Case Study - Boticário Group

BMO

SINAI collaborated with the Bank of Montreal (BMO) to a) conduct an analysis of decarbonization opportunities for iron and steel production in North America, and b) assess the technological and commercial viability for the sector to achieve net zero. As a part of BMO’s climate ambition, they are committed to being their clients’ lead partner in the transition to a net-zero world, by identifying opportunities for their portfolio companies to reduce emissions, and support sustainable financing and impact investing.

The steel industry is one of the three largest industrial emitters of carbon dioxide globally. BMO collaborated with SINAI to perform an analysis of the sector due to its importance in the global economy. The results of this work were published in BMO Financial Group’s 2022 Climate Report.

Challenge

Decarbonization Modeling in SINAI

SINAI’s Climate Team utilized public, industry-specific databases to model mitigation opportunities for the iron and steel sector. As BMO’s analysis focused mostly on North America, regional trends were utilized to develop a North America decarbonization scenario for the sector.

SINAI’s Low Carbon Scenarios module allows for detailed modeling of project-level financial and environmental impacts. Utilizing data from the public domain, cost and abatement estimates of key mitigation options for the iron and steel industry were modeled. This work allowed BMO to understand the impacts of these projects, as well as the financial investment required for implementation.

Why SINAI

SINAI’s Software Solutions for Financial Institutions

To achieve net zero on a global scale, innovative financing structures that provide a blend of capital from the public, corporate, and finance sector are needed to advance solutions that are not currently economical. Financial institutions can play a key role in this process by identifying opportunities for their portfolio companies to reduce emissions, supporting sustainable financing and impact investing, and investing in innovative solutions to address climate change. In SINAI’s partnership with BMO we demonstrate how financial institutions can work with technology companies to identify solutions that help to mitigate the impact of climate change for portfolio companies.