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Influencing for good: responsible investing in 2020
7 June 2021

Influencing for good: responsible investing in 2020

Insight Partner

2020 was a year none of us could have predicted, as the COVID-19 pandemic changed much about the way we live and work. Yet our commitment to responsible investment at BMO remained as clear as ever. We continued to allocate our capital responsibly and engage companies on environmental, social and governance (ESG) issues, reflecting our corporate purpose of boldly growing the good in business and in life.

Our engagement highlights

During 2020, we engaged 760 companies across 50 countries on a wide range of ESG issues. We recorded 1,541 total engagements, resulting in 343 instances of positive change, which we refer to as milestones.

  • 31% of our engagement linked to environmental issues – accounting for 28% of our milestones
  • 43% of our engagement linked to social issues – accounting for 17% of our milestones
  • 26% of our engagement linked to governance issues – accounting for 55% of our milestones.
SDGs and engagement

The UN Sustainable Development Goals (SDGs) provide an ambitious roadmap towards a more sustainable world by 2030, as well as a clear engagement framework for investment specialists to encourage improvement within investee companies.

In 2020, 79% of our engagement linked to the SDGs. Our top engaged goal was SDG 8 – decent work and economic growth for all – at 19%. This largely related to our engagement on workplace safety, which was paramount in the pandemic environment.

“As positive momentum builds around tackling the challenges our societies face, I am excited for what the future can hold, and proud of the opportunity we have at BMO to make a difference.” Kristi Mitchem, CEO, BMO Global Asset Management

Voting and corporate governance in 2020

Exercising the right to vote is a key part of our stewardship responsibilities, and an opportunity to influence change. In 2020, we voted on 117,820 resolutions – 27,563 of which were against management. We regularly engage companies before and after voting to explain our expectations and invite comment, and to explain our reasons for any votes against management.

Public policy and investor initiatives

We continued to contribute to policy development through engagement with regulators in 2020, as we believe that policy and regulatory change are often the catalysts for improved corporate behaviour. Topics covered ranged from climate change in the EU to investor stewardship in Japan. We also participated in collaborative investor engagements and initiatives, which can be key to improving ESG standards on a larger scale. The issues we collaborated on included modern slavery, and mental health and wellbeing.

Interested in learning more? Download our Responsible Investment 2020 Review to discover details of our 2020 stewardship activities and company case studies, plus our key engagement themes for 2021.

Notes/Sources

Risk warnings

The value of investments and any income derived from them can go down as well as up and investors may not get back the original amount invested.

Views and opinions have been arrived at by BMO Global Asset Management and should not be considered to be a recommendation or solicitation to buy or sell any companies that may be mentioned.

The information, opinions, estimates or forecasts contained in this document were obtained from sources reasonably believed to be reliable and are subject to change at any time. Unless otherwise stated, all sources for data in this report are BMO Global Asset Management, as at 31 December 2020.

© 2021 BMO Global Asset Management. BMO Global Asset Management is the brand name for various affiliated entities of BMO Financial Group that provide investment management services, institutional client services and securities products. Financial promotions are issued for marketing and information purposes; in the United Kingdom by BMO Asset Management Limited, which is authorized and regulated by the Financial Conduct Authority. 1272062 (04/21). This item is approved for use in the following countries; UK.

This article was featured in Pensions Aspects magazine June 2021 edition.

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Last update: 3 June 2021

Vicki Bakhshi
Vicki Bakhshi
BMO Global Asset Management
Director, Responsible Investment

Client Director, Trustee Executive

Salary: £80000 - £130000 pa

Location: Work from home, with travel to client meetings/office as required

Senior DB Pensions Technical Admin., 2-3 days from home

Salary: £25000 - £38000 pa

Location: East Sussex, 2-3 days work from home

Pension Administrator (Hybrid Flexible Working Option)

Salary: £27000 pa

Location: South Yorkshire (with Hybrid Flexible Working Option)

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