BMO integrates environmental, social and governance (ESG) considerations into decision-making and activities relating to financing and lending. We apply a higher level of environmental due diligence in our assessments of clients who are active in environmentally sensitive industries. Our lending guidelines are subject to ongoing, regular reviews to identify and evaluate environmental risks as they relate to climate change and forest biodiversity.

And environmental risk is only part of the picture. Through our lending practices, we encourage borrowers to make socially responsible choices in their operations. We apply rigorous screening for social risks like human trafficking, unfair labour practices, international transfer of equipment for military or internal security purposes, and the manufacturing of weapons banned by international arms control treaties.

The overall impact of a financial institution of our size can be significant. This is an important issue for BMO, especially as we consider how we can best support the transition to a lower-carbon economy while supporting our clients in that sector.

We also support investments in innovation. In 2019, BMO Capital Markets participated in C$7.9 billion in renewable energy and debt financing and provided C$4.2 billion of loan commitments to renewable entities and projects.