UAE: BMO Global Asset Management (BMO GAM) is among 30 asset managers, representing over $9 trillion in assets under management (AUM), that have launched the Net Zero Asset Managers initiative to achieve the goal of net zero greenhouse gas emissions by 2050 or sooner.
This marks the first major step by the asset management sector amid global efforts to limit warming to 1.5°C.
"Asset managers have a unique and critical role to play in the transition to global net zero emissions," said Kristi Mitchem, Chief Executive Officer of BMO GAM. "We look forward to building partnerships both with our asset owner clients and with the companies we invest in, to move together on the journey to making this a long-term shared goal."
This effort to engage with clients, set targets for assets managed in line with net zero pathways, pursue policy advocacy and drive corporate engagement and stewardship will also benefit investors in the Middle East, where environmental, social and governance (ESG) considerations are increasingly influencing decision making.
Sovereign wealth funds in the region, including the Abu Dhabi Investment Authority, the Kuwait Investment Authority, the Qatar Investment Authority and the Public Investment Fund of Saudi Arabia, are already signatories to the One Planet SWF Framework.
Government-led efforts, meanwhile, include plans by the Abu Dhabi Financial Services Regulatory Authority to introduce ESG criteria for entities within the Abu Dhabi Global Market.
"We are seeing more and more of a focus in the region on sustainable investing, especially following the pandemic. This is coming from a combination of government policies as well as investor appetite for ESG investing," said Fadi Khoury, Managing Director and Head of Client Management and Distribution for BMO GAM in MENA.
The Net Zero Asset Managers initiative builds upon BMO GAM's commitment to engagement, announced last year as part of its 20-years of engagement anniversary. It stated: "Investors, who have a position of influence with the companies they invest in, have a central role to play in convening groups and driving collaboration, bringing together not just investors and the corporate sector, but government representatives, regulators, NGOs, academics and all those with potential to affect change on sustainability challenges. We must be bold and sharpen our focus on public policy by engaging beyond the company level to create a stronger, unified voice on key issues."
© Press Release 2021
Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.
The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.
To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.
