Skip navigation
Navigation skipped

News Releases

BMO supports launch of Export Development Canada's new Sustainable Bond Framework
  • Framework will enhance the competitiveness of EDC and its clients, and contains the first transition-labeled categories in Canada

TORONTO, March 28, 2022 /CNW/ - BMO Financial Group (TSX: BMO) (NYSE: BMO) welcomes the launch of Export Development Canada's (EDC) new Sustainable Bond Framework and is proud to have played a role in this important work, which will accelerate the development of sustainable finance in Canada and enhance the competitiveness of many Canadian businesses. The Framework ensures ESG is a prominent feature across the organization, supports EDC's customers in Canada's transition to a lower carbon and more climate-resilient economy, demonstrates EDC's leadership among financial institutions, and will be a key tool to continue to align EDC's portfolio with strong ESG practices.

EDC's Sustainable Bond Framework aligns with the International Capital Market Association's (ICMA) Green Bond Principles 2021, Social Bond Principles 2021 and Sustainability Bond Guidelines 2021, and is informed by the guidance in ICMA's Climate Transition Handbook 2020. The Framework has received a second party opinion from Sustainalytics, a global leader in independent ESG and Corporate Governance research, ratings and analytics. The Sustainable Bond Framework permits financing for green, social and transition assets, with the latter including activities that decarbonize a customer's operations through carbon capture utilization and storage, and low carbon intensity fuels. The inclusion of transition use of proceeds is the first of its kind in Canada and signifies EDC's commitment to financing its customers' decarbonization activities.

"Working with key partners such as BMO is crucial to help us have a positive impact on the competitiveness of Canadian companies and their path towards sustainability," said Justine Hendricks, EDC's Senior Vice-President and Chief Corporate Sustainability Officer. "Adding transition and social bonds to our framework allows us to finance the projects and companies working to catalyze the actions required to address climate change and systemic social inequity, and we encourage others to do the same."

"We're proud of our work with Export Development Canada to build a Sustainable Bond Framework to help them reach their own ESG objectives, as well as ensure Canadian companies are competitive in a world that is facing rapid climate change and the impacts that come with it," said Jonathan Hackett, Head, Sustainable Finance and Co-Head, Energy Transition Group, BMO Financial Group. "Partnering with clients like EDC to break ground, as they're doing with the incorporation of Transition proceeds into their framework, is a demonstration of how we live our Purpose to Boldly Grow the Good in business and life."

A recognized sustainability leader

Carbon neutral in its own operations since 2010, BMO announced its Climate Ambition in March 2021 with a commitment to deploy $300 billion in sustainable lending and underwriting to companies pursuing sustainable outcomes by 2025. BMO is focused on being its clients' lead partner in their transition to a net zero world and, since December 2019, has completed green and sustainability-linked loans for companies in a range of sectors, with targets including decarbonization, diversity & inclusion, and health and safety. To support clients' pursuit of opportunities driven by the increasing momentum of the global economy's shift in production and consumption of energy, in 2021 BMO established a dedicated Energy Transition Group and the BMO Climate Institute.

BMO's leadership on sustainability has been recognized by the Wall Street Journal's 100 Most Sustainably Managed Companies in the World, Corporate Knights' Global 100 Most Sustainable Corporations, Dow Jones Sustainability Indices World Index, and Ethisphere Institute's list of the World's Most Ethical Companies.

For more information on BMO's commitment to a sustainable future, please visit the bank's latest Sustainability Report. To learn more about sustainable finance at BMO click here. For BMO's climate ambition, visit its Climate page.

About BMO Financial Group
Serving customers for 200 years and counting, BMO is a highly diversified financial services provider - the 8th largest bank, by assets, in North America. With total assets of $1.02 trillion as of January 31, 2022, and a team of diverse and highly engaged employees, BMO provides a broad range of personal and commercial banking, wealth management and investment banking products and services to more than 12 million customers and conducts business through three operating groups: Personal and Commercial Banking, BMO Wealth Management and BMO Capital Markets.

SOURCE BMO Financial Group

For further information: For News Media Enquiries: Kelly Hechler, Toronto, (416) 867-3996