BMO Canadian Business Banking has announced the launch of Greener Future Financing – its first climate financing program – which has been developed to help agriculture businesses looking to build future-ready, climate resilient operations.
To help farmers and business owners access capital to make the investments needed to reduce carbon emissions and adapt to the effects of climate change, BMO has committed $30 million to a climate related financing product for small and medium sized enterprises across Canada. As part of this new program, clients can receive guidance and advice on the impacts of climate change and the value of climate-related protection measures.
New and current agriculture business banking clients are also potentially eligible for a discount of up to one per cent on new loans for investments in reducing emissions or implementing climate resilience measures. Eligible loan proceeds include investments in renewable energy such as solar power and geothermal energy, energy efficiency including LED lighting, heat pump systems, smart meters and other performance monitoring equipment, flood proofing and more.
“BMO’s Greener Future Financing program provides business owners with the support to make bold investments in sustainable business practices that will position them to become more climate resilient and prepared for a lower carbon economy,” said Mike Bonner, head of Canadian Business Banking at BMO. “Our Purpose, to Boldly Grow the Good in business and life, inspires us to find opportunities to be our clients’ lead partner in the transition to a net-zero world and drive progress towards a thriving economy, sustainable future and inclusive society.”
BMO’s “Climate Ambition” is to be its clients’ lead partner in the transition to a net-zero world, and also launched the BMO Climate Institute. The ambition builds on BMO’s previous commitment to mobilize $300 billion by 2025 in sustainable lending and underwriting to companies pursuing sustainable outcomes.
“Our farmers and agri-businesses sit at the forefront of environmental stewardship; many have implemented land management practices to build soil health and improve carbon storage,” said Michael Torrance, chief sustainability officer at BMO. “Supporting agri-business clients to help them make progress towards their climate goals can help to lower emissions and build resilience to changing weather patterns.”
Since December 2019, BMO’s Sustainable Finance team has completed green and sustainability-linked loans for companies in a range of sectors, with targets including sustainability, diversity, and health and safety.
Established in 2021, the Energy Transition Group supports clients’ pursuit of opportunities driven by the increasing momentum of the global economy’s shift in production and consumption of energy.
In 2022, BMO completed the acquisition of Radicle Group Inc., a Calgary-based leader in sustainability advisory services, market-based solutions, and technology-driven emissions measurement and management, further establishing the bank as a market leader in helping companies navigate the transition.
BMO’s sustainability leadership has been recognized on a number of global rankings, including number one bank on the World Benchmarking Alliance’s 2022 Financial System Benchmark, the Dow Jones Sustainability Index, and Ethisphere Institute’s list of the World’s Most Ethical Companies.
To learn more about BMO Greener Future Financing, connect with a BMO Relationship Manager or visit www.bmo.com/agriculture.
Featured image credit: Getty Images.
