Global Equities

Access to finance

BMO Responsible Global Equity Strategy ESG Profile and Impact Report 2020
August 2020

Global Equities Team

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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.

The financial sector is uniquely positioned to adapt and promote innovation to address global sustainability challenges — including climate change, population growth and resource scarcity.

Industry Inovation and Infrastructure - SDGs goals          SDG - 8 decent work and economic growth


By integrating sustainability into their business strategies and decision-making processes, financial institutions can play a significant role in promoting activities that support goals such as financial inclusion, environmental stewardship and respect for human rights through their internal practices and through the enterprises they finance. 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, particularly 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.

Company No. of employees Company description SDG Alignment Number and subject of engagement(s)

Allianz SE

Insurance

GERMANY

142,460

Insurance and financial services company; also offers fund management services.

+ Target 3.8; Share of company revenue 42%

Provides access to healthcare through its medical insurance products


+ Target 8.10; Share of company revenue 51%

Provides access to financial services through its range of insurance and savings products, including in emerging markets


+ Target 12.6; Share of company revenue 6%

Promotes responsible investment through providing asset management services with ESG integration, and specialist SRI funds

4: Labour standards, Corporate governance

DNB ASA

Banks

NORWAY

9,020

Commercial bank with services across retail, commercial, corporate, and investment banking, and life, pension, and non-life insurance.

+ Target 8.10; Share of company revenue 35%

Promotes access to financial services for all through its retail banking operations


+ Target 9.3; Share of company revenue 22%

Promotes socioeconomic growth by enabling access to financial services for small, medium and large enterprises

2: Business conduct, Corporate governance

HDFC Bank Ltd

Banks

INDIA

104,154

Provides general banking services serving corporate, commercial and SME, retail and microfinance, and treasury customers.

 + Target 9.3; Share of company revenue 22%

Promotes socioeconomic growth by enabling access to financial services for small, medium and large enterprises, including affordable credit


 + Target 8.10; Share of company revenue 40%

Promotes access to financial services for all through its retail banking operations, including a particular focus on rural customers

3: Climate change, Environmental stewardship, Business conduct, Labour standards, Corporate governance

ING Groep NV
Banks

NETHERLANDS

54,514

Global financial institution, providing a wide range of banking and finance products to individual and institutional clients.

+ Target 8.10; Share of company revenue 67%

Promotes access to financial services for all through its retail banking operations


+ Target 9.3; Share of company revenue 33%

Promotes socioeconomic growth by enabling access to financial services for small, medium and large enterprises

3: Climate change, Environmental stewardship, Business conduct, Corporate governance

Intercontinental

Exchange Inc

Diversified Financials

UNITED STATES

5,989

Operator of global commodity and financial products marketplaces, including a wide range of commodity markets.

n/a

0

Japan Exchange

Group Inc

Diversified Financials

JAPAN

1,110

Operates a marketplace for the trading of equities, futures, and options.

n/a

4: Business conduct, Labour standards, Corporate governance

Principal Financial

Group Inc

Insurance

UNITED STATES

17,601

Provider of financial products and services to businesses, individuals, and institutional clients.

+ Target 3.8; Share of company revenue 16%

Provides access to healthcare through its medical insurance products


+ Target 8.10; Share of company revenue 12%

Provides access to financial services through its range of insurance products


+ Target 17.5; Share of company revenue 9%

Offers financial services products in emerging markets, including least developed markets

1: Environmental stewardship, Labour standards, Corporate governance

Prudential PLC

Insurance

BRITAIN

18,125

Provider of a wide range of insurance products, as well as other financial products including pensions and mortgages.

+ Target 8.10; Share of company revenue 94%

Provides access to financial services through its range of insurance and savings products, including in emerging markets

2: Business conduct, Public health

SVB Financial Group

Banks

UNITED STATES

3,564

Holding company for Silicon Valley Bank, a US institution which serves customers in the technology and life sciences industries.

+ Target 9.3; Share of company revenue 78%

Promotes socioeconomic growth by enabling access to financial services for small, medium and large enterprises

2: Climate change, Environmental stewardship, Labour standards, Corporate governance

US Bancorp

Banks

UNITED STATES

74,000

US financial services company whose products include credit card services, mortgage banking and insurance, as well as corporate and investment management services.

+ Target 8.10; Share of company revenue 27%

Provides payment services which facilitate access to finance


+ Target 9.3; Share of company revenue 17%

Promotes socioeconomic growth by enabling access to financial services for small, medium and large enterprises

3: Labour standards, Corporate governance

1 Source: World Health Organization, Universal Health Coverage Monitoring Report, 22 September 2019. https://www.who.int/news-room/detail/22-09-2019-countries-mustinvest-at-least-1-more-of-gdp-on-primary-health-care-to-eliminate-glaring-coverage-gaps

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 Equity Strategy ESG Profile and Impact Report 2020

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