Investment practices

At BMO Global Asset Management, we believe prudent management of environmental, social and governance (ESG) issues can have an important impact on the creation of long-term investor value. Companies that successfully manage their ESG risks, and proactively follow ESG best practices, may experience risk-adjusted outperformance over the longer-term. This belief underpins our commitment to being a responsible investor.

Active engagement on environmental, social and governance issues

Material ESG considerations are integrated into our overall investment process. Our research analysts and portfolio managers look at the potential impact of ESG issues related to investments in our internally managed portfolios, and we seek partners that do the same. This analysis informs our asset allocation, stock selection, portfolio construction, shareholder engagement and voting.

In addition to integrating material ESG issues into our investment decision-making, we also take an active approach to ownership. We have a comprehensive global program of engagement with the companies we invest in, encouraging them to adopt best practices on a wide range of ESG issues. Examples of our dialogue include:

  • Discussing water management with food and beverage companies
  • Pressing emerging market companies to improve their disclosure of sustainability issues
  • Calling on firms to improve board-level diversity

US$5.4 billion of assets held in the BMO Global Asset Management's ESG Specialist Strategies Funds as at September 30, 2019.

BMO Global Asset Management

Learn more about responsible investing at BMO.

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Impact investing

For more than 30 years, our responsible investment approach has driven the creation of investment solutions and funds across sectors and geographies.

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Responsible Lending

Responsible lending

BMO integrates environmental, social and governance (ESG) considerations into our financing and lending activities – mitigating risk while creating the conditions that drive a more sustainable future.

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