Banking on Sustainability
-
bookmark
-
print
- Keywords:
- empower
When the global pandemic emerged in March 2020, we moved quickly to protect the health of BMO’s employees, customers and communities. Then, as the coronavirus took its toll on the North American economy, our whole organization came together – even as many of us worked remotely – to provide financial support and advice to our customers while expediting access to government relief programs.
Banks play a vital role in driving economic recovery. It’s part of our responsibility as trusted stewards of the financial system and enablers of long-term growth. And in BMO’s case, it reflects our deep-rooted belief in doing what’s right – consistently, equitably and sustainably. We sum it up in a simple statement of purpose: Boldly Grow the Good in business and life.
This 2020 Sustainability Report provides concrete evidence of BMO’s purpose in action. From our bold initiative against racial injustice to our support for the global effort to address climate change, our commitment to growing the good – for an inclusive society, for a thriving economy, for a sustainable future ¬– underpins everything we do.
Banking on Sustainability
BMO continues to be a leader in sustainable finance, offering businesses and governments innovative ways to align financial priorities with broader sustainability goals. Just a few examples from the past year show the scope of our contribution:
- We acted as joint lead manager for the World Bank on a landmark US$8-billion sustainable development bond for pandemic relief.
- We developed Canada’s first sustainability-linked commercial loan, a $2-billion credit facility with interest rates tied to specific targets for carbon emissions and other factors.
- BMO was joint bookrunner on a US$700-million high-yield green bond for a wind and solar power utility – only the third such bond ever issued in the U.S.
Another area where we’ve taken the lead is responsible investing, which enables investors to build more resilient portfolios. BMO Global Asset Management engages directly with many companies on behalf of our clients, working with them to improve how they manage environmental, social and governance (ESG) issues – because responsible investing strategies that consider ESG factors have been shown to generate higher returns with lower risk over the long term.
Transitioning to a new reality
Many of BMO’s sustainability initiatives address the urgent issue of climate change. While we’ve seen growing awareness of the scale of the threat – to the environment, as well as to human health, livelihoods, business and economic wellbeing – the world is still grappling with the transition to a lower-carbon economy.
BMO is committed to being part of the solution. Working with a wide range of stakeholders, we’re building a transition strategy that focuses on social and economic outcomes alongside climate impacts. Together, we’re creating opportunities for businesses and communities to thrive while ensuring that no one is left behind. Our rigorous approach, adopting the recommendations of the Taskforce on Climate-related Financial Disclosures, is detailed in our 2020 Climate Report.
Removing social barriers
BMO has long been committed to advancing equity, diversity and inclusion in our workforce and the communities we serve. During the past year, as cities across the U.S. and Canada witnessed troubling incidents of racial injustice, millions of people were united by the conviction that it’s time – once and for all – to push for meaningful change.
Adding to that momentum, BMO has taken another step forward with an initiative we call Zero Barriers to Inclusion 2025. Within the bank, we’ve committed to recruit and develop diverse talent and provide clearer paths to advancement. For our customers, we’re removing barriers by providing more capital for minority-owned businesses (read more about the BMO EMpower initiative) and facilitating other types of financing. And at the community level, in addition to donating $1 million to organizations promoting racial justice, we’re expanding our support for inclusive local economic initiatives modelled on the multi-million-dollar investments we’re already making in Chicago and Toronto.
Efforts like these define BMO, which was recently ranked in the top 15 – and first among all banks – in the 2020 Wall Street Journal survey of the World’s Most Sustainably Managed Companies. Such recognition reinforces the larger message of this report: sustainability is core to our business. It’s integral to how we make decisions, work together and partner with others who share our goals, our values – and our commitment to growing the good.
Darryl is Chief Executive Officer of BMO, the eighth largest bank in North America by assets, serving over 13 million customers across Canada, the United States, an…(..)
View Full Profile >When the global pandemic emerged in March 2020, we moved quickly to protect the health of BMO’s employees, customers and communities. Then, as the coronavirus took its toll on the North American economy, our whole organization came together – even as many of us worked remotely – to provide financial support and advice to our customers while expediting access to government relief programs.
Banks play a vital role in driving economic recovery. It’s part of our responsibility as trusted stewards of the financial system and enablers of long-term growth. And in BMO’s case, it reflects our deep-rooted belief in doing what’s right – consistently, equitably and sustainably. We sum it up in a simple statement of purpose: Boldly Grow the Good in business and life.
This 2020 Sustainability Report provides concrete evidence of BMO’s purpose in action. From our bold initiative against racial injustice to our support for the global effort to address climate change, our commitment to growing the good – for an inclusive society, for a thriving economy, for a sustainable future ¬– underpins everything we do.
Banking on Sustainability
BMO continues to be a leader in sustainable finance, offering businesses and governments innovative ways to align financial priorities with broader sustainability goals. Just a few examples from the past year show the scope of our contribution:
- We acted as joint lead manager for the World Bank on a landmark US$8-billion sustainable development bond for pandemic relief.
- We developed Canada’s first sustainability-linked commercial loan, a $2-billion credit facility with interest rates tied to specific targets for carbon emissions and other factors.
- BMO was joint bookrunner on a US$700-million high-yield green bond for a wind and solar power utility – only the third such bond ever issued in the U.S.
Another area where we’ve taken the lead is responsible investing, which enables investors to build more resilient portfolios. BMO Global Asset Management engages directly with many companies on behalf of our clients, working with them to improve how they manage environmental, social and governance (ESG) issues – because responsible investing strategies that consider ESG factors have been shown to generate higher returns with lower risk over the long term.
Transitioning to a new reality
Many of BMO’s sustainability initiatives address the urgent issue of climate change. While we’ve seen growing awareness of the scale of the threat – to the environment, as well as to human health, livelihoods, business and economic wellbeing – the world is still grappling with the transition to a lower-carbon economy.
BMO is committed to being part of the solution. Working with a wide range of stakeholders, we’re building a transition strategy that focuses on social and economic outcomes alongside climate impacts. Together, we’re creating opportunities for businesses and communities to thrive while ensuring that no one is left behind. Our rigorous approach, adopting the recommendations of the Taskforce on Climate-related Financial Disclosures, is detailed in our 2020 Climate Report.
Removing social barriers
BMO has long been committed to advancing equity, diversity and inclusion in our workforce and the communities we serve. During the past year, as cities across the U.S. and Canada witnessed troubling incidents of racial injustice, millions of people were united by the conviction that it’s time – once and for all – to push for meaningful change.
Adding to that momentum, BMO has taken another step forward with an initiative we call Zero Barriers to Inclusion 2025. Within the bank, we’ve committed to recruit and develop diverse talent and provide clearer paths to advancement. For our customers, we’re removing barriers by providing more capital for minority-owned businesses (read more about the BMO EMpower initiative) and facilitating other types of financing. And at the community level, in addition to donating $1 million to organizations promoting racial justice, we’re expanding our support for inclusive local economic initiatives modelled on the multi-million-dollar investments we’re already making in Chicago and Toronto.
Efforts like these define BMO, which was recently ranked in the top 15 – and first among all banks – in the 2020 Wall Street Journal survey of the World’s Most Sustainably Managed Companies. Such recognition reinforces the larger message of this report: sustainability is core to our business. It’s integral to how we make decisions, work together and partner with others who share our goals, our values – and our commitment to growing the good.
More Insights
Tell us three simple things to
customize your experience.
Commercial
Commercial
-
Who We Are
-
Industry Expertise
- Agribusiness & Protein
- Agriculture
- Dealer Finance
- Commercial Real Estate
- Correspondent Banking
- Educational Institutions
- Engineering & Construction
- Food & Beverage
- Franchise Finance
- Futures & Securities
- Governments
- Healthcare
- Manufacturing
- Metals
- Not-for-Profit Organizations
- Private Equity Sponsors
- Professional Services
- Retail & Wholesale Distribution
- Specialty Finance
- Trucking
- Dental Practices
- Fuel Services & Convenience
- Logistics, Rail and Shipping
- Technology Banking
- Wine & Spirits
- Religious Institution Banking
- We Can Help
-
Our Bankers
- Our Podcasts
Contact Us
Banking products are subject to approval and are provided in the United States by BMO Bank N.A. Member FDIC. BMO Commercial Bank is a trade name used in the United States by BMO Bank N.A. Member FDIC. BMO Sponsor Finance is a trade name used by BMO Financial Corp. and its affiliates.
Please note important disclosures for content produced by BMO Capital Markets. BMO Capital Markets Regulatory | BMOCMC Fixed Income Commentary Disclosure | BMOCMC FICC Macro Strategy Commentary Disclosure | Research Disclosure Statements.
BMO Capital Markets is a trade name used by BMO Financial Group for the wholesale banking businesses of Bank of Montreal, BMO Bank N.A. (member FDIC), Bank of Montreal Europe p.l.c., and Bank of Montreal (China) Co. Ltd, the institutional broker dealer business of BMO Capital Markets Corp. (Member FINRA and SIPC) and the agency broker dealer business of Clearpool Execution Services, LLC (Member FINRA and SIPC) in the U.S. , and the institutional broker dealer businesses of BMO Nesbitt Burns Inc. (Member Canadian Investment Regulatory Organization) in Canada and Asia, Bank of Montreal Europe p.l.c. (authorised and regulated by the Central Bank of Ireland) in Europe and BMO Capital Markets Limited (authorised and regulated by the Financial Conduct Authority) in the UK and Australia and carbon credit origination, sustainability advisory services and environmental solutions provided by the Bank of Montreal, BMO Radicle Inc., and Carbon Farmers Australia Pty Ltd. (ACN 136 799 221 AFSL 430135) in Australia.
The material contained in articles posted on this website is intended as a general market commentary. The opinions, estimates and projections, if any, contained in these articles are those of the authors and may differ from those of other BMO Commercial Bank employees and affiliates. BMO Commercial Bank endeavors to ensure that the contents have been compiled or derived from sources that it believes to be reliable and which it believes contain information and opinions which are accurate and complete. However, the authors and BMO Commercial Bank take no responsibility for any errors or omissions and do not guarantee their accuracy or completeness. These articles are for informational purposes only.
This information is not intended to be tax or legal advice. This information cannot be used by any taxpayer for the purpose of avoiding tax penalties that may be imposed on the taxpayer. This information is being used to support the promotion or marketing of the planning strategies discussed herein. BMO Bank N.A. and its affiliates do not provide legal or tax advice to clients. You should review your particular circumstances with your independent legal and tax advisors.
Third party web sites may have privacy and security policies different from BMO. Links to other web sites do not imply the endorsement or approval of such web sites. Please review the privacy and security policies of web sites reached through links from BMO web sites.
Notice to Customers
To help the government fight the funding of terrorism and money laundering activities, federal law (USA Patriot Act (Title III of Pub. L. 107 56 (signed into law October 26, 2001)) requires all financial organizations to obtain, verify and record information that identifies each person who opens an account. When you open an account, we will ask for your name, address, date of birth and other information that will allow us to identify you. We may also ask you to provide a copy of your driver's license or other identifying documents. For each business or entity that opens an account, we will ask for your name, address and other information that will allow us to identify the entity. We may also ask you to provide a copy of your certificate of incorporation (or similar document) or other identifying documents. The information you provide in this form may be used to perform a credit check and verify your identity by using internal sources and third-party vendors. If the requested information is not provided within 30 calendar days, the account will be subject to closure.