BMO launches ESG tool
BMO Global Asset Management has launched an online tool to help advisors and individual investors better understand ESG (environmental, social and governance) investing preferences.
Called MyESGTM the tool uses data collected through a BMO survey to help guide the discussion between investors and advisors.
As part of the survey, conducted in conjunction with DCIIA Retirement Center, four distinct ESG investing personalities were discovered – those who are “ESG-motivated,” those called “ESG-ready,” a category described as one that provides opportunity for advisors to further educate investors on ESG, a third group called “ESG-pragmatic,” in which investors need to see that ESG investments provide the right profile for their risk and return appetite, and the final persona called “ESG-skeptical.”
One size does not fit all when it comes to ESG investing
"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.”
The survey also found:
- 72 per cent strongly agree companies can have a positive impact on the world and make a profit
- About one quarter of investors asked their advisor to recommend ESG investments or had advisors recommend ESG investments in the last two years.
- 56 per cent of investors said they plan to ask their advisors about ESG investing in the next year