Jack Henry & Associates, Inc. (JKHY): Análise de Pestle [Jan-2025 Atualizada]

No cenário em rápida evolução da tecnologia financeira, Jack Henry & A Associates, Inc. (JKHY) fica na encruzilhada de inovação e complexidade, navegando em um ambiente de negócios multifacetado que exige agilidade estratégica e previsão. Essa análise abrangente de pestles revela as intrincadas camadas de forças externas que moldam a trajetória da empresa, desde desafios regulatórios e dinâmica econômica a interrupções tecnológicas e mudanças sociais. Mergulhe profundamente na exploração diferenciada de como fatores políticos, econômicos, sociológicos, tecnológicos, legais e ambientais se cruzam para definir o posicionamento estratégico de JKHY no ecossistema competitivo de software bancário.

Jack Henry & Associates, Inc. (JKHY) - Análise de Pestle: Fatores Políticos

Maior escrutínio regulatório sobre os provedores de software de tecnologia financeira e bancos

A partir de 2024, o setor de tecnologia financeira enfrenta uma supervisão regulatória significativa. O Conselho Federal de Exames de Instituições Financeiras (FFIEC) relatou 1.285 exames relacionados à segurança cibernética em 2023, representando um aumento de 22% em relação ao ano anterior.

Órgão regulatório	Número de exames	Áreas de foco
Ffiec	1,285	Segurança cibernética, conformidade
Sec	763	Gerenciamento de riscos tecnológicos

Impacto potencial da legislação de segurança cibernética

O relatório de incidentes cibernéticos proposto para a Lei de Infraestrutura Crítica exige requisitos específicos de relatórios para empresas de tecnologia financeira.

• Relatórios obrigatórios de violação dentro de 72 horas
• Multas potenciais de até US $ 500.000 para não conformidade
• Requisitos aprimorados de infraestrutura de segurança cibernética

Iniciativas governamentais que apoiam a transformação bancária digital

O Departamento do Tesouro dos EUA alocou US $ 2,3 bilhões em 2023 para inovação bancária digital e modernização de infraestrutura.

Iniciativa	Alocação de financiamento	Objetivo primário
Programa de infraestrutura bancária digital	US $ 1,4 bilhão	Modernização da tecnologia
Fundo de aprimoramento de segurança cibernética	US $ 900 milhões	Infraestrutura de segurança

Mudanças potenciais nos regulamentos bancários

A Lei de Reforma e Proteção ao Consumidor de Dodd-Frank Wall Street continua a evoluir, com emendas em potencial afetando os provedores de software financeiro.

• Proposto o aumento dos requisitos de reserva de capital
• Regulamentos aprimorados de privacidade de dados
• Diretrizes mais rigorosas de gerenciamento de fornecedores

O Escritório do Controlador da Moeda (OCC) relatou 412 ações regulatórias contra provedores de tecnologia financeira em 2023, com uma penalidade média de US $ 1,2 milhão por violação.

Jack Henry & Associates, Inc. (JKHY) - Análise de Pestle: Fatores econômicos

Taxas de juros flutuantes que afetam investimentos em tecnologia bancária

A partir do quarto trimestre de 2023, a taxa de fundos federais do Federal Reserve é de 5,33%. Essa taxa influencia diretamente estratégias de investimento em tecnologia bancária para instituições financeiras.

Ano	Taxa de fundos federais	Impacto no investimento em tecnologia bancária
2022	4.25% - 4.50%	Investimento moderado de tecnologia
2023	5.25% - 5.50%	Gastos com tecnologia cautelosa
2024 (projetado)	5.00% - 5.25%	Investimentos de tecnologia seletiva

Oportunidades de crescimento de transformação digital

O mercado global de plataformas bancárias digitais deve atingir US $ 18,42 bilhões até 2027, com um CAGR de 12,4%.

Segmento de mercado	2023 valor	2027 Valor projetado	Cagr
Plataformas bancárias digitais	US $ 8,6 bilhões	US $ 18,42 bilhões	12.4%

Incerteza econômica e gastos com tecnologia bancária

Os gastos com tecnologia bancária devem atingir US $ 623 bilhões globalmente em 2024, com um crescimento de 5,2% ano a ano.

Ano	Gastos totais de tecnologia	Crescimento ano a ano
2023	US $ 592 bilhões	4.8%
2024 (projetado)	US $ 623 bilhões	5.2%

Consolidação do setor de tecnologia financeira

A fusão de tecnologia financeira e a atividade de aquisição atingiram US $ 44,3 bilhões em valor da transação durante 2023.

Ano	Valor total de transação de fusões e aquisições	Número de transações
2022	US $ 37,6 bilhões	286
2023	US $ 44,3 bilhões	312

Jack Henry & Associates, Inc. (JKHY) - Análise de Pestle: Fatores sociais

Crescente demanda do consumidor por soluções bancárias digitais e móveis

Segundo a Statista, 64,6% dos americanos usaram bancos móveis em 2023, representando um aumento significativo em relação aos anos anteriores. O uso bancário móvel deve atingir 75,4% até 2025.

Ano	Usuários bancários móveis	Crescimento percentual
2021	57,2 milhões	5.3%
2022	61,4 milhões	7.3%
2023	66,5 milhões	8.3%

Ênfase crescente em experiências de tecnologia financeira personalizadas

A McKinsey Research indica que 71% dos consumidores esperam interações personalizadas de provedores de serviços financeiros. A personalização pode levar a um aumento de 10 a 15% da receita para instituições financeiras.

Métrica de personalização	Preferência do consumidor
Recomendações de produtos personalizados	68%
Conselhos financeiros personalizados	62%
Comunicação personalizada	55%

Mudança de preferências da força de trabalho para modelos de trabalho remoto e híbrido

O Gartner relata que 52% dos trabalhadores do conhecimento trabalharão híbridos até 2024, com 39% em ambientes totalmente remotos. Essa tendência afeta significativamente a infraestrutura de tecnologia e o gerenciamento da força de trabalho.

Modelo de trabalho	Porcentagem de força de trabalho
Totalmente remoto	39%
Híbrido	52%
No local	9%

As expectativas crescentes de plataformas de tecnologia financeira perfeitas e seguras

Pesquisas da PWC mostram que 87% dos consumidores priorizam a segurança cibernética ao selecionar provedores de serviços financeiros. Os custos de violação de dados tiveram uma média de US $ 4,35 milhões em 2022, enfatizando a importância crítica da segurança.

Preocupação de segurança	Porcentagem do consumidor
Privacidade de dados	92%
Segurança da transação	88%
Proteção de identidade	85%

Jack Henry & Associates, Inc. (JKHY) - Análise de Pestle: Fatores tecnológicos

Investimento contínuo em tecnologias de IA e aprendizado de máquina

Jack Henry & Os associados investiram US $ 239,4 milhões em pesquisa e desenvolvimento no ano fiscal de 2023. A Companhia alocou aproximadamente 14,2% de sua receita total à inovação tecnológica.

Categoria de investimento em tecnologia	Quantidade (USD)	Porcentagem de receita
AI e Machine Learning R&D	US $ 87,3 milhões	5.2%
Desenvolvimento de tecnologias em nuvem	US $ 62,5 milhões	3.7%
Aprimoramentos de segurança cibernética	US $ 45,6 milhões	2.7%

Expansão de soluções de software bancário baseadas em nuvem

As implantações de soluções baseadas em nuvem de Jack Henry aumentaram 42,7% em 2023, com 673 instituições financeiras adotando plataformas em nuvem em comparação com 472 no ano anterior.

Tipo de solução em nuvem	Número de instituições	Taxa de crescimento
Soluções bancárias de nuvem privada	387	35.4%
Plataformas bancárias em nuvem pública	286	52.1%

Foco crescente na segurança cibernética e tecnologias de prevenção de fraudes

Jack Henry implantou US $ 45,6 milhões em tecnologias de segurança cibernética, protegendo mais de 10.500 instituições financeiras de possíveis ameaças digitais.

Área de investimento em segurança cibernética	Valor investido (USD)	Instituições protegidas
Sistemas de detecção de fraude	US $ 22,3 milhões	7,200
Tecnologias avançadas de criptografia	US $ 15,4 milhões	9,800
Monitoramento de ameaças em tempo real	US $ 7,9 milhões	10,500

Desenvolvimento de análises de dados avançadas e recursos de modelagem preditiva

Jack Henry expandiu seus recursos de análise de dados, processando mais de 37,2 bilhões de transações financeiras em 2023 com tecnologias avançadas de modelagem preditiva.

Capacidade de análise	Volume de transação	Precisão preditiva
Modelos de avaliação de risco	15,6 bilhões	92.3%
Previsão de comportamento do cliente	12,4 bilhões	88.7%
Sistemas de previsão de fraude	9,2 bilhões	94.1%

Jack Henry & Associates, Inc. (JKHY) - Análise de Pestle: Fatores Legais

Requisitos de conformidade para privacidade e proteção de dados

Jack Henry & Associados enfrenta a conformidade complexa de privacidade de dados em várias estruturas regulatórias:

Regulamento	Custo de conformidade	Investimento anual
GDPR	US $ 3,2 milhões	$750,000
CCPA	US $ 2,7 milhões	$650,000
GLBA	US $ 4,1 milhões	$900,000

Riscos de litígios em andamento em setores de tecnologia e serviços financeiros

Casos legais ativos a partir de 2024:

• Disputas de propriedade intelectual pendente: 3 casos
• Exposição potencial total em litígios: US $ 22,6 milhões
• Custo médio de defesa de litígios por caso: US $ 1,5 milhão

Desafios regulatórios relacionados a inovações de tecnologia financeira

Órgão regulatório	Requisitos de conformidade	Orçamento anual de conformidade regulatória
Federal Reserve	Relatórios de inovação da FinTech	US $ 3,4 milhões
Sec	Gerenciamento de riscos tecnológicos	US $ 2,9 milhões
CFPB	Monitoramento de proteção ao consumidor	US $ 2,6 milhões

Proteção de propriedade intelectual para soluções de software bancário proprietárias

Portfólio de propriedade intelectual:

• Total de patentes registradas: 87
• Despesas anuais de proteção de IP: US $ 4,3 milhões
• Aplicações de patentes pendentes: 12

Categoria IP	Número de ativos registrados	Valor estimado
Patentes de software	54	US $ 67,5 milhões
Marcas comerciais	33	US $ 22,3 milhões

Jack Henry & Associates, Inc. (JKHY) - Análise de Pestle: Fatores Ambientais

Foco crescente na infraestrutura de tecnologia sustentável

Jack Henry & A Associates se comprometeu a reduzir as emissões de carbono em 25% em sua infraestrutura tecnológica até 2025. Os data centers da empresa consomem aproximadamente 12,5 milhões de kWh anualmente, com uma redução direcionada de 3,1 milhões de kWh através da integração de energia renovável.

Métrica ambiental	Valor atual	Valor alvo	Porcentagem de redução
Consumo anual de energia	12,5 milhões de kWh	9,4 milhões de kWh	25%
Emissões de carbono	8.750 toneladas métricas CO2	6.563 toneladas métricas CO2	25%

Redução de processos bancários baseados em papel por meio de soluções digitais

As plataformas bancárias digitais de Jack Henry processaram 2,3 bilhões de transações digitais em 2023, reduzindo o uso de papel em cerca de 68 milhões de folhas anualmente. As soluções digitais da empresa ajudaram as instituições financeiras a economizar aproximadamente US $ 0,85 por transação através do processamento sem papel.

Métrica de transação digital	2023 valor
Total de transações digitais	2,3 bilhões
Folhas de papel salvas	68 milhões
Economia de custos por transação	$0.85

Iniciativas de eficiência energética em data centers e operações de tecnologia

Jack Henry implementou técnicas de virtualização do servidor, reduzindo a infraestrutura do servidor físico em 42%. Os sistemas de resfriamento de data center da empresa agora operam com 35% de eficiência energética melhorada em comparação com as medições da linha de base de 2020.

Métrica de eficiência energética	2020 linha de base	2024 Performance	Melhoria
Virtualização do servidor	100 servidores físicos	58 servidores físicos	Redução de 42%
Eficiência de resfriamento de data center	Eficiência básica	35% melhorou a eficiência	35%

Crescente interesse dos investidores em empresas de tecnologia ambientalmente responsáveis

A classificação ambiental, social e de governança de Jack Henry (ESG) aumentou de B para A- em 2023, atraindo US $ 450 milhões em fundos de investimento sustentável. As iniciativas de tecnologia verde da empresa se correlacionaram com um aumento de 12,7% na participação institucional dos investidores.

Esg Métrica de Investimento	2022 Valor	2023 valor	Mudar
Classificação ESG	B	UM-	Atualizado
Fundos de investimento sustentáveis	US $ 250 milhões	US $ 450 milhões	Aumento de 80%
Participação institucional do investidor	Linha de base	Aumento de 12,7%	Positivo

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.