J.P. Morgan to Invest $30 Million USD in Greater Paris to Create Economic Opportunity
Efforts will apply learnings from investment model in U.S. cities to support underserved small businesses and skills training in Seine-Saint-Denis and other areas with high levels of poverty and unemployment
Five-year philanthropic commitment marks the firm’s 150th anniversary in Paris and is the first investment as part of the AdvancingCities initiative
November 5th, 2018 (PARIS) - J.P. Morgan (NYSE: JPM) is making a $30 million USD investment over five years to provide underserved residents and local entrepreneurs across Île-de-France, particularly in Seine-Saint-Denis, with access to greater economic opportunity. The announcement will be made tomorrow, November 6, at an event in Seine-Saint-Denis with senior business, community and government leaders, including JPMorgan Chase Chairman and CEO Jamie Dimon, French Minister of Employment Muriel Penicaud, and French State Secretary Agnès Pannier-Runacher, among others.
This new philanthropic investment applies learnings from the firm’s recognized investment model in U.S. cities, such as Detroit, and builds on the firm’s 150-year commitment to serving clients and the local communities in France. It is also the first investment announced as part of the firm’s new AdvancingCities initiative.
“Since 1868, we have served our clients and local communities in France in good times and the toughest of times,” said Jamie Dimon, Chairman and CEO, JPMorgan Chase. “We are deepening our commitment to Greater Paris because we know that when communities thrive, business thrives. We are excited to work together with local leaders to focus our investments on helping more people benefit from the area’s economic growth.”
Addressing Challenges in Greater Paris
Despite having a large and growing economy, 1.5 million of Greater Paris’ residents live in neighborhoods with limited access to opportunity, and significant levels of poverty and unemployment. J.P. Morgan’s investments will focus on key drivers of inclusive economic growth including jobs and skills development, and small business expansion.
This increased commitment to Greater Paris reflects a doubling of the firm’s philanthropic investments in the region. Past investments from J.P. Morgan have helped 2,500 young and long-term unemployed adults receive technical training, participate in upskilling programs and get access to mentorships. They have also supported over 1,200 small businesses, helping create over 2,300 jobs.
“We are pleased to support responsible companies like J.P. Morgan, which is promoting inclusive employment for more residents of the department of Seine-Saint-Denis with this large philanthropic investment. It's part of their commitment to promote economic opportunity for the most vulnerable people,” said French Minister of Employment Muriel Penicaud. “This area has a great pool of diverse talents and small business entrepreneurs, and we look forward to collaborate with J.P. Morgan and other organizations - through the PIC (investment plan for competencies) - to equip them with the skills and resources that they need to contribute to our country’s economic growth.”
J.P. Morgan has also offered the time and expertise of its employees through the Service Corps to help local nonprofits maximize their community impact. The Service Corps program was launched in Greater Paris earlier this year and it helped inform the firm’s new investment in the region. This initiative brought 16 of the firm’s employees together to work with ADIE, Simplon.co, Ares and Article 1 to help these organizations scale their work, improve financial reporting processes, and measure and increase their financial sustainability.
“In the nonprofit world, there is no shortage of a shared commitment to the mission. However, there is often a need for people who have management expertise and can help nonprofit teams create efficiencies and scale their work,” said Thibaut Guilluy, CEO of Ares. “That’s why we are grateful for our collaboration with the J.P. Morgan Service Corps team that brought their expertise from all over the world, helping us maximize the positive impact of our work on local communities.”
“Unemployment for those who live in these districts does not have to be inevitable,” said Kyril Courboin, Head of France for J.P. Morgan. “Through the collaboration between public authorities, private sectors, non-profit organizations and the social and solidarity economy, we want to build an ecosystem favorable to the economic inclusion of many.”
How J.P. Morgan is Creating Economic Opportunity
In Greater Paris, J.P. Morgan will apply lessons from its proven investment model for impact in Detroit, Chicago, and Washington, D.C., which has been recognized for its impact by Harvard Business School.
To increase access to economic opportunity for more people, the firm’s model combines data with its business expertise—including human capital, management expertise and partnerships. To maximize the impact of this new investment on the community, J.P. Morgan will continue forging partnerships with businesses, government, nonprofit and civic organizations in Greater Paris.
The investment is part of the firm’s AdvancingCities initiative, a groundbreaking $500 million USD, five-year initiative to invest in collaborative solutions that bolster the long-term vitality of the world’s cities and the communities within them that have not benefited from economic growth.
“It is very important for us to bring learnings from our work around the world to Greater Paris as we continue to deepen our commitment to the region,” said Peter Scher, Head of Corporate Responsibility, JPMorgan Chase. “We have seen that by putting the full assets of our firm to work and partnering with the government, other businesses and nonprofit organizations, we can make a difference in the lives of people and communities that have been left behind.”
“We are proud of the work we have done to date with the support of J.P. Morgan to develop a new apprenticeship model and provide more young people with access to apprenticeships that will prepare them, in an innovative way, for careers in the construction and manufacturing sectors,” said Jean-Claude Bellanger, Secretary General of the Compagnons du Devoir. “We hope that J.P. Morgan's new commitment will help even more people secure the jobs and skills training they need to succeed.”
Greater Paris Investment Priorities
The firm will focus its $30 million USD Greater Paris philanthropic investment on accelerating innovative efforts that build skills for underserved young people and adults as well as to help small businesses share in the area’s economic growth. J.P. Morgan will collaborate with local leaders from across sectors to build on economic development activity currently underway and major infrastructure projects planned around Paris.
- Giving residents access to well-paying, in-demand jobs: To reduce school drop-out rates, the firm’s investments will focus on increasing access for young adults to career pathways that research shows are aligned with well-paying jobs in sectors such as construction, IT and environmental sustainability. In addition, J.P. Morgan will help provide long-term unemployed adults with the necessary training and skills for in-demand jobs in the rapidly-evolving construction and logistics sectors. This work will build on past collaboration with nonprofit organizations and training institutions, such as Les Compagnons du Devoir, Simplon.co, Sport dans la Ville, AFMAe (Association pour la Formation aux Métiers de l'Aérien), Mozaik RH and FACE.
- Growing small businesses: Small businesses have the potential to drive economic prosperity in Seine-Saint-Denis and other neighborhoods which struggle with unemployment and poverty through the creation of jobs and commercial traffic that powers regional economies. However, research shows that entrepreneurs in these areas lack access to financing, connections and other resources that are necessary to start and grow a business. Over the past five years, J.P. Morgan has collaborated with organizations like Impact Partenaire, Pact PME and ADIE to support the growth of small businesses. This increased commitment will help more local and diverse small businesses grow and become more competitive through the development of affordable work and commercial space.
To help local residents benefit from the new investment, the firm will also continue utilizing one of its most important assets, the talent of its employees. J.P. Morgan’s Schools Challenge pairs underserved local students with J.P. Morgan mentors to help them think about and work towards potential career paths. The Service Corps will also continue to match employees from around the world with local nonprofit organizations.
History of J.P. Morgan in France
J.P. Morgan’s history of serving clients and the local communities in France dates back to 1868. During World War I, J.P. Morgan & Co.in New York arranged the largest foreign loan in Wall Street history – a $500 million USD Anglo-French loan – and acted as purchasing agent in the United States for the Allies. In this capacity, J.P. Morgan placed over $3 billion USD worth of contracts with American suppliers. J. Pierpont’s daughter, Anne, organized the American Committee for Devastated France during the War and provided aid to civilians in war-torn communities close to the front. After the War, the firm focused on the financing of European reconstruction after World War I, underwriting millions of dollars in bond issues and short term credits for France. Today, J.P. Morgan employs more than 200 people in France and serves 550 clients across the country. For more information visit: www.jpmorganchase.com/corporate/Corporate-Responsibility/advancingcities-paris.
About JPMorgan Chase
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.6 trillion and operations worldwide. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of customers in the United States and many of the world's most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.