Climate change
BMO-led Sustainability and Social Bonds recognized by Environmental Finance’s 2022 Bond Awards
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BMO announces plan to partner with Breakthrough Energy Catalyst to accelerate climate innovation
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BMO first bank to pre-purchase Direct Air Capture carbon removals using Carbon Engineering technology
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BMO supports Canada’s bid to host headquarters of International Sustainability Standards Board
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BMO releases first Impact Fund Disclosure applying IFC led Operating Principles for Impact Management
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BMO and EDC announce collaboration to introduce sustainable finance solutions for Canadian businesses
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BMO’s commitment to climate action
BMO’s Net-Zero Ambition is our strategy to address climate-related risks and opportunities, consider climate-related issues when reviewing strategic choices and measure and report our progress against goals and targets. It’s anchored by our Purpose-driven Bold Commitment to be our client’s lead partner in the transition to a net-zero world, and comprises four pillars: Commitment, Capabilities, Client Partnership and Convening for Climate Action.
Introducing the BMO Climate Institute
Established in 2021, the BMO Climate Institute is a centre of excellence that bridges climate policy and science with business strategy and finance to unlock solutions for both clients and the bank. Led by a multidisciplinary team with climate-related expertise, the Institute leads BMO’s efforts to convene stakeholders and drive thought leadership to advance the low-carbon transition and enhance resilience.
Learn more about the BMO Climate Institute at: https://our-impact.bmo.com/our-practices/climate-change/bmo-climate-institute/
Mobilizing Sustainable Finance
We are partnering with our clients to help them adapt to climate change impacts and contribute to the transition to a net-zero global economy.
Sustainable finance is an important tool we can use to drive the transition to a lower carbon economy. BMO has committed to mobilizing C$300 billion (239 billion USD)* in capital to clients pursuing sustainable outcomes through green, social and sustainable lending, underwriting, advisory services, and investment by 2025. Since 2019, we have mobilized $176 billion, including $71 billion in support of green objectives such as clean transportation, low-carbon energy, green buildings, waste management, and sustainable agriculture.
*Converted to US Dollars at a rate of 1.30
In 2021, BMO Capital Markets created the Energy Transition Group. The group helps clients achieve decarbonization strategies by evaluating energy technologies and pairing core products and services with specialty products, such as the BMO Impact Fund and themed loans to advance financing for opportunities that are not yet bankable on their own. Learn more.
Taking Definitive Action
Mapping a clear path to net zero, BMO’s approach is guided by our commitment to and participation in many market-leading initiatives including the Net-Zero Banking Alliance, the Partnership for Carbon Accounting Financials, the Principles for Responsible Banking, the Net Zero Asset Managers initiative and others. We are taking the following steps:
| In 2021, we set a new target to reduce operational greenhouse gas emissions by 30% by 2030 versus a 2019 baseline using science-based approaches, building on BMO’s Carbon Neutral operations (since 2010) and matching 100% of global electricity use with renewable energy purchases (since 2020). In 2020 and 2021, we saw emissions reduction that reached the 2030 target, largely attributable to COVID-19 related remote working conditions. Return to office could increase emissions relative to 2020 and 2021 in future years but we will continue to target a 30% reduction by 2030 from the 2019 baseline. |
| BMO joined the Net-Zero Banking Alliance, and we are committed to setting financed emissions reduction targets that we will seek to achieve by working with our clients. |
| Targeting net zero financed emissions in our lending by 2050, we have begun to quantify the GHG emissions associated with our lending activity in accordance with the PCAF Standard and have set intermediate targets for financed emissions reduction. Our initial report on progress can be found in our 2021 Climate Report and we will report annually. |
| Committing to the UN Principles for Responsible Banking (PRB), and to align our business strategy with the UN Sustainable Development Goals (SDGs), the Paris Climate Agreement and relevant national and regional frameworks. In February 2021, BMO became one of the first major Canadian banks to sign the PRB. |
| BMO GAM was a founding signatory of Net Zero Asset Managers Alliance and as a member of Climate Engagement Canada, is committed to leading engagement with Canadian corporations to promote a just transition to a net-zero economy. BMO GAM will set an interim target toward a goal of 100% net zero assets under management by 2050. |
| Working with partners to develop and share good practices related to biodiversity and ecosystem services in the extractive industries, as a member of the Equator Principles Steering Committee and the Cross-Sector Biodiversity Initiative. |
