The current economic and market environment has brought uncertainty and volatility to the not-for-profit community. 

Addressing sustainability and environmental, social and governance (ESG) objectives is in the DNA of many not-for-profit organizations. Sustainability includes activities that maintain or enhance an organization’s ability to create long-term value, while ESG is a framework for thinking about the risk factors to an organization’s value over the long term. While both endeavors are important, organizations must balance multiple priorities in these ever-changing times. These organizations need tools and information to help ensure that their investments, decisions, and focus reflect their values while meeting financial objectives. 

While not-for-profits can lead by example through their sustainability-focused financial and investment decisions, financial institutions can help them align their sustainability goals with the liquidity required to achieve their mission.  

Business and community leaders along with our clients continue to tell us that they value products, services and incentives that will help reduce their carbon footprint, as well as insights to help them adapt in this evolving business landscape.  

That’s why BMO is committed to being our clients’ lead partner in the transition to a net-zero world by providing strategic insights into climate risks, offering tailored advice on mitigation plans and facilitating access to financial resources.  

When clients opt in to BMO’s Sustainability-Linked Deposit program, for example, that enables organizations to accelerate their sustainability journey while supporting their bottom line. By tying the interest paid on a deposit account to a client's achievement of defined sustainability targets, a Sustainability-Linked Deposit helps not-for-profits ensure they do well while doing good. 

That was the case with a Midwest provider of clean water solutions and sustainable water management for a variety of industries. ESG is embedded in the company’s strategy, and opting into a sustainability-linked deposit allowed the company to achieve its ambitious goals for reducing its greenhouse gas emissions while optimizing its working capital. 

Sustainability and ESG can help shape how organizations operate, and adopters are finding that their efforts enhance their reputation, build their resilience and increase their value. In an uncertain environment, financial tools that help not-for-profits integrate sustainability into their liquidity management needs become essential.