BMO and Bell Canada Partner on Innovative Sustainability Solutions
BMO and Bell Canada Partner on Innovative Sustainability Solutions
Senior Advisor to the CEO
Effective November 1, 2023, Dan Barclay will retire as Chief Executive Officer & Group Head, Capital Markets, and transition to a role as Senior Advisor to the …
Effective November 1, 2023, Dan Barclay will retire as Chief Executive Officer & Group Head, Capital Markets, and transition to a role as Senior Advisor to the …
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Corporate Canada is committed to fighting climate change, and the recent announcement of Bell Canada and BMO entering into a Sustainability-Linked Derivative (SLD) demonstrates just that. The SLD includes a pricing adjustment that increases the derivatives’ cost based on the company’s performance toward its target to reduce its absolute Scope 1 and 2 greenhouse gas emissions by 58% by 2030. This is an innovative solution that ties Bell’s sustainability goals to its financial performance.
Bell has a long history of sustainability, launching its Sustainable Financing Framework in 2021 and later issuing a $500 million Sustainability Bond. At BMO, we’re proud to have partnered with Bell on the SLD along with other major banks here in Canada and the United States. Working with our clients to drive those collective solutions is an important example of the commitment to build ESG financing frameworks and products that achieve sustainability goals.
SLDs also highlight how the market for sustainable finance is branching out from fixed income into other products that can enhance a company’s commitment to helping North America achieve its 2050 net-zero goals. And I see Bell Canada’s sustainability-linked derivative as the latest example of how sustainable finance is becoming entrenched as an essential pillar to Boldy Grow the Good in business and life. Our Climate Ambition is to be our clients’ lead partner in the transition to a net-zero world, which is why we established our Impact Investment Fund, cross-bank Energy Transition Group, launched the BMO Climate Institute and acquired BMO Radicle.
It is encouraging to see the commitment of business leaders across North America take material steps to help accelerate the energy transition. As Co-Chair of the Net Zero Capital Allocation Working Group (CAWG), a steering committee of industry peers, I hope government and business leaders will continue to adopt targeted strategies to increase the speed and efficiency of private capital deployment for key climate finance programs.
The energy transition is a complex problem that will require innovative and compelling solutions that build tomorrow’s economy sustainably. This SLD is the next step in Bell’s sustainability journey and highlights its strong partnership with BMO and our commitment to structure innovative solutions.
