Change over 20 years 

The past two decades have seen the confluence of global economic, environmental and social megatrends that are shaping our future. As active owners, we have been asking companies to implement robust ESG practices that can help them respond to the challenges from these megatrends and, by doing so, future-proof their businesses and protect the value of our clients’ assets.

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Engagement since 2000: 30% Environmental, 30% Social, 40% Governance

5,588

companies engaged                 


Through our engagement programme we have reached companies across all sectors and industry groups in close to 90 countries. We engage at different levels within companies depending on the nature of our objectives, including the board, executive management and operational specialists.

40%

of engagement has been with companies in the extractives, financial, and retail industries


The economic and development benefits from the oil & gas and mining industries can come at significant, very visible, environmental and social costs. We have therefore engaged with extractives the most, closely followed by banks on account of the governance and conduct issues that precipitated the global financial crisis.

87

countries covered by engagement              


Almost 70% of our engagement has been with companies in Europe and North America, reflecting their larger share of the world’s total market capitalisation, and stricter ESG-related regulations. We have recently seen the proportion of emerging markets that we engage in rise, as companies become more responsive to investors’ engagement efforts.

There is an increasing urgency to the role that we play as investors in supporting the change needed for a sustainable future. We are working hard to cut through the noise to bring a thoughtful and impactful voice to our interactions with the companies we invest in.

Milestones since 2000: 28% Environmental, 18% Social, 54% Governance

3,763

instances of positive change in ESG practices recorded since 2000


We are proud to have played a role in driving change at over 1,600 companies across industries on a wide range of ESG issues. We have achieved this through constructive, consistent and confidential dialogue with companies that we have carried out both individually and collaboratively.

54%

of milestones linked to improvements in governance standards


Boards and management are often receptive to requests to support and implement changes in governance practices, including on board effectiveness, executive pay and shareholders’ rights. On the other hand, changes to environmental and social practices usually require executives to think of and set strategies for the long term.

468

companies have improved their approach to managing climate risk


Within the environmental and social spheres, climate change is the theme for which we have recorded the largest number of milestones, at over 670. This is a reflection of our continued focus on this important theme, as well as the growing urgency companies rightly feel to address material climate-related issues.

The ability to evolve and adapt is vital for any business to survive and thrive in our increasingly uncertain and fast-paced world. We see our role, as using our influence to help companies overcome resistance to change and effectively navigate it.

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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.

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 products that may be mentioned.