Impact Reports
Investing with impact in mind
Measuring impact
The United Nations Sustainable Development Goals (SDGs) are a key reference point for measuring impact. There are 17 goals and 169 associated targets, providing a useful tool for companies and investors to be able to contribute to achieving a more sustainable future by 2030. The framework has created a common language between stakeholders.
BMO’s contribution to SDGs in 2020
As pioneers in responsible investment, at BMO, we use the SDGs as a framework for engaging for positive change. In 2020, 79% of our engagement was linked to SDGs. We positively contributed to 10 of the 17 SDGs.
Click below to discover how our engagement with companies in 2020 linked to the different goals and targets.
In 2020, 5% of our engagement linked to SDG goal 1
In 2020, 3% of our engagement linked to SDG goal 3
In 2020, 8% of our engagement linked to SDG goal 5
In 2020, 2% of our engagement linked to SDG goal 6
In 2020, 5% of our engagement linked to SDG goal 7
In 2020, 19% of our engagement linked to SDG goal 8
In 2020, 12% of our engagement linked to SDG goal 12
In 2020, 16% of our engagement linked to SDG goal 13
In 2020, 2% of our engagement linked to SDG goal 15
In 2020, 3% of our engagement linked to SDG goal 16
2. Zero Hunger, 9. Industry, Innovation and Infrastructure, 10. Reduced Inequalities, 11.Sustainable Cities and Communities, 14. Life Below Water
21% of our engagement does not have a direct link to a specific SDG target. The majority of these engagement activities are on corporate governance, which we view as an essential building block in creating more sustainable, better run companies. The main exception is our engagement on board diversity, much of which has covered gender diversity issues, which we see as supportive of SDG 5 and targets 5.1 and 5.5 in particular, but has a wider application to the achievement of other goals such as SDG 8 and SDG 10.
Read our Responsible Investment 2020
Review
Access our Impact Reports
Read our impact reports for more information on how each fund has contributed to positively engaging with companies on a global scale.
Each impact report includes:
- Analysis of how the products and services provided by companies we invest in for this portfolio align with the SDGs
- Key portfolio impact metrics on carbon, water and gender
- Summary of our engagement with portfolio companies, and how this aligns with the SDGs
Sustainable Universal MAP Range
In 2020, we engaged with 107 companies held in the funds resulting in 59 milestones. Key topics included engagement on labour standards, corporate governance and climate change.
In 2020, we voted at 90 meetings and engaged with 107 companies held in the funds, resulting in 59 milestones. Key topics included engagement on labour standards, corporate governance and climate change.
- Across the Sustainable MAP range, the top SDGs we aligned to were:
- SDG 8 – Decent Work and Economic Growth. In particular, target 8.2 which focuses on boosting economic productivity through technological upgrading and innovation and; target 8.10 which aims for universal access to financial services
- SDG 3 – Good Health and Well-being. Of the activity across the range which linked to SDG 3, the majority aligned with target 3.8 which calls for universal access to medicines and health-care
- Engaged with a number of companies held in the funds including Smurfit Kappa and National Grid linking to SDG 13 – Climate Action. Worked with GlaxoSmithKline on its approach to executive remuneration
- We voted at 90 meetings
BMO Responsible UK Equity Strategy
In 2020 we engaged with 46 companies held in the fund, with the aim of improving their management of environmental, social and governance issues.
In 2020, we engaged with 46 companies held in the fund, voted at 82 meetings and achieved 31 milestones. The top SDGs we aligned to were: SDG 3 – Good Health and Well-being and SDG 9 – Industry, Innovation and Infrastructure.
- 47% of activities were positively aligned to the Sustainable Development Goals (SDGs), with only 9% negatively aligned and 42% neutral
- Top SDGs we aligned to:
- SDG 3 – Good Health and Well-being
Examples of companies linked to SDG 3 include Clinigen, which facilitates access to new medicines across over 100 countries worldwide, and surgical device firm Smith & Nephew
- SDG 9 – Industry, Innovation and Infrastructure
Companies providing innovative solutions aligned with SDG 9 include Johnson Matthey, which provides technologies that reduce air pollution, and Polypipe, whose products include components for plumbing and sanitation
- We voted at 82 meetings and achieved 31 milestones
BMO Responsible UK Income Strategy
In 2020 we engaged with 64 companies held in the fund and achieved 37 milestones
In 2020 we voted at 72 meetings, engaged with 64 companies held in the fund and achieved 37 milestones. The top SDGs we aligned to were: SDG 3 – Good Health and Well-being, SDG 8 – Decent Work and Economic Growth, and SDG 9 – Industry, Innovation and Infrastructure.
- 49% of our activity positively aligned to the SDGs with only 6% negatively aligned and 41% neutral
- The top SDGs we aligned to were:
- SDG 3 – Good Health and Well-being
An example of a company linked to SDG 3 is CareTech Holdings, which provides residential care for adults and children with health challenges - SDG 8 – Decent Work and Economic Growth
- SDG 9 – Industry, Innovation and Infrastructure
An example of a company aligned to SDG 9 is Nationwide Building Society, which provides finance for housing
- SDG 3 – Good Health and Well-being
- We voted at 72 meetings
BMO Responsible Global Emerging Markets Equity Strategy
In 2020, we engaged with 87% of the companies held in the strategy, with the aim of improving their management of material ESG issues.
In 2020, we engaged with 87% of the companies held in the strategy with the aim of improving their management of material ESG issues. We voted at 64 meetings and 61% of our activity positively aligned to the SDGs with only 7.5% negatively aligned.
- 61% positive contribution towards SDGs and only 7.5% negative, with the remaining 26.7% on neutral
- SDG 8 – Decent Work and Economic Growth made up a large percentage (28.2%) of focus on engagement for this fund. This reflects holdings in technology companies including Taiwan Semiconductor Manufacturing and Naver, which support SDG target 8.2 calling for boosting economic productivity through technological upgrading and innovation
- SDG 3 – Good Health and Well-being also has a significant weight. The fund’s holdings in this area include pharmaceutical firms, pharmacy and healthcare stores, and companies like Discovery that are involved in promoting wider well-being amongst their customers
- We voted at 64 meetings
BMO Responsible Global Equity Strategy
In 2020, we engaged with 33 companies held in the strategy with the aim of improving their management of ESG issues.
In 2020, we engaged with 33 companies held in the strategy and recorded 21 milestones. 83.7% of activities positively aligned to the SDGs with only 1.8% negatively aligned. Our top engagement aligned to SDG 3 – Good Health and Well-being and SDG 8 – Decent Work and Economic Growth.
- 83.7% of activities positively aligned to the SDGs, only 1.8% was negatively aligned and 13.5% neutral
- Top engagement aligned to: SDG 3 – Good Health and Well-being, and SDG 8 – Decent Work and Economic Growth
- Labour standards were an important focus for our engagement in 2020, with discussions on topics including modern slavery, living wages and how companies were protecting their workforce during the Covid-19 pandemic
- Investment in technology and industrial companies, providing sustainability solutions, align with target 8.2, which calls for technological innovation to support increased productivity and economic growth
- We have recorded 21 milestones – instances of positive change following engagement
BMO Responsible Sterling Corporate Bond Strategy
In 2020 we engaged with 50 companies held in the fund, with the aim of improving their management of environmental, social and governance issues.
In 2020 we engaged with 50 companies held in the fund, with the aim of improving their management of environmental, social and governance issues.
- Similar to last year, the SDGs most represented remain SDG8 – Decent Work and Economic Growth and SDG9 – Industry, Innovation and Infrastructure.
- Retail banking and insurance services support target 8.10, which aims for universal access to finance – one example being insurer Prudential.
- SDG9 links to several business lines including loans to small and medium-sized businesses, supporting target 9.3 on financial services to small enterprises.
- Clean energy is also a key focus area, with 5% of the portfolio linking to SDG7 – Affordable and Clean Energy.
- This includes a number of investments in green bonds. At the end of 2020, green and social bonds made up 9% of the fund overall.
BMO Sustainable Opportunities Global Equity Strategy
In 2020 we engaged with 24 companies held in the fund and we recorded 20 milestones – instances of positive change following engagement. Of the companies we invest in:
In 2020, we engaget wiith 24 companies held in the fund and we recorded 20 milestones – instances of positive change following engagement. 95% of activities were positively aligned to the Sustainable Development Goals (SDGs), with only 1.2% negatively aligned. Top engagement aligned to: SDG 3– Good Health and Well-being and SDG 8– Decent Work and Economic Growth.
- 95% of activities were positively aligned to the Sustainable Development Goals (SDGs), with only 1.2% negatively aligned
- Top engagement aligned to:
- SDG 3 – Good Health and Well-being
- SDG 8 – Decent Work and Economic Growth;
- Labour standards were an important focus for our engagement with continued engagement on topics including modern slavery and living wages, as well as protecting workforces during the Covid-19 pandemic
- Our governance engagement included pay and board diversity
- On climate change, we called on companies to align their business strategies with the transition to net zero global emissions by 2050
BMO SDG Engagement Global Equity Strategy
In 2020, we engaged with 100% of companies within our fund’s portfolio across 17 countries, totalling 159 engagements.
In 2020, we engaged with 100% of companies within our fund’s portfolio across 17 countries, totalling 159 engagements.
- Top engagement aligned to: SDG 12 35% of total engagement, SDG 8 17% and SDG 5 contributed 10% of our total engagement
- SDG 12 – we have been talking to companies about improving environmental and social management, and utilising resources in the most efficient of ways. Waste management and packaging innovation comes in here
- SDG 8 – focused on ensuring the application of labour management policies that provide a diverse, non-discriminatory and safe workplace, where workers are treated well
BMO Sustainable Opportunities European Equity Strategy
In 2020 we engaged with 19 companies held in the fund, with the aim of improving their management of environmental, social and governance issues.
In 2020 we engaged with 19 companies held in the fund, with the aim of improving their management of environmental, social and governance issues. We voted at 35 meetings, achieved 14 milestones and 82% of activities positively aligned with the SDGs. Key topics included engagement on: SDG 3 – Good Health and Well-being and SDG 8 – Decent Work and Economic Growth.
- 82% of activities positively aligned to the Sustainable Development Goals (SDGs) with only 3% negatively aligned and 13% neutral
- Key topics included engagement on
- SDG 3 – Good Health and Well-being – Examples of companies linked to SDG 3 include Covid-19 vaccine developer AstraZeneca, and Swedish firm Elekta, which specialises in radiotherapy equipment for cancer treatment.
- SDG 8 – Decent Work and Economic Growth – Companies providing innovative solutions aligned with SDG 8 include Prudential, provider of a range of insurance services including health insurance, supporting Target 8.10 which calls for an expansion in access to financial services.
- We voted at 35 meetings and achieved 14 milestones
Let's talk about risk
All of our funds involve a level of risk and the value of your investments can go down as well as up. The level of risk will depend upon the underlying investments in those funds. You need to be comfortable that you may not get back the original amount invested. Past performance should not be seen as an indication of future performance.
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 within it.
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Stewardship Report - Q2 2021
Our quarterly stewardship report outlines our latest engagement and voting activity, measuring our impact through our alignment with the United Nation’s Sustainable Development Goals.
