BMO targets zero net issuance in loans by 2050, warns of ‘gross’ change
“While not taking action is not an option, the only answer cannot be a sharp and disruptive change in individual industries that threaten the livelihoods of the communities we serve.”
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TORONTO – The Bank of Montreal on Wednesday announced it is targeting net zero emissions in its loan portfolio by 2050 and will double its sustainable financing commitment to $ 300 billion (US $ 237 billion) by 2025, but stressed the need to avoid a “sudden” change.
The move follows similar commitments from rivals the Royal Bank of Canada and the Toronto-Dominion Bank.
BMO will set an interim target for 2030 and is also targeting a 30% reduction in greenhouse gas (GHG) emissions in its operations by 2030 compared to 2019, Canada’s fourth lender said in a statement.
“There is no doubt that this transition (to a low-carbon economy) will be disruptive,” BMO CEO Darryl White said in an online address. “While not taking action is not an option, the only answer cannot be a drastic and disruptive change in the individual industries that threaten the livelihoods of the communities we serve. “
BMO’s Global Asset Management unit will also aim to have only one net asset under advisory by 2050, he said. The bank also said it was creating a climate institute to find solutions to climate change.