BMO to acquire carbon offsets developer Radicle

Radicle’s software measures and aggregates greenhouse gas emissions.

The Bank of Montréal (BMO) has entered an agreement to acquire Calgary-based sustainability advisory services and solutions provider Radicle Group to support the bank’s environmental goals.

The deal is expected to close by the end of this year. Radicle’s management team and 130 employees are expected to join BMO’s Capital Markets’ Global Markets group.

“Radicle’s mission is to enable planet-positive solutions by balancing economic interests with ecological impact.”
– Saj Shapiro, Radicle Group CEO

Founded in 2008 by cleantech innovator Alastair Handley, Radicle develops carbon offsets and helps organizations with emissions reduction. The company has also created a software platform to measure, qualify, and aggregate greenhouse gas emissions.

Radicle was formerly called the CCSI Group of Companies, until it changed its name in 2020. The firm was the result of the consolidation of Carbon Credit Solution Inc. (CCSI), Cap-Op Energy, TriCore Carbon Solutions, Climate Smart Group, and Carbon Solutions Group.

Last year, Radicle secured an undisclosed amount of funding from Telus Ventures and other investors as part of a debenture financing round. At that time, Radicle claimed that it had generated around $100 million CAD in value through carbon credits, removed six million tonnes of carbon dioxide from the atmosphere, and traded over $300 million in environmental commodities.

In its effort to make an international impact, Radicle began expanding into the United States (US) and Brazil in 2014, and in 2016, it established a $30 million carbon fund. The firm claims a global client base of over 4,000 companies, which includes Nature’s Path, FarmersEdge, Vancity, and Bayer.

Most recently, Radicle acquired Carbon Farmers of Australia in January to provide Radicle with a footprint in Australia.

Saj Shapiro, CEO of Radicle, said that by joining BMO, Radicle will be able to continue serving its existing customers, accelerate its emissions reduction efforts, scale its activities across BMO’s client network, develop additional sustainability services, and enter new markets.

“Radicle’s mission is to enable planet-positive solutions by balancing economic interests with ecological impact,” Shapiro added.

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BMO established its “Climate Ambition” last November, where it introduced the Climate Institute, which brings together science, analytics, expertise, and BMO partners to understand and manage the financial risks and opportunities related to climate change. The bank also unveiled a new climate analytics platform built by its sustainability team and the BMO Enterprise AI Labs, along with external partners.

Using geospatial data and scientific modelling, BMO’s platform generates actionable insights on the impacts of climate change on physical assets.

In its goals to achieve a net zero economy, BMO said it is setting a new target to reduce operational greenhouse gas emissions by 30 percent by 2030.

Dan Barclay, CEO of BMO Capital Markets, claimed that Radicle’s expertise and solutions will make BMO a leader in carbon credit development capabilities and the environmental commodity market.

“These capabilities enhance our commitment to help our clients understand and manage the risks and opportunities of energy transition,” added Barclay.

Image courtesy of Radicle.

Charlize Alcaraz

Charlize Alcaraz

Charlize Alcaraz is a staff writer for BetaKit.

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