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.
Let’s talk about risk
All of our investment plans 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 that you choose to hold in the plans. You need to be comfortable that you may not get back the original amount invested.
Emma Lupton, Vice President in our Responsible Investment Team, talks about our engagement plans for the future, with a specific focus on the SDGs.
The United Nations Sustainable Development Goals (SDGs) are a key reference point for measuring impact. They 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, and we are seeing that have a positive impact within our engagement.
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. Hover over the wheel below to discover how our engagement with companies in 2020 linked to the different goals and targets
In 2020, 79% of our engagement was linked to SDGs. We positively contributed to 10 of the 17 SDGs
Click on the wheel 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.
“The debate on ESG has moved beyond risk and opportunity. The more fundamental question now being asked is what is the role of the financial sector in creating a fairer and more sustainable society?”
Working together for systemic change
Perspectives on stewardship are shifting towards looking more holistically at our responsibilities for shaping the market and economy as a whole. Climate change, ocean health, biodiversity and public health are all key systemic risks that cannot be addressed by engagement with companies alone. Investors must expand their focus to public policy, and building relationships with other stakeholders, including NGOs and academic experts.
Investors across the world step up
Decade of climate action
Vicki Bakhshi, Director in our Responsible Investment Team, provides her view on climate change engagement for the future.