RATING
Outlook
Positive
SECTOR
Financial Service Activities
Chief Sustainability Officer
T: N/A
E-mail: N/A
Stock Exchange and Ticker
NYSE: AXP
Website
Contact
T: 212 640 2000
E.mail: N/A
Listing
- Anita Borg Top Companies for Women Technologists
- Bloomberg’s Gender-Equality Index (since 2016)
- Human Rights Campaign Corporate Equality Index—100% score (since 2004)
- Forbes America’s Best Employers for Diversity—ranked #24
- Forbes Best Companies to Work for in Spain—ranked #1
- FORTUNE 100 Best Companies to Work For—ranked #8
- FORTUNE 100 Best Workplaces for Millennials—ranked #9
- FORTUNE 100 Best Workplaces for Women—ranked #2
- FORTUNE Best Workplaces in Financial Services & Insurance—ranked #3
- FORTUNE Best Workplaces in New York—ranked #1
- FORTUNE World’s Most Admired Companies— ranked #13
- Great Place to Work: Best Workplaces for Parents—ranked #21
- Great Place to Work: Best Workplaces in Italy—ranked #2
- JUST Capital—JUST 100 List
- Newsweek and Statista America’s Most Responsible Companies—ranked #13
- PEOPLE 2021 Companies that Care—ranked #48
- Working Families Top 10 Employers in the UK
- Seramount 100 Best Companies—ranked top 10
- Seramount Companies for Dads
Awards
- (A-) CDP (CLIMATE)
- FTSE4GOOD INDEX SERIES
- (AA) Rating – MSCI (ESG)
- Low Risk – SUSTAINALYTICS ESG RISK RATING
Customers’ Awards
- Ranked #1 in J.D. Power 2021 US Credit Card Satisfaction Study for 11th time in the last 15 years
- Ranked #1 for our mobile app and website in the J.D. Power 2021 US Online & Mobile App Credit Card Satisfaction Studies
Revenue
$42.38B
Market Capitalisation
Employees
64,000
Content source
American Express Sustainability Report
Evaluation of American Express
American Express Company (AMEX) published this report to provide qualitative and quantitative information on the company’s approach to managing Environmental, Social, and Governance (ESG) opportunities and risks. The report covers the calendar year 2021 and in some cases, highlights from programs and initiatives launched in 2022, are covered. Furthermore, the report follows Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), and Task Force on Climate-Related Financial Disclosures (TCFD) reporting guidelines.
AMEX report is clear and comprehensive. Goals are well defined and progress can be easily measured, for the most part. Although AMEX mentions the SDGs they focus on, the company does not link goals, nor progress with the SDGs. The report is structured around the 3 pillars of the SDGs, namely promote diversity, equity and inclusion (D,E&I), advance climate solutions and build financial confidence, and each pillar contains information on the goals, progress and initiatives taken to address the goals. Important to note is AMEX’s support for small and medium size businesses, especially during and after the COVID-19 pandemic. Specifically, AMEX not only provided these businesses with educational resources, expanded access to credit and loans, grants, marketing support, but also encouraged their own customers to buy from small businesses, by ‘rewarding’ their purchases.
Highlight for the environmental progress is that AMEX has been carbon neutral since 2018 and continues to maintain this neutrality.
The Certificates and Awards received by AMEX only adds more value to the rating as the company has received numerous rewards regarding the management of the workforce, as well as from the customers feedback on the company.
Overall, AMEX sustainability efforts are clearly visible in the report and with only little progress remaining to achieve, AMEX is rated a B with a positive outlook.
Sustainability Scorecard
American Express Company Activity
American Express Company provides charge and credit payment card products, and travel-related services worldwide. The company operates through three segments: Global Consumer Services Group, Global Commercial Services, and Global Merchant and Network Services. Issuing a wide range of proprietary consumer cards is the responsibility of the Global Consumer Services. The Global Commercial Services segment serves the corporate and small businesses with proprietary cards, payment and expense management services, and commercial financing products. And lastly, The Global Merchant and Network Services segment operates a global payments network that processes and settles card transactions, acquires merchants, and provides multi-channel marketing programs and capabilities, services, and data analytics. The company was founded by Henry Wells, William G. Fargo and John Warren Butterfield on March 28, 1850 and is headquartered in New York, NY.
American Express Sustainability Activity - As per company declarations
In terms of sustainability, AMEX refers to the ESG framework established in 2020. The framework includes three main priorities: promote diversity, equity and inclusion (D,E&I), advance climate solutions and build financial confidence.
Among some of the initiatives taken within the D,E&I are strengthening a culture of inclusion and belonging across the company, supporting under-representedowned suppliers, partnering with non-profit organisations to promote equality and others.
Addressing the climate crisis, AMEX is focusing on minimising the carbon footprint and helping customers and communities do the same, committing to net-zero emissions by 2035, carbon neutral and 100% renewable energy in operations. Examples of initiatives include investments in the development of facilities to meet green certification standards and in “Backing Low-Carbon Communities”. Additionally, new digital tools are available for corporate customers to better understand and manage their carbon footprint. And lastly, AMEX is planning on converting the majority of plastic cards to be made of at least 70% recycled or reclaimed plastic.
Helping small businesses build financial confidence is one of AMEX’s ESG priorities, especially during the times of inflation, supply chain disruptions, labour shortages and ongoing pandemic impacts. Examples of initiative include “Shop Small campaign to help jumpstart spending at small businesses. “Backing Small” brings together all AMEX’s grant programs that focus on small businesses. AMEX also helps individuals and business owners with providing financial literacy, training and mentoring programs through longstanding partnerships with Junior Achievement worldwide.
Certificate & Labels, Standards and Frameworks
- CarbonNeutral®
- LEED
- BREEAM
- NABERS
- GreenMark
- HQE
- Effinergie+
- GRI
- SASB
- TCFD
American Express in the news: Press Reviews and Social Media
The first $1 billion sustainability note issued by American Express will mature in 2029, with the proceeds going toward social and environmental initiatives. The framework lists a variety of initiatives that could receive funding from the notes, including those that promote the circular economy, green buildings, energy efficiency, renewable energy, socioeconomic advancement and empowerment, access to basic services, and affordable housing.
The world’s top B2B travel platform, Amex GBT, is a division of American Express Global Business Travel. The NZCE pledge was introduced at the COP26 UN climate summit in Glasgow in 2021 to assist clients in measuring and minimizing the environmental impact of business travel and meetings. In order to create an industry-wide roadmap toward net zero by 2050, American Express Meetings & Events is working with NZCE initiatives to create a common framework for measuring events’ greenhouse gas emissions. At the yearly industry trade show IBTM World, taking place in Barcelona from November 29 to December 1, the company will be in charge of the Sustainability stream.
Highlights from American Express Sustainability Report
Achievements
- AMEX has been a CarbonNeutral® company since 2018, powered by 100% renewable electricity across global operations
- Published inaugural DE&I Report in 2021 and continued to provide additional data on hiring, promotions, and retention by race and ethnicity in this report
- Exceeded $1 billion in spending towards the DE&I Action Plan announced in October 2020 by expanding access to capital and financial education to underrepresented-owned suppliers, and by partnering with nonprofit organisations focused on promoting equality
- Maintained 100% pay equity across genders globally and across races and ethnicities in the US for the 2nd consecutive year
- 76% of US participants in the American Express Leadership Academy in 2021 were from underrepresented groups, exceeding the goal of 75% by 2024
- $265M in community development loans and investments through the American Express Center for Community Development in 2021
In 2021 joined the World Economic Forum’s Clean Skies for Tomorrow Coalition and Global Future Council on Sustainable Tourism to help promote sustainable travel practices
Targets vs Progress Reported
| Target | Results reported |
|---|---|
| Reduce energy use by 35% across managed facilities compared to a 2011 baseline by 2025 | - Goal exceeded in 2021, as AMEX managed to reduce by 57% the energy use through initiatives such as lighting retrofits, HVAC equipment upgrades, and new building control systems, as well as temporary work-from-home arrangements |
| Commit to net-zero emissions by 2035, in alignment with the Science Based Targets initiative (SBTi) | - Operations are already carbon neutral Mitigating GHG emissions from global operations, includes onsite solar electricity generation, energy attribute certificates (EACs), and carbon offsets: In 2021, produced approximately 561 MWh of renewable solar electricity at our North Carolina data centre and Brighton, UK office Purchased 202,170 MWh of EACs, in alignment with the technical guidance from RE100 Purchased 22,770 MTCO2e of carbon offsets in 2021, including wind power development, reforestation, and forest conservation projects |
| Remain carbon neutral across operations | - Carbon energy purchase decrease from 107% to 101% between 2019 and 2021 |
| Reach 40% of owned and leased space with LEED certification (or comparable) by 2030 | - Achieved carbon neutral operations for Scope 1, Scope 2, and Scope 3 emissions through renewable energy credits, carbon offsets, and reduced GHG emissions. Operations include all our managed facilities, field sites, and data centres |
| Achieve green building certifications for 60% of our operations by 2025 | - As of year-end 2021, approximately 56% of operations have achieved green building certifications |
| Reduce water use from our managed facilities by 10% per colleague compared to a 2019 baseline by 2025 | - Due to COVID-19 affecting the implementation practices towards achieving this goal, AMEX is temporarily suspending reporting on this goal and is currently reviewing the methodologies |
| Provide at least $10 million to support initiatives, partnerships, and programs that address the adverse effects of climate change and pollution on communities from 2021 through 2025 | - New partnerships announced in 2022 with American Forests, C40 Cities, National Park Foundation, and Earthwatch Institute, to fund projects and initiatives to support nature-based solutions and sustainability efforts in local communities, particularly in urban areas |
| Achieve zero waste certification for US headquarters (reach 90% waste diversion from landfills) | - In 2021, 32% waste diverted from landfills at US headquarters |
| Reduce waste generated from our managed facilities by 10% per colleague compared to a 2019 baseline by 2025 | - Due to COVID-19 affecting the implementation practices towards achieving this goal, AMEX is temporarily suspending reporting on this goal and is currently reviewing the methodologies |
| Divert 60% of office waste generated from our managed facilities away from landfills by 2025 | - In 2021, 54% of office waste generated was diverted from landfills, but there is no mention about how it was diverted |
| Eliminate single-use plastics across our operations by 2025 | - Due to COVID-19 affecting the implementation practices towards achieving this goal, AMEX is temporarily suspending reporting on this goal and is currently reviewing the methodologies |
| Source 100% of our direct marketing, customer communications, and office paper from certified responsibly managed forests by 2025 | - On track, at 96% in 2021 |
| The vast majority of plastic cards issued by AMEX to be made from at least 70% recycled or reclaimed plastic by the end of 2024 | - In summer 2021, launched first card made from recycled PVC in Canada In 2022, announced that France will become the first market to shift to recycled plastic for almost all of plastic cards - Partnered with Delta Air Lines for the the Delta SkyMiles American Express Cards to be made from 70% reclaimed plastic that achieved CarbonNeutral® product certification - Since the 2019 launch of the Card Take Back Program, recycled more than 1.3 million cards, including cards returned by Card Members |
| Maintain 100% pay equity across genders globally and across races and ethnicities in the US | - Median pay for women globally at AMEX was 106.7% of the median pay for men - Median pay for racially/ethnically diverse colleagues in the US was 95.2% of that for white colleagues |
| $4 billion to spend toward DE&I initiatives (including underrepresented-owned suppliers) | - Through initiatives such as Blueprint, “Backing BIPOC Businesses”, designed to support the advancement of Black, Indigenous, or People of Color (BIPOC) business owners in Canada, 100 small businesses owners received support |
| Double annual spend with underrepresented-owned suppliers in the US from a 2019 baseline to $750 million by the end of 2024 | - In 2021, introduced more than 65 new underrepresented owned suppliers and in 2022 started working with select suppliers to begin tracking diverse supplier spend within their own supply chains - $550M spend with US underrepresented owned |
| Increase spend with Black-owned suppliers to at least $100 million annually | - $72M annual spend with US Black-owned |
| Support small businesses, by reaching $100 billion in spending by consumers at small, independently-owned retailers or restaurants on Small Business Saturday and during other Shop Small campaigns from 2021 through 2025 | - $23.3B in reported spending by US consumers on Small Business Saturday in 2021 including independent retailers and restaurants |
| Provide $50M in grants by 2024 to nonprofits focused on addressing inequality and promoting social justice, including those led by members of underrepresented groups | - Since late 2020, more than $14 million provided in grants to these organizations; - Social purpose leadership training for diversity organizations - Leadership programs that support women leaders in the nonprofit sector - The New York City LGBTQ+ Historic Sites Project - Grants to support organizations such as NAACP Legal Defense & Educational Fund, The Hispanic Scholarship Fund, and NAF (formerly the National Academy Foundation) that are reducing economic, health, educational, and racial disparities through the new Backing Equal Futures grantmaking - Established strategic partnerships with organizations such as United Negro College Fund (UNCF), the Thurgood Marshall Fund, and HBCU Connect to provide career readiness programming and access to internships and full-time career opportunities to Historically Black College and University (HBCU) students and alumni - Grant funding of $250,000 to support the Trevor Project’s international expansion of crisis services to Mexico and an LGBTQ+ advocacy strategy in the U.S. with the goal to meet vulnerable LGBTQ+ youth with life-saving support across multiple fronts |
| Invest $500 million to build more resilient and equitable communities from 2021 through 2025 | - Support small business needs, job creation and retention, and affordable housing, including the development of more than 1,900 units of affordable housing - In 2021, $265M in community development loans and investments through the AMEX Center for Community Development in 2021 |
| Provide at least five million individuals with tools, resources, and educational content to improve financial well-being from 2021 through 2025 | - As of May 1, 2022, MyCredit Guide and Score Goals had more than 4.5 million enrolled users where they have access to VantageScore® 3.0 credit score and detailed TransUnion personal credit report, as well as a credit score simulator to see how actions like paying down debt or opening a new account could affect their score - In 2021, the US-based Credit Intel Financial Education Center site attracted 2.8 million unique visitors—up from 1.1 million in 2020, where consumers can enhance their knowledge about building credit, understanding credit reports, and understanding different types of credit cards, features, and benefits, as well as how credit scores work—and how to improve them |
UN SDGs Compliance Analysis
Progress made toward SDG targets
As reported by American Express
- AMEX Scholarship Program, totaled over $365,000 helping AMEX employees’ children with undergraduate college tuition that range from $2,000 – $4,000 in the U.S. and Canada
- Through the New People Leader Program, more than 3,000 first-time managers were helped through the executive level prepare for their new roles
- Over 1,500 colleagues enrolled in AMEX’s first 2021 offering of Harvard Leadership Edge, a hands-on, customized eight-week program for building leadership skills
- 14 Colleague Networks, with over 100 chapters worldwide, for sharing common experiences and interests
- 2021 Colleague Experience Survey:
- 85% of participants indicated that they feel valued as a colleague at AMEX
- 91% of participants responded that they feel supported by their leader in making decisions about their well-being
Pilot low carbon product innovations, including carbon offset and tracking solutions:
- US corporate customers have access to the Carbon Offset Referral Suite, launched in June 2022, a curated list of carbon offset providers
- Shop with Purpose program, where customers are provided with special promotions through Amex Offers with select Certified B Corp™ companies and other brands committed to making a difference during Earth Month in 2022
- Carbon Footprint Dashboard available to certain commercial clients to help track estimated carbon emissions associated with their employees’ air travel. This will expand to include additional categories of spend—including ground transportation, hotel stays, restaurants, and retail—to help understand better carbon footprint
- Launched in July 202, Zogo Financial Education app has provided select AMEX Card Members with the opportunity to try out My Financial Plan, to see how income, assets, expenses, liabilities, and cash flow come together for planning life events
- Nova Credit’s Credit Passport® integrates has helped thousands of newcomers from Australia, Canada, India, Mexico, and the UK access their credit reports and get approved for an AMEX Express Card. In 2021, the application reach was expanded to people from Brazil, Dominican Republic, Kenya, and Nigeria
Workforce highlights:
- 53% of Executive Committee were women from diverse races and ethnic backgrounds
- 53% of the total workforce were women
- 50% of the total workforce were from diverse races and ethnic background
Senior Vice Presidents and above:
- 39.1% women globally
- 9.1% black/African Americans (US)
- 5.3% Hispanic/Latins (US)
- 15.2% Asian (US)
Board of Directors Demographics:
- 57% of Board Member were women from diverse races and ethnic backgrounds
- 64% White Latins
- 29% Black/African Americans
- 7% Hispanic
- 71% men and 29% women
Provide access to capital and financial education to at least 250,000 underrepresented-owned small- and medium-sized business in the US from late 2020 through 2024:
- Hosted Contract Connections connecting many underrepresented-owned small business suppliers with large corporate and government buyers in one-on-one sessions.
- Maintained support of Minority- and Women-Owned Business Enterprises (MWBEs) as part of the capital markets funding and share repurchase programs. In 2021, we engaged four MWBEs for underwriting and share repurchases, and through May of 2022, we engaged six such MWBEs
- Joined with NinetyToZero, an initiative focused on combating the 90% racial wealth gap between white and Black Americans
Committed $1 million over four years to support The Hispanic Scholarship Fund, with youth leadership initiatives, college education, and mentoring programs
- Offer small business owners’ access to Business Class, a platform with customised business education resources.
- In 2021, 2,300 people attended ChallengeHER webinars, through a program that offers free training webinars, workshops, mentoring, and direct access to government buyers and local partner resources
- AMEX and Resy encouraged customers to support small independent restaurants to help with their recovery and long-term growth from the pandemic:
- In February 2021, launched the Order In, Help Out campaign that encouraged consumers to make #TakeoutTuesday a weekly occurrence and introduced new dining offers on certain AMEX Cards
- In 2022, “Every Resy Counts,” a reservation drive as part of the Shop Small campaign that encouraged millions of people across the country to dine at independent restaurants in March 2022.
- “Let’s Grab a Table” Shop Small marketing campaign which was focused on bringing attention and support to independent restaurants throughout the US.
- Helped with creating complimentary toolkits with content, social media posts, signage, and more, as well as specially curated offers, and videos and articles from industry experts
$17M pledged to Backing Small grant programs to support thousands of small businesses
- Programs include:
- The Coalition to Back Black Businesses
- Backing Historic Small Restaurants
- Backing International Small Restaurants
- Inclusive Backing
- Blueprint: Backing BIPOC Businesses in Canada
- First Nations Business Growth Program in Australia
- AMEX and the US Black Chambers, Inc. worked together to launch the first national certification program exclusively for Black-owned businesses
- The Coalition to Back Black Businesses (CBBB) announced in February 2022 that 491 Black-owned small businesses were each awarded a $5,000 grant as part of our multi-year, $10 million commitment and are eligible to apply for enhancement grants of $25,000 annually
- Focus on supply chain and work with vendors to encourage them to establish their own science-based emissions reduction targets
- AMEX signed on to the Clean Skies for Tomorrow 2030 Ambition Statement, to accelerate the supply and use of sustainable aviation fuel technologies to reach 10% of the global jet aviation fuel supply by 2030
- In March 2021, AMEX Ventures team announced a strategic investment in Boom Supersonic, which is seeking to build a supersonic and sustainable airliner. Anticipated to be able to run on up to 100% sustainable aviation fuel, including biofuels manufactured using renewable materials, and other low-carbon fuel technologies.
- AMEX became a founding member of the Boom Sustainable Travel Forum, a partnership to forge relationships and exchange ideas with the private sector, NGOs, and industry experts
- In 2021, AMEX provided funding to the Latin American Seminar on Forest Entrepreneurship and Investment, a virtual event where 800 forestry entrepreneurs, investors, and attendees from government and academia from 16 countries in Latin America work to identify nature-based solutions to address climate change
- In 2021, employees were engaged virtually to support the planting of 100,000 trees in partnership with The Nature Conservancy’s Plant a Billion Trees campaign
- In 2022, employees engaged in environmentally-focused in-person and/or virtual volunteer activities and events with The Central Park Conservancy, United Way of Salt Lake City, South Downs National Park (UK), PRIDE+ Network, Compass Group, Catchafire, and others
Provided $1M to support the National Park Foundation’s Service Corps programs with essential preservation projects in national parks across the US
- In partnership with the Ocean Conservancy and International Coastal Cleanup, AMEX employees collected approximately 24,000 pounds of marine debris globally from 2018 to 2022, participated in beach cleanups and other initiatives across seven countries, including Australia, Italy, Japan, Malaysia, the Philippines, Spain, and the US
- Partnership with Reforestamos México, A.C. to conserve more than 200 hectares of forests across five communities in 2021. Between 2019 to 2021, AMEX employees participated in reforestation efforts planting 4,000 native trees and performing maintenance on fire breaks in the Nevado de Toluca Protected Natural Area
- Long-standing partnership with the Hispanic Federation and in 2021, AMEX committed $2M over four years to support the Hispanic Federation’s Latino Capacity Building Institute and its COVID-19 Emergency Assistance Fund
Partnered with Women Impacting Public Policy and the US Small Business Administration to help boost the prospects of women entrepreneurs to gain government contracts
Sustainability Certificates, Awards and Listings
