Responsible Finance

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

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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.
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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.
Label of Sustainable Investment Awards 2020 for ESG research of the year
Label of Sustainable Investment Awards 2020 for ESG research of the year
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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