Sustainable Business Strategy Overview

Sustainalytics Second Party Opinion Sustainalytics provided Second Party Opinion for the Scotiabank Green Bond Framework Second-Party Opinion Scotiabank Green Bond Evaluation Summary Sustainalytics is of the opinion that the Scotiabank Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2018. This assessment is based on the following: G USE OF PROCEEDS The eligible categories for the use of proceeds are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that projects in the areas of 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 will lead to positive environmental impacts and advance the UN Sustainable Development Goals, in particular Goals 6, 7, 11, 12, 14, and 15. PROJECT EVALUATION / SELECTION Scotiabank's Asset & Liability Committee, which includes senior executives, is charged with reviewing and approving eligible assets, as well as ongoing oversight and the coordination of reporting. This is in line with market practice. MANAGEMENT OF PROCEEDS Scotiabank's Treasury team is responsible for the management of proceeds, and will earmark an amount equivalent to the net proceeds for allocation to eligible green assets originated or refinanced no more than 36 months prior to issuance. Allocations will be tracked on a quarterly basis, and Scotiabank will, on a best efforts basis, substitute other assets should a given loan no longer be considered eligible. This is in line with market practice REPORTING Scotiabank has committed to annual allocation and, where feasible, impact reporting. Allocation reporting will be provided at the category level, and will also disclose the balance of unallocated proceeds. Impact reporting will include relevant quantitative performance indicators. This is in line with market practice. SUSTAINALYTICS SECOND-PARTY OPINION Evaluation date Issuer Location Report Sections June 18, 2019 Toronto, Canada Introduction.. Sustainalytics Opinion.. Appendices N 0 .10 For inquiries, contact the Sustainable Finance Solutions project team: Zach Margolis (Toronto) Project Manager [email protected] (+1) 647 695 4341 Jean-Claude Berthelot (Amsterdam) Client Relations [email protected] +44 20 3880 0193 Sustainalytics 2019 02 GREEN BOND FRAMEWORK 13

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