Bank of Montreal (BMO) has announced a target for net zero emissions in its lending portfolio by 2050.
It has also set a new target to reduce operational greenhouse gas emissions by 30% by 2030, compared to a 2019 baseline, using science-based approaches.
It builds on BMO’s carbon neutral operations since 2020 and matching 100% of global electricity use with renewable energy purchases.
The bank has also committed to establishing intermediate and longer term targets for 2030 and 2050 for financed emission reductions in partnership with its clients, reporting on its progress annually from 2021.
In addition, BMO is doubling its sustainable financing commitment to C$300 billion (£173bn) in lending and underwriting and mobilising C$700 billion (£405bn) via responsible advisory and investment management services by 2025.
BMO Global Asset Management has joined the Net Zero Asset Managers Alliance and as a member of Climate Action 100+ aligned its investee engagement programme with the ambitions of the Paris climate agreement.
Michael Torrance, BMO’s Chief Sustainability Officer said: “Net zero is an ambition that must include every part of the economy and society. BMO recognises that, as a financial institution, we play a critical role to catalyse climate action, finance a just transition to a lower carbon economy and to work with our clients to understand the risks and opportunities of this critical transformation. There is a lot of work ahead of us to achieve this goal, it will require deep insights and innovative solutions.
“BMO’s strategy will position us to be real partners with our clients on this journey and help them find solutions that drive their business strategies while achieving climate goals.”