BMO Global Asset Management (BMO GAM) announced the launch of MyESG, an online tool designed to help better understand an investor’s ESG investing preferences, leading to more productive and tailored conversations between investors and advisors.
The new tool uses data collected through the BMO Global Asset Management ESG Beliefs and Behaviors Survey, conducted in conjunction with DCIIA Retirement Center. The study covered 2,020 high income and high net worth working and retired individuals between the ages of 30-75, evenly divided between the U.S. and Canada.
According to BMO GAM, the survey revealed four distinct “ESG investing personalities:”
- ESG Motivated (22%). 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%) 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%). 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%). 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
BMO GAM anticipates using these findings to help conversations between advisors and investors, and bringing ESG investing practices more in line with investors’ preferences and beliefs.
Kristi Mitchem, CEO, BMO Global Asset Management, said:
“When it comes to ESG investing, there is not a one-size-fits-all conversation for advisors and investors,” 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.”