In today’s economy, too many people – particularly too many young people – are being left behind. More than 5 million young Americans are out of school and out of work, including more than one in five young black adults. Reliable pathways to the middle class have dissolved. Lower-income families, already struggling to make ends meet, are falling even further behind.
This is not sustainable. Creating more opportunity for more people to participate in and share the rewards of economic growth is a moral and an economic imperative.
But government cannot solve this challenge – certainly not on its own. The private sector needs to step up and be part of the solution.
JPMorgan Chase & Co. is leveraging the assets of our firm – our people, expertise and technology – to help address these trends. Each year, we deploy more than $200 million in philanthropic capital toward programs aimed at expanding access to opportunity and advancing economic mobility around the world.
We are applying the same rigor and analysis to these efforts as we do to other aspects of our business. Unlike traditional models of corporate philanthropy, our strategic investments are driven by robust data and research. We are supporting innovative research from our proprietary data on the finances of nearly 50 million U.S. households to real-time labor market dynamics in countries throughout Europe and Asia.
Putting our firm's capabilities to work
Our efforts are focused on areas where we can best put our firm’s capabilities to work and where we can most effectively drive change. Millions of jobs in the United States and Europe are being created that require a high school degree but not a four-year college degree. Through our New Skills at Work initiative, we are connecting job seekers to tangible opportunities by helping them gain the right skills for today’s high-quality jobs. We are expanding on this work with an ambitious new program, New Skills for Youth, to arm young people – particularly those most at risk of winding up out of school, unemployed or stuck in low-wage jobs – with the skills and training needed to get on the road to a well-paying, long-term career.
Through Small Business Forward, we are opening the doors that have too often been shut to minority and community-based small business owners by creating programs and investments that provide the capital and support these entrepreneurs need in order to succeed. Through the JPMorgan Chase Institute and the Financial Solutions Lab, we are applying our unrivaled data and insights into consumers’ finances and deep technological expertise to help low- and moderate-income households become more financially secure. The Global Cities Initiative continues to help cities around the world generate the economic growth that will fuel greater opportunity. And through Invested in Detroit, we are bringing all these pieces together to support and accelerate the turnaround of one of America’s iconic cities.
All of these efforts are driven by the conviction that creating more widely shared prosperity – and giving more people the opportunity to move up the economic ladder – is not only good for our communities, it’s good for our company. We are very proud of what we have accomplished in 2015 and look forward to continuing and expanding this important work in the year ahead.
CEO, Head of Corporate Responsibility
Investing $100 million in Detroit’s future
JPMorgan Chase’s roots in Detroit date back to an early and successful public-private partnership: the creation of the National Bank of Detroit in the 1930s as part of the government’s plan to restart the nation’s banking system. Building on our record of commitment to the city — and once again collaborating with the public, nonprofit and private sectors — we are in the second year of our $100 million, five year program to accelerate Detroit’s recovery:
- Financed more than $35 million in aggregate loans to finance housing and mixed-use real estate projects and to help small businesses in the city expand and create new jobs through the $50 million in two new funds we seeded with our community development lending partners.
- Provided critical financial support to the Detroit Land Bank as it expanded its capacity to address blight in the city’s neighborhoods.
- Developed first-of-its-kind research that provides a comprehensive picture of Detroit’s workforce system — the demographics and skills of residents, labor market data on job opportunities in the city and the existing infrastructure of training providers — equipping the city’s workforce leaders with critical insights to inform their new vision and strategy for Detroit’s businesses and workers.
- Grew Focus: HOPE’s nationally recognized training program to prepare more than 250 Detroit residents for jobs in manufacturing and information technology over four years.
- Expanded access to capital for Detroit’s minority-owned small businesses by creating the $6.5 million Entrepreneurs of Color Fund along with the W.K. Kellogg Foundation. Managed by the Detroit Development Fund, the fund will provide loans and technical assistance, with a unique focus on the small contractors that are critical to meeting the demand for home renovation in the city.
- Boosted the growth of 10 Detroit-area startups to stimulate economic development and job growth through the $2.7 million Innovation Fund launched by JPMorgan Chase and Macomb Community College in 2014.
- Sent 36 JPMorgan Chase employees from around the world to work intensively with 11 Detroit nonprofits to help them solve specific operational challenges and plan for future sustainability since 2014.
New Skills at Work
While unemployment rates are falling in many communities around the world, they remain stubbornly high among young people, people of color and those with multiple barriers to employment. The reasons for this are complex and so are the solutions. Our $250 million New Skills at Work initiative supports datadriven approaches to creating pathways to middle-skill jobs, helping employers who are struggling to fill openings and job seekers looking for the education and training opportunities needed in the 21st century economy. The data-driven approach to this challenge is compelling because it is achievable. In 2015, we released reports analyzing labor market data and trends in the United Kingdom, France, Spain, Germany and in seven U.S. cities. These reports provide the intelligence that employers, training programs, policymakers and job seekers need in order to assess supply and demand accurately and to create workforce programs that develop a pipeline of skilled talent. In addition, we approved our first program related investment, a $5 million, 10-year low-interest loan to Vital Healthcare Capital to finance healthcare services and quality frontline healthcare jobs in low-income communities in the United States.
In early 2016, we announced New Skills for Youth, a $75 million global commitment to improve career readiness for young people by investing in career readiness programs that align with the needs of local industries.
By fostering effective partnerships, utilizing data to drive better outcomes and providing workers with the skills needed to land middle skill jobs connected to career pathways, we are supporting some of the most powerful strategies available to expand opportunity.
JPMorgan Chase Institute
In 2015, we launched the JPMorgan Chase Institute, a global think tank dedicated to delivering data-rich analyses for the public good. The Institute utilizes our proprietary data, augmented by firmwide expertise and market access, to provide insights on the global economy and offer innovative analyses to advance economic prosperity.
The Institute released three reports in 2015 that shed new light on the behavior of U.S. consumers:
- The inaugural report analyzed anonymized transaction-level consumer data, focusing on fluctuations in income and consumption. The Institute’s study revealed that while U.S. households across the income spectrum experience financial volatility, most lack an appropriate financial buffer to weather these shocks.
- The Institute then analyzed consumer behavior in response to the dramatic decline in gas prices. Although prior research suggested American consumers saved more than half of their additional discretionary income resulting from the gas price decrease, the Institute research revealed that, in reality, consumers spent roughly 80% of this extra income, primarily on goods and services.
- In December, the Institute offered unprecedented insight into consumer commercial spending within local communities, enabling researchers to identify spending patterns by consumer age, income and residence or by the size and type of merchant.
Harnessing the unique assets of the firm and the power of big data, the Institute is explaining the global economy in a way that provides decision makers with the necessary information to frame and address critical issues.
2015 Highlights and Accomplishments
Developing local economies and communities
- Provided $3.1 billion to low- and moderate-income communities through community development lending and equity investments.
- Awarded $48 million since 2014 to networks of community development financial institutions (CDFI), providing capital to small businesses and community projects unable to qualify for traditional loans. The initial $33 million investment with 42 CDFIs leveraged an additional $226 million of capital to preserve affordable housing and support small business growth in low income communities.
- Provided $3 million to support the launch of a $30 million National African American Small Business Loan Fund managed by the Valley Economic Development Centers to provide entrepreneurs in Chicago, Los Angeles and New York with flexible capital to grow their businesses.
- Committed nearly $6 million since 2014 to support skills-based summer employment opportunities for young people, including more than 3,200 jobs and work related opportunities in 2015.
- Provided $2.2 million to support implementation of global engagement strategies in cities across the United States and released profiles on the economic competitiveness of Stockholm and Johannesburg through the Global Cities Initiative, a joint project of the Brookings Institution and JPMorgan Chase that promotes sustainable economic growth.
Increasing financial capability
- Committed $45 million since 2014 to nonprofits, helping more than 1 million low-income individuals in 11 countries acquire the knowledge and tools needed to promote their financial health.
- Launched the Catalyst Fund with the Bill & Melinda Gates Foundation to provide $2 million in funding and mentorship to social entrepreneurs in emerging markets focused on breakthrough technology innovations for consumers globally.
- Announced nine winners of the Financial Solutions Lab competition to identify financial technology products that help U.S. households manage cash flow challenges. Winners received $3 million in capital, technical assistance and mentorship to accelerate their development. The Lab is a $30 million program launched with the Center for Financial Services Innovation to identify and scale promising innovations to improve consumer financial health.
- Committed $7.5 million to the Accion Frontier Inclusion Fund to promote innovations in financial services in emerging markets. JPMorgan Chase has deployed $68 million to impact investments that have helped improve the livelihoods of more than 58 million people.
- Supported the new BankOn 2.0 national account standards to provide “safe” accounts for consumers just entering the banking mainstream. Chase Liquid® has been identified as a model account that meets these important new standards.
Supporting service members, veterans and their families
- Announced the evolution of the 100,000 Jobs Mission — an employer coalition founded by JPMorgan Chase and 10 other companies in 2011 to hire veterans. The newly named Veteran Jobs Mission reflects the coalition’s growth to 220 employers committed to hiring 1 million veterans. Since 2011, members have hired more than 314,000 veterans — over 10,000 of those hires were made by JPMorgan Chase.
- Donated more than $7.5 million in the second year of a $20 million commitment to the Philanthropy- Joining Forces Impact Pledge in support of veterans and their families.
- Renewed support to Syracuse University’s Institute for Veterans and Military Families through a $14 million contribution through 2020. In addition to other projects, this contribution will continue to wholly fund the Veterans Career Transition Program through which more than 3,400 post-9/11 veterans and military spouses have earned 4,600 certificates since 2011.
- Supported military families in need by donating more than 800 mortgage-free homes, valued at nearly $150 million, through the firm’s nonprofit partners.
Engaging local communities
- Engaged more than 47,000 employees in volunteer service and sent 32 top managers to Detroit and Mumbai to apply their expertise full time to help our nonprofit partners expand their capacity to serve local communities.
- Provided more than 31,000 hours of skilled volunteerism through Technology for Social Good, a program that harnesses the technical experience of our employees to develop innovative technology solutions for nonprofits. Technology for Social Good delivered $3.3 million in social value to over 100 nonprofits globally.
- Completed the first year of the expansion of The Fellowship Initiative, a JPMorgan Chase program that prepares 120 young men of color to succeed in high school, college and beyond. Fellows participated in more than 30 days of extracurricular academic and leadership programs, including an All Star Code technology development workshop.
Promoting innovation in sustainable investment
- Continued support for NatureVest, which structured the first ever climate adaptation debt swap to protect 30% of the marine territories of the Seychelles. In 2014, JPMorgan Chase was the founding sponsor of NatureVest, The Nature Conservancy’s conservation finance unit.
- Underwrote more than $4 billion in green and sustainability-themed bonds and committed and arranged approximately $2 billion of capital for renewable energy projects in the United States.
- Launched the Dementia Discovery Fund in partnership with the U.K. government, which has attracted more than $100 million from leading pharmaceutical companies for investments into new treatments for dementia.