Through mandates, mentorship and mobilisation, JPMorgan Chase & Co. is promoting diverse spend throughout its supply chain to enact real change
In an era where Environmental, Social, and Corporate Governance (ESG) is rising rapidly to the top of corporate agendas, prioritising diversity is not, on the surface, a novel idea. In fact, JPMorgan Chase has been committed to supporting diverse suppliers for almost 30 years, with the philosophy that an inclusive supplier base that mirrors the communities in which the bank does business generates wealth, creates jobs and fosters economic growth. Currently, JPMorgan Chase dedicates about $2bn annually – to diverse-owned and managed companies. And in October of 2020, JPMorgan Chase made a commitment to increase its spend with Black, Hispanic and Latino businesses by US$750 million as a part of the firm’s $30bn commitment to help close the US racial wealth gap.
JPMorgan Chase’s global procurement function oversees $19bn in annual spend, across 6,500 suppliers encompassing technology, professional services, real estate, legal, and every category in-between. Given the impact of this significant spend and its ripple effect on the global economy, the team is cognizant of the importance of purchasing responsibly.
Jim Connell, Chief Procurement Officer and Head of Global Supplier Services aims to drive diversity further through the bank’s procurement function.
“Supplier diversity is a top priority across Global Supplier Services, which really involves every part of our team – even payment operations and supplier assurance services, who historically wouldn’t be involved,” Connell says. “I think it’s important that we all play a part in driving supplier diversity forward.”
JPMorgan Chase is “doubling down” through a unique approach that leverages its own scale to systematically promote best practices and commitments throughout its supply chain. The firm is mobilising key suppliers to spend more with diverse companies; mentoring those with emerging supplier diversity programs; enhancing discoverability of diverse suppliers; and promoting increased spend targets with key business communities, specifically Black, Hispanic and Latino.
The strategy is built upon JPMorgan Chase’s Gold Supplier program, an initiative launched in 2017 that brings together industry leaders to generate shared, incremental value and strengthen relationships with its most strategic and highest performing suppliers, from blue-chip market leaders to small and agile innovators -both publicly traded and privately held.