Innovation

In October 2014, The Nobel Prize for Physics was awarded to Isamu Akasaki, Hiroshi Amano and Shuji Nakamura for their development of blue light emitting diodes (LEDs). This technology allowed brilliant and energy-saving white light sources. The now pervasive, LEDs are utilized in an extensive array of applications “from televisions to sterilizers and do not contain toxic mercury that is found in fluorescent lamps.” (Johnston, Personalities, 2014)

While LEDs first came on the scene in the early 1960s in the color red and within ten years, in the color green, the challenge was developing mechanisms that could transport enough blue light. To fabricate white light LEDs; red, green, and blue are all required. Ultimately, this is what Akasaki, Amano, and Nakamura were able to discover. (Johnston, Blue LED research wins Nobel Prize, 2014)

JPMorgan Chase, a global financial institution, has partnered with Current, the first-of-its kind energy start-up within GE, to contribute to their objective of sourcing renewable energy for all their power needs by 2020. This ambitious task, led by JPMorgan Chase, is the world’s largest LED lighting installation projects to date. This project seeks to install 1.4 million new LED light bulbs in approximately 4,500 Chase branch locations throughout the United States. In conjunction with the Business Management System which controls the lighting, heating, and air conditioning systems, this will reduce JPMorgan Chase’s light consumption by 50 percent in 2020. (JPMorgan Chase & Co., 2017)

Inspiration

JPMorgan Chase is putting capital to work, and is a tremendous leader and role model for other companies and industries to follow. Its comprehensive strategy aims to advance sustainable solutions for its clients and its own operations. This effort is the largest made by a global financial institution and builds on the firm’s leadership and long-standing efforts. The inspiration comes from its leadership, Jamie Dimon, Chairman and CEO of JPMorgan Chase and Daniel Pinto, Co-President and COO for JPMorgan Chase; CEO, Corporate & Investment Bank, who is spearheading the program. (K. Nilsson, interview, October 22, 2018). Jamie Dimon stated: “Business must play a leadership role in creating solutions that protect the environment and grow the economy. This global investment leverages the firm’s resources and our people’s expertise to make our operations more energy-efficient and provide clients with resources they need to develop more sustainable products and services.” (O'Halloran, 2017)

JPMorgan Chase is committed to using renewable energy for 100 percent of their energy needs as well as facilitating $200 billion in clean financing. These efforts have been gradually and thoughtfully increasing for over a decade. JPMorgan Chase is not just about an employer with a real estate portfolio of 75 million square feet of space, but also as a financial services company helping its clients better manage sustainability challenges and capitalize on new opportunities.

Overall impact

JPMorgan Chase’s efforts add short- and long-term value to our society, environment, and businesses. The installation of LED lights across 4,500 branches has a positive impact, the change to LED lighting is equivalent to 104,306 acres of forest preserved, or 26,790 passenger vehicles taken off the road. As a leader in sustainability and social issues, this should promote other businesses to follow JPMorgan Chase’s footsteps.

To date, 2,500 Chase banking branches have been retrofitted with LED lighting, and are on track to reach its goal by 2020. (JPMorgan Chase & Co., 2016)

Business benefit

Implemented in 2016, the original plan called for a 12 percent energy savings, but the actual savings have surpassed expectations by around 15 percent in total energy consumption, and 50 percent in lighted-related energy use, depending on the branch. In electrical terms, a savings of 184,000 kilowatt hours. This is attributed to the characteristics of the LED light bulb itself. In addition to the significant wattage reduction, the LED light bulb generates little heat contrary to the previous incandescent and phosphorus light bulbs, which further reduces summertime AC usage in their branches. (Watson, 2017)

As mentioned earlier, JPMorgan Chase has further leveraged its LED lighting project by partnering with General Electric (GE). GE is in the process of installing a company-wide energy management system that uses sensors, software and lighting controls to provide the bank with new insights to manage its water, electricity and HVAC systems. Since this newly implemented system is powered by “Predix”, GE’s platform for the industrial internet, it can be accessed from anywhere in the world (Watson, 2017). Lights can be remotely turned off, and the system automatically alerts staff of any issues, such as if a HVAC unit is malfunctioning in one of the branches.

With respect to business-related benefits, the cost savings of these new projects positively affect JPMorgan’s bottom line, enabling the firm to allocate funds toward other endeavors, while maintaining long-term sustainable viability for JPMorgan Chase.

Social and environmental benefit

JPMorgan Chase is setting the stage for businesses to implement environmentally-friendly projects, as noted earlier. These efforts are also similar to preserving 104,306 acres of forest or removing 45,611 tons of waste from landfills (JPMorgan Chase & Co., 2016). To gain insight into the consequence of landfill waste on humans, the New York State Department of Health reports, per their website, that copious amounts of carbon extend to and enter nearby buildings and rob the environment of needed oxygen. This is done via the soil releasing carbon to the air outside and inside buildings. This reduction of oxygen can cause side-effects; such as, increased heart rate, fatigue, decreased coordination, unconsciousness, and nausea. This enlightens us on how much carbon waste we are exposed to on a daily basis.

In closing, JPMorgan Chase is an example of opening the door to a pro-wellness era for both its customer and its employees, which benefits its overall business. Efforts in utilizing renewable energy by using solar power to generate power in its own buildings also inspired JPMorgan Chase to take further steps by supporting the Buckthorn windfarm, a 100-megawatt project in Texas. This will facilitate JPMorgan Chase to pursue their goal of 100 percent reliance on renewable energy resources (Annual Report, 2017).

Interview

Kristina Nilsson, Executive Director, JPMorgan Securities LLC.