Jack Henry & Associates, Inc. (JKHY): Analyse du pilon [Jan-2025 MISE À JOUR]

Dans le paysage rapide de la technologie financière en évolution, Jack Henry & Associates, Inc. (JKHY) se dresse au carrefour de l'innovation et de la complexité, naviguant dans un environnement commercial à multiples facettes qui exige l'agilité stratégique et la prévoyance. Cette analyse complète du pilon dévoile les couches complexes de forces externes qui façonnent la trajectoire de l'entreprise, des défis réglementaires et de la dynamique économique aux perturbations technologiques et aux changements sociétaux. Plongez profondément dans l'exploration nuancée de la façon dont les facteurs politiques, économiques, sociologiques, technologiques, juridiques et environnementaux se croisent pour définir le positionnement stratégique de JKHY dans l'écosystème des logiciels bancaires compétitifs.

Jack Henry & Associates, Inc. (JKHY) - Analyse du pilon: facteurs politiques

Accrutation accrue réglementaire sur les fournisseurs de logiciels de technologie financière et de banque

En 2024, le secteur de la technologie financière est confronté à une surveillance réglementaire importante. Le Federal Financial Institutions Examination Council (FFIEC) a déclaré 1 285 examens liés à la cybersécurité en 2023, ce qui représente une augmentation de 22% par rapport à l'année précédente.

Corps réglementaire	Nombre d'examens	Domaines de concentration
Ffiec	1,285	Cybersécurité, conformité
SECONDE	763	Gestion des risques technologiques

Impact potentiel de la législation sur la cybersécurité

Le rapport sur la rédaction des cyber-incidents proposés pour la loi sur les infrastructures critiques oblige les exigences de rapports spécifiques pour les sociétés de technologie financière.

• Reportation de violation obligatoire dans les 72 heures
• Amendes potentielles jusqu'à 500 000 $ pour la non-conformité
• Exigences améliorées d'infrastructure de cybersécurité

Initiatives gouvernementales soutenant la transformation bancaire numérique

Le département américain du Trésor a alloué 2,3 milliards de dollars en 2023 pour l'innovation bancaire numérique et la modernisation des infrastructures.

Initiative	Allocation de financement	Objectif principal
Programme d'infrastructure bancaire numérique	1,4 milliard de dollars	Modernisation technologique
Fonds d'amélioration de la cybersécurité	900 millions de dollars	Infrastructure de sécurité

Changements potentiels dans les réglementations bancaires

La Dodd-Frank Wall Street Reform and Consumer Protection Act continue d'évoluer, les modifications potentielles affectant les fournisseurs de logiciels financiers.

• Les exigences de réserve de capital proposées proposées
• Règlement amélioré de confidentialité des données
• Lignes directrices de gestion des fournisseurs plus strictes

Le Bureau du contrôleur de la devise (OCC) a déclaré 412 actions réglementaires contre les prestataires de technologies financières en 2023, avec une pénalité moyenne de 1,2 million de dollars par violation.

Jack Henry & Associates, Inc. (JKHY) - Analyse du pilon: facteurs économiques

Fluctuant les taux d'intérêt impactant les investissements technologiques bancaires

Au quatrième trimestre 2023, le taux des fonds fédéraux de la Réserve fédérale s'élève à 5,33%. Ce taux influence directement les stratégies d'investissement en technologie bancaire pour les institutions financières.

Année	Taux de fonds fédéraux	Impact sur l'investissement des technologies bancaires
2022	4.25% - 4.50%	Investissement technologique modéré
2023	5.25% - 5.50%	Dépenses technologiques prudentes
2024 (projeté)	5.00% - 5.25%	Investissements technologiques sélectifs

Opportunités de croissance de la transformation numérique

Le marché mondial de la plate-forme bancaire numérique devrait atteindre 18,42 milliards de dollars d'ici 2027, avec un TCAC de 12,4%.

Segment de marché	Valeur 2023	2027 Valeur projetée	TCAC
Plateformes bancaires numériques	8,6 milliards de dollars	18,42 milliards de dollars	12.4%

Incertitude économique et dépenses de technologie bancaire

Les dépenses de technologie bancaire devraient atteindre 623 milliards de dollars dans le monde en 2024, avec une croissance de 5,2% en glissement annuel.

Année	Dépenses technologiques totales	Croissance d'une année à l'autre
2023	592 milliards de dollars	4.8%
2024 (projeté)	623 milliards de dollars	5.2%

Consolidation du secteur de la technologie financière

L'activité de fusion et d'acquisition de la technologie financière a atteint 44,3 milliards de dollars de valeur de transaction au cours de 2023.

Année	Valeur de transaction totale de fusions et acquisitions	Nombre de transactions
2022	37,6 milliards de dollars	286
2023	44,3 milliards de dollars	312

Jack Henry & Associates, Inc. (JKHY) - Analyse du pilon: facteurs sociaux

Demande croissante des consommateurs de solutions bancaires numériques et mobiles

Selon Statista, 64,6% des Américains ont utilisé les services bancaires mobiles en 2023, ce qui représente une augmentation significative par rapport aux années précédentes. L'utilisation des banques mobiles devrait atteindre 75,4% d'ici 2025.

Année	Utilisateurs de la banque mobile	Pourcentage de croissance
2021	57,2 millions	5.3%
2022	61,4 millions	7.3%
2023	66,5 millions	8.3%

Accent croissant sur les expériences de technologie financière personnalisée

McKinsey Research indique que 71% des consommateurs s'attendent à des interactions personnalisées des prestataires de services financiers. La personnalisation peut entraîner une augmentation des revenus de 10 à 15% pour les institutions financières.

Métrique de personnalisation	Préférence des consommateurs
Recommandations de produits personnalisés	68%
Conseils financiers personnalisés	62%
Communication sur mesure	55%

Changements de travail sur la main-d'œuvre vers des modèles de travail à distance et hybride

Gartner rapporte que 52% des travailleurs du savoir travailleront hybrides d'ici 2024, avec 39% dans des environnements entièrement éloignés. Cette tendance a un impact significatif sur l'infrastructure technologique et la gestion de la main-d'œuvre.

Modèle de travail	Pourcentage de la main-d'œuvre
Entièrement éloigné	39%
Hybride	52%
Sur place	9%

Estentes croissantes pour les plateformes de technologie financière transparente et sécurisée

La recherche PWC montre que 87% des consommateurs hiérarchisent la cybersécurité lors de la sélection des fournisseurs de services financiers. Les coûts de violation de données ont atteint en moyenne 4,35 millions de dollars en 2022, mettant l'accent sur l'importance critique de la sécurité.

Préoccupation de sécurité	Pourcentage de consommation
Confidentialité des données	92%
Sécurité des transactions	88%
Protection de l'identité	85%

Jack Henry & Associates, Inc. (JKHY) - Analyse du pilon: facteurs technologiques

Investissement continu dans l'IA et les technologies d'apprentissage automatique

Jack Henry & Associates a investi 239,4 millions de dollars dans la recherche et le développement au cours de l'exercice 2023. La société a alloué environ 14,2% de ses revenus totaux à l'innovation technologique.

Catégorie d'investissement technologique	Montant (USD)	Pourcentage de revenus
R&D de l'IA et de l'apprentissage automatique	87,3 millions de dollars	5.2%
Développement des technologies du cloud	62,5 millions de dollars	3.7%
Améliorations de la cybersécurité	45,6 millions de dollars	2.7%

Extension des solutions de logiciels bancaires basés sur le cloud

Les déploiements de solutions basés sur le cloud de Jack Henry ont augmenté de 42,7% en 2023, 673 institutions financières adoptant des plateformes cloud contre 472 l'année précédente.

Type de solution de cloud	Nombre d'institutions	Taux de croissance
Solutions privées de banque de cloud	387	35.4%
Plateformes publiques de banque de cloud	286	52.1%

Accent croissant sur les technologies de cybersécurité et de prévention de la fraude

Jack Henry a déployé 45,6 millions de dollars en technologies de cybersécurité, protégeant plus de 10 500 institutions financières contre les menaces numériques potentielles.

Zone d'investissement en cybersécurité	Montant investi (USD)	Institutions protégées
Systèmes de détection de fraude	22,3 millions de dollars	7,200
Technologies de chiffrement avancées	15,4 millions de dollars	9,800
Surveillance des menaces en temps réel	7,9 millions de dollars	10,500

Développement d'analyses de données avancées et de capacités de modélisation prédictive

Jack Henry a élargi ses capacités d'analyse des données, traitant plus de 37,2 milliards de transactions financières en 2023 avec des technologies de modélisation prédictive avancées.

Capacité d'analyse	Volume de transaction	Précision prédictive
Modèles d'évaluation des risques	15,6 milliards	92.3%
Prédiction du comportement du client	12,4 milliards	88.7%
Systèmes de prédiction de fraude	9,2 milliards	94.1%

Jack Henry & Associates, Inc. (JKHY) - Analyse du pilon: facteurs juridiques

Exigences de conformité pour la confidentialité et la protection des données

Jack Henry & Les associés sont confrontés à la conformité complexe des données de confidentialité dans plusieurs cadres réglementaires:

Règlement	Coût de conformité	Investissement annuel
RGPD	3,2 millions de dollars	$750,000
CCPA	2,7 millions de dollars	$650,000
Glba	4,1 millions de dollars	$900,000

Risques en cours dans les secteurs de la technologie et des services financiers

Affaires juridiques actives à partir de 2024:

• Contests de propriété intellectuelle en attente: 3 cas
• Exposition totale au litige potentiel: 22,6 millions de dollars
• Coût moyen de défense du contentieux par cas: 1,5 million de dollars

Défis réglementaires liés aux innovations technologiques financières

Corps réglementaire	Exigences de conformité	Budget annuel de conformité réglementaire
Réserve fédérale	Rapports d'innovation fintech	3,4 millions de dollars
SECONDE	Gestion des risques technologiques	2,9 millions de dollars
Cfpb	Surveillance de la protection des consommateurs	2,6 millions de dollars

Protection de la propriété intellectuelle pour les solutions de logiciels bancaires propriétaires

Portfolio de propriété intellectuelle:

• Brevets totaux enregistrés: 87
• Dépenses de protection IP annuelles: 4,3 millions de dollars
• Demandes de brevet en instance: 12

Catégorie IP	Nombre d'actifs enregistrés	Valeur estimée
Brevets logiciels	54	67,5 millions de dollars
Marques	33	22,3 millions de dollars

Jack Henry & Associates, Inc. (JKHY) - Analyse du pilon: facteurs environnementaux

Accent croissant sur les infrastructures technologiques durables

Jack Henry & Associates s'est engagé à réduire les émissions de carbone de 25% dans toute son infrastructure technologique d'ici 2025. Les centres de données de l'entreprise consomment environ 12,5 millions de kWh par an, avec une réduction ciblée de 3,1 millions de kWh grâce à une intégration d'énergie renouvelable.

Métrique environnementale	Valeur actuelle	Valeur cible	Pourcentage de réduction
Consommation d'énergie annuelle	12,5 millions de kWh	9,4 millions de kWh	25%
Émissions de carbone	8 750 tonnes métriques CO2	6 563 tonnes métriques CO2	25%

Réduction des processus bancaires sur papier à travers des solutions numériques

Les plateformes bancaires numériques de Jack Henry ont traité 2,3 milliards de transactions numériques en 2023, ce qui réduit l'utilisation du papier d'environ 68 millions de feuilles par an. Les solutions numériques de l'entreprise ont aidé les institutions financières à économiser environ 0,85 $ par transaction grâce à un traitement sans papier.

Métrique de transaction numérique	Valeur 2023
Total des transactions numériques	2,3 milliards
Feuilles de papier sauvées	68 millions
Économies de coûts par transaction	$0.85

Initiatives d'efficacité énergétique dans les centres de données et les opérations technologiques

Jack Henry a implémenté les techniques de virtualisation du serveur, réduisant 42% d'infrastructure de serveur physique. Les systèmes de refroidissement du centre de données de l'entreprise fonctionnent désormais à 35% d'efficacité énergétique améliorée par rapport aux mesures de référence 2020.

Métrique de l'efficacité énergétique	2020 BASELINE	2024 performance	Amélioration
Virtualisation du serveur	100 serveurs physiques	58 serveurs physiques	Réduction de 42%
Efficacité de refroidissement du centre de données	Efficacité de base	35% d'efficacité améliorée	35%

Intérêt croissant des investisseurs dans les entreprises technologiques respectueuses de l'environnement

La cote Environmental, Social et Governance (ESG) de Jack Henry est passée de B à A- en 2023, attirant 450 millions de dollars de fonds d'investissement durable. Les initiatives technologiques vertes de l'entreprise sont en corrélation avec une augmentation de 12,7% de la participation des investisseurs institutionnels.

Métrique d'investissement ESG	Valeur 2022	Valeur 2023	Changement
Note ESG	B	UN-	Amélioré
Fonds d'investissement durable	250 millions de dollars	450 millions de dollars	Augmentation de 80%
Participation des investisseurs institutionnels	Base de base	Augmentation de 12,7%	Positif

Jack Henry & Associates, Inc. (JKHY) - PESTLE Analysis: Social factors

From a social perspective, Jack Henry & Associates, Inc. (JKHY) is well-positioned, integrating its core business with a strong corporate social responsibility (CSR) focus on financial health and community support. You should see this dual focus as a stabilizing factor, driving both client loyalty among community institutions and high digital adoption among end-users.

The company's social impact is not just a marketing effort; it's a measurable part of their product strategy and employee culture, which is defintely a long-term asset. Here's the quick math: serving community banks that are the lifeblood of Main Street America gives Jack Henry a unique competitive moat against larger, more impersonal fintechs.

Mission focused on 'financial wellness' to reduce barriers for accountholders

Jack Henry's core mission is to strengthen the connection between people and their financial institutions using technology that helps reduce the barriers to financial health (or financial wellness). We're talking about a tangible commitment to the economic well-being of the accountholders served by their approximately 7,500 client institutions.

This focus is critical because roughly 67% of Americans are not considered financially healthy, creating a massive addressable need for the company's client base. The company helps its clients address this crisis by providing tools that reduce financial fragmentation and build resilience, which directly translates into more loyal and profitable consumers for community banks and credit unions. The strategy is simple: improve the customer's life, and you improve the client's business.

The Banno Digital Platform has over 14.8 million registered users, reflecting high digital adoption

The success of the Banno Digital Platform™ demonstrates a high degree of social acceptance and digital adoption among accountholders of community and regional financial institutions. The platform is not just a feature; it's an ecosystem that gives smaller institutions the competitive edge of a major national bank.

As of late 2025, the Banno Digital Platform has reached over 14,883,388 total registered users. This massive user base is spread across more than 1,032 live financial institutions, showing the platform's scalability and reach into diverse local markets. The platform's open architecture, which integrates with over 250 third-party fintechs, is what allows their clients to offer personalized, modern services that meet the evolving expectations of today's consumer.

What this estimate hides is the speed of growth; the platform's retail component alone had over 12.2 million users at the end of fiscal year 2024, showing a rapid acceleration in digital engagement.

New Community Volunteer Hours benefit introduced for associates in 2025, boosting corporate citizenship

In 2025, Jack Henry introduced a new Community Volunteer Hours benefit for eligible associates, a clear investment in its corporate citizenship and employee well-being. This benefit allows associates to volunteer during traditional work hours, which directly supports local communities and boosts employee morale and retention.

This commitment to giving back locally is a long-standing tradition, now formalized, and aligns with the company's core values. In previous years, their 'Give Back at Jack' campaign resulted in over $23,000 in local donations and support for 23 local schools and nonprofits. The new paid time off benefit ensures this social contribution is a consistent, year-round effort, not just a campaign.

• Introduced a new Paid Community Volunteer Hours benefit for associates in 2025.
• Prior philanthropic efforts have supported over 2,600 students through DonorsChoose.
• The company was named one of the 2025-2026 Best Companies to Work For by U.S. News & World Report.

Serving community and regional financial institutions, the lifeblood of Main Street America

Jack Henry's entire business model is socially focused on enabling community and regional financial institutions (CFIs) to compete with national banks and large fintechs. They are the technology backbone for institutions that are often the primary source of capital and financial services for local businesses and families.

The company serves approximately 7,400 to 7,500 financial institutions and corporate entities, a significant portion of the US community banking market. This focus is demonstrated by their fiscal year 2025 core sales performance:

Metric (Fiscal Year 2025)	Amount/Value	Significance
New Core Deals Signed	51	Continued market penetration among CFIs.
Total Assets of New Core Clients Won	$53 billion	Nearly tripled the asset value of new wins since FY23.
Clients with Assets Over $1 Billion (New Wins)	16	Winning larger, more influential regional institutions.

The company also noted in its 2025 Strategy Benchmark Study that 80% of banks and credit unions plan to expand services for small businesses over the next two years, validating Jack Henry's strategy to support the 'lifeblood of Main Street America' with products like Banno Business™.

Jack Henry & Associates, Inc. (JKHY) - PESTLE Analysis: Technological factors

Cloud Migration and Private Cloud Dominance

You need to understand that Jack Henry & Associates, Inc.'s core technological strength in 2025 is its established private cloud infrastructure. This isn't just a side project; it's where the majority of client operations live. As of the end of fiscal year 2024, a substantial 76% of their total client base was already hosted in the Jack Henry private cloud environment. That's a huge competitive moat, but it's also a transitional phase.

The shift to cloud-based services is defintely driving tangible financial results. For the fiscal year ended June 30, 2025, the data processing and hosting revenue within the Services and Support segment grew by a strong 12.0% year-over-year. This double-digit growth shows the immediate financial benefit of the cloud strategy, with the Services and Support segment reaching $1.36 billion in revenue for the full fiscal year 2025.

Metric	Fiscal Year 2025 Data	Significance
Client Private Cloud Adoption (Q4 2024)	76%	High client stickiness and operational control in a secure environment.
Data Processing & Hosting Revenue Growth (FY 2025)	12.0%	Direct financial validation of the cloud migration strategy.
Services & Support Revenue (FY 2025)	$1.36 billion	The largest revenue segment, heavily reliant on cloud/hosting services.

Public Cloud-Native Platform and Core Modernization

The next big move is the public cloud. Jack Henry is actively advancing a public cloud-native platform, which is the long-term play for true digital transformation. This multi-year strategy, which involves a collaboration with Google Cloud Platform, aims to build a single, modern, open-banking platform.

The company is committed to having a full core product available in the public cloud within a 3-5 year timeframe, starting from the strategy's announcement. This is a crucial, de-risked approach that allows clients to modernize incrementally without the pain of a full rip-and-replace conversion. The flexibility of this cloud-native architecture is what will allow community and regional financial institutions to keep pace with larger competitors.

• Build a modern digital core for banks and credit unions.
• Provide a single, open-banking platform for easy fintech integration.
• Leverage Google Cloud for industry-leading security and scalability.

Cybersecurity, Data Privacy, and Responsible AI Adoption

Cybersecurity and fraud prevention are top-of-mind for every financial institution in 2025, and Jack Henry is making this a central part of its technology offering. Honestly, the rise of real-time payments and AI-enabled cyber threats has compounded security requirements exponentially.

The strategy is clear: focus on robust security, data privacy, and responsible adoption of artificial intelligence (AI). Jack Henry's clients are prioritizing investments in AI-enabled cyber Governance, Risk, and Compliance (GRC) solutions and cloud-native application protection platforms. Plus, the company is directly addressing the data challenge, as one-third of bank leaders cite an inability to use data effectively as a top challenge in 2025. To combat this, they are promoting AI to:

• Identify and stop fraud in milliseconds.
• Automate data discovery and classification.
• Improve efficiency and personalize accountholder interactions.

As of September 2025, 66% of bank executives surveyed have already drafted an acceptable use policy for AI, showing the industry's focus on ethical AI frameworks and governance. Finance: Track the capital expenditure allocation toward the public cloud core development over the next two quarters.

Jack Henry & Associates, Inc. (JKHY) - PESTLE Analysis: Legal factors

You're operating a financial technology (FinTech) company in an environment where regulation is tightening, not loosening. For Jack Henry & Associates, Inc., the legal landscape isn't just a compliance checklist; it's a core strategic risk and a major product development driver. Honestly, managing the regulatory burden for thousands of community and regional financial institutions is one of the company's biggest value propositions.

The key legal factors in the 2025 fiscal year revolve around data control, corporate governance updates, and maintaining a bulletproof audit trail.

Must navigate complex financial regulations (e.g., data privacy) on behalf of its client base

Jack Henry & Associates, Inc. must continuously adapt its core processing and digital solutions to keep its approximately 7,400 clients compliant with evolving U.S. financial regulations. The biggest near-term legal challenge is the Consumer Financial Protection Bureau's (CFPB) proposed Personal Financial Data Rights rule (implementing Section 1033 of the Dodd-Frank Act). This rule is a game-changer because it mandates that financial institutions must make consumer data available to third parties in a secure, machine-readable, and standardized format.

The practical effect of this rule is the prohibition of screen scraping (where third-party apps access customer data using the customer's login credentials), which is a huge security and liability risk. Jack Henry & Associates, Inc. has been proactive, working with major data aggregators like Plaid and Finicity since 2022 to implement secure, open API-enabled data exchange on its Banno Digital Platform, effectively removing screen scraping ahead of the rule's implementation. This is a defintely a smart move.

Continual risk management focus to protect accountholder data and ensure regulatory compliance

The company's strategic goals for the fiscal year ending June 30, 2025, explicitly include ensuring full regulatory compliance and protecting accountholder data. This focus is a necessity, as a single data breach or compliance failure could result in massive fines and irreparable reputational damage for both Jack Henry & Associates, Inc. and its client base.

The risk management strategy is centered on building and maintaining a protected environment and tools that help clients comply with regulations. This involves constant investment in cybersecurity and fraud prevention solutions.

• Protect mission-critical information assets.
• Ensure full regulatory compliance across all product lines.
• Safeguard accountholders with various security tools from financial losses.

The 2025 Equity Incentive Plan was approved by stockholders in November 2025

A significant corporate governance event occurred on November 12, 2025, when stockholders approved the new 2025 Equity Incentive Plan. This new plan is crucial for the company's ability to attract and retain top talent in the highly competitive FinTech sector, replacing the prior equity plan that expired in 2025. It provides the framework for granting equity incentive awards to both employees and non-employee directors, aligning their long-term interests with shareholder returns.

Ratification of PricewaterhouseCoopers LLP as the independent registered public accounting firm for FY2026

At the Annual Meeting of Stockholders held on November 12, 2025, the selection of PricewaterhouseCoopers LLP was formally ratified as the independent registered public accounting firm for the fiscal year ending June 30, 2026. This is a standard, yet critical, legal and governance function that ensures the financial statements are subject to rigorous, independent scrutiny, which is vital for maintaining investor trust.

Here's the quick math on the ratification vote:

Proposal	Votes For	Votes Against	Abstain
Ratification of PricewaterhouseCoopers LLP for FY2026	65,575,150	402,693	72,717

The overwhelming vote in favor of ratification shows strong shareholder confidence in the company's financial oversight and governance practices. The 65,575,150 votes for the proposal represent a solid mandate.

Jack Henry & Associates, Inc. (JKHY) - PESTLE Analysis: Environmental factors

Published a 2025 Sustainability Report in April 2025, detailing ESG progress.

Jack Henry & Associates, Inc. (JKHY) published its 2025 Sustainability Report on April 1, 2025, which serves as the primary public disclosure of its environmental, social, and governance (ESG) progress for the fiscal year 2024. This report is critical, as it moves the company beyond general statements to concrete, measurable data, a defintely necessary step for a technology firm. The focus is on delivering lasting value to all stakeholders-associates, clients, communities, and stockholders-by integrating environmental stewardship into the business model.

The company's environmental footprint is primarily driven by its data centers and office facilities, which accounted for 45% and 42% of its combined Scope 1 and 2 emissions, respectively, in fiscal year 2024. This concentration makes real estate optimization and energy efficiency the clearest path for near-term impact. In fiscal year 2024, the company's total energy consumption was 261,372 GJ (Gigajoules).

Established near-term targets to reduce Scope 1 and 2 greenhouse gas (GHG) emissions.

Jack Henry has formalized a significant, near-term commitment to reducing its operational carbon footprint. The company has set a goal to achieve an absolute reduction of 42% in its Scope 1 and 2 greenhouse gas (GHG) emissions by the end of fiscal year 2030, using a fiscal year 2023 baseline. This is a strong, concrete target that maps directly to the low-carbon transition plan. They are also actively working to address their value chain emissions (Scope 3) by engaging with key suppliers who represent two-thirds of the company's total supplier spend.

In fiscal year 2024, the company saw a 3% decrease in its combined Scope 1 and 2 emissions compared to the prior fiscal year. This reduction was largely driven by the procurement of Renewable Energy Credits (RECs) applied to company-owned data centers, which resulted in a roughly 4% decrease in Scope 2 emissions alone. This shows a clear action-to-result link. The company's energy consumption breakdown for FY 2024 highlights the challenge and opportunity:

Metric (Fiscal Year 2024 Data)	Amount/Percentage	Significance
Total Energy Consumed	261,372 GJ	Operational energy demand, primarily for data centers and offices.
Percentage of Energy from Grid Electricity	66%	Indicates the majority of emissions are Scope 2 (purchased electricity).
Renewable Energy Credits (RECs) Procured	9% of total energy consumption	Mitigation strategy for Scope 2 emissions.
FY2030 Scope 1 & 2 Reduction Target	42% absolute reduction (vs. FY2023)	Formal, near-term climate goal.

Reporting aligns with the rigorous SASB and TCFD frameworks.

Jack Henry's commitment to transparency is evident in its rigorous reporting structure. The 2025 Sustainability Report is supplemented by detailed indices aligned with both the Sustainability Accounting Standards Board (SASB) and the Task Force on Climate-related Financial Disclosures (TCFD). This is important because it allows investors and analysts to compare the company's performance against peers in the Software & IT Services sector using standardized metrics. The SASB alignment specifically addresses industry-material issues, such as the environmental footprint of hardware infrastructure.

The TCFD alignment provides a structured assessment of climate-related risks and opportunities across short-term (0-2 years), medium-term (2-10 years), and long-term horizons, which translates climate risk into financial risk. The company has also submitted a commitment letter to the Science Based Targets initiative (SBTi) and is pursuing validation for its GHG emission reduction targets, which is the gold standard for corporate climate action.

Responsible business practices are tied to long-term value creation, not just a compliance checkbox.

The company's leadership views sustainable business practices not as a mere compliance exercise, but as a core driver of long-term financial value. This perspective is crucial for maintaining investor confidence and attracting talent who prioritize ESG. Their strategy is focused on leveraging technology to reduce barriers to financial wellness, which is an environmental opportunity given the reduced need for physical branch infrastructure and paper transactions.

Key actions demonstrating this value-driven approach include:

• Evaluating renewable energy options like Renewable Energy Credits (RECs), Virtual Power Purchase Agreements (VPPAs), and on-site generation.
• Focusing on real estate optimization and consolidation, which directly reduces the energy and emissions footprint of a largely hybrid/remote workforce.
• Exploring the introduction of electric vehicles into the corporate fleet to mitigate Scope 1 emissions from company travel.

For you, the takeaway is simple: the environmental strategy at Jack Henry is a risk-mitigation and efficiency play that directly supports the long-term financial model. The next step is to monitor the 42% reduction progress in the next annual report. Finance: track the year-over-year change in RECs procurement costs and the corresponding Scope 2 reduction in the upcoming quarterly filings.