Bank of Montreal (1 Nov 2020 – 31 Oct 2021)

Adoption Date: 15 Sep 2005
Country of Headquarters: Canada
Region of Headquarters: North America
Current EPFI Reporting Year/Period: 1 Nov 2020 - 31 Oct 2021
Institutional Reporting: Link to Report

 

Please read the important notes and disclaimer for further information on ‘EPFI Reporting’, compliance and publication on the Equator Principles Association website.

Further information on this EPFI may be obtained through the Institutional Reporting hyperlink.

Project Finance Advisory Services

Total number mandated in the reporting period: 0

Project Finance Transactions

Total number that reached Financial Close in the reporting period: 7

Equator Principles Category A1 B2 C3
Sector
Mining
Infrastructure
Oil & Gas
Power 5 2
Others
Region
Americas 5 2
Europe, Middle East & Africa
Asia Pacific
Country Designation
Designated Country4 5 2
Non Designated Country
Independent Review
Yes 4 1
No 1 1
Totals 5 2
1

Category A – Projects with potential significant adverse environmental and social risks and/or impacts that are diverse, irreversible or unprecedented.

2

Category B – Projects with potential limited adverse environmental and social risks and/or impacts that are few in number, generally site-specific, largely reversible and readily addressed through mitigation measures.

3

Category C – Projects with minimal or no adverse environmental and social risks and/or impacts.

4

Designated Countries are those countries deemed to have robust environmental and social governance, legislation systems and institutional capacity designed to protect their people and the natural environment. See list of Designated Countries.

Project-related Refinance & Project-related Acquisition For Project Finance

This information is required under EP4. EP4 applies for those transactions mandated after 1 October 2020 and that have reached Financial Close by the end of the period being reported.

Project Name Reporting For Project Finance (And Project-related Refinance & Project-related Acquisition Finance For Project Finance)

No. Project Name Sector Country(s) Year of Financial Close
1 Glacier Sands Power United States 2021
2 Ball Hill and Bluestone Wind Power United States 2021

Number of projects that were not disclosed as per the disclosure conditions specified in Annex B of the Principles: 5

Under EP4, project name reporting is required for Project Finance transactions that have reached Financial Close and encouraged for Project-Related Corporate Loans that have reached Financial Close.

Project-Related Corporate Loans

Total number that reached Financial Close in the reporting period: 0

Project-related Refinance & Project-related Acquisition For Project-related Corporate Loans

This information is required under EP4. EP4 applies for those transactions mandated after 1 October 2020 and that have reached Financial Close by the end of the period being reported.

Implementation of the Equator Principles

BMO has been a signatory to the Equator Principles (EP), a risk management framework adopted by financial institutions for identifying, assessing, and managing environmental and social risk in transactions that fall within their scope, since 2005. BMO recommitted to the EP in 2006 and 2012.

The Project Finance group within Corporate Banking (CB) is the first line of defense responsible for identifying whether a given transaction falls within the scope of the EP framework. The CB team has more than a dozen members that review and validate that applicable transactions comply with the EPs, as part of the commercial lending process at BMO.

The Corporate and Commercial Credit (CCC) team reviews the CB team’s recommendations and is responsible for approving such transactions.

The Sustainability Office (SO), reporting to the Chief Sustainability Officer, is also involved in the review and validation of EP transactions and is notified of EP transactions as part of an Environmental and Social Risk Rating due diligence process, where applicable. The CB team typically engages third-party environmental consultant for transactions to assess consistency of the financing with the EP. If the consultant’s findings require additional elucidation, the SO may be brought in for further guidance. This is determined on a case-by-case basis.

Additionally, if the CB team determines that a transaction is not subject to the EPs, or does not require the appointment of a third-party consultant (i.e., for smaller or less complex transactions), the SO can be brought in to provide the necessary guidance to advise on the EP as applied to the project, with the aim that the CB team’s determination is aligned with the EPs. The SO may also be consulted on complex transactions when the CB team or the CCC team requires additional EP guidance.

The EPs are incorporated into BMO’s credit and risk management policies and procedures through requirements found in our Environmental and Social Risk General Financing Guideline, our Project Finance Financing Guideline, and certain sector-specific Financing Guidelines.

Additionally, BMO has developed internal EP training and guidance on the application of the EP.