Responsible Investment
2021 Annual Report

The need to invest responsibly has never been greater. Over the next decade, our focus will continue to be on driving real world outcomes from meaningful climate action to advocating for social equality.

Kristi Mitchem
Kristi Mitchem
Co-CEO, BMO Global Asset Management

Now is the time to take action

Join us in our journey to engage, activate and advance investing in support of a sustainable future.

Income

ESG Integration

Five-Star Rating

*****

UN PRI 2021 5-star rating in the “direct-listed equity – active fundamental incorporation module” category1
Training

Stewardship

5,260
Company meetings voted2
global icon

Climate Action

84%
Of shareholder proposal support2
Collaboration icon

Social Equity

729
Social equality focused engagements2

Latest Insights

Commentary
November 17, 2022
November 2022

A recap of our 2022 proxy voting in Canada

Proxy voting is a key element of our stewardship and responsible investment approach. This piece summarizes how we voted in the Canadian market during the 2022 proxy voting season.
Main Landscape
Main Landscape
Commentary
November 2, 2022

What to look for at COP27

The UN’s annual climate conference meets in Egypt November 6-18 amid rising environmental threats, an urgent need to accelerate funding and an energy crisis that is testing commitments to fight climate change.
Trees
Trees
Responsible Investment
September 26, 2022

Learning from the past to inform our future

There is a gap in non-Indigenous Canadians’ understanding of Canada’s history with Indigenous peoples. Through market education, investors and corporate actors can establish a foundation for a more intuitive and active approach to accelerating reconciliation, especially related to resource development.

As part of our investment process, we recognize the importance of leaving no stone unturned when evaluating investment opportunities for our clients and fundamentally believe the value of sustainability practices. We explore these considerations in some of our investment processes, particularly when developing ESG-oriented investment solutions.

Sadiq Adatia
Sadiq Adatia
Chief Investment Officer

Featured Investments

Environmental, social, and governance (ESG) factors measure the sustainability attributes of a company or industry’s business activities. More and more, we are understanding how these factors can have material implications for financial performance and investor returns. Investors are increasingly seeking out ESG investment options to both mitigate risk and generate opportunities. Following are a few BMO funds that can provide ESG investment opportunities to investors.

BMO Sustainable Opportunities Global Equity Fund

Active equity mutual funds

Selects an active, high conviction portfolio of global equities based on a responsible investing approach.

BMO Sustainable Opportunities Canadian Equity Fund

Active equity mutual fund

Selects an active, high conviction portfolio of Canadian equities based on a responsible investing approach.

ESGG - BMO MSCI Global ESG Leaders Index ETF

Passive equity ETF

Replicates the MSCI World ESG Leaders Index that includes equities with high ESG performance relative to their sector peers.

ESGY - BMO MSCI USA ESG Leaders Index ETF

Passive equity ETF

Replicates the MSCI USA ESG Leaders Index that includes equities with high ESG performance relative to their sector peers.

ZESG - BMO Balanced ESG ETF

Mutli-asset passive ETF

Builds a 60/40 portfolio by selecting equity and fixed income ETFs based on a responsible investing approach.

BMO Sustainable Growth Portfolio

Mutli-asset active mutual fund

Builds a 80/20 portfolio by selecting equity and fixed income ETFs and mutual funds based on a responsible investing approach.

There is no denying that ESG considerations are mainstream risks that are multi-faceted and pervasive throughout society. Our Responsible Investment strategy aims to mitigate these risks and capitalize on opportunities for investors, paving the way to a sustainable future for all.

Nalini Feuilloley
Nalini Feuilloley
Director, Responsible Investment Team

Insights

Men
Sadiq Adatia
Weekly Commentary
November 21, 2022

When Will the Recession Hit?

What should investors expect from a split U.S. Congress following the recent elections? How will the inverted yield curve impact markets?
Commentary
November 17, 2022
November 2022

A recap of our 2022 proxy voting in Canada

Proxy voting is a key element of our stewardship and responsible investment approach. This piece summarizes how we voted in the Canadian market during the 2022 proxy voting season.
Men
Sadiq Adatia
Weekly Commentary
November 14, 2022

Chaos in Crypto: Should Investors Be Worried?

Why the latest crypto crash is affecting equity markets? Is demand for energy weighing down oil prices?
Men
Sadiq Adatia
Weekly Commentary
November 7, 2022

Don’t Doubt the Fed

Why are equity markets continually surprised by the U.S. Federal Reserve? Do lower equity valuations finally present opportunities for re-entry?
Main Landscape
Main Landscape
Commentary
November 2, 2022

What to look for at COP27

The UN’s annual climate conference meets in Egypt November 6-18 amid rising environmental threats, an urgent need to accelerate funding and an energy crisis that is testing commitments to fight climate change.
Small cubes connected with string
Small cubes connected with string
Commentary
November 2, 2022

Will the Fed and Major Central Banks Tighten Until Something Breaks?

September was another eventful month for investors as global equities and bonds were rattled by hawkish central banks and the twin rout of equities and bonds continued.

1 BMO Asset Management Inc., together with its affiliate BMO Investments Inc., as BMO Global Asset Management (BMO GAM), together with its former asset management affiliates in Europe, Asia and the United States, was awarded a 5-star rating in the 2021 Direct Listed Equity – Active Fundamental – Incorporation module by the United Nations Principles for Responsible Investment (UN PRI). The UN PRI is an investor initiative in partnership with UNEP Finance Initiative and UN Global Compact (see www.unpri.org). UN PRI does an independent assessment of all global signatories annually through an extensive questionnaire. Five stars is the highest rating from the UN PRI awarded in this module.

 

2This includes voting activity and engagement conducted on behalf of BMO GAM by the Responsible Engagement Overlay (reo) service offered by former colleagues at BMO GAM EMEA, now part of Columbia Threadneedle, in the period of November and December 2021