Bank of Montreal | Advisory Vote on Environmental Policies at Bank of Montreal

Status
Filed
AGM date
Previous AGM date
Proposal number
8
Resolution details
Company ticker
BMO:CN
Lead filer
Mouvement d'éducation et de défense des actionnaires (MÉDAC)
Resolution ask
Adopt or amend a policy
ESG theme
  • Environment
ESG sub-theme
  • Climate change
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Financials
Company HQ country
Canada
Resolved clause
Be it proposed that the Bank adopt an annual advisory voting policy regarding its environmental and climate objectives and action plan.
Supporting statement
According to the most recent Banking on Climate Chaos6 report, financing provided by Canada’s five largest banks to the fossil fuel industry reached nearly US$132 billion in 2024, distributed as follows: RBC: US$34.3 billion; Scotiabank: US$26.2 billion; Toronto Dominion Bank: US$29.0 billion; Bank of Montreal: US$19.9 billion; and CIBC: US$22.3 billion. The Bank continues to support the development of this type of energy. Shareholders play a key role in constructive dialogue between boards of directors and stakeholders. In this context, an advisory vote on environmental policy does not seek to impose specific objectives or undermine the competitiveness of the Canadian banking sector, but rather to: - Strengthen governance and transparency by ensuring that the environmental strategy is regularly submitted to shareholder review; - Align the Bank’s practices with growing expectations from international institutional investors, who regard environmental and climate issues as major financial risks; - Reduce reputational risks by demonstrating the Bank’s responsiveness to environmental concerns while maintaining its contribution to the Canadian economy; - Promote a gradual and context-sensitive transition for North America, avoiding radical or adversarial approaches. It is important to note that this vote is: - Advisory and non-binding, thereby respecting the Board’s governance structure; - An opportunity to express measured support without questioning fundamental strategic decisions or the Board’s independence; - Ademonstration of good governance, reflecting the Bank’s commitment to listening to shareholders without adopting a political or ideological stance. Support for this proposal has grown in recent years but remains below a significant threshold. Reaching a level of 30% or higher would allow shareholders to: - Send a clear yet balanced signal in favor of strengthened environmental governance; - Avoid the alternative of more intrusive regulatory or political intervention in the future; - Contribute to preserving the Bank’s credibility and social license, including in international markets. This proposal received 12.84% support at the last Annual General Meeting. 6 https://www.bankingonclimatechaos.org/?bank=JPMorgan%20Chase#fulldata-panel

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