Sustainable Business Strategy Overview
02 GREEN BOND FRAMEWORK
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Scotiabank Green Bond Framework
Scotiabank has prepared the Green Bond Framework in line with the ICMA Green Bond Principles 2018,
with the following core components:
1. Use of Proceeds
■ Eligible categories include renewable
energy, energy efficiency, pollution
prevention and control,
environmentally sustainable
management of living natural
resources and land use, terrestrial and
aquatic biodiversity conservation,
clean transportation, sustainable water
and wastewater management, and
green buildings
2. Process for Evaluation
and Selection
The Bank's Asset & Liability
Committee (ALCO) will oversee the
implementation of the Framework.
ALCO voting members include the
CFO, CRO, Treasurer, and business
line heads.
■ All Eligible Green Assets are
subject to a consistent review with
Scotiabank's applicable.
environmental and social risk
management policies.
3. Management of
Proceeds
Scotiabank's Treasury team is in charge
of monitoring the allocation of the
proceeds to the Eligible Green Assets on
a nominal equivalence basis, as well as
managing the Eligible Green Asset
Portfolio. The net proceeds can be
attributed to Eligible Green Assets
originated or refinanced up to 36
months before the issuance.
■ Scotiabank will use its best efforts to
substitute any Eligible Green Assets that
are no longer eligible, as soon as
practical once an appropriate
substitution option has been identified.
■ The balance of the tracked proceeds
should be adjusted on a quarterly basis,
in order to match the allocation to
Eligible Green Assets re/financed during
this period
4. Reporting
■ A year after the Green Bond's
issuance date, and every year
thereafter until full allocation of
the bond, Scotiabank will update
investors on how the bond
proceeds are allocated and share
information on loans financed by
the bond, in its Green Bond Annual
Report. Reporting will be produced
at the relevant Green Category
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