Scotiabank

RATING

SECTOR

Financial Services

 

WEBSITE

CONTACT

44 King St West
Toronto ON
M5H 1H1

Phone: 1-800-472-6842
Fax: N/A
E-mail: investor.relations@scotiabank.com

STOCK EXCHANGE

LISTING

EMPLOYEES

92,001

CHIEF SUSTAINABILITY OFFICER

Brendan Seale

AWARDS

  • Best Workplaces from Home Peru 2021
  • Top Companies Award 2018, 2019, 2021
  • Top Companies in Mexico 2021
  • Best Workplaces in Panama 2021
  • Best Workplaces in Costa Rica 2021
  • Best Workplaces in Central America 2021
  • Best Workplaces in Dominican Republic 2021
  • Best Workplaces in the Caribbean 2021
  • Best Workplaces in Canada 2021
  • Best Workplaces in Uruguay 2021
  • Best Workplaces for Women in Peru 2021
  •  Best Workplaces for Women in Canada 2021
  •  Bloomberg Gender-Equality Index 2021
  •  Greater Toronto’s Top 2020 Employers 2021
  •  Canada’s Top Employers for Young People 2021
  •  Best Workplaces in Peru for Diversity & Inclusion 2020
  •  Top 25 Diverse and Inclusive Companies 2020
  •  Best Bank in Chile 2020
  •  World’s Best Workplaces 2020
  • Best Workplaces in Ontario 2020

CONTENT SOURCE

FURTHER READING

Report created by Emilia Sharples

Scotiabank

SECTIONS :  Sustainability •  Targets    Evaluation  •  Key Points  •  Overview

 

Company Activity

The Bank of Nova Scotia is a Canadian multinational banking and financial services company headquartered in Toronto, Ontario. One of Canada’s Big Five banks, it is the third largest Canadian bank by deposits and market capitalization.

It serves more than 25 million customers around the world and offers a range of products and services including personal and commercial banking, wealth management, corporate and investment banking.

Scotiabank has billed itself as “Canada’s most international bank” due to its acquisitions primarily in Latin America and the Caribbean, and also in Europe and parts of Asia.

Company Sustainability Activity

Scotiabank’s approach to managing environmental, social and governance (ESG) issues focuses on areas where Scotiabank can make the biggest impact – enabling stakeholders to reach their fullest potential, mobilizing finance to address important social and environmental challenges 

Scotiabank has made five Climate Commitments – including mobilizing $100 billion by 2025 to reduce the impacts of climate change. ScotiaRISE is Scotiabank’s 10-year $500 million community investment initiative designed to promote economic resilience among disadvantaged groups. 

Investment in the next 5 years to reduce the impacts of climate change

  • Mobilized over $28 billion toward a target of $100 billion by 2025 to reduce the impacts of climate change.
  • Launched a Sustainable Finance group within Global Banking and Markets to provide advice and solutions to corporate, financial, public sector and institutional clients globally.
  • Established a dedicated ESG Equity Research Team to help clients understand how ESG factors influence corporate behaviour and capital markets 

Ensures robust climate-related governance and transparency in their reporting

  • Climate-related risks are reported quarterly to the Risk Committee of the Board of Directors, and oversight is aided by a Climate Change Steering Committee made up of senior officers from control/stewardship functions – the impact of climate change is a top and emerging risk in the Bank’s enterprise-wide risk management framework
  •   Included TCFD-aligned climate change disclosure in the 2020 Annual Report with additional details in this report
  •   Published first Green Bond Report, detailing how net proceeds have supported projects in accordance with our Green Bond Framework, for example, green building and clean transportation projects
  •   Enhanced climate disclosures to CDP for fiscal 2019 and received a grade of A-

Integration of climate risk assessments in their lending, financing and investing activities

Decarbonisation of own operations and find solutions to reduce bank’s impact on climate

  • Achieved a 20% reduction in Scope 1 and 2 GHGs from 2016, with a target to reduce by 25% by 2025 (from 2016 levels)
  • Established a target to secure 100% electricity from non-emitting sources for Canadian operations by 2025 and on a global basis by 2030
  • Increased internal carbon price to $30 per tonne of CO2 -equivalent (CO2 e) to expand capital allocation for emission-reducing initiatives; price will rise to $45 per tonne in 2021 and $60 per tonne in 2022

Established climate change centre of excellence to mobilise internal and external collaboration, dialogue and information sharing

  • Established a five-year partnership with the Institute for Sustainable Finance at Queen’s University to support education, professional training, research and outreach to advance Canada’s leadership in sustainable finance
  • Launched an Environmental and Climate Action Employee Resource Group open to all employees with a mission to educate and energize employees to make changes in their day-to-day lives to help the environment and fight climate change
  • Launched an enterprise-wide Sustainable Finance Network to foster collaboration across the Bank

Highlights

  • Mobilized over $28 billion toward our commitment of $100 billion by 2025 to reduce the impacts of climate change
  • Established a dedicated ESG Equity Research Team and launched a Sustainable Finance group within Global Banking and Markets
  • Implemented a Climate Change Risk Assessment (CCRA) tool for all business banking loans as a mandatory part of credit due diligence
  • Updated their Bank-wide credit policies to restrict direct financing or project-specific finance and advisory of activities related to the exploration, development and production of oil and gas within the Arctic Circle, including the Arctic National Wildlife Refuge
  •   Achieved a 20% reduction in operational greenhouse gas emissions from 2016 levels
  •   Established a target to secure 100% of electricity on a global basis from non-emitting sources by 2030, with an interim 2025 target of 100% for Canadian operations
  •   Established a multi-year partnership with the Institute for Sustainable Finance at Queen’s University in Canada as part of our Climate Change Centre of Excellence
  •   Published a Green Bond Report outlining the impact and use of proceeds from Scotiabank’s USD$500 million 3.5 year Green Bond issued in 2019
  •   Launched ScotiaRISE in January 2021, a 10-year, $500 million initiative to promote economic resilience among disadvantaged groups
  •   Invested nearly $85 million in communities in which they operate through donations, community sponsorships, employee volunteering and other types of community investment
  •   Donated $16.6 million to support people and communities most at risk during the COVID-19 pandemic, including $7.2 million in support of hospitals and healthcare professionals
  • ·   Launched renewed five-year Diversity and Inclusion Goals to increase the diversity of the employee population over the next five years, with a focus on people who identify as Black, Indigenous peoples, visible minorities, People with Disabilities and Women

Targets

  • $100 billion by 2025 capital mobilised toward reducing the impacts of climate change
  • Scotiabank has a goal to invest a portion of the high-quality liquid asset portfolio is labeled green and sustainability bonds from the primary market.
  • 100% electricity consumed from non-emitting sources by 2025 (Canada)
  • 100% electricity consumed from non-emitting sources by 2030 (global)
  • 25% reduction of Scope 1 and 2 GHG emissions from 2016 levels by 2025

Progress

  • Over $28 billion capital mobilised toward reducing the impacts of climate change
  • Over $10 billion Green and Sustainability Bonds underwritten
  • $1.5 billion labelled Green and Sustainability Bonds purchased
  • 82% electricity consumed from non-emitting sources in 2020 (Canada)
  • 61% electricity consumed from non-emitting sources in 2020 (global)
  • 20% reduction of Scope 1 and 2 GHG emissions from 2016 levels to 2020
  • 1.21 tonnes of CO2e/FTE GHG Intensity per employee
  • 0.05 tonnes CO2e/m2 GHG Intensity per square metre of occupied real estate

Certificates

UN Sustainable Development Goals

UN SDGs Compliance

SDG 1: No Poverty

  • Develop and offer financial products and services to meet and respond to the unique needs of a diverse customer base.
  • Committed to driving economic resilience and quality for customers and communities through the 10-year $500 million initiative ScotiaRISE.  
  • Promote financial education and work with local leaders including the United Way and others to spearhead partnerships and make charitable contributions that address the root cause of financial hardship.

 SDG 3: Good Health and Well-Being

  • Provide benefits and resources to help employees and families lead healthy, balanced lives
  • Throughout the COVID-19 pandemic, proactively deployed extensive measures to ensure premises remain as safe as possible while supporting the well-being of all employees.
  • Scotiabank and MD Financial Management, in partnership with the Canadian Medical Association, have launched the Physician Wellness+ Initiative, with $15 million targeted to address the urgent and ongoing health and wellness needs of physicians and medical learners 

SDG 4: Quality Education

  • Work to promote financial knowledge and education across our international footprint, directly with customers and through community partnerships
  • Support leading academic institutions to fund research, promote innovation and highlight the impact of digital technologies on society.
  • Academic partnerships directly benefit students, customers and internal Bank processes.
  • Since 2017, have invested more than $24 million in academic partnerships.

SDG 5: Gender Equality

  • Actively work to remove barriers for women in the workplace both inside and outside Scotiabank.
  • Have published targets to ensure the advancement of women in VP+ roles globally and in Canada and are a signatory to the UN Women’s Empowerment Principles.
  • Across key markets in Canada and Latin America, lead initiatives to support the advancement of women in business and the economy, including in Canada through The Scotiabank Women Initiative™ which is helping to enable access to capital, mentorship and education for women-led businesses.

SDG 8: Decent Work and Economic Growth

  • Through salaries, benefits and taxes paid, Scotiabank makes a significant contribution to employment and economic growth across its footprint.
  • Offer products and services that support customers and small businesses, and focus on digital transformation enables us to continue to provide customers with essential financial services in the midst of a global pandemic
  • Provide targeted community investments that seek to address root causes of economic exclusion, close opportunity gaps and enhance economic resilience for customers across the international footprint

SDG 10: Reduced Inequalities

  • Specialized banking services and advice focused on families and individuals, newcomers, seniors and students, entrepreneurs and small businesses – as well as our investments in the community through ScotiaRISE – help to remove barriers and increase access to opportunities.
  • Seek to enable all futures through aid in the achievement of financial goals and promote economic resilience.

SDG 13: Climate Action

  • Scotiabank’s Climate Commitments outline five areas that the Bank is focused on to address climate change, including a Commitment to mobilize $100 billion by 2025 to reduce the impacts of climate change.
  • Play an essential role in the transition to a low-carbon, more resilient economy and help accelerate climate solutions through core business activities.
  • Throughout 2020, Scotiabank maintained a leading position as a top Canadian dealer of sustainability bonds.

Evaluation

Scotiabank has a good history of achievement within their sustainability outlook. They have actively considered and strive to achieve a number of the UN’s SDGs and take their sustainability practices seriously. 

Their reporting is consistent and transparent and the commitment is demonstrated through their initiative to promote economic resilience among disadvantaged groups is considerable.

Their commitment to sustainability is not limited to investment and lending but extends to third-sector programmes and communities.

Although the bank has a decent collection of awards and listings, they are not as relevant to their sustainability practices. In 2020, the bank was also forced to pay $127M in fines for failing to detect and stop traders from making fake trades designed to manipulate prices of precious metals.

Therefore, the bank has been rated a C.

Analyst Outlook: Neutral

Their future goals are clear and achievable, given their past success, it is not unlikely that Scotiabank will achieve their coming goals. However, their recent involvement in criminal activity reflects poorly on the company values and so for this reason they have been awarded a C with a neutral outlook. 

Key Points

  • Over $28 billion capital mobilised toward reducing the impacts of climate change
  • Over $10 billion Green and Sustainability Bonds underwritten
  • Participated in the United Nations Environment Program Finance Initiative (UNEP FI) TCFD Stage 2 pilot to harmonize industry-wide approaches for climate scenario analysis in bank lending portfolios
  • Established five-year partnership with the Institute for Sustainable Finance at Queen’s University to support education, professional training, research and outreach to advance Canada’s leadership in sustainable finance
  • Launched an Environmental and Climate Action Employee Resource Group open to all employees with a mission to educate and energize employees to make changes in their day-to-day lives to help the environment and fight climate change
  • Committed to driving economic resilience and quality for customers and communities through the 10-year $500 million initiative ScotiaRISE.
  • Questionable company activity recently for failing to prevent fake trade in precious metals
 
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