Turning JP Morgan green from the inside out

Matthew Arnold

Matthew Arnold

Can Wall Street become a friend of the earth? For nearly a decade now, most of the big investment and commercial banks have had chief sustainability officers, but it’s never been clear to me what they can and cannot do.

To find out, I spoke recently with Matt Arnold, the head of environmental affairs for JP Morgan Chase, who I’ve known for years. Matt, a lifelong environmentalist, was refreshingly honest.

In my latest column for the Guardian Sustainable Business website, I report on what I learned. Here’s how the story begins:

Deep inside the belly of the beast known as JPMorgan Chase toils a lifelong environmentalist and former Eagle Scout named Matthew Arnold who is trying to help turn the bank, if not green, well, a bit greener. It’s a daunting job.

Arnold, 51, joined the company in autumn 2011 as head of the office of environmental affairs because, he says, of the sheer scale of the opportunity; last year, the bank booked $99.9bn (£64bn) in revenue and $21.3bn (£14bn) in profits, providing credit and raising capital of more than $1.8tn, for everything from home mortgages to credit cards to corporate bonds and IPOs. The bank manages another $1.4bn in assets (as of September 2012) for clients. If Arnold can help steer even a slice of that towards more sustainable ventures – for example, towards wind and solar energy and away from coal – he will be doing his part to make Wall Street a friend of the earth. But can he?

“The position I’m in now has the greatest potential for impact of anything I’ve done,” Arnold says. “Yet there’s no manual for this. There’s not a clear roadmap.”

You can read the rest of the column here.

On Wednesday, by coincidence, at the GreenBiz Forum in New York, I’ll be interviewing Matt and Erika Karp, who is head of global sector research at UBS, to talk about the role of Wall Street in promoting sustainability. Matt and Erika will also be joining us this spring at Fortune Brainstorm Green.

 

 

Why count carbon?

Hara Software is a clean tech startup, funded by Kleiner Perkins, that originally got a lot of attention as a company to that help others curb their carbon footprint. Oops. That doesn’t look like such a great selling point today, as proposed U.S. legislation to curb greenhouse gases is stalled and we are moving farther away, not closer to, an international agreement to deal with climate change.

But Hara now talks about “organizational metabolism” — the idea that companies can run more efficiently while consuming fewer inputs — and says that its software will help clients “minimize environmental impact and maximize profits.” It’s got a solid list of customers, including Safeway, Intuit, News Corp., Brocade and, most recently, Hasbro.

logo_greenbizThis Tuesday (6/29) at 2 p.m. EDT, I’m going to moderate a free webinar organized by Greenbiz.com (where I am a senior writer) in which we’ll learn more about how environmental, energy and carbon management can deliver bottom-line benefits. It’s called “From Reporting to Reduction: The Resource Optimization Imperative” (not my title!) and you can sign up for it here.

I’m looking forward to it because the speakers who will be joining me are smart executives with long and impressive track records in business, the nonprofit world and government. Matt Arnold is a principal with PriceWaterhouse Coopers who leads the firm’s climate change practice; he previously worked at IBM, Merrill Lynch and as a top exec at the World Resources Institute, and he’s a member of the board of Forest Trends. Michel Gelobter is the chief green officer at Hara, the founder of Cooler, the former director of environmental quality for the city of New York, and a board member of the NRDC and Ceres.

Please join us — we’ll be taking questions during the hour-long webinar.