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Banks and other financial institutions are uniquely positioned to deliver positive environmental and social impacts through their internal practices and, importantly, the enterprises they finance.
By integrating sustainability into their business strategies and decision-making processes, financial institutions can go above and beyond their critical role as providers of capital for people and businesses – they can play a significant role in promoting activities that support goals such as financial inclusion, environmental stewardship and respect for human rights. Importantly, financial institutions have a significant role to play in accelerating the transition to a low carbon economy.
We will, therefore, aim to invest in financial institutions that see strong sustainability and governance practices as essential to effectively managing ESG risks and opportunities, maintaining their social license to operate and, ultimately, creating long-term shared value.
We are particularly interested in financial inclusion for our Strategy. Over 1.5 billion people and countless businesses remain excluded from traditional banking systems across emerging markets. By increasing efforts to reach the unbanked and underbanked, including through leveraging technological advances, the finance sector can help eliminate poverty, create jobs and promote gender equality. Ultimately, financial institutions can help propel rapid expansion and development of high-potential economies, while profitably growing their own customer and revenue base.
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.
Company | No. of employees | Company description | SDG Alignment | Number and subject of engagement(s) |
|---|---|---|---|---|
Bank Mandiri Persero Tbk PT Banks INDONESIA | 39,065 | Provides general banking services, serving corporate, commercial and SME, retail and microfinance, and treasury customers. | Target 8.10; Share of company revenue 56% Promotes access to financial services for all through its retail banking operations Target 9.3; Share of company revenue 21% Promotes socioeconomic growth by enabling access to financial services for small and medium enterprises, including affordable credit | 5: Climate change, environmental stewardship, business conduct, corporate governance |
Bank Rakyat Indonesia Persero Tbk PT Banks INDONESIA | 61,546 | Provides general banking services, serving corporate, commercial and SME, retail and microfinance, and treasury customers. | Target 1.4.; Share of company revenue 46% Helps the poor and the vulnerable have equal rights to economic resources through its microfinance products and services. Target 8.10; Share of company revenue 36% Promotes access to financial services for all through its retail banking operations Target 9.3; Share of company revenue 8% Promotes socioeconomic growth by enabling access to financial services for small and medium enterprises, including affordable credit | 5: Climate change, environmental stewardship, labour standards, corporate governance |
Bank Tabungan Pensiunan Nasional Syariah Tbk PT Banks INDONESIA | 12,000 | Provides banking services for unbanked and underbanked individuals and businesses across Indonesia. | Target 1.4; Share of company revenue: 100% Helps the poor and the vulnerable have equal rights to economic resources through its microfinance products and services | 1: Business conduct |
Bolsa Mexicana de Valores SAB de CV Diversified Financials MEXICO | 536 | Operator of the Mexican Stock Exchange. | n/a | 1: Corporate governance |
Commercial International Bank Egypt SAE Banks EGYPT | 6,900 | Provides general banking services serving corporate, commercial and SME, retail, and treasury customers. | Target 8.10; Share of company revenue 29% Promotes access to financial services for all through its retail banking operations Target 9.3; Share of company revenue 14% Promotes socioeconomic growth by enabling access to financial services for small and medium enterprises, including affordable credit | 1: Climate change, environmental stewardship |
Credicorp Ltd Banks PERU | 34,024 | Provides a range of financial services including corporate, commercial and retail banking, microfinance, corporate finance, asset management and insurance. | Target 1.4; Share of company revenue 11% Helps the poor and the vulnerable have equal rights to economic resources through its microfinance products and services Target 8.10; Share of company revenue 73% Promotes access to financial services for all through its universal banking operations | 1: Business conduct |
Guaranty Trust Bank PLC Banks NIGERIA | 5,606 | Provides general banking services serving corporate, commercial and SME, retail, and treasury customers. | Target 8.10; Share of company revenue 25% Promotes access to financial services for all through its retail banking operations Target 9.3; Share of company revenue 14% Promotes socioeconomic growth by enabling access to financial services for small and medium enterprises, including affordable credit | 3: Climate change, environmental stewardship, business conduct |
HDFC Bank Ltd Banks INDIA | 104,154 | Provides general banking services serving corporate, commercial and SME, retail and microfinance, and treasury customers. | Target 8.10; Share of company revenue 40% Promotes access to financial services for all through its retail banking operations Target 9.3; Share of company revenue 23% Promotes socioeconomic growth by enabling access to financial services for small, medium and large enterprises, including affordable credit | 3: Climate change, environmental stewardship, business conduct, corporate governance |
ICICI Bank Ltd Banks INDIA | 72,175 | Provides a range of financial services including corporate, commercial and retail banking, corporate finance, asset management and insurance. | Target 8.10; Share of company revenue 54% Promotes access to financial services for all through its retail banking and insurance operations Target 9.3; Share of company revenue 16% Promotes socioeconomic growth by enabling access to financial services for small, medium and large enterprises, including affordable credit | 0 |
Itau Unibanco Holding SA Banks BRAZIL | 94,900 | Provides a range of financial services including corporate, commercial and retail banking, corporate finance, asset management and insurance. | Share of company revenue 64% Promotes access to financial services for all through its retail banking and insurance operations Target 9.3; Share of company revenue 27% Promotes socioeconomic growth by enabling access to financial services for small, medium and large enterprises, including affordable credit | 2: Climate change, environmental stewardship, human rights, corporate governance |
Kasikornbank PCL Banks THAILAND | 20,443 | Provides general banking services serving corporate, commercial and SME, retail, and treasury customers. | Target 8.10; Share of company revenue 42% Promotes access to financial services for all through its retail banking operations Target 9.3; Share of company revenue 37% Promotes socioeconomic growth by enabling access to financial services for small and medium enterprises, including affordable credit | 4: Climate change, environmental stewardship, human rights |
Moscow Exchange MICEX-RTS PJSC Diversified Financials
RUSSIA | 1,791 | Operator of the Moscow Stock Exchange | n/a | 1: Corporate governance |
Public Bank Bhd Banks MALAYSIA | 18,500 | Provides general banking services serving corporate, commercial and SME, retail, and treasury customers. | Target 8.10; Share of company revenue 64% Promotes access to financial services for all through its retail banking operations Target 9.3; Share of company revenue 8% Promotes socioeconomic growth by enabling access to financial services for small and medium enterprises, including affordable credit | 2: Climate change, environmental stewardship, human rights |
Read our BMO Responsible Global Emerging Markets Equity Strategy ESG Profile and Impact Report 2020
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