BMO Global Asset Management will focus on climate change as its priority for engagement with companies in 2020.
The Bank of Montreal money management subsidiary's responsible investment team will "intensify" its engagement with companies on the issue, calling on them to "adopt targets and strategies aligned with the goals of the Paris Agreement," according to a news release Monday.
The manager's focus issues are the phasing out of coal-fired power, the encouragement of cleaner power options for marine transport, and sustainable food systems.
BMO also said it will engage with "selected" global financial institutions to encourage them to adopt stronger mitigation strategies to climate change-related risks.
"The world is facing a climate crisis. Since the Paris Agreement, we have supported the ambition to limit global warming to well below 2 degrees Celsius and pursue efforts to limit the rise to 1.5 degrees," said Vicki Bakhshi, director on the responsible investment team at BMO Global Asset Management, in the news release. "The next decade is absolutely critical to meeting this ambition. Global emissions need to peak and decline to keep the chances of meeting the Paris goals alive. Waiting for action by governments is not enough — investors and corporates need to take bold and ambitious action."