Impact investment funds aim to generate positive social and environmental impact alongside financial returns. As one of the leading impact investors, BMO Global Asset Management has an impact investment fund that invests in companies driving sustainability. With over $300 billion in assets under management, BMO is well-positioned to catalyze change through its capital allocation. This article will explore BMO’s impact investing strategy and how its fund is driving impact.
BMO’s impact investment fund focuses on sustainability
BMO’s impact investment fund seeks to invest in companies that are making a positive environmental or social impact. The fund’s portfolio includes companies in renewable energy, sustainable agriculture, financial inclusion, affordable housing, and more. By investing in these companies, the fund aims to help scale solutions to pressing societal challenges while also generating competitive financial returns. The fund takes a rigorous approach to measuring and reporting on impact, enabling investors to understand both the financial and non-financial performance of their capital.
The fund utilizes an ESG integration strategy
BMO’s impact investing approach utilizes an ESG integration strategy. This means environmental, social, and governance factors are systematically considered alongside financial factors to identify risks, uncover opportunities, and improve investment decision-making. This focus enables the fund to target impact without compromising on returns. As ESG factors increasingly drive value, this integration creates a natural alignment between impact and financial performance.
Capital is allocated to companies driving sustainability transitions
A key goal of BMO’s impact fund is to allocate capital in a way that accelerates corporate and economic transitions to sustainability. The fund targets companies that have set science-based emissions reduction targets, pay living wages across their supply chains, promote workforce diversity, ensure ethical sourcing policies, and more. By directing capital towards leaders, BMO aims to reward and scale sustainable corporate practices that deliver value for shareholders and society.
Shareholder engagement pushes companies on ESG issues
Active ownership is another lever BMO utilizes to drive change. By constructively engaging with companies in its portfolio through shareholder resolutions, dialogues, and proxy voting, BMO pushes companies to improve their ESG practices. This stewardship role magnifies the power of BMO’s capital to influence corporate behavior and scale solutions. Recent shareholder engagement wins demonstrate the fund’s ability to drive positive impact.
With over $300 billion under management, BMO Global Asset Management has enormous potential to catalyze change through its capital allocation decisions. Its impact investment fund channels capital towards companies driving sustainability while harnessing ESG integration and active ownership to further influence corporate practices. By taking this multilayered approach, BMO is generating competitive financial returns alongside meaningful societal and environmental impact.