Thank you, Mr. Chair.

Chair and honourable members of the committee, my name is Darryl White. I am the chief executive officer of BMO Financial Group. I am pleased to join my competitors today to discuss the work of the financial sector relevant to this committee's study.

I'd like to begin by acknowledging the traditional lands of the indigenous people from which I am joining you today, and on which we have the privilege of doing business. We acknowledge that BMO's work spans many indigenous territories.

With that, I will continue my remarks.

BMO is a financial institution committed to facilitating Canada's growth while having a positive social impact. This role is reflected in our motto, “To boldly grow the good in business and life”. This purpose guides our strategy, fuels our ambitions and reinforces our commitment to progress towards a thriving economy, a sustainable future and an inclusive society.

While my remarks focus on BMO, it's important to note that the entire banking sector makes a considerable contribution to carbon neutrality. This includes working with international groups, such as the Net-Zero Banking Alliance, and with our domestic regulators, such as the Office of the Superintendent of Financial Institutions.

Within BMO, and relevant to today's discussion, we are leveraging our experts to support all of the communities we serve across Canada and their diverse economies.

Some specific examples of how we work collaboratively with clients, both within and outside the natural resources sector, include BMO's energy transition group, formed in 2021. Our team delivers innovative investment banking solutions for our clients as they look to decarbonize their businesses and pursue energy transition opportunities. This work is complemented by the BMO climate institute, which helps our clients bridge the complexities of climate science and policy with economics and business strategy. In 2022, BMO acquired Radicle Group, a sustainability advisory services firm with an established reputation as a leading developer of carbon offsets, helping organizations measure and reduce emissions. Regarding sustainable financing activities, we have mobilized $330 billion in capital for clients pursuing sustainable outcomes, surpassing our goal of $300 billion by 2025. These have been integrated across our businesses since 2019.

When it comes to managing our own value-chain emissions, BMO has been carbon-neutral in its operational emissions since 2010 and continues to aim for carbon neutrality and 100% renewable energy purchases. We're also setting net-zero-aligned operational emissions targets, including for commercial real estate. We've developed a robust sustainable procurement program to address our upstream value chain. In terms of downstream value-chain emissions, BMO has set targets for financed emissions for certain carbon-intensive aspects of our lending portfolio. In this work, BMO is focused on serving a constructive role to help our clients decarbonize and make real-world emissions reductions. We describe BMO's client ambition as being “our clients' lead partner in the transition to a net-zero world”.

This does not mean divesting from the energy sector. Instead, we are working with clients on the leading edge of new technologies and supporting the net-zero transition of traditional energy clients working hard to change their emissions profile. The transition to a net-zero world is not an either-or situation. It requires an “all of the above” response. Banks play a critical role in supporting the clients providing non-carbon energy sources, such as nuclear, hydro, wind, solar and others.

Over the past several years, we've transitioned the way we communicate about our policies, from making a collection of sector-specific statements to emphasizing what we've always done—conducting comprehensive, risk-based approaches to credit judgment and underscoring our commitment to sound and prudent business practices, while complying with the laws and regulations in the markets we serve.

The challenges to achieving a net-zero future are significant, and the investment needed will be substantial. Attracting the substantial capital needed for the net-zero transition requires strong public-private sector collaboration, as well as regulatory predictability. I hope the committee will consider these as it reflects on its recommendations.

Thank you for your attention, and I look forward to your questions.