The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
ESG

US banking inches closer to ESG alignment

JPMorgan Chase to stop financing private prisons; Aspiration shows values-based banking model.

Andrei-Cherny-Aspiration-sign-780

Aspiration’s chief executive and co-founder Andrei Cherny



In March, JPMorgan Chase announced it would stop financing GEO Group and CoreCivic – the largest operators of private prisons and immigration detention centres in the US. The decision follows months of protests from customers and activists outside bank branches, and even CEO Jamie Dimon’s Manhattan home. Other large banks that finance private prisons, such as Bank of America and Wells Fargo, are expected to follow suit. Wells Fargo, for example, has said it will be reducing its financing to the sector.

The move has been received positively by social activists who oppose a system in which prisons are financially motivated to have people incarcerated. Indeed, according to a report in the Washington Post, $25 million has been spent by the private prison industry lobbying for harsher sentences over the last 30 years. 

That JPMorgan Chase has altered its finance policy around private prisons when it has remained silent on financings around guns and pipelines, for example, is being seen as a signal that the bank may be becoming more open to reviewing the impact of its balance sheet on society. Although




You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree