Bank of Montreal supports environmental disclosure resolution

In a highly unusual move, Bank of Montreal management supported a shareholder resolution Feb. 24 calling on the bank to disclose how it evaluates and manages environmental risks to its business. The vote is the strongest majority ever recorded in Canada for a shareholder resolution dealing with a social or environmental issue. It was also the first time a Canadian company endorsed a social or environmental shareholder resolution.

“We are truly delighted that the Bank of Montreal is committed to implementing a progressive measurement and reporting system on environmental practices,” said Real Assets CEO and Portfolio Manager Deb Abbey. “BMO shareholders voted for greater transparency, which is a key indicator of corporate social responsibility.” The resolution was filed by Real Assets Investment Management, Meritas Mutual Funds and the Ethical Funds Company.

The resolution called on the bank to report on the environmental criteria it uses and the precautions it’s taking to ensure that it provides credit only to companies that meet its environmental standards.

"The banks are a proxy for all business in Canada through their lending and underwriting,” Abbey said. “So when they set high standards for social and environmental performance, they raise the bar for everyone.”

For more information, visit Real Assets.

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