Financial Health and Performance Overview slide image

Financial Health and Performance Overview

ESG Highlights from 2022 ESG Report and Q2 Update • • ENVIRONMENT • Mobilized $96 billion since November 1, 2018, towards our target of $350 billion in climate- related finance by 2030. Outlined the efforts undertaken in addressing our net-zero objectives and the Bank's net-zero transition plan activities. Achieved 29% reduction of Scope 1 and 2 greenhouse gas (GHG) emissions in our own operations (from 2016 levels) against our target of 35% reduction by 2030. $35.3 billion of sustainable finance activity, including green, social, sustainability and sustainability-linked bonds, loans and M&A advisory services. Invested $73.5 million since 2018 in initiatives to reduce energy consumption and improve energy efficiency across the Bank's footprint. 2022 ESG REPORT SOCIAL Contributed $91 million to communities through donations, community sponsorships, employee volunteering and other community investments. $60 million of our community spend was distributed through Scotia RISE in the first two years across 200 organizations globally to support economic resilience, progressing towards our goal of $500 million over 10 years. Scotiabank ranked one of the top 25 World's Best Workplaces by Great Place to Work® — the only Bank and the only Canadian headquartered company to make the list. Introduced a new goal to increase representation in Canada of employees who identify as lesbian, gay, bisexual or another diverse sexual orientation to 7% or greater by 2025. Deployed $5.6 billion in capital through The Scotiabank Women InitiativeⓇ in Canada and expanded the program to Jamaica, Costa Rica and Chile. • • • GOVERNANCE Employee engagement continues to be strong at 87%, ahead of financial sector industry averages. Ninety-two percent of employees report they take pride in working for Scotiabank. Enhanced our enterprise-wide Risk Management Framework, expanding our principal risk definition from environmental risk to ESG risk and established an ESG performance metric as a risk appetite metric. Linked ESG performance, including progress on our climate commitments, to all Bank performance pay. Recognized for Outstanding Global Leadership in Sustainability Transparency by Global Finance for the second year in a row. Launched our Ethics Assistant - Trusted Al tool to enhance the Bank's investments in data and analytics related to new Al and machine learning projects, and published our Data Ethics Principles. • Progress on the efforts undertaken in addressing net zero commitments was published as part of Scotiabank's ESG Report, including our second year of reporting against 2030 emissions reduction targets in two sectors. Q2 2023 Recognized for executive gender diversity on The Globe and Mail's Women Lead Here list for the third year in a row. Recognized with five Bond Awards by Environmental Finance, including Social Bond of the Year - Sovereign: Government of Canada's Ukraine Sovereignty Bond, and Green Bond of the Year - Sovereign: Government of Canada 202 2 Scotiabank NET-ZERO 2022 ESG Report, includes update to the Net-Zero Report 2021 Inaugural Net-Zero Pathways Report MSCI ESG RATINGS AAA II Bloomberg CDP E ECONOMIES B Rating The Bank of Nova Scotia Banks Sustainability Yearbook Member S&P Global ESG Score 2022 77/100 As of May 9, 2023. Position and Score are industry specific and reflect exclusion screening criteria. Learn more at spglobal.com/es/yearbook S&P Global Sustainable1 Gender-Equality Index DRIVING SUSTAINABLE CCC B BB BBB A AA AAA 2022 Corporate ESG Performance RATED BY ISS ESG▷ Prime 19
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