BMO Nesbitt Burns
76 King Street W
Socially Responsible Investing
At BMO Private Wealth, we believe that supporting our clients with their increasing focus on sustainability is a great demonstration of a truth that underpins our purpose: Boldly Grow the Good in business and life.
We have a proud legacy of innovation and collaboration through the integration of environmental, social and governance ("ESG") issues into our investment processes, while ensuring that investment decisions are always made in the best interests of our clients. Supporting these decisions is a belief that incorporating a range of responsible investment techniques can have a meaningful impact on the creation of long-term investor value.
Five terms you need to know
For investors looking to improve their understanding of responsible investing, it's helpful to clarify some of the common terms. For example: What are ESG factors? How do they relate to sustainability? Laying out clear definitions for a few essential terms, and knowing how they intersect, can help bring clarity to the discussion.
1. Responsible investing ("RI")
is the broad umbrella used to describe this space.
2. Environmental, Social and Governance
factors provide a framework for breaking down the concept of sustainability into the three primary areas of responsible investing.
Environmental : Climate Change, Water Management, Pollution
Social : Labour Standards, Human Rights, Health and Safety
Governance: Executive pay, Board structure, Business ethics
3. ESG integration
is a strategy that can be applied to any portfolio. It includes an understanding of the ESG issues affecting a company during the investment analysis to ensure that all applicable issues are fully reflected in the valuation.
is the concept of meeting our current needs without compromising the ability of future generations to meet their needs.
5. Sustainable Development Goals ("SDGs")
provide a framework for discussion and collaboration with companies regarding their specific sustainability issues. Established by the United Nations in 2015, the SDGs have become the gold standard for conducting progressive dialogue with large corporations.