BMO Global Asset Management
BMO Global Asset Management is a Canada based global asset manager associated with BMO Bank. BMO GAM joined the Net Zero Asset Managers Initiative in December 2020 and its initial target disclosure was published in October 2021.
11.7% of total AUM
initially committed to be managed in line with net zero
USD $12.5 billion
currently committed to be managed in line with net zero
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Portfolio coverage baseline
17.3% of the underlying holdings of the existing 15 participating funds are aligning, aligned, or net zero. As additional funds are included, rebaselining will be necessary.
Portfolio decarbonisation reference baseline
89.5 tCO2e/$M USD – We have adopted a benchmark-relative approach and aspire to increase our percent contribution over time. This will require re-baselining as additional funds are included. For this year, our 2019 benchmark carbon intensity as
determined from the 15 participating portfolios, is 89.5 tCO2e/$M USD.
Engagement threshold baseline
17.3% aligning, aligned, or net zero based on current funds. Collectively, 96% of financed emissions across 15 participating portfolios were subject to direct or collective engagement and stewardship actions. As additional funds are included, a 70% minimum “engaged or aligned” will be maintained, increasing to 90% in 2030.
Engagement threshold target
A minimum of 70% of financed emissions “engaged or aligned” will be increased to 90% in 2030.
2030: 70% of financed emissions will be net zero, aligned with a net zero pathway, or subject to of direct or collective engagement. This will increase to 90% in 2030.
Portfolio decarbonisation reference target
-50% relative to 2019 for each portfolio’s benchmark
Portfolio coverage target
2030: 50% Aligned or better 2040: 100% aligned or better
GHG scopes included:
Currently, Scope 3 disclosures lack the rigor needed to present reliable and consistent results needed to be included in analysis. As a result, while our analytical tool captures Scope 3 data, our analysis and basis for determining alignment currently focusses on Scope 1 and 2 Emissions. For financial institutions, where Scope 3 performance is material, a default rating of “not assessed” has been applied regardless of their overall rating based on other disclosures.
Net Zero Investment Framework
IPCC’s Special Report, “Global Warming of 1.5C”
Proportion of AUM committed:
Our disclosed proportion is limited to select subset of actively-managed equity and fixed income portfolios with net zero management practices currently in place. We have chosen a fund-by-fund basis to systematically expand our participating AUM in phases, allowing us to ensure each new participating fund is meeting all compliance requirements, supported by appropriate analytics, and engaged through a strong stewardship strategy. We acknowledge that not all asset classes within our management have accepted methodologies to measure alignment with a net zero pathway at this time and will seek to expand our proportion of participating AUM to other asset classes and management styles as methodologies allow.