BMO's Climate Ambition
We are executing on our Climate Ambition to be our clients’ lead partner in the transition to a net-zero world, enabling innovative climate solutions and supporting sustainable outcomes in our role as a financial institution.
Climate Action Across BMO
Environmental and Social (E&S) Risk Management is the unit within Enterprise Risk and Portfolio Management (ERPM) responsible for supporting the Chief Risk Officer (CRO) in the discharge of their second-line accountabilities regarding E&S Risk as both a Tier 1 Risk and a Transverse Risk transmitted through Credit and Counterparty Risk, Market Risk, Liquidity and Funding Risk, Insurance Risk, and Operational Non-Financial Risk. E&S Risk Management provides subject-matter expertise, support, and guidance to the first and second lines of defence regarding the development and implementation of the E&S Risk Framework (including on Climate Risk), to support compliance with legal and regulatory requirements and expectations and considering industry leading practices, in partnership with the Sustainability Office within Legal, Regulatory Compliance, and Procurement (LRCP). In addition to Climate Risk Governance and E&S Integration functions, the E&S Risk Management Unit has a Climate Risk Analytics team responsible for BMO’s Climate Scenario Analysis Program—and for the design and implementation of an analytics platform for measuring Physical Risk and Transition Risk in collaboration with stakeholders across the first and second lines of defense.
BMO Equity Research publishes climate change analysis including the Climate Opportunities Screen, studies of physical climate risk exposure and policy overviews, as well as assessments of climate effects on fundamentals such as insurance and commodity price forecasts.
To create financial value and mitigate financial risk, BMO GAM implements a responsible investing approach that includes ESG integration, responsible investment products and solutions, engagement and proxy voting.
Our Operating Groups (BMO Capital Markets, BMO Wealth Management and Personal and Commercial Banking) are partnering with clients to achieve their decarbonization objectives by responding to client demand for financing solutions that help clients implement economically viable technologies and processes to reduce GHG emissions, and that fall within the bank’s risk appetite.
The Sustainability Office, which includes the BMO Climate Institute, leads, in collaboration partners across the bank, the development of strategies related to sustainability (including climate commercialization and our Transition Action Plan), enterprise-wide initiatives on environmental and social risks, sustainability-related disclosures and operational decarbonization strategy. The Sustainability Office also supports Finance with investor relations activities that focus on sustainability, and supports Treasury and our Operating Groups in their approach to sustainable finance.
Specialized teams in BMO Capital Markets and the North American Commercial Bank (NACB) support clients in achieving their own decarbonization goals:
Leveraging our lending, underwriting, advisory and global markets capabilities, our Capital Markets Sustainable Finance team raises capital for clients, provides financing for clients, and provides advisory services.
The Capital Markets Energy Transition and Sustainable Services Group offers a broad range of investment banking coverage and products to help clients in the energy, diversified, industrials, food, metals & mining, real estate, utilities and infrastructure sectors pursue energy transition opportunities.
BMO Radicle’s team brings deep technical expertise to provide solutions in areas including carbon advisory, carbon credit development, and carbon credit sales and trading.
Our Sustainable Finance and Clean Energy team in NACB supports diverse clients with sector-specific offerings and focuses on providing financing solutions for economically viable technologies, activities and processes to help them achieve their decarbonization goals.
Our Personal and Business Bank provides individuals and small business customers with solutions including financing options for eco-friendly home retrofits and new energy-efficient homes, sustainability-linked investment products in Canada and financing options for sustainable business initiatives in Canada and the United States.
Greenhouse Gas Emissions
At BMO, we track and report greenhouse gas (GHG) emissions across our value chain using the Greenhouse Gas Protocol and PCAF Standards. Our operational emissions and financed emissions can be found in our most recent Sustainability and Climate Reporting.
