is by rolling out a novel pro
243、gram for our employees to access tailored educational pathways.Through the new learning platform launched in 2020,employees can self-evaluate against capabilities that help them identify developmental opportunities and increase their knowledge and skills for aspirational roles in their career develo
244、pment plans.Employees receive a personalized learning journey in support of their career goals through internal learning programs or through external educational organizations that offer low-or no-cost credentials,certificates or degree programs.Unlike traditional reimbursement programs in which emp
245、loyees are typically left to identify and determine the appropriateness of external programs on their own,JPMorgan Chase has worked closely with our education providers to co-develop programs that are designed to prepare employees for new jobs in growing roles at the firm.Learn more about how our fi
246、rm is working to help our own employees,and also members of the communities we serve,develop skills and build careers in a rapidly changing economy on page 35.Talent RedeploymentOur firm has a longstanding process to redeploy eligible employees primarily individuals impacted by a reduction to open i
247、nternal positions.This is a key way to both retain talented people and promote a diverse workforce.When the pandemic struck in 2020,we quickly put this process into action to identify and redeploy not only employees whose roles were at risk due to changing business demands,but also those at higher p
248、ersonal risk for COVID-19 in need of roles they could perform remotely.During the year,we used talent redeployment to find new opportunities for more than 350 employees.Supporting and Rewarding Our Employees We are committed to providing compensation and benefits programs and policies that support t
249、he needs of our employees and their families.For example,we have made a series of increases to wages for our full-and part-time U.S.hourly paid employees in recent years.In January 2021,we raised minimum base pay for U.S.overtime-eligible employees to between$16 and$20 per hour,depending on the loca
250、l cost of living.This is in addition to the comprehensive benefits package the firm offers that is valued,on average,at approximately$13,700 per employee for this population.We offer a comprehensive U.S.benefits and wellness package to our employees and their families,including health care coverage,
251、retirement benefits,life and disability insurance,on-site health and wellness centers,employee assistance programs,competitive vacation and leave policies,backup childcare arrangements,tuition reimbursement programs,mental health counseling and support,financial coaching and more.We direct our benef
252、it spend toward lower-wage earners,including higher insurance subsidies and lower deductibles in the medical plan and a$750 special award to employees earning less than$60,000.232020 Environmental,Social&Governance ReportIn 2020,we launched My Finances and Me,a financial well-being employee benefit
253、that includes unlimited one-on-one financial coaching with certified financial planners for U.S.employees.Fully paid for by the firm,the benefit includes a financial wellness assessment to help employees prioritize their goals,a website with a number of tools and resources,and group education sessio
254、ns.Last year,we also introduced Coping Connections,a virtual forum to bring colleagues together to talk about how they are managing during the pandemic.The program is part of the firms disability inclusion and well-being strategy,which includes a focus on supporting employees emotional and mental he
255、alth.Sick and Time-Off PoliciesTo support the health and well-being of our employees,the firm provides all U.S.-based employees with paid sick leave each year that is available for numerous health and safety reasons.Employees receive up to 56 hours of paid sick time each year through various accrual
256、 methods,or more as required under state or local law,up to 96 hours.The firm also provides most full-time and part-time employees with three paid personal days each calendar year and provides three to five weeks of paid vacation annually,based on job grade and years of service.Working Parents and F
257、amily Building We offer paid parental and adoption leave providing 16 weeks of fully paid parental leave for employees who are primary parental caregivers and six fully paid weeks for nonprimary parental caregivers following the childs birth,adoption placement or foster placement with intent to adop
258、t.We also provide family building assistance to help employees with the high costs of adoption,surrogacy and fertility expenses,including up to$10,000 per child in eligible adoption expenses and up to a$30,000 lifetime maximum for surrogacy and fertility expenses.In addition,we have flexible work op
259、tions to support parents and others who need alternative work schedules,and we provide backup childcare in many markets and other assistance to working parents.And,to support nursing mothers,we have a lactation consulting program and breast milk shipping options for our employees who are traveling o
260、vernight for business purposes.Supporting Our Employees During the COVID-19 PandemicIn response to the COVID-19 pandemic,we have taken a variety of steps to protect and support the well-being of our employees.We implemented alternative work arrangements that enabled most employees globally to work f
261、rom home.We also awarded over$100 million in special payments to support employees with roles that are better performed on-site,with a focus on those with compensation less than$60,000 per year.In addition,we enhanced our paid time off policy for employees who contract or are exposed to COVID-19 or
262、who need time to manage personal needs.For employees who are higher risk and cannot do their job from home,we have provided an extended leave and have helped many employees find project-based work that can be done while working from home.Additionally,to support our U.S.employees and their families,w
263、e provided more days of backup childcare,discounts for virtual tutoring and full-service childcare at our 14 childcare centers.To support mental well-being,we have doubled the number of covered employee assistance sessions per issue and launched virtual forums with mental health clinicians.Pay Equit
264、yWe conduct periodic pay equity reviews covering employees at all levels within the firm.In 2020,in aggregate,women globally were paid 99%of what men were paid and U.S.ethnically diverse employees(defined as Equal Employment Opportunity Commission classifications other than white)were paid more than
265、 99%of what white employees were paid,taking into account factors such as an employees role,tenure,seniority and geography.We are proud of the overall diversity of our workforce.However,we also know that women and ethnically diverse employees still are not represented in as many senior management po
266、sitions as are men and white employees.Despite the significant progress we have made,we are taking a variety of actions focused on hiring,retaining,developing and advancing women and ethnically diverse employees,especially at more senior levels.242020 Environmental,Social&Governance ReportCustomer S
267、erviceAs a global financial institution,we never lose sight of our main mission:serving our customers and clients.Through our four lines of business,JPMorgan Chase serves millions of consumers and small businesses in the U.S.,as well as corporations,local and national governments,investors,nonprofit
268、 organizations and a range of other institutions around the world.We know that earning the trust of our customers and helping them achieve their goals is what has and will continue to enable our company to stand the test of time.This section focuses principally on our approach to customer service wi
269、thin our CCB business,which serves consumers and small businesses across the U.S.under the Chase brand.See page 41 for more on how we help our customers,and members of the communities we serve,strengthen their financial health and page 38 for more on how we provide capital and resources to support s
270、mall businesses and entrepreneurs.Treating Customers FairlyBuilding deep and lasting customer relationships requires that we treat our customers fairly,communicate with them transparently and deliver our products and services in an inclusive way that respects and reflects the diversity of the custom
271、ers we serve.We do this in part by striving to cultivate a customer-focused culture in which our employees are encouraged to,and rewarded for,doing right by our customers.We have also developed internal policies and procedures aimed at simplifying our disclosures and communications,aligning our sale
272、s practices with our customers interests and protecting customers from financial abuse and discrimination.In addition,we have taken a range of steps to ensure that our commitment to diversity,equity and inclusion is more firmly embedded in how we design and deliver products and services to our custo
273、mers.Acting in the Best Interest of Our CustomersOur objective is to provide our customers with the right products and services to meet their financial needs,and we train,assess and reward our employees accordingly.Any advice our employees provide should be consistent with customers goals and approp
274、riate for their situations.In every transaction,the employee must aim to meet the individualized needs of our clients and customers.Every year,we educate our bankers on our customer-centered policies,procedures and controls.We also maintain performance metrics tied to these requirements,which are us
275、ed to evaluate bankers performance.We have robust governance and oversight of adherence to our policies and procedures.Oversight of sales practices,including sales-related incentive compensation plans,is performed by the line-of-business Culture and Conduct Committee or another appropriate forum.Lin
276、es of business must review and approve at least annually any incentive plans that relate to customer-facing sales activity,or that impact direct sales activity,to identify and mitigate any potential conflicts or risks they may present.We regularly review various aspects of sales practices,including
277、sales culture,incentive plans,controls assessments and feedback received from customers and employees through multiple channels,including our employee Conduct Hotline.Taking all of this feedback into account helps mitigate risk,safeguard our reputation and align employee performance with the best in
278、terests of our customers.Putting Diversity,Equity and Inclusion at the Center of How We Serve Our Customers We believe that the long-term growth and success of our firm depends both on having a diverse workforce that reflects the customers we serve and on developing and delivering products and servi
279、ces in a way that is inclusive,equitable and respectful of our customers.We have taken a range of steps in recent years to review our policies,procedures and programs to help ensure they are fair for all our employees and customers.As a result,we found we could further improve the tools bank manager
280、s use to monitor employees decisions about customer eligibility for certain products and benefits to help ensure fair access.We also simplified our process for managing customer complaints and flagging serious concerns for direct senior management review.We continually look for ways to make our prod
281、ucts and services accessible to more customers.For example,in January 2020,Chase opened its first bank branch for customers who are deaf and hard-of-hearing.Located in Washington,D.C.,near Gallaudet University one of the worlds most prominent universities for students who are deaf or hard-of-hearing
282、 and a major center of the American Sign Language(ASL)community the new branch has been designed to be a visual branch for the ASL community and to provide full-access accommodations for the deaf community as well as for employees who are deaf.252020 Environmental,Social&Governance ReportBeing Clear
283、 and Transparent in Our Marketing and CommunicationsWe want our customers to make informed choices about their finances and banking options,and we aim to empower them to do so by providing transparent information about our products and services.When conducting sales on behalf of our firm,employees a
284、re expected to communicate with customers in a clear,truthful and complete manner and to provide them with relevant information to make an informed decision.Our lines of business are required to have an established procedure for reviewing all new and revised marketing materials,terms and conditions,
285、disclaimers and other customer communications to make sure they are fair,clear and not misleading as well as in accordance with applicable regulations and requirements.Protecting Elder and Vulnerable Populations from Financial AbuseWe continue our work to increase awareness about financial abuse aff
286、ecting both elder and vulnerable populations and to provide resources to help our customers and employees identify and report scams and exploitation.Through a recent collaboration with the AARP Foundation,we are helping older adults learn how to protect themselves and their loved ones,as well as to
287、leverage digital technology to better monitor their finances.We look for innovative solutions to protect our customers using data analytics,and we are concentrating on ongoing training and communication with our front-line employees.Starting in 2021,we will require all front-line branch staff to tak
288、e AARPs BankSafe training to better spot attempted exploitation of older customers and help coach those customers on how to stay safe.We support and work with regulators,law enforcement,nonprofit organizations,advocacy groups and others to explore strategies and best practices for combating financia
289、l abuse of elder and vulnerable customers.Listening and Responding to Our CustomersWe believe that the best way to grow our business is to treat our customers well,which is why we are focused on delivering a great customer experience.We teach these principles through employee training,we measure our
290、 success through customer feedback and we make sure our products and services keep up with changing customer needs.We also regularly review and look for ways to make it easier for customers to navigate the full range of products and services we offer.We regularly engage with customers,consumer group
291、s and other stakeholders with a goal of developing products,services and approaches that are responsive to their needs and address the issues that matter most to them.We have established forums,known as Chase Advisory Panels,for local,regional and national stakeholders to share with our senior execu
292、tives their perspectives on community development needs as well as public policy and regulatory issues.In addition,we conduct hundreds of meetings annually with community-based organizations.We solicit customers direct feedback on their experiences and needs through a range of channels,including in
293、person at our branches,through our website,on social media and via customer satisfaction surveys.In addition,we collect customer feedback through external media and ratings agencies.We take this feedback seriously and use it to improve our approach and offerings.Serving Low-and Moderate-Income Custo
294、mers Our firm works to serve all customers,including traditionally underserved people and their communities.We offer products and services that provide safe,high-quality and affordable ways to access banking services and improve financial health.One example is Chase Secure BankingSM,a low-cost,low-f
295、ee account geared toward people new to banking or who have had trouble getting or keeping an account in past.We are also expanding our branch presence in low-and moderate-income communities across the country and are stepping up resources we make available at these branches to help improve financial
296、 health with workshops like Chase Chats and advice(see page 42).In addition,we are taking steps to make homeownership more accessible in low-and moderate-income communities,including recently increasing our Homebuyer GrantSM to up to$5,000 to help customers with down payment assistance(see page 44).
297、262020 Environmental,Social&Governance ReportProtecting Customer Privacy and Data SecurityProtecting our customers personal and financial information and handling it responsibly is a top priority for our firm.We have robust internal controls,policies and security measures designed to keep this infor
298、mation safe,and we require that third parties,such as our suppliers and vendors,preserve our high standards and protections for data.Customers need to know what we are doing with their personal information.We strive to provide them with clear,user-friendly explanations of our privacy practices,inclu
299、ding how we collect,share,use and protect their information,and what choices they can make to limit the sharing of personal information.If we market our products and services in a language other than English,we provide our privacy notices and all other pertinent disclosures in that language as well.
300、We let customers know in advance if we plan to make material changes to our privacy policies through a variety of channels,including by email and through our secure message center.We safeguard personal information through a wide range of technological,administrative,organizational and physical secur
301、ity measures.In addition,our Code of Conduct and related policies for ethical business conduct include specific guidelines about how employees should safeguard customers confidential information.As noted in our California Consumer Privacy Act(CCPA)disclosure,we do not sell personal information as co
302、ntemplated by the CCPA.We have a formal privacy incident management process in place to respond to any suspected or actual incident involving unauthorized access to or disclosure of personal information,its availability or an impact to its integrity.Our centralized process requires escalation to a d
303、edicated Incident Response Team for mitigation,severity assessment,root cause analysis and corrective actions.We notify impacted individuals of privacy breach incidents in accordance with applicable state or federal law,as well as when we believe that the incident represents a risk to the impacted i
304、ndividuals or others associated with them,even where a law might not require notification.Any material issues,including data breaches,are disclosed in our quarterly and annual regulatory filings.We are always investing in enhanced data privacy and security solutions to safeguard information.See page
305、 13 for more on our approach to cybersecurity.Supporting Our Customers During the COVID-19 PandemicWe know that many of our customers have faced and continue to face financial challenges and hardship as a result of the COVID-19 pandemic.During 2020 and into 2021,our firm has taken a range of steps t
306、o provide payment assistance and refund or waive certain fees for those who need help.For example,we offered customers the option of delaying monthly credit card payments if they told us they were affected and needed help,and refunded any associated late fees.We also allowed customers to delay their
307、 monthly payment on their auto loan or leases,waiving any associated late fees,and gave customers the option to extend their auto lease maturity date past the original termination date for up to an additional six months.Additionally,we offered customers the chance to delay monthly mortgage or home e
308、quity payments for an initial period of up to three months with the option to delay additional payments,waiving any associated late fees and suspending foreclosure activity during the assistance period.By the end of 2020,we had provided customer assistance to over 2 million accounts,including delayi
309、ng payments and refunding fees across our business banking,home lending,credit card,deposit,and auto lease and loan accounts.272020 Environmental,Social&Governance ReportOperational SustainabilityMinimizing the environmental impact of our physical operations is an important part of our overall susta
310、inability strategy.Doing so supports our commitment to operating responsibly,enhances the resiliency of our firm and reduces costs.Given the nature of our business,our direct environmental impacts stem primarily from the operation of our more than 5,500 corporate buildings,bank branches and data cen
311、ters.This section focuses on the operational components of our sustainability strategy.For more on how we are managing the environmental and social risks associated with our financing activities,see page 14;for more about how we are helping accelerate the transition to a low-carbon economy,see page
312、47.Our Operational Sustainability TargetsWe have developed the following targets to drive progress on operational sustainability:Maintain carbon neutral operations annually,starting in 2020Source renewable energy for 100%of our global power needs annually,starting in 2020Reduce Scope 1 and Scope 2 g
313、reenhouse gas emissions by 40%by 2030 vs.a 2017 baselineSatisfy at least 70%of our renewable energy goal with on-site renewable energy and off-site long-term renewable energy contracts by 2025Transition our entire owned fleet of vehicles to electric vehicles by 2025Reduce global water consumption by
314、 20%by 2030 vs.a 2017 baselineReduce office paper use by 90%by 2025 vs.a 2017 baselinePurchase 100%of our paper from certified sources by the end of 2021Divert 100%of e-waste from landfillsAchieving Carbon Neutral OperationsIn 2020,we committed to become carbon neutral across our operations.Our comm
315、itment includes Scope 1(direct)greenhouse gas(GHG)emissions from building operations and company-owned aircraft and vehicles;Scope 2(indirect)GHG emissions from purchased electricity;and Scope 3(indirect)GHG emissions associated with business travel.We are committed to maintaining carbon neutral ope
316、rations each year going forward.Our strategy to achieve and maintain carbon neutral operations is focused on the following:Improving efficiency.Reducing the amount of energy we use is our first priority;we have undertaken a range of energy efficiency measures across our operations and plan to implem
317、ent additional improvements in the coming years.Sourcing renewables.Next,we are focused on installing on-site renewable energy systems at JPMorgan Chase properties and executing long-term renewable energy procurement agreements(e.g.,Power Purchase Agreements and green power supply contracts).Purchas
318、ing Energy Attribute Certificates(EACs)and carbon offsets.Finally,for the remainder of our direct and indirect emissions,we are purchasing applicable EACs(e.g.,Green-E certified Renewable Energy Certificates RECs,International-RECs)and verified carbon offsets(see page 31).282020 Environmental,Social
319、&Governance ReportOur 2020 Operational GHG FootprintJPMorgan Chases operational GHG footprint stems from two primary activities:powering our buildings(e.g.,electricity,heating and cooling)and business travel.Scope 2 emissions,from purchased electricity,are the largest driver of our building-related
320、emissions and overall operational GHG footprint.The majority of our business travel-related emissions are Scope 3 emissions from commercially operated air and rail;reimbursed personal vehicle and rental car travel;and hotel stays.A small portion of our business travel emissions are Scope 1 emissions
321、 from company-owned aircraft and vehicles.Direct emissions from owned or controlled sourcesScope 1Indirect emissions from the generation of purchased electricityScope 2(a)Other indirect emissions sources(b)Emissions Sources(c)Carbon Neutral StrategiesScope 369,570MtCO2e(d)9%660,601MtCO2e(d)86%36,169
322、MtCO2e(d)5%Reduce business travelPurchase verified carbon offsetsPurchased electricity for owned and leased facilities for which the firm controls the energy usage and pays the utility billsReduce energy consumptionInstall on-site renewable energyExecute long-term renewable energy procurement agreem
323、entsPurchase applicable EACs and verified carbon offsetsFuel oil to heat buildings,diesel to run generators,jet fuel for company-owned aircraftBusiness travel,including air,rail,reimbursed personal vehicle and rental car travel,as well as hotel staysReduce energy consumptionProcure low-carbon fuels(
324、e.g.,sustainable aviation fuel)Purchase verified carbon offsets(a)Scope 2 emissions are location based(b)Includes business travel(c)List is not exhaustive(d)Metric tons of carbon dioxide equivalentBuildings,Branches and Data CentersThe largest contributor to our operational GHG footprint is purchase
325、d electricity,which is why our strategy for carbon neutral operations is principally focused on reducing energy use and sourcing renewable energy.To that end,in 2017,we set a goal to source renewable energy for 100%of our global power needs on an annual basis,beginning in 2020.We met our goal in 202
326、0 by generating and purchasing renewable energy and corresponding EACs in an amount equivalent to the total megawatt hours(MWh)of electricity that our firm consumed globally throughout the year.We intend to maintain our commitment to carbon neutral operations and to do so in a way that maximizes pos
327、itive impact.Moving forward,we will continue to support the development of renewable energy,including by installing on-site renewable energy systems and executing long-term renewable energy procurement agreements.We have set a goal that these solutions will make up 70%or more of our renewable energy
328、 procurement,with the remainder satisfied by applicable EACs.In parallel,to drive progress in efficiency and reduce our energy use,in 2021 we announced a new target to cut our Scope 1 and Scope 2(location-based)emissions by 40%by 2030,over our 2017 baseline.292020 Environmental,Social&Governance Rep
329、ortHighlights of our efforts include the following:Energy efficiency.We have implemented a number of efficiency measures across our operations.For example,we have installed LED lighting systems at approximately 4,300 branches and 50 commercial offices,reducing lighting-related electricity consumptio
330、n at each building by an estimated 50%.We have also installed energy-efficient building management systems at over 3,400 branches to better control and monitor energy use at each location.In addition,we recently piloted an artificial intelligence-based building management system overlay,which will p
331、rovide real-time data and insights to help us further reduce our energy use and GHG footprint of our commercial buildings.On-site renewable energy.Since 2017,we have installed on-site solar generation systems across our global operations,where feasible.This includes installing approximately 30 megaw
332、atts(MW)of solar capacity across 900 branches,which are expected to provide about 35%of each locations power needs.In addition,during 2020 we began installing an additional 12 MW of carport solar capacity at our corporate campus in Columbus,Ohio.Combined with the existing rooftop array,the site will
333、 have approximately 14.8 MW of solar capacity and will be able to generate about 75%of its annual power needs.We also recently completed construction of a 2 MW solar array at our Bournemouth,England,campus,which,in combination with thermal energy storage,provides enough energy to power the entire campus during the day.All told,we currently have plans to install 40 MW of solar capacity across our c