Global Equities

Sustainable mobility

BMO Responsible Global Equity Strategy ESG Profile and Impact Report 2020
July 2020

Global Equities Team

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Risk Disclaimer

The value of investments and any income derived from them can go down as well as up as a result of market or currency movements and investors may not get back the original amount invested.

Investing in emerging markets is generally considered to involve more risk than developed markets.

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 stocks or products that may be mentioned.

Transport is an essential part of our daily lives, and is necessary for individuals to participate in economic activities, get access to essential services as well as to establish, maintain and foster social relationships. It is equally important for our global economy where opportunities are increasingly related to the mobility of people and freight.

          Industry Inovation and Infrastructure - SDGs goals          SDG sustainable cities and communities          SDG - 13 Climate action


 

However, there are direct environmental and societal challenges stemming from current transportation networks as transportation ranks as one of the most material contributors to carbon emissions globally, at around 25%. Equally, with increasing urbanisation, congestion in cities both stifles economic activity and leads to poor health and fatalities, both directly through road traffic accidents, with around 1.3 million fatalities per year as a direct result of traffic related incidents, and indirectly through air and noise pollution.

The disruption during the COVID-19 pandemic has drawn attention to the wastefulness of some of our transportation use, and could lead to permanent changes in areas such as home working and business travel. Some governments have also been prompted to invest more in areas such as cycling infrastructure to enable more sustainable transportation patterns. There are a multitude of different ways in which companies around the world are addressing this challenge, and we see long-term structural growth opportunities as a result. We particularly look for opportunities in the areas of electric vehicle technology, cycling, autonomous driving, safety technology, shared mobility and mass transportation, and energy efficient freight haulage. These solutions directly address the underlying targets of SDG11 – Sustainable Cities and Communities, as well as a number of other SDGs, ranging from SDG3 – Good Health and Well-being to SDG13 – Climate Action.

Transportation ranks as one of the most material contributors to carbon emissions globally.

Risk Disclaimer

The value of investments and any income derived from them can go down as well as up as a result of market or currency movements and investors may not get back the original amount invested.

Investing in emerging markets is generally considered to involve more risk than developed markets.

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 stocks or products that may be mentioned.

    Sustainable Investment Awards 2020 Winner ESG research of the year - fixed income

No. of employees Company description SDG Alignment Number and subject of engagement(s)

Aptiv PLC
Automobiles & Components IRELAND

141,000

Vehicle component manufacturer, whose products include lightweight wiring as well as safety equipment.

+ Target 3.6; Share of company revenue 28%
Supports the reduction in injury and death from road accidents through the provision of safety systems


+ Target 9.4; Share of company revenue 72%
Manufactures a range of vehicle powertrain solutions which can help improve transport energy efficiency

2: Climate change, Labour standards, Public health

ComfortDelGro Corp Ltd
Transportation
SINGAPORE

24,513

Provider of land transport services included buses, taxis, rail and car rentals.

+ Target 3.6; Share of company revenue 4%
Supports the reduction in injury and death from road accidents through the provision of inspection and testing services


+ Target 11.2; Share of company revenue 72%
Promotes more sustainable transporation through its public transport services

1: Corporate governance

Toyota Motor Corp
Automobiles &
Components
JAPAN

372,636

Automotive designer and manufacturer, producing passenger cars as well as commercial vehicles including trucks and buses.

- Target 13.2; Share of company revenue 100%
Negative climate impact through the continued prodution of internal combustion energy vehicles. Hybrid and electric cars should have a positive SDG link but the revenue split is not publicly available

 

0

Where company revenues do not add to 100%, then there is no SDG link for the remainder of the business revenues

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