BMO Global Asset Management (BMO GAM) has launched MyESG an online tool to help advisors and individual investors better understand ESG (Environmental, Social and Governance) investing preferences.
MyESGTM uses data collected through a BMO GAM survey to help guide the discussion between investors and advisors.
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The BMO GAM survey, conducted in conjunction with DCIIA Retirement Center, found four distinct ESG investing personalities:
ESG Motivated (22 per cent) – Does not separate belief from investment decisions. Such investors are likely open to numerous ESG-related options and feel strongly about shareholder activism
ESG Ready (30 per cent) – Sees value in ESG, but still tends to separate investment choices with personal beliefs. There is opportunity for advisors to further educate investors on how their beliefs are investable
ESG Pragmatic (27 per cent) – Approaches ESG from a portfolio perspective, basing investments on financial goals over values. These investors likely need to see that ESG investments provide the right profile for their risk and return appetite
ESG Skeptical (21 per cent) – Positive impact is not these investors’ motivation, and ESG investments likely need to demonstrate solid risk-adjusted returns. Advisors can start discussions with investors citing examples of where material ESG considerations impacted a company’s performance
“When it comes to ESG investing, there is not a one-size-fits-all conversation for advisors and investors,” said Kristi Mitchem, CEO, BMO Global Asset Management. “By using these personas, we are looking to deepen the conversation and close the gap between ESG beliefs and investing habits. BMO GAM has been a leader in responsible investing for over 30 years and we are proud to continue to find innovative ways to build a sustainable future – a key pillar of BMO’s Purpose to Boldly Grow the Good in business and in life.”
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