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Gender diversity

- Target: 5.1, 5.5
- Issue: Corporate governance
We continued our engagement on board diversity with companies in Canada, the US, the UK, Japan and Germany. In Germany, we also addressed issues around diversity below the board, e.g. senior and middle management, with all DAX30 companies.
on our expectations, focusing on those that have either not responded to our engagement or remain laggards.
Our engagement in Japan also developed throughout the year. There are clear demographic challenges for the country that raise the importance of attracting and retaining the widest talent pool possible, regardless of gender. This market is clearly at an earlier stage of development culturally on the topic, but companies are establishing initiatives to capitalise on the benefits of a more diverse workforce.
Discover our latest update on gender diversity in our ESG Viewpoint.
Antimicrobial resistance (AMR)

- Target: 5.1, 5.5
- Issue: Corporate governance
We engaged pharmaceutical companies, food producers and food retailers on their approach to AMR issues.
Drawing on the research of FAIRR Initiative* – a collaborative investor network that raises awareness of the material ESG risks and opportunities caused by intensive livestock production – we initially focused on food companies, which could be materially impacted by a decline in livestock production as a consequence of untreatable diseases. Our engagement highlighted the importance of robust antibiotic-focused policies and commitments, as well as clear timelines for phasing out the routine, non-therapeutic use of antibiotics.
environmental risk-management in manufacturing and appropriate stewardship, highlighting the importance of site audits and setting discharge limits, as well as education on appropriate antibiotic use.
Our engagement revealed that companies are well-informed about the risks of antibiotic overuse. It is now unusual for European food and pharmaceutical companies not to have an antibiotic policy. However, very few food producers have committed to phasing out the use of antibiotics that are important to human medicine, and transparency varies.
In 2020, we will build on our dialogue with companies, broadening the scope of our project to include animal health companies, and will continue to benchmark best practices and encourage more robust commitments on addressing AMR.
You can learn more about our engagement on AMR in our ESG Viewpoint.

One of FAIRR’s key engagement projects is improving antibiotics stewardship in livestock supply chains, and we joined BMO GAM at the 2019 PRI in Person conference to explain how engagement can make a meaningful difference.
KJo Raven, Engagement Manager, FAIRR Initiative
*Farm Animal Investment Risk and Return
Fast fashion


- Target: 5.1, 5.5
- Issue: Corporate governance
Living wage

- Target: 8.8
- Issue: Labour standards
Sustainable banking in ASEAN banks
The ASEAN region’s high exposure to environmental and social megatrends calls for banks to strengthen credit risk management

- Target: 5.1, 5.5
- Issue: Corporate governance
While Singaporean banks seem comparably well prepared, banks in other ASEAN countries are still establishing dedicated sustainable finance and/or environmental and social risk teams, while their senior managers have mostly acknowledged the need for enhanced attention. None of the banks
have a satisfactory level of disclosure of their ESG lending and underwriting policy, and none could show dedicated procedures for monitoring regulatory developments and climate risk management. Whilst some banks have launched sustainable/low carbon finance products, e.g. Bank Rakyat’s issuance of a sustainability bond, this is not yet an established practice in the region.
We will monitor progress and plan to leverage on the relationships built to continue our conversations on sustainable and climate-related banking issues.
Engaging towards zero deforestation

- Target: 15.1
- Issue: Environmental stewardship
- Banks on their lending and underwriting practices, to encourage proper environmental and social risk management systems, including zero deforestation commitments, and policies for key commodities such as dairy and cattle, soy, palm oil and timber.
- A small group of fast-moving consumer goods (FMCG) companies in Asia on sourcing standards for palm oil, soy, sugar, and paper and packaging.
- Palm oil producers in Malaysia and Indonesia on their readiness to adopt the new Principles and Criteria requirements of the Roundtable on Sustainable Palm Oil, specifically on deforestation, labour standards, and smallholder integration. Discover the details of this in our ESG Viewpoint
- Companies with natural rubber in their value chain on dedicated anti-deforestation and no exploitation policies.
- Deforestation in the soy supply chain.
- Palm oil value chain expectations including banks (no deforestation, no planting on peat, no exploitation policies).
- Amazon fires – clearer commitments from companies operating in the region.
- Cerrado Manifesto Statement of Support.
- SPOTT – Sustainability Policy Transparency Toolkit, which provides helpful insights for corporate analysis across various soft commodities including palm oil and rubber.

Companies’ zero net deforestation efforts are necessary for resilient supply chains, safeguarding the world’s forests, and for sustainable portfolios.
Global Viewpoints
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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.
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 products that may be mentioned.