Emerging Markets

Responsible Finance

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

Emerging Markets Team: LGM

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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.

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.

SDG no poverty        SDG - 8 decent work and economic growth          Industry Inovation and Infrastructure - SDGs goals


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.

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

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.

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.

+ Target 8.10; 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

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

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

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