BMO targets fossil fuels in updated climate change policy

BMO Global Asset Management has announced that it will exclude all companies with fossil fuel reserves from its Responsible Funds range, as part of an updated climate change policy. The policy will take immediate effect for the Global and Emerging Market strategies within the Responsible Funds range, and will extend to the full fund range from 1st January 2020. It forms part of a new policy approach focused on how investors in the Responsible Funds can support the transition to a low-carbon global economy, covering the funds’ approach across all the greenhouse gas-intensive sectors.

The new policy comes as investors in ethically-screened funds increasingly look to avoid investing in companies involved in fossil fuel extraction, with over $5 trillion in institutional assets having some form of divestment strategy in place, and one-third of UK retail investors stating they would like a fossil-free option for their savings.