AT-EN Intermediary

Our approach to net zero investing

Discover our methodology for achieving net zero emissions by 2050 or sooner across all our assets under management.
November 2021

Climate change is a global crisis we must urgently address. As an asset manager, we have an important role to play by using our influence to drive companies towards positive change for the planet. In December 2020, BMO Global Asset Management committed to an ambition of reaching net zero emissions by 2050 or sooner across all assets under management, as a signatory to the Net Zero Asset Managers Initiative.

During 2021 we have been working on implementing this commitment by developing a methodology, and identifying an initial set of funds which will be managed using net zero investing principles. This paper sets out the approach we have taken, and some of the challenges and methodological choices we have made.

 

Our primary focus initially has been on equities, due largely to data availability, although the model we have built also can be applied to corporate bonds. Towards the end of this paper we have also set out our emerging thinking on other asset classes.

 

The basis for our approach for listed assets (equities and corporate bonds) is the Net Zero Investment Framework (NZIF), developed by the Paris Aligned Investment Initiative. We helped to develop the framework, and in 2021 co-chaired an Implementation Working Group. This group brought together asset owners and managers to discuss a range of issues arising as we put the Framework into practice.

Risk warnings

Views and opinions have been arrived at by BMO Global Asset Management and should not be considered to be a recommendation or solicitation to buy or sell any companies that may be mentioned.

The information, opinions, estimates or forecasts contained in this document were obtained from sources reasonably believed to be reliable and are subject to change at any time.

 

BMO Global Asset Management’s voting, engagement and public policy work is conducted independently of the wider BMO Financial Group. Positions taken by BMO Global Asset Management may not be representative of the views of the BMO Financial Group as a whole or of the other lines of business.

 

 

Interested in learning more? Download our methodology paper to discover our net zero approach.

Risk warnings

Views and opinions have been arrived at by BMO Global Asset Management and should not be considered to be a recommendation or solicitation to buy or sell any companies that may be mentioned.

The information, opinions, estimates or forecasts contained in this document were obtained from sources reasonably believed to be reliable and are subject to change at any time.

BMO Global Asset Management’s voting, engagement and public policy work is conducted independently of the wider BMO Financial Group. Positions taken by BMO Global Asset Management may not be representative of the views of the BMO Financial Group as a whole or of the other lines of business.

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