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Climate change
BMO is focused on being our clients’ lead partner in the transition to a net-zero world. We’re taking comprehensive steps across our financing activities and operations to drive solutions to achieve net-zero and our Purpose-driven commitment to a sustainable future.
BMO is focused on being our clients’ lead partner in the transition to a net-zero world. We’re taking comprehensive steps across our financing activities and operations to drive solutions to achieve net-zero and our Purpose-driven commitment to a sustainable future.
Growing a greener tomorrow
BMO named to UN-convened group providing guidance to global banks on nature target setting
BMO’s Trees from Trades: Doing our part to create a more sustainable future
Driving innovations in tech to strengthen climate resilience with Climate Engine and Google Cloud
BMO ranks as most sustainable bank in North America for fourth consecutive year and eighth in the world
2023 Climate Report
BMO’s commitment to climate action
BMO’s Climate Ambition is integrated into BMO’s strategic priorities. It 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 Commercialization and Convening for Climate Action.
The BMO Climate Institute
The BMO Climate Institute, established in 2021, is an enterprise resource that coordinates climate action across the bank and externally. It is a centre of expertise that convenes climate knowledge, data and resources in order to be our clients’ lead partner in the transition to a net-zero world. The BMO Climate Institute bridges science, policy, finance, and economics to help accelerate climate change solutions. It supports our clients by engaging with industry, the public sector, academia and investors, and serves as a resource on decarbonization, resilience, social impact, and biodiversity.
Learn more about the BMO Climate Institute at: https://climateinstitute.bmo.com
Mobilizing sustainable finance
We are partnering with our clients to help them adapt to climate change and contribute to the transition to a net-zero 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 (US$239 billion)* in capital to clients pursuing sustainable outcomes through green, social and sustainable lending, underwriting, advisory services, and investment by 2025. By the end of 2023, we surpassed this target – two years ahead of schedule. We have mobilized $330 billion, including $116 billion in support of green objectives such as clean transportation, low-carbon energy, green buildings, waste management, and sustainable agriculture. We are evaluating new targets we can establish to drive our sustainable and climate goals.
*Converted to US Dollars at a rate of 1.30
BMO’s Energy Transition and Sustainable Services Group works with clients to explore the opportunities that are emerging alongside the global transition in energy production and consumption. The group draws on industry sector specialists from BMO’s energy, power utilities and infrastructure, metals and mining, industrial, food consumer and retail and sustainable finance groups. Learn more
BMO acquired Radicle Group Inc (now called BMO Radicle) in December 2022. BMO Radicle is a leader in carbon advisory services and solutions, reinforcing our Climate Ambition. BMO Radicle’s team of over 100 dedicated carbon professionals brings deep technical expertise to provide sustainability solutions for our clients across Canada, U.S., and Australia. BMO Radicle’s key service areas include:
- Carbon credit development and trading
- Carbon accounting software and training via Climate Smart
- Technical sustainability advisory
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 (NZBA), the Partnership for Carbon Accounting Financials (PCAF), the Principles for Responsible Banking (PRB), the Net Zero Asset Managers (NZAM) 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 2023, we saw emissions reduction that met the 2030 target, due to significant capital upgrades to our buildings and the hybrid working arrangements we put in place following the COVID-19 pandemic. We plan to re-assess our operational GHG emissions reduction target in 2024 to account for the impact of our acquisition of Bank of the West.
Targeting net-zero financed emissions in our lending by 2050. BMO joined PCAF in 2021, and we have begun to quantify and report the GHG emissions associated with our lending activity using PCAF Standard.
BMO joined the Net-Zero Banking Alliance in 2021, and we have set intermediate targets for financed emissions reduction for select sectors. Since 2021, we have tracked our financed emissions and expanded our sector coverage for quantification and disclosure. We estimate that we have developed sector-specific financed emissions quantification methodologies, and evaluated decarbonization pathways and target-setting approaches for sectors representing approximately 70% of our business and government lending portfolio emissions. Our report on progress can be found in our 2023 Climate Report and we will report annually.
Committing to the UN 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. Our report on progress can be found in our PRB 2023 Reporting and Self Assessment.
BMO GAM was a founding signatory of the NZAM 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 has set interim targets toward a goal of 100% net zero assets under management by 2050.
Each of our lines of business and operating groups are working to capture climate finance opportunities by partnering with our clients. We offer a wide range of innovative and complementary climate-related products and services to help clients decarbonize and adapt to the impacts of climate change. We will remain focused on innovation and execution to support our clients in reaching net-zero emissions. Learn more in our 2023 Climate Report.
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 Biodiversity Working Group, and Sustainable Finance Virtual Network’s Natural Capital Working Group, and joining the Partnership for Biodiversity Accounting Financials.
BMO Climate Institute
The BMO Climate Institute is a virtual hub that brings together science, analytics and expertise to unlock solutions to climate change and drive climate adaptation innovations.
Sustainable finance
As a purpose-driven global leader in sustainable finance, BMO promotes sustainability through lending, investing, underwriting and advising companies on their sustainability strategies.
Operational sustainability
Carbon neutral since 2010, BMO is dedicated to finding innovative ways to minimize the environmental impacts of our operations.
2023 Sustainability Report and Public Accountability Statement
BMO’s latest Sustainability report outlines key environmental, social and governance areas of interest to our stakeholders and discloses our performance in these areas.