Mobilizing Finance for ESG Initiatives and Economic Resilience slide image

Mobilizing Finance for ESG Initiatives and Economic Resilience

• ESG Highlights Environmental Social Governance Mobilized over $28 billion since November 1, 2018, toward our commitment of $100 billion by 2025 to reduce the impacts of climate change Commitment to establish bank-wide, quantitative, time-bound targets for reducing GHG emissions associated with our underwriting and lending activities. Established a dedicated ESG Equity Research Team and launched a Sustainable Finance Group within Global Banking and Markets Implemented a Climate Change Risk Assessment tool for all business banking loans as a mandatory part of credit due diligence Updated Bank-wide credit policies published statements on our position to not finance oil and gas activities within the Arctic Circle, or thermal coal mining or coal power generation Established a target to secure 100% of electricity on a global basis from non-emitting sources1 by 2030, with an interim 2025 target of 100% for Canadian operations Issued the largest Sustainability Bond by a Canadian Financial or Corporate to date, a $1 billion 3-year Sustainability bond. It funds green and social assets, including the advancement of women owned and women-led businesses through The Scotiabank Women Initiative™ Launched Scotia RISE in January 2021, a 10-year, $500 million initiative to promote economic resilience among disadvantaged groups Invested almost $85 million last year in communities in which we operate, through donations, community sponsorships, employee volunteering and other types of community investment Launched renewed five-year Diversity and Inclusion Goals, with a focus on people who identify as Black, Indigenous Peoples, Visible Minorities, People with Disabilities and Women Introduced a training module titled Building Indigenous Cultural Competency to help employees better understand and serve our Indigenous customers in Canada Published the 2021 Green Bond Report detailing the impact and use of proceeds for Scotiabank's 2019 $500 million 3.5-year Green Bond. For the third consecutive year, achieved top 1% in Corporate Governance among financial institutions globally according to the Dow Jones Sustainability Index, and awarded a perfect score on Anti-Crime Policies Strengthened approach to responsible procurement and supplier diversity by joining Canadian Aboriginal and Minority Supplier Council 42% of Board Directors are women². We first established a Board Diversity Policy in 2013 Spearheaded the development of Project Shadow, a public-private partnership designed to combat online child sexual exploitation by enhancing methods to detect, report and disrupt suspicious financial transactions Developed new internal training on ethics in artificial intelligence (AI) and delivered a data ethics workshop for executives TCFD TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES CDP DRIVING SUSTAINABLE ECONOMIES UN Member of EQUATOR PRINCIPLES environment programme Dow Jones finance initiative Powered by the S&P Global CSA Sustainability Indices PRI Corporate ESG Performance MSCI ESG RATINGS Bloomberg AAA Gender-Equality Index Prime RATED BY CCC B BB BBB AA AAA 2021 ISS ESG‣ REFINITIV TOP 100 COMPANY 2020 Diversity and Inclusion Index Includes renewable (hydro, solar, wind, geothermal, tidal) and nuclear sources, and may include the use of renewable energy certificates (RECs). 1 2 As at July 31, 2021. Note: The use by Scotiabank of any MSCI ESG Research LLC or its affiliates ("MSCI") data, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement, recommendation, or promotion of Scotiabank by MSCI. MSCI services and data are the property of MSCI or its information providers, and are provided 'as-is' and without warranty. MSCI names and logos are trademarks or service marks of MSCI. 19
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