BMO Global Asset Management’s European busess said it aims to manage 12% of its total assets under management (AUM) in line with net zero principles, which represents 50% of active equity exposure.
The firm has constructed a net zero methodology based on the Net Zero Investment Framework that was developed by the Paris Aligned Investment Initiative.
The three principles of action established by BMO GAM’s Europe, Middle East and Africa business to implement a net zero aligned portfolio includes focusing on emission reductions partly by excluding firms that are misaligned with a low carbon future. The firm said it would also work with clients about data gaps or methodology inconsistencies.
Vicki Bakhshi, climate strategist at the asset manager, said: “As a founding signatory to the Net Zero Asset Managers Initiative, BMO GAM (Emea) is committed to contributing towards the global goal of net zero greenhouse gas emissions by 2050 or sooner, in line with global efforts to limit warming to 1.5 degrees Celsius.
“We recognise that asset managers have a unique and critical role to play in the transition to global net zero emissions. Strong action by global leaders at this week’s COP26 conference is also essential to set the world on a trajectory to a more stable climate and a healthier planet.”
Bakhshi has also called on governments to be more ambitious in COP26 negotiations.
“Actions by our leaders, not words, is imperative as we move from commitment to implementation,” added Bakhshi.
The BMO funds managed in line with net zero range across global equities, emerging markets and some existing responsible or sustainable funds, and include the F&C Investment Trust PLC (UK).
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