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JPMorgan Chase Engages Third-Party for Racial Equity Audit
New York, NY– March 24, 2022
To reinforce the firm’s commitment to racial equity, JPMorgan Chase today said it intends to retain a third-party to perform an audit of this effort. The firm reached its decision following successful engagement with and withdrawal of a racial equity audit shareholder proposal by SOC Investment Group and SHARE. The audit will be conducted by independent auditors.
The firm’s $30 Billion, five-year Racial Equity Commitment, which the audit will cover, is focused on helping close the racial wealth gap among Black, Hispanic and Latino communities. The firm published a progress update on this commitment in October 2021 and will share updates going forward in its annual ESG Report.
“Through our expanded racial equity effort, we knew the only way to successfully serve all communities was to incorporate sound risk and controls processes from day one -- to hold ourselves accountable to our commitment and drive equitable economic growth for all,” said Brian Lamb, global head of Diversity, Equity & Inclusion, JPMorgan Chase. “We appreciate SOC Investment Group’s input into the structure of this audit, which will help further affirm that JPMorgan Chase is following through on our commitment and that we have the resources in place to advance racial equity.”
“It’s a step in the right direction that JPMorgan Chase is responding to shareholders’ call for a third-party assessment examining the institution’s efforts to address the racial equity of Black and brown people and other marginalized groups. We look forward to a transparent and thorough process that will determine the true strength of J.P. Morgan’s commitment” said Dieter Waizenegger, Executive Director of SOC Investment Group. “As support for civil rights and racial equity audits swells across the business world, shareowners expect the nation’s most powerful corporations and financial institutions to engage in open and honest assessments of how racism impacts their product and services, not only to protect their long-term interests but to identify new growth areas. We look forward to continuing this dialogue with J.P. Morgan.”
JPMorgan Chase will prepare and publish a report based on the results of the audit by the end of 2022. This third-party audit builds on the firm’s existing risk and control efforts including an internal audit function, which has been reviewing and evaluating processes, products and obligations related to the firm’s Racial Equity Commitment.
JPMorgan Chase regularly engages and seeks valuable input from external stakeholders, including through the Chase Advisory Panel, a group of longstanding advocates for civil rights and equity, on its Racial Equity Commitment and other efforts to help inform its work and provide updates on progress.
About JPMorgan Chase
JPMorgan Chase & Co. (NYSE: JPM) is a leading financial services firm based in the United States of America (“U.S.”), with operations worldwide. JPMorgan Chase had $3.7 trillion in assets and $294.1 billion in stockholders’ equity as of December 31, 2021. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. Under the J.P. Morgan and Chase brands, the Firm serves millions of customers in the U.S. and many of the world’s most prominent corporate, institutional and government clients globally. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com