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BMO Global Asset Management

BMO Global Asset Management is a North American-based international investment management firm headquartered in Toronto. It joined the Net Zero Asset Managers Initiative on 11 December 2020 and its initial target disclosure was published on 1 November 2021.

Initial Target Disclosure (Canada): November 2021

0.55% of total AUM

initially committed to be managed in line with net zero

USD $0.707 billion

currently committed to be managed in line with net zero

Information on interim target(s) covering the proportion of assets to be managed in line with net zero

Baseline(s):

Target(s):

Initial Target Disclosure (EMEA): November 2021

12% of total AUM

initially committed to be managed in line with net zero

USD $16.3 billion

currently committed to be managed in line with net zero

Information on interim target(s) covering the proportion of assets to be managed in line with net zero

Baseline(s):

2019

Fund specific

Target(s):

2030

Portfolio decarbonisation reference target

Reference pathway for emissions intensity of the fund’s benchmark – 50% reduction by 2030. Metric is financed emissions intensity (EVIC measure), CO2e/$mn invested.

2030

Engagement threshold target

We will also have targets for (1) Proportion of portfolio emissions rated ‘aligned’ (2) Proportion of portfolio emissions ‘aligned’ or ‘engaged’.

GHG scopes included:

Scope 1 & 2 only for the portfolio-level emissions pathway. In sectors where Scope 3 emissions are material, our company-level assessment covers disclosure, and for certain companies considers whether company targets cover all relevant scopes.

Methodology:

Net Zero Investment Framework

Scenario(s):

We use the IPCC special report on global warming of 1.5°C as a basis, which states that for global emissions pathways that feature ‘no or limited overshoot’, global GHG emissions need to decline by 45% by 2030 from 2010 levels. According to the UNFCCC, global GHG emissions grew by 11% between 2010 and 2011. Therefore, a 50% reduction from 2019 levels is needed by 2030.

Additional information

Proportion of AUM committed:

In selection of funds, we have focused on active equities given the availability of methodology and data, and primarily on products which are part of our ESG product range. In the case of BMO GAM EMEA the funds committed cover 53% of our active listed equity exposure.

We plan to further expand the proportion of AUM going forward, including in other asset classes.

Policy on coal and other fossil fuel investments:

We do not have a firm-wide exclusion. Exclusions related to exposure to thermal coal apply to most funds in scope. Criteria and thresholds vary by fund.

Further information:

Target setting: In relation to choice of benchmark, we consider each fund’s own benchmark to be a proxy for the relevant global/regional/national economy. Setting a reference pathway based on this allows us to estimate how the economy as a whole needs to transition. A benchmark-relative approach allows us to take account of the start point of each fund, and whether this is below or above the economywide average. We then aim to keep each fund within the pathway representing a 1.5°C consistent trajectory.

Methodology document on net zero approach to be published shortly.