Global Equities

BMO Responsible Global Equity Strategy ESG Profile and Impact Report 2020

Health & Well-being
July 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.

Countries across the world, particularly during the COVID-19 pandemic, are witnessing the limits of their healthcare systems. Health care costs continue to rise with the increasing prevalence of noncommunicable diseases and an ageing world population.


 

A communicable virus like COVID-19 is proving to exacerbate these already challenging circumstances. Some developed market countries, such as the United States, are witnessing a notable lack of access to affordable healthcare, considering the significant system cost and incomplete insurance coverage, while other developed market countries, such as the United Kingdom, are struggling with stretched public health systems. Many emerging market countries suffer from gravely insufficient healthcare funding. According to the World Health Organization, as many as five billion people will still lack access to healthcare in 2030 if current global trends persist1.

The Responsible Global Equity Strategy aims to invest in companies seeking to tackle these issues through a range of initiatives, enabling critical clinical research, drug development, affordable medicines, quality treatments, and insurance coverage. These include companies that develop and provide life-saving drugs, quality hospital care, dialysis and home care; companies that support life sciences innovation through consistent
launches of new analytical, diagnostics and nextgeneration sequencing products; exposure to technology companies taking steps to capture healthcare data digitalisation opportunities; and providers of health insurance coverage and services, particularly to senior citizens. Together, our healthcare holdings are actively contributing towards the targets of SDG3 – Good Health and Well-being.

    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)

Becton Dickinson and Co
Health Care Equipment & Services
UNITED STATES

70,093

Medical technology company which provides a range of medical services and devices such as diagnostic systems, drug delivery systems and infection control products.

+ Target 3.4; Share of company revenue 23%
Helps tackle non-communicable diseases with the manufacture of vascular, oncology, urology and surgical products


+  Target 3.8; Share of company revenue 77%
Provides access to healthcare through the production of essential medical supplies such as needles and syringes

0

CSL Ltd
Pharmaceuticals, Biotechnology
AUSTRALIA

25,000

Producer of pharmaceutical and diagnostic products derived from human blood plasma, including vaccines
and disease treatments.

+ Target 3.3; Share of company revenue 11%
Produces vaccines for influenza and other communicable diseases


+ Target 3.4; Share of company revenue 84%
Supports the treatment of non-communicable diseases through the development of a range of innovative biotheraphy treatments

0

CVS Health Corp
Health Care Equipment & Services
UNITED STATES

290,000

Operator of retail pharmacies, mainly in the US.

 + Target 3.8; Share of company revenue 98%
Provides access to healthcare through its retail pharmacy stores and clinics

1: Public health, Corporate governance

Fresenius SE & Co KGaA
Health Care Equipment & Services
GERMANY

294,134

International health care group whose specialisations include dialysis and related technologies.

+ Target 3.4; Share of company revenue 49%
Provides products and services for patients with chronic kidney failure


+ Target 3.8; Share of company revenue 51%
Supports access to healthcare through the provision of private hospital and care centres, pharmaceutical products and service provision for healthcare providers

4: Labour standards, Public health, Corporate governance

Henry Schein Inc
Health Care Equipment & Services
UNITED STATES

19,000

Distributor of healthcare products and services, including dental and pharmaceutial products, to healthcare practitioners.

+Target 3.8; Share of company revenue 68%
Provides access to healthcare through the provision of dental health services and healthcare products


+Target 8.2; Share of company revenue 4%
Supports economic productivity through software solutions

0

Hoya Corp
Health Care Equipment & Services
JAPAN

37,412

Manufactures electronic and optics products including eyeglasses and contact lenses, medical products, and other industrial solutions.

+ Target 3.8; Share of company revenue 66%
Provides access to healthcare through the production of eyeglass and lens products, and of medical endoscopes


+ Target 8.2; Share of company revenue 33%
Enables gains in economic productivity through technologies used in a range of digital products such as phones

5: Climate change, Human rights, Labour standards, Public health, Corporate governance

Humana Inc
Health Care Equipment & Services
UNITED STATES

46,000

US health insurance company, with individual, corporate and government-sponsored clients.

+ Target 3.8; Share of company revenue 100%
Provides access to healthcare through its medical insurance products

0

Kerry Group PLC
Food, Beverage & Tobacco
IRELAND

25,255

International food corporation, whose products include ingredients as well as a wide range of ready-made foods and snacks.

+ Target 2.1; Share of company revenue 80%
Provides affordable, safe and nutritious food all year round

3: Climate change, Environmental stewardship, Public health, Corporate governance

QIAGEN NV
Pharmaceuticals, Biotechnology
NETHERLANDS

5,100

Specialises in testing technologies, particularly disease testing in the pharmaceutical, life sciences and healthcare areas.

+ Target 3.8; Share of company revenue 100%
Provides access to healthcare through the sale of a range of diagnostic and sampling services and equipment

2: Environmental stewardship, Public health, Corporate governance

Shimano Inc
Consumer Durables & Apparel
JAPAN

11,380

Manufacturer of products for cycling, rowing and fishing.

n/a

0

Thermo Fisher
Scientific Inc Pharmaceuticals, Biotechnology
UNITED STATES

75,000

Manufacturer of a wide range of scientific instruments, chemicals and related products to the medical and scientific communities.

+ Target 3.4; Share of company revenue 39%
Produces a range of products and services aimed at the treatment of noncommunicable diseases


+ Target 3.8; Share of company revenue 61%
Supports access to healthcare via its range of analytical and data tools

0

VF Corp
Consumer Durables & Apparel
UNITED STATES

75,000

Apparel company, particularly well-known for its leisure and sports clothing and footwear.

n/a

2: Environmental stewardship, Labour standards

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

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