BMO and Bell Canada Execute Innovative Sustainability-Linked Derivative Tied to Ambitious GHG Emission Reduction Targets
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Bell Canada is one of the first telecom companies to execute a Sustainability-Linked Derivative
TORONTO, May 30, 2023 /CNW/ - BMO (TSX: BMO) (NYSE: BMO) and Bell Canada ("Bell") have entered into a Sustainability-Linked Derivative (SLD). The SLD leverages Bell's ambitious sustainability performance targets (SPT), and includes a pricing adjustment that increases the derivative's cost if Bell is unable to meet or exceed its science-based target to reduce its operational GHG emissions (Scope 1 and 2) by 58% by 2030 from a 2020 base year in line with the Science Based Targets initiative (SBTi). The SPT will be measured as of 2030, and a limited assurance review of Bell's targets will be performed by an independent third party. Any payments received by BMO in relation to a coupon increase will be donated to a charity focused on mitigating climate change.
"Aligned with our focus on integrating sustainability within our financial performance, we are proud to enter into one of the first sustainability-linked derivatives in Canada," said Curtis Millen, SVP, Corporate Strategy & Treasurer, Bell. "This transaction further reinforces our ESG objectives to make a positive difference with our investments, including as it relates to achieving our ambitious GHG emission reduction targets to support a more sustainable and prosperous future."
"Bell's sustainability-linked derivative represents an innovative way that organizations can continue to leverage BMO's leadership and expertise in sustainable finance to achieve real results and continue to make progress toward their sustainability targets," said Jonathan Hackett, Head of Sustainable Finance at BMO. "At BMO our Purpose is to Boldly Grow the Good in business and life, which informs our strategy, drives our ambition, and reinforces our commitments to progress for a thriving economy, a sustainable future and an inclusive society."
BMO Capital Markets has worked closely with Bell and a wide range of clients to build ESG financing frameworks and products that enable them to achieve their sustainability goals.
BMO and Sustainability
As part of its Purpose, to Boldly Grow the Good in business and life, BMO is driving progress toward a more sustainable future. Carbon neutral in its own operations since 2010, BMO announced its Climate Ambition, to be its clients' lead partner in the transition to a net-zero world, in March 2021 alongside the launch of the BMO Climate Institute. The bank's climate ambition builds on a previous commitment to mobilize $300 billion (CAD) in sustainable lending and underwriting to companies pursuing sustainable outcomes by 2025. In 2021 BMO established a dedicated Energy Transition Group, to support clients' pursuit of opportunities driven by the increasing momentum of the global economy's shift in production and consumption of energy.
BMO's sustainability leadership continues to be recognized on global rankings, including number one bank on the World Benchmarking Alliance's 2022 Financial System Benchmark released at COP 27, the Dow Jones Sustainability Index, Ethisphere Institute's list of the World's Most Ethical Companies, and the most sustainable bank in North America for the fourth year in a row on Corporate Knights' 2023 Ranking of the World's 100 Most Sustainable Corporations.
BMO is a signatory to the Principles for Responsible Banking, the Operating Principles for Impact Investment, and the Partnership for Carbon Accounting Financials. BMO has been recognized for world class sustainability disclosure in line with the Taskforce on Climate-related Financial Disclosures and the Sustainability Accounting Standards Board. In 2021 BMO was named Chair of the Cross-Sector Biodiversity Initiative to develop and share good practices related to biodiversity and ecosystem services in the extractive industries.
For information on BMO's Purpose and commitments to a sustainable future, visit its Sustainability Report, Purpose, Climate and Zero Barriers to Inclusion 2025 pages.
About BMO Financial Group
BMO Financial Group is the eighth largest bank in North America by assets, with total assets of $1.25 trillion as of April 30, 2023. Serving customers for 200 years and counting, BMO is a diverse team of highly engaged employees providing a broad range of personal and commercial banking, wealth management, global markets and investment banking products and services to over 13 million customers across Canada, the United States, and in select markets globally. Driven by a single purpose, to Boldly Grow the Good in business and life, BMO is committed to driving positive change in the world, and making progress for a thriving economy, sustainable future and inclusive society.
SOURCE BMO Financial Group
For further information: For News Media Enquiries: Kelly Hechler, Toronto, Kelly.hechler@bmo.com, (416) 867-3996
