We have a comprehensive climate change policy for the Responsible Global Equity Strategy, which includes full divestment from companies with fossil fuel reserves, investment in solutions and engagement.
2019 saw BMO publish its framework for climate change engagement, where we clearly set out our expectation that companies should aim to align their businesses with the Paris climate agreement, as well as the practical steps we recommend companies take to achieve this.
We are committed to disclosure, and again this year publish our Strategy weighted carbon intensity, in line with the recommendations of the Task Force on Climate-related Financial Disclosures.
The Strategy-weighted carbon intensity (Scope 1 and 2 emissions) declined by 14.4% year on year, falling from 118 tons CO2 e/$1m sales to 101 tons CO2 e/$1m sales, and remains well below the MSCI World benchmark figure, which itself declined by 11.5%, largely due to the stronger performance of lower-emissions sectors such as technology, giving them a higher weight in the index. This metric does not capture all aspects of climate risk, but it does provide an indication of the sensitivity of our investee companies to changes in emissions regulation, as well as a way to identify potential outliers.