BMO Financial Group (TSX: BMO) (NYSE: BMO) today announced it has joined the Partnership for Carbon Accounting Financials (PCAF).
PCAF is a global partnership of financial institutions that work together to develop and implement a harmonized approach to assess and disclose the greenhouse gas (GHG) emissions associated with their loans and investments. In November 2020, PCAF published the Global GHG Accounting and Reporting Standard for the Financial Industry. With more than 95 banks and investors from five continents, the industry-led initiative is rapidly expanding in North America, Latin America, Europe, Africa and Asia-Pacific.
"Joining the Partnership for Carbon Accounting Financials supports BMO's leadership position on climate-related risk and opportunity," said Michael Torrance, Chief Sustainability Officer, BMO. "By joining we are supporting the development of leading methodologies to track and report financed emissions which will inform our risk assessment and climate strategy going forward."
BMO continues to make significant progress on its Purpose commitments to double the good for a sustainable future, thriving economy and inclusive society. In 2019 BMO committed to mobilizing $400 billion in sustainable finance by 2025, including lending, underwriting and investing $150 billion in companies pursuing sustainable outcomes, and aligning $250 billion in client investments to sustainable objectives. By 2020 the bank had achieved 71 per cent of its $150 billion target and surpassed its $250 billion target.
BMO is a strong supporter of the Task Force on Climate-related Financial Disclosures (TCFD) and has been working to implement the TCFD’s recommendations and develop programs, approaches and disclosures that align with the TCFD framework. By joining PCAF and committing to measure and disclose the GHG emissions associated with its portfolio of loans and investments using PCAF methodologies, BMO is advancing its approach to climate-related risk and opportunity, playing its part to advance the ambition for a net zero world.
"PCAF is very pleased that BMO has joined over 95 financial institutions globally that are committed to measuring and disclosing the emissions of their portfolios to support meeting the goals of the Paris Climate Agreement," said Chris Snyder, North America Lead of the PCAF Secretariat. "BMO continues to show environmental leadership towards a low carbon future through its collaboration with PCAF."
BMO Financial Group's actions on sustainability and towards a sustainable future include:
In 2019, BMO unveiled its Purpose to Boldly Grow the Good in business and life, announcing commitments to double the good for a thriving economy, sustainable future, and inclusive society
In 2020, BMO launched BMO EMpower, a $5 billion commitment over five years to address key barriers faced by minority businesses, communities, and families in the United States
In 2019, BMO issued a $500 million USD Sustainability Bond with use of proceeds tied to the UN Sustainable Development Goals
In October 2020, BMO reached a key milestone in matching 100 per cent of electricity usage with renewable electricity
In May 2020, BMO signed the Operating Principles for Impact Investment, a gold standard for impact investment fund management, developed by the International Finance Corporation of the World Bank
World-class sustainability disclosure, including on climate-related risks and opportunities in line with the Taskforce on Climate-related Financial Disclosures (TCFD) and the Sustainability Accounting Standards Board (SASB) standards
First Canadian bank to sign the UN Women's Empowerment Principles in 2019. In 2018, BMO committed to make $3 billion in capital available to women business owners in Canada over three years
BMO's leadership on sustainability has been recognized on numerous rankings, including:
Ranked 15th on the Wall Street Journal's 2020 list of the 100 Most Sustainably Managed Companies in the World, third overall on Social Capital, only bank in North America
Top North American bank on Corporate Knights' 2021 Global 100 Most Sustainable Corporations in the World for the second year in a row
Ranked in the top 10% of banks globally on the Dow Jones Sustainability Index
Scored an A- on the 2020 CDP Climate Change Questionnaire
Ethisphere® Institute's list of the 2020 World's Most Ethical Companies®
Bloomberg Gender-Equality Index (2021) for the sixth year in a row
Forbes 2020 Best Employers for Diversity (United States)
Corporate Knights 2020 Best 50 Corporate Citizens in Canada