Scotiabank announces net-zero strategy and a commitment to mobilize $350 billion in climate related financing
Scotiabank today released its 2021 Environment, Social and Governance Report, a comprehensive review of the Bank’s progress against its ESG commitments according to four key pillars — Environmental Action, Economic Resilience, Inclusive Society, and Leadership & Governance.
“Banks are drivers of prosperity, partners that enable the success of businesses small and large, a critical part of the social fabric, and engines of economic growth,” said Brian Porter, President & CEO Scotiabank. “How we choose to bank impacts the world around us, particularly in relation to environmental, social, and governance issues. As a Leading Bank in the Americas, we remain steadfast in our commitment to drive positive change in communities where we bank and around the world, which includes addressing climate change and supporting the transition to a low-carbon economy.”
Key ESG highlights from the report include:
- Achieved 25% reduction of Scope 1 and 2 GHG emissions (from 2016 levels), four years ahead of our 2025 target; on track to meet our target of 100% non-emitting electricity for Canadian operations by 2025 and 100% for our global footprint by 2030
- Joined the United-Nations-convened Net-Zero Banking Alliance, a global initiative to accelerate efforts of the financial sector to address climate change
- Established a $10 million Net-Zero Research Fund to advance research and leadership in support of global decarbonization efforts and selected our first cohort of grant recipients
- Contributed $77 million to communities across our footprint through our community investments, including $26 million in the first year of ScotiaRISE, our $500 million, 10-year initiative to support economic inclusion and resiliency for disadvantaged groups
- Deployed $3.8 billion in capital for women-led businesses, engaging 6,000 women-led entrepreneurs through The Scotiabank Women Initiative
- Improved employee benefits coverage including providing gender affirmation healthcare benefits and significantly increasing coverage related to mental health
- Named to Bloomberg’s Gender-Equality Index and ranked in the top 20 of the Top 100 Most Diverse and Inclusive Companies by Refinitiv
- Listed on the Dow Jones Sustainability Index North America for the fourth consecutive year with top marks for Corporate Governance and perfect scores for Anti-crime Policy, Environmental Reporting, and Risk & Crisis Management
- Enhanced our global Human Rights Statement, improving its alignment with best practices and the UN Guiding Principles Reporting Framework
In tandem with its ESG Report, today Scotiabank also released its inaugural Net-Zero Pathways Report, a comprehensive outline of the Bank’s commitment to achieve net-zero emissions from our operations by 2030 and net-zero financed emissions by 2050, including interim financed emissions targets and actions for the Bank’s priority high-emitting sectors. The Net-Zero Pathways Report builds on the Bank’s previously stated Scotiabank Climate Commitments – an enterprise-wide strategy to support the Paris Agreement on Climate Change – by identifying and acting on the pathways available to the Bank to achieve net-zero emissions by 2050. Scotiabank’s Net-Zero Commitments include:
- Achieving net-zero operations by 2030, including securing 100% non-emitting electricity in Canada by 2025, and globally by 2030
- Mobilizing $350 billion in capital for climate-related finance by 2030, replacing our previous goal to mobilize $100 billion by 2025
- Providing $25 million in community investment over 10 years to support non-profit and charitable partnerships that enable climate-related systems change and sector decarbonization
- Reducing Scope 1 and 2 emissions intensity of our Oil and Gas portfolio by 30% and reduce Scope 3 emissions intensity by approximately 15–25% by 2030
- Reduce Scope 1 and 2 emissions intensity of our Power and Utilities portfolio by 55-60%, by 2030
See related article: AIMCo Realty Announces Green Financing Framework
This is an important milestone, marking the start of an iterative and evolving process. Scotiabank will apply its net-zero approach across additional emissions-intensive sectors and geographies over time, working in partnership with clients, governments and other stakeholders to lower emissions across the sectors the Bank finances. Scotiabank will continue to support our clients, and their progress against their own low-carbon transition plans, by providing dedicated financing, expertise and thought-leadership. As data improves and advancements in emission-reducing policies, strategies and technologies are realized, the Bank will refine the interim targets and continue to report transparently on progress.
To read more about Scotiabank’s net-zero strategy and climate commitments, visit www.scotiabank.com/sustainability.