Dive Brief:
- American Express is investing $1 billion to advance racial and gender equality, the company said Thursday.
- Much of the amount will come in an effort to double — to $750 million annually by 2024 — the credit-card network's spending on diverse and minority-owned suppliers in the U.S. As part of that, AmEx said it intends to boost its spending with Black-owned suppliers to $100 million per year.
- The credit-card network also said Thursday it has achieved 100% gender pay equity worldwide, in addition to maintaining equal pay across races and ethnicities in the U.S.
Dive Insight:
With its pledge, American Express joins Bank of America and PNC among financial institutions that have pledged $1 billion or more toward racial equality and social justice in the months since the May killing of George Floyd and subsequent protests.
A number of banks and payment companies — PayPal, U.S. Bank, the Royal Bank of Canada and even streaming service Netflix — have promised $100 million or more each. And JPMorgan Chase this month said it would contribute $30 billion toward closing the racial wealth gap through a combination of loans, investments and philanthropy made to Black and Latinx communities.
American Express said Thursday it aims to provide at least 250,000 Black-owned small and medium-sized U.S. businesses with access to capital and financial education through the Accion Opportunity Fund. The card network is also partnering with IFundWomen of Color to provide $25,000 grants, as well as access to 100 days of business resources, to 100 Black female entrepreneurs.
The company said it plans to give $50 million in grants by the end of 2024 in support of nonprofit organizations led by people of color or underrepresented groups.
The network also is looking to boost non-White representation among U.S. participants in its leadership academy from 50% in 2019 to 75% by 2024. The academy provides training and networking opportunities to help emerging nonprofit and social purpose leaders.
Among its existing workforce, American Express said, Black and Latinx people comprise 12.5% and 12.9%, respectively, of the company's U.S. workforce, and more than half of its employees worldwide are women.
