BMO Financial Group today announced a 2020 goal to match 100% of its electricity usage with electricity produced from renewable sources across global operations. The initiative includes investment in Renewal Energy Certificates and will enable the generation of nearly 400,000 kWh of renewable electricity each year.
This commitment enhances the company’s other sustainability initiatives, which includes maintaining carbon neutrality in global operations since 2010 and meeting three successive multi-year enterprise emission reduction targets since 2008, using 100% renewable electricity in US operations, and mobilizing $400 billion in sustainable finance by 2025.
In June 2019, BMO announced it would double the bank’s mobilization of sustainable finance to $400 billion by 2025 through both management of client investments earmarked for sustainable objectives and mobilizing $150 billion in capital to support companies pursuing sustainable outcomes. In addition, the bank has announced the creation of an impact investment fund, with $250 million in seed capital, to find and scale solutions to sustainability.
BMO Financial Group’s actions towards creating a sustainable future include:
- First bank in Canada to structure a Sustainability Linked Loan
- BMO acted as joint-lead manager for the World Bank’s 5-year $8 billion global benchmark sustainable development bond announced last week. The bond will raise support for the covid-19 pandemic response – the largest USD SSA bond issuance in history. BMO is the only bank to have book-run all seven of the World Bank’s benchmark sized USD & CAD sustainable development bonds, helping to provide $13 billion in financing for initiatives aligned with the UN Sustainable Development Goals (SDGs).
- In 2019 issued a $500 million sustainability bond with use of proceeds tied to the UN Sustainable Development Goals
- In 2019 participated in $9.4 billion in sustainable bond underwriting, $7.9 billion of renewable energy debt and equity financing, and provided $4.2 billion of loan commitments to renewable energy entities and projects
- Enhanced disclosure 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
Banks have been embracing renewable energy and carbon neutrality. Back in January, Bank of America announced that it met its carbon neutrality goal a year ahead of schedule, pending third-party verification. The goal was accomplished by reducing Scope 1 and 2 emissions from its facilities, purchasing 100% renewable electricity and buying carbon offsets for its remaining unavoidable emissions.