加拿大丰业银行（BANK OF NOVA SCOTIA）2023年环境、社会与治理（ESG）报告（英文原版+译版）（121页）.pdf

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1、2 0 2 3 E S G R E P O R TThis archived information is provided solely for historical information and reference purposes.This information does not constitute an active representation of The Bank of Nova Scotia.The Bank of Nova Scotia fully disclaims any liability for the use of such information and u

2、ndertakes no obligation to update such information except as required by applicable law.2INTRODUCTION GOVERNANCE ENVIRONMENT SOCIAL APPENDIX DATA TABLESTable of Contents 3 A Message from Our President and CEO 4 Awards and Recognition 5 2023 Highlights 6 About This Report 7 About Scotiabank 8 How We

3、Create Value 9 A Message from Our CSO 10 Our ESG Approach 13 Supporting the SDGs 14 Key ESG Targets and Performance 15 G OV ER N A N C E 16 Trust at the Top of Our Business 22 Keeping Our Bank Safe and Protecting Clients 25 Advancing Human Rights 26 Responsible Procurement and Supply Chain Managemen

4、t 28 Leadership:Supporting Our Team 35 EN V I RO N M EN T 36 Financing for a Sustainable Future 47 Our Climate Goals 50 Managing Environmental and Climate Risk 51 Addressing Our Operations Environmental Impact 54 Partnering on Other Environmental Initiatives 56 S O C I A L 57 Embedding a Culture of

5、Diversity,Equity and Inclusion 72 Supporting Resilient Communities 73 Enabling Economic Resilience Through ScotiaRISE 78 Empowering Our Clients 87 A PPEN D I X 88 Public Accountability Statement 89 Additional Scotiabank Disclosures 90 Sustainable Bonds Allocation of Proceeds and Impact 93 Forward-lo

6、oking Statements 94 Data Tables ESG Data Pack and Indices KPMG Limited Assurance StatementA B O U T S COT I A BA N KScotiabanks vision is to be our clients most trusted financial partner,to deliver sustainable,profitable growth and maximize total shareholder return.Guided by our purpose:for every fu

7、ture,we help our clients,their families and their communities achieve success through a broad range of advice,products and services,including personal and commercial banking,wealth management and private banking,corporate and investment banking,and capital markets.With assets of approximately$1.4 tr

8、illion(as at October 31,2023),Scotiabank trades on the Toronto Stock Exchange(TSX:BNS)and New York Stock Exchange(NYSE:BNS).For more information,please visit and follow us on X Scotiabank.Scotiabanks executive offices are in Toronto,Canada.“We,”“our”and“the Bank”refer to The Bank of Nova Scotia,oper

9、ating as Scotiabank.C AU T I O N A RY S TAT E M E N TThis document is not required to be prepared or filed by the Bank(as defined in this document)under Canadian or U.S.securities laws.The information contained herein should not be read as necessarily rising to the level of materiality of disclosure

10、 required in our securities law filings,and such information should not be considered to be incorporated by reference into any such filings.This document should not be used as a basis for trading in securities of the Bank or for any other investment decision,and it is not intended to constitute fina

11、ncial,legal,tax,investment,professional or expert advice.S COT I A BA N K I N D I G E N O U S N E T WO R K E M PLOY E E R E S O U RC E G RO U P L A N D AC K N OW LE D G E M E N T We are privileged to stand on the ancestral and unceded territory of First Nations,Inuit and Mtis people.We offer our gra

12、titude to the First Peoples for their care for,and teachings about,our earth and our relations.We acknowledge the effect of residential schools and colonialism on Indigenous families and Communities.Considering this history,we dedicate ourselves to moving forward in the spirit of partnership,collabo

13、ration and reconciliation.Stewardship with Indigenous Peoples,Cultures and Communities is all of our responsibility.We reflect on the actions and the steps that must be made towards the advancement of Truth and Reconciliation.1 1 This Land Acknowledgement applies to the land on which Scotiabank has

14、its executive offices(Toronto,Canada)and its Canadian operations,and does not represent the historical and personal experiences of Indigenous Peoples across our international operations.2023 ESG REPORT 3INTRODUCTION GOVERNANCE ENVIRONMENT SOCIAL APPENDIX DATA TABLESA MESSAGE FROM OUR PRESIDENT AND C

16、 efforts throughout the year to create value for our clients,our colleagues,and the communities in which we live and work.Around the globe,2023 was a year marked by geopolitical conflict and ongoing economic uncertainty that was broadly felt across many corners of our communities.In times like these

17、,it is incumbent for organizations such as ours to deliver with a sense of purpose and a clear vision for our stakeholders one that is forward-looking and enables their success while ensuring that our communities are resilient for whatever the future may hold.This year we unveiled our new all-bank s

18、trategy to drive sustainable and profitable growth.Our vision is to be the most trusted bank wherever we operate,and along with our purpose for every future that aspiration to build trust guides our ESG efforts.It shapes how we utilize our advice,expertise,and capital to address significant environm

19、ental and social challenges.We are embedding key ESG priorities within our strategy,including supporting our clients in navigating the risks and complexities of a changing climate,and fostering inclusion and engagement for the wellbeing of our employees and communities.Against this backdrop of chang

20、e,our ongoing commitment to ESG priorities remained steadfast throughout the year.We were honoured to place in the top 5%of banks globally as rated by MSCI.We also achieved the highest score for banks in North America in the S&P Global Corporate Sustainability Assessment and were included in the Dow

21、 Jones Sustainability Index for the sixth consecutive year.This report demonstrates how our Bank is embedding ESG throughout our operations and with our stakeholders,to help build resilience and enable success in a rapidly changing world.In the face of both challenges and opportunities,we are focusi

22、ng our efforts where we believe we can drive the greatest impact.We have provided$132 billion since November 1,2018,towards our goal of$350 billion in climate-related finance by 2030.Our 2023 Climate Report lays out our plan,along with the risks,difficulties and opportunities we will face on the roa

23、d ahead to mitigate the worst impacts of climate change.We recognize that the transition to a low-carbon economy is complex and will take time,and in this regard,we will continue to work with our clients,governments and with actors in every sector of our economy to achieve it.The Scotiabank Women In

24、itiative has deployed$8 billion in capital for women-owned and women-led businesses in Canada since it launched,and it has engaged over 25,000 women leaders across the Banks footprint.We have also linked ESG metrics with all-Bank performance pay,reflecting our shared responsibility to meet our objec

25、tives.This period of transformation facing the Bank and society more broadly has allowed us to reflect on and reinforce what matters most to us an institution.As we embark on our new strategy,guided by our vision,Scotiabankers will remain deliberate,consistent,and focused in our ESG efforts.I am dee

26、ply appreciative of our teams across the Bank that manage and support Scotiabanks action on ESG opportunities,and all of our people who are working together to deliver for every future.Scott Thomson(he/him)President and Chief Executive Officer2023 ESG REPORT 4INTRODUCTION GOVERNANCE ENVIRONMENT SOCI

28、ard has an associated fee for entry.3 As at December 31,2023.Scotiabank ranked first among banks in North America in the S&P Global CSA and was included in the DJSI North America for the sixth consecutive year.1 Recognized with five gold awards by The Brandon Hall Group Excellence Awards,including G

29、lobal Mandatory Learning program,Human Resources Business Partner Development program and A11yBoost.2Scotiabank received the Canadian 2023 Occupational Safetys 5-Star Psychological Safety award for helping employees feel psychologically safe in the workplace.Recognized as one of the Best WorkplacesT

30、M in Canada by Great Place To Work.2 Named Best WorkplacesTM in Financial Services&Insurance in Canada by Great Place To Work.Recognized as one of the Best WorkplacesTM with Most Trusted Executive Teams by Great Place To Work.Recognized as one of Canadas Best Diversity Employers by Mediacorp.2 Recog

31、nized for executive gender diversity on The Globe and Mails Women Lead Here list for the third consecutive year.Scotiabank was recognized as Bank of the Year for the fifth year by The Banker,for delivering best-in-class banking experience.Named top 10 of the Best Places to Work for women in Colombia

32、 by Great Place To Work.Received five awards at the 2023 Sustainable Finance Awards by Global Finance,including Best Bank for Sustainable Finance(Canada)and recognitions for Outstanding Leadership in the Sustainability Transparency(Global and North America),Sustainable Bonds and Transition/Sustainab

33、ility-Linked Bonds categories.Scotiabank was involved in several award-winning transactions from our clients in 2023,recognized through five Bond Awards from Environmental Finance,including Social Bond of the Year Sovereign;Green Bond of the Year Sovereign;Sustainability Bond of the Year Supranation

34、al;Sustainability Bond of the Year Sovereign;and Sustainability Bond of the Year Corporate.Scotia iTRADE won the Best Personalized Experience award and was a runner-up for Best ESG Investing award in Trading Centrals Digital Wealth Awards 2023.Scotiabank named Best Specialist ESG Research at the 202

35、3 ESG Investing Awards by ESG Investing.Scotiabank also earned a place for the sixth consecutive year in the Bloomberg Gender-Equality Index.See more awards received by Scotiabank,Global Banking and Markets and as a leading place to work.E SG R ATI N GS A N D R A N KI N GS2023 S&P Corporate Sustaina

36、bility Assessment:73/1001ISS ESG:C,Prime3MSCI ESG Rating:AAA,Top 5%3CDP Grade:BSustainalytics:17.7 Low RiskI N DE X I N CLUS I O NBloomberg Gender-Equality IndexDJSI North America IndexFTSE4GOOD IndexRefinitiv Global Diversity and Inclusion Index2023 ESG REPORT 5INTRODUCTION GOVERNANCE ENVIRONMENT S

38、23.2 As at December 31,2023.3 The$350 billion target,which involves the provision of$350 billion in climate-related finance by 2030,represents a small portion of the Banks overall lending and advisory services.4 As used for this report,climate-related finance consists of those products and services(

39、such as lending and advisory services)as well as the types of transactions(such as sustainability-linked loans,or dedicated purpose loans)which support,among other things,climate change mitigation,adaptation,pollution prevention,sustainable management of natural resources,biodiversity conservation,a

40、nd circular economy.See Scotiabanks Climate-related Finance Framework for further details on climate-related products,services,as well as eligible transactions.G OV E RN A N CE Ranked first among banks in North America in the S&P Global Corporate Sustainability Assessment and included in the Dow Jon

41、es Sustainability Index(DJSI)North America for the sixth consecutive year.1 Received a“AAA”ESG rating from MSCI for the third consecutive year the highest score possible held by only 5%of global industry peers and recognized as a leader in corporate governance.2 Employee engagement reached 87%,above

42、 financial sector industry averages.Announced Global Inclusive Standards of Care for employee benefits,with an initial focus on health gaps for LGBT+and women.Linked ESG metrics with pay,including our progress towards our climate goals in all-Bank performance pay and incentivized climate performance

43、 in executive variable compensation.E N V I RO N M E NTA L Provided$36 billion towards our target of$350 billion3 in climate-related finance4 by 2030,reflecting a cumulative$132 billion since the beginning of fiscal 2019.Established a new interim emissions intensity reduction target in the Automotiv

44、e Manufacturing sector by 36%by 2030,on a science-based 1.5 degree-aligned pathway.Published a Climate-related Finance Framework that defines those products and services that are eligible for inclusion in the Banks target to provide$350 billion by 2030 in climate-related finance.Distributed$1 millio

45、n through the Net-Zero Research Fund and a cumulative$3 million since fiscal year 2021 to 31 research projects and leading initiatives.Achieved 34%reduction of Scope 1 and 2 greenhouse gas(GHG)emissions in our own operations(from 2016 levels)against our target of 40%reduction by 2030.SOCI A L Invest

46、ed$42.2 million through ScotiaRISE,reflecting a cumulative$102 million in the last three years across 200 organizations,progressing towards the goal of$500 million over 10 years.Released inaugural three-year Accessibility Plan supported by an Enterprise Accessibility Steering Committee to ensure the

47、 implementation of the Banks commitment to identifying,preventing and removing barriers for persons with disabilities.Since fiscal 2019,The Scotiabank Women Initiative has engaged over 25,000 women entrepreneurs and in Canada has deployed$8.05 billion in capital for women-led and women-owned busines

48、ses nearing our commitment to deploy$10 billion in capital by 2025.Welcomed the first cohort of Indigenous students through SOAR,a year-long rotational development program designed for Indigenous students completing post-secondary education.Scotiabank included in 2023 Bloomberg Gender-Equality Index

49、 for sixth consecutive year.Added allyship-focused learning content to Scotia Academy to help employees understand what it means to be an ally and the skills necessary to be effective.62023 ESG REPORT INTRODUCTION GOVERNANCE ENVIRONMENT SOCIAL APPENDIX DATA TABLESA MESSAGE FROM OUR PRESIDENT AND CEO

51、nvironment,social and governance(ESG)topics for the Bank that matter to our stakeholders.We aim to enhance our reporting in alignment with emerging trends and best practices,and continue to review how we manage,measure and report on ESG topics that are important to our business and our stakeholders.

52、Our ESG report is reviewed by Scotiabanks Operating Committee,which recommends approval to the Banks Board of Directors.To produce this report,we collect data from subject matter experts across Scotiabanks global business operations and corporate functions.Some data is obtained indirectly from clien

53、ts and other third-party sources.Scotiabank believes this data is reliable but has not in every case independently verified such data or the assumptions underlying such data and cannot therefore guarantee its accuracy or completeness.Changes in data or data collection methodologies may impact the ta

54、rgets described in this ESG Report and other Scotiabank publications,and Scotiabanks ability to achieve those targets.Data is provided by the relevant subject matter experts and approved by their respective executive leaders prior to inclusion in the ESG Report.It is then presented to the Banks Disc

55、losure Committee for review and approval.Data is presented in ways that align with the reporting frameworks and standards identified herein.1 The Task Force on Climate-related Financial Disclosures(TCFD)was established in 2017 to provide a voluntary reporting framework to help organizations disclose

56、 climate-related risks and opportunities,support market transparency and inform capital decisions.IFRS S1 and IFRS S2 include all TCFD recommendations,and when both International Financial Reporting Standards(IFRS)standards were released in June 2023,the Financial Stability Board asked the IFRS Foun

57、dation to assume the TCFDs mandate beginning in 2024.The TCFD was formally disbanded in November 2023.Scotiabank monitors changes in standards and expectations relating to climate reporting,including IFRS S2,CSRD and OSFI B-15,and will adapt our reporting to meet new requirements over time.This repo

58、rt covers ESG activities for the fiscal year 2023(November 1,2022,through October 31,2023)and global operations,unless otherwise stated.Previous reports are available on our ESG Publications&Policies page.RE P O RTI N G FR A M E WO RK SWe use several reporting frameworks,indicators and standards to

59、guide our reporting on relevant topics.Please refer to the ESG Data Pack and Indices for:Task Force on Climate-related Financial Disclosures(TCFD)1 Sustainability Accounting Standards Board(SASB)Standards Global Reporting Initiative(GRI)Universal Standards UN Global Compact(UNGC)Principles UN Sustai

60、nable Development Goals(SDGs)Public Accountability Statement(PAS,Canadian regulation)CU RRE N C YAll currency is stated in Canadian dollars unless otherwise noted and may be subject to currency exchange rate fluctuations.E X TE RNAL A SSU R A N CEKPMG has performed an independent,limited assurance e

61、ngagement for selected performance indicators marked with this symbol in the report.Community Investment figures(for fiscal years 20202023)are independently verified by LBG Canada using the London Benchmarking Group model,a recognized global standard for managing,measuring and reporting community in

62、vestment.Our goal is to remain in step with ESG-related disclosure standards or rules within our operating jurisdiction.We recognize and value the benefits of third-party assurance and intend to evolve our reporting practice for greater transparency and accuracy.With that comes a desire to better un

63、derstand the relationship between financial and non-financial information reported,and a continuation of the Banks efforts towards reasonable assurance in the future.See:2023 KPMG Limited Assurance Report 2023 Community Investment LBG Canada Verification StatementM A J O R CHA N G E S S I N CE OU R

64、202 2 RE P O RTThis year,we have launched our inaugural Climate Report,which will include climate-related disclosures previously found in our ESG Report.This 2023 ESG Report also incorporates the previously separate annual Sustainable Bonds Report disclosure.Any restatements or changes to methodolog

65、y in data since last year will be included within the footnotes of the Data Tables where applicable.KPMG was engaged to provide a limited assurance conclusion over indicators identified with this symbol.Refer to KPMGs Independent Limited Assurance Report.7INTRODUCTION GOVERNANCE ENVIRONMENT SOCIAL A

67、 our millions of clients who regularly rely on our service and advice.We serve these clients through our four business lines:C A N A DIA N BA N KI N G (CB)Canadian Banking provides a full suite of financial advice and banking solutions,supported by an excellent client experience,to over 11 million c

68、lients.Retail,Small Business and Commercial Banking clients are served through its network of 947 branches and 3,703 automated banking machines(ABMs),as well as online,mobile and telephone banking,and specialized sales teams.CB also provides an alternative self-directed banking solution to Tangerine

69、 clients.I NTE RN ATI O N A L BA N KI N G(I B)International Banking is a diverse franchise offering financial advice and solutions to over 12 million Retail,Corporate and Commercial clients.The geographic footprint encompasses 15+countries,including Mexico,Chile,Peru,Colombia,Brazil,Uruguay,and cert

70、ain markets across Central America and the Caribbean.The Bank is well positioned with a unique geographical footprint,providing digital leadership and connectivity with Canada and the U.S.markets.IB countries continue to demonstrate attractive demographics and opportunities to grow banking penetrati

71、on.G LO BA L WE A LTH MA N AG E M E NT (GWM)Global Wealth Management is focused on delivering comprehensive wealth management advice and solutions to clients across Scotiabanks footprint.GWM serves over 2 million investment fund and advisory clients across 13 countries administering over$600 billion

72、 in assets.G LO BA L BA N KI N G A N D MARKE T S(G B M)Global Banking and Markets provides corporate clients with lending and transaction services,investment banking advice and access to capital markets.GBM is a full-service wholesale bank in the Americas,with operations in 20+countries,serving clie

73、nts across Canada,the United States,Latin America,Europe and Asia-Pacific.For more information,see Scotiabanks corporate profile.WE ARE HERE FOR EVERY FUTUREGrow and scale in priority markets Invest through disciplined capital allocation Deliver a common approach across markets Support our clients i

74、n the transition to net-zero Create connectivity across our markets for multinational clientsEarn primary client relationships Deliver theentire bank Lead with advice,follow with solutions Create consistently high-quality experiencesacross all channelsMake it easy to do business with us Simplify and

75、 digitize end-to-end Streamline and improve efficiency across our Bank Ensure our Bank is resilient,safe and secure Ensure data-driven decision-makingWin as one team Be the employerof choice Invest in developing skills for the future Create an environment where we all belong Create positive impact i

76、n our communitiesBe our clients most trusted financial partner.to drive sustainable,profitable growth and maximize total shareholder returnOur values are:Respect|Integrity|Accountability|Passion 2023 ESG REPORT 8INTRODUCTION GOVERNANCE ENVIRONMENT SOCIAL APPENDIX DATA TABLESA MESSAGE FROM OUR PRESID

78、re,we work to create value for our business and our stakeholders.SUPPLIERS$6.0 billion in procured goods and services from third-party suppliers1 15,000 suppliers globally1COMMUNITIES$87.2 million invested in communities through donations,community sponsorships,employee volunteering and other types

79、of community investment$3.8 billion total taxes2$24.2 billion economic value distributed3SHAREHOLDERS$5.4 billion in dividends distributed 5%CAGR in dividends over the last five years 10.4%reported return on equity1 Supplier spend excludes transactions with non-vendors such as government agencies an

80、d non-governmental organizations,corporate card transactions,taxes and spending not managed by global procurement (non-procurement managed vendors).2 Includes income and other taxes such as payroll,business,capital,and goods and services taxes.3 Economic value distributed is a sustainability metric

81、and was calculated per GRI methodology 201-1 Direct economic value generated and distributed(2016)as an indicator of how the Bank is creating value for its various stakeholders.Please refer to the metric reported in the Data Tables for more information.4 On a full-time equivalent(FTE)basis per Scoti

82、abanks 2023 Annual Report(p.134).5 Either physically or virtually.Emission-free sources includes renewable(hydro,solar,wind,geothermal,tidal)and nuclear sources,and may include the use of renewable energy certificates(RECs).Electricity from emission-free sources in Canada is based on provincial elec

83、tricity mix sourced from Natural Resources Canada Energy Fact Book 2023-2024,pp.62 and 63.Electricity from emission-free sources internationally is based on reports from the International Energy Agency(IEA)electricity generation by country,by source.EMPLOYEES 89,483 employees4$9.6 billion paid in sa

84、laries and employee benefits$77.8 million invested in training and developmentCLIENTS$8.05 billion invested since 2018 in women-led and-owned businesses in Canada$751 billion in loans outstanding$13.1 billion in green,social,sustainability and sustainability-linked bonds underwrittenENVIRONMENT$132

85、billion in climate-related finance provided since November 1,2018 34%reduction in Scope 1 and 2 GHG emissions in our own operations from 2016 levels 66%electricity purchased from emission-free sources5 in our operationsAll figures on this page are presented for fiscal year ended October 31,2023.R EP

86、 O RT ED E A R N I N G S BY M A R K E TNet income attributable to equity holdersCanada49%Pacific Alliance28%U.S.11%Caribbean&Central America9%Other International 3%$7.4billionECO N O M I C VA LU E D I S T R I B U T ED$32.3 billion in revenueSalaries and benefits$9.6 billionCash dividends$5.4 billion

87、Taxes$4.7 billionNet operating expenses$4.4 billionCommunity giving$0.1 billionEconomic value retained$8.1 billion$24.2billion economicvalue distributed“The Bank is making meaningful progress in addressing important issues across our footprint,including diversity,equity and inclusion,climate change

88、and supporting community economic resilience.Oversight of ESG matters continues to be an important focus area for the Banks Board of Directors.The Directors are committed to ongoing engagement on the Banks broader ESG strategy,including through our board meetings and stakeholder process.”AARON REGEN

89、T(HE/HIM),CHAIR OF SCOTIABANKS BOARD OF DIRECTORS2023 ESG REPORT 9INTRODUCTION GOVERNANCE ENVIRONMENT SOCIAL APPENDIX DATA TABLESA MESSAGE FROM OUR PRESIDENT AND CEO|AWARDS AND RECOGNITION|2023 HIGHLIGHTS|ABOUT THIS REPORT|ABOUT SCOTIABANK HOW WE CREATE VALUE|A MESSAGE FROM OUR CSO|OUR ESG APPROACH|

90、SUPPORTING THE SDGs|KEY ESG TARGETS AND PERFORMANCEA Message from Our CSO Across Scotiabank we understand creating long-term value for our Bank goes hand-in-hand with creating long-term value for our employees,clients,communities and shareholders.We focus on developing trust with our stakeholders th

91、rough ongoing engagement and by reporting transparently on key ESG topics.It is reflected in the way we balance our Banks important responsibilities today with the needs of future generations.Trust is embedded in our Banks purpose,to be here for every future.It guides how we develop and invest in in

92、itiatives that minimize risks to our business and contribute to important sustainability outcomes including supporting our clients,removing barriers to economic inclusion,and adapting our operations to mitigate our greenhouse gas emissions.OU R 202 3 E SG H I G H LI G HT SThanks to the contributions

93、 of Scotiabankers across our business lines,corporate functions and markets,our Bank is on a path for effecting important change to advance a more sustainable future.Within the 2023 ESG Report,we share the progress our Bank has made against our key ESG priorities.Since launching ScotiaRISE in 2021,w

94、e have invested more than$100 million in over 200 organizations that are removing barriers for disadvantaged groups.We distributed a cumulative$3 million since 2021 through our Net-Zero Research Fund to advance leading research and technology to support decarbonization.We have also furthered allyshi

95、p through the introduction of new Global Inclusive Standards of Care for our employee benefits,with an initial focus on closing health gaps for the LGBT+community and women.This year,for the first time,we are providing an additional 2023 Climate Report.It shares greater detail on our progress,includ

96、ing the Banks provision of climate financing,our latest financed emissions target for the automotive sector,and a reinforcement of our ambition which we increased this year to reduce the Banks own Scope 1 and 2 emissions by 40%by 2030 relative to 2016 levels.The transition to a low-carbon economy wi

97、ll be a challenging journey and will require partnership and collaboration across all segments of society.I encourage you to read the Climate Report for greater detail on our Banks role in addressing climate change.LOO KI N G A H E A DWe continue to assess and prioritize the ESG topics that align wi

98、th our purpose,business strategy,and those areas that matter most to our stakeholders.We recently conducted a review of priority sustainability issues,which provides valuable insights as we update our ESG approach in 2024.One thing is certain:the number of ESG topics our stakeholders have identified

99、 as important to our Bank continues to grow.Prioritizing our efforts will be key moving forward,particularly as we evaluate further opportunities to support our clients in advancing their own sustainability goals.While the challenges faced across our society remain significant,it is energizing to th

100、ink about the role that our Bank can have in helping to address them,as we continue to hold ourselves accountable for the long term and engage collaboratively with stakeholders across our entire value chain to shape a more sustainable world,together.Meigan Terry(she/her)Senior Vice President&Chief S

101、ustainability,Social Impact and Communications Officer 2023 ESG REPORT 10INTRODUCTION GOVERNANCE ENVIRONMENT SOCIAL APPENDIX DATA TABLESA MESSAGE FROM OUR PRESIDENT AND CEO|AWARDS AND RECOGNITION|2023 HIGHLIGHTS|ABOUT THIS REPORT|ABOUT SCOTIABANK HOW WE CREATE VALUE|A MESSAGE FROM OUR CSO|OUR ESG AP

102、PROACH|SUPPORTING THE SDGs|KEY ESG TARGETS AND PERFORMANCEOur ESG Approach1 Internal stakeholder groups included employees and senior leaders from across the organization.2 External stakeholder groups included non-governmental organizations,academia,community and sustainability organizations,shareho

103、lders and investors,ESG rating agencies,suppliers and industry associations.DE TE RM I N I N G OU R PRI O RIT Y SUS TA I NA B I LIT Y I SSU E S We regularly engage with stakeholders to listen,learn about and discuss ways we can address issues important to them and our business.This engagement also h

104、elps us better understand our impact and where we have the greatest ability to drive change and create value.The table on the following page summarizes our ongoing efforts and engagement with stakeholder groups in 2023 and how we address the topics most concerning to each group.Scotiabank also engag

105、es and collaborates with organizations highlighted throughout this report.Scotiabank partnered with an external sustainability consultancy to help us understand which topics are most important to Scotiabank and our stakeholders.This assessment will help to inform Scotiabanks future ESG approach and

106、reporting.The assessment followed a common methodology to identify,prioritize and validate ESG topics.For each topic we explored the potential for impact on our business and society,and the level of importance to key stakeholders.We reviewed industry peers,pertinent SASB standards and information re

107、quests from rating agencies.ESG topics were prioritized based on insights gained from internal1 and external2 stakeholder surveys,more than a dozen interviews with senior leaders and subject matter experts within and outside of the Bank,and two employee focus groups.Our assessment outcomes were pres

108、ented to Scotiabanks Operating Committee and shared with the Banks Board in early 2024.Operational Environmental FootprintPublic Policy and LobbyingSustainable ProcurementCommunity ImpactConsumer ProtectionCorporate GovernanceCustomer ExperienceEmployee Health and WellbeingHuman RightsIndigenous Rel

109、ations Innovation and DigitizationNature and Biodiversity Talent Recruitment,Development and RetentionTransparent Reporting and DisclosuresHIGHBusiness Ethics Climate ChangeData Privacy and Security Diversity,Equity and InclusionFinancial Access and InclusionResponsible Investment and FinanceVERY HI

110、GHImpact on the economy,environment and peopleImportance to stakeholdersMOD ERATE2023 ESG REPORT 11INTRODUCTION GOVERNANCE ENVIRONMENT SOCIAL APPENDIX DATA TABLESA MESSAGE FROM OUR PRESIDENT AND CEO|AWARDS AND RECOGNITION|2023 HIGHLIGHTS|ABOUT THIS REPORT|ABOUT SCOTIABANK HOW WE CREATE VALUE|A MESSA

111、GE FROM OUR CSO|OUR ESG APPROACH|SUPPORTING THE SDGs|KEY ESG TARGETS AND PERFORMANCEE N G AG I N G WITH S TAKE H O LDE R S We regularly engage with our stakeholders and actively work to meet their evolving needs.Here we summarize engagement with stakeholder groups in 2023.Other examples are highligh

112、ted throughout this report.E M P L OY E E SC L I E N T SS H A R E H O L D E R S,I N V E S T O R S,R AT I N G AG E N C I E S A N D R E S E A R C H A N A LYS T SG OV E R N M E N T A N D R E G U L AT O R SS U P P L I E R SN G O s,AC A D E M I A,A N D CO M M U N I T Y A N D S U S TA I N A B I L I T Y O

113、R G A N I Z AT I O N SHow we engaged in 2023 Internal communication(i.e.,social network platforms,email,intranet and newsletters)In-person and virtual town halls and team meetings Employee Resource Groups ScotiaPulse employee engagement survey People leader communication The Pulse survey and follow-

114、up calls Roundtable discussions Events and reports based on ESG equities research Interactions through our branch network Digital banking Contact centres Social media Annual general meeting and quarterly earnings calls Annual and quarterly reports,management proxy circular,annual information form,an

115、nual ESG report,news releases and website Investor conferences Interaction with ESG rating agencies,rankers,and data and disclosure providers Meetings with ESG investors and Second Party Opinion providers on ESG-labelled bond criteria and trends Shareholder proposals and inquiries 1:1 and small grou

116、p meetings Public policy discussions and dialogue with policymakers,regulators and government Submissions to government and regulators bilaterally and through industry associations Participation in Canadas Sustainable Finance Action Council Procurement procedures Sustainability assessments of prospe

117、ctive suppliers Third-party risk management program Formal Request for Proposal process Participation in organizations focused on supplier diversity Community investments and partnerships Employee volunteerism Memberships including the UN Environment Programme Finance Initiative and the UN-convened

118、Net-Zero Banking Alliance Engagement with organizations such as the UN Global Compact,UN Womens Empowerment Principles,the UN LGBTI Standards of Conduct for Business and the BlackNorth Initiative Participated in a UN High Commissioner for Human Rights event Engaged with human rights-related organiza

119、tions,including BSR and The Mekong Club Part of the consortium that supported the establishment of the ISSB office in Canada Key topics raised Wellness,health and safety Accessibility and accommodation Allyship and DEI Learning and development Human rights and Indigenous reconciliation Community inv

120、estment Climate change Client experience ESG practices and sustainable finance Net-Zero Banking Commitment Financial inclusion and access Community investment with a focus on economic resilience Consumer protection Cybersecurity and data privacy Geopolitical issues ESG disclosures,standards harmoniz

121、ation and reporting Housing and consumer indebtedness Climate and net-zero initiatives Financial instruments to support sustainability Guidelines for sustainable finance structuring and eligibility criteria Digital transformation and AI DEI Human rights and Indigenous relations Executive compensatio

122、n Auditor tenure CEO succession Cybersecurity and financial crime Digital finance,data privacy and AI International trade DEI Sustainable finance and climate policy Affordable housing Transition finance taxonomies Regulations and emerging ESG disclosure standards(e.g.,ISSB,Bill S211,OFSI-B15)ESG ris

123、k management Global Procurement Policy Modern Slavery Act and human rights Supplier Code of Conduct Supplier diversity Climate change,carbon pricing and net-zero DEI Economic inclusion and resilience Financial literacy and education Modern slavery and human rights Immigration and settlement of newco

124、mers Respect for Indigenous reconciliation Supplier diversity Transparency on ESG risks UN SDGs2023 ESG REPORT 12INTRODUCTION GOVERNANCE ENVIRONMENT SOCIAL APPENDIX DATA TABLESA MESSAGE FROM OUR PRESIDENT AND CEO|AWARDS AND RECOGNITION|2023 HIGHLIGHTS|ABOUT THIS REPORT|ABOUT SCOTIABANK HOW WE CREATE

125、 VALUE|A MESSAGE FROM OUR CSO|OUR ESG APPROACH|SUPPORTING THE SDGs|KEY ESG TARGETS AND PERFORMANCEG LO BA L DE V E LO PM E NT S S HAPI N G O U R I N DUS TRY 1 For the purpose of this report,carbon intensive sectors are understood as those listed by the NZBA as aluminum,agriculture,cement,coal,commer

126、cial and residential real estate,iron and steel,oil and gas,power generation and transport.2 Emissions intensity reduction targets are distinct from targets to reduce absolute emissions.Scotiabanks emissions intensity reduction targets are based on a physical intensity metric.See our Climate Report(

127、p.24)for more information.Many factors are shaping our global economy,with some already impacting the financial sector,while others are emerging.Below are some key ESG trends we believe are most significant to Scotiabank and our global economy more generally and the actions we are taking to address

128、them.CLI M ATE-RE L ATE D RI S K SThe impacts of climate change are being felt around the world.The threat of severe weather poses a risk to the Banks properties and disruption of our operations and those of our clients.In addition,exposure to high emitters of GHG emissions within our portfolio coul

129、d pose financial and reputational risks to the Bank.OUR ACTIONS:Our climate goals comprise three pillars:(1)financing climate solutions,by providing climate-related financing to clients in all sectors,including certain carbon intensive sectors;1(2)advancing to net-zero,by working with clients to red

130、uce emissions associated with our lending portfolio and setting 2030 sectoral emissions intensity reduction targets2 to keep us on course to meet our goal of achieving net-zero financed emissions by 2050;and(3)reducing our own emissions,by introducing solutions to minimize the Banks direct impact on

131、 climate change.See Environment ANTI-D I SCRI M I NATI O N AN D I N CLUS I O NDiscrimination against equity-deserving groups is a threat to the future of thriving,healthy societies,organizations and economies.It also limits the ability of individuals treated unfairly or lacking equal access to oppor

132、tunities to flourish in their professional careers.OUR ACTIONS:We work to overcome barriers that prevent equity-deserving groups from accessing financial services,higher education and meaningful employment.Within our workplace,we are committed to advancing our diverse,inclusive culture where employe

133、es are empowered to reach their full potential and bring their authentic selves to work.See Supporting Resilient Communities,Enabling Economic Resilience Through ScotiaRISE,Embedding a Culture of Diversity,Equity and Inclusion and Empowering Our Clients C Y B E R S ECU RIT Y,A RTI FI CI A L I NTE LL

134、I G E N CE A N D I N FO RM ATI O N TECH N O LO GY RI S KThe rapid emergence of new technologies,including artificial intelligence(AI)and the rise of the metaverse,is transforming financial services as we know it.At the same time,these tools present unique risks,including unethical or inappropriate u

135、se of employee or client data,harmful bias,accuracy limitations and augmented security and privacy concerns.Cyber-attacks also continue to increase in sophistication,severity and prevalence.OUR ACTIONS:In response to increased client demands,needs and expectations,the Bank has embarked on a multi-ye

136、ar digital transformation with the aspiration to be a digital leader in the financial services industry.To support this strategy,the Bank continues to invest in its digital capabilities to contribute to financial innovation,while monitoring for evolving risks in new technology tools.See Keeping Our

137、Bank Safe and Protecting Clients I N CRE A S I N G REG U L ATO NS A N D E XPEC TATI O NS FO R D I SCLOSU RE The regulatory landscape for ESG reporting is evolving rapidly.Regulators,investors and other stakeholders are increasingly calling on companies to disclose and describe the social,environment

138、al and economic challenges,opportunities and risks facing their businesses,as well as impacts and risks to their value chain.Companies also must continue to monitor and prepare for forthcoming voluntary international disclosure standards,which may influence future regulations.OUR ACTIONS:The Bank co

139、ntinues to monitor changes in regulatory guidance and assess the impact of new regulations across our operating footprint.In addition,we participate in industry associations to lend our experience and expertise and to encourage development of reporting standards to focus on decision-useful,consisten

140、t information across the sector.We continuously review risks through our robust risk management processes.See About This Report,Governance2023 ESG REPORT 13INTRODUCTION GOVERNANCE ENVIRONMENT SOCIAL APPENDIX DATA TABLESA MESSAGE FROM OUR PRESIDENT AND CEO|AWARDS AND RECOGNITION|2023 HIGHLIGHTS|ABOUT

141、 THIS REPORT|ABOUT SCOTIABANK HOW WE CREATE VALUE|A MESSAGE FROM OUR CSO|OUR ESG APPROACH|SUPPORTING THE SDGs|KEY ESG TARGETS AND PERFORMANCESupporting the SDGs The finance and banking sector can play a significant role in global efforts to make progress on the United Nations Sustainable Development

142、 Goals(SDGs).Below are the SDGs and sub-targets where we believe Scotiabank can have the most strategic impact through our core business activities and investments.Further details on these and other SDGs where we believe we can have meaningful impacts are available in our ESG Data Pack and Indices.S

143、 D G G OA L S&TA RG E T SO U R AC T I O N S1No PovertyScotiabank provides financial education,tools and advice to help our clients make knowledgeable and responsible financial decisions.We develop and provide essential financial products,low-and no-fee bank accounts and services to meet the unique n

144、eeds of underserved and underbanked communities.2Zero HungerWe provide innovative farming-specific banking and lending services for small farms,large-scale producers and processors to support their ability to evolve,grow and feed our world sustainably.3Good Health and Well-being We offer benefits an

145、d resources to help our employees and their families lead healthy,balanced lives and promote their long-term mental and physical health.4Quality Education We work to promote financial literacy across our international footprint.5Gender Equality We support the advancement of women in business and the

146、 economy by,among other things,identifying and helping to remove gender barriers and working to close gender gaps.Within the Bank,we support programs to help women advance into leadership roles and conduct an annual pay equity assessment.6Clean Water and SanitationWe provide financing towards eligib

147、le green projects,which may include sustainable water and wastewater management.7Affordable and Clean Energy We facilitate the development of reliable,sustainable energy for a lower-carbon future by financing and investing in more efficient energy,renewable energy and clean power solutions.Within ou

148、r operations,we are working to source,either physically or virtually,100%electricity from emission-free sources.We also support non-profit and charitable partnerships that enable climate-related systems change and sector decarbonization.8Decent Work and Economic Growth We support customers and small

149、 businesses with essential products and services.We contribute significantly to economic growth through competitive salaries,generous benefits and tax payments.Through our banking services and community investments,we seek to address the root causes of economic exclusion and close opportunity gaps f

150、or underserved groups.We have zero tolerance for modern slavery or human trafficking.9Industry,Innovation and Infrastructure We provide finance to build resilient infrastructure,foster innovation and finance the development of more efficient,sustainable industrial technologies in the Americas.10Redu

151、ced InequalitiesWe remove barriers to achieving financial and social equality through specialized banking services and advice.We invest in programs to empower the underserved and equity-deserving people within our communities and workforce.11Sustainable Cities and Communities We provide lending,inve

152、sting and underwriting solutions for the development of affordable housing.12Responsible Consumption and Production Scotiabank is a member of a network of organizations working to connect Canadas circular economy community.We have initiatives to reduce our operational carbon footprint through effici

153、ent energy consumption.13Climate Action In 2023,we increased our target to reduce operational Scope 1 and 2 GHG emissions from 35%to 40%by 2030 against a 2016 base year.16Peace,Justice and Strong Institutions We combat financial crimes,protect human rights and fight exploitation through innovative f

154、inancial products and services,global and national multi-stakeholder partnerships,and technology.We have no appetite for unethical conduct by employees and zero tolerance for bribery and corruption.17Partnerships for the Goals We support and participate in the work of national and international rese

155、arch institutions and non-governmental organizations to provide collaboration and spur dialogue,research and information sharing to advance global action toward the SDGs.2023 ESG REPORT 14INTRODUCTION GOVERNANCE ENVIRONMENT SOCIAL APPENDIX DATA TABLESA MESSAGE FROM OUR PRESIDENT AND CEO|AWARDS AND R

157、D TO EXECUTIVE PAYEnvironmental Action1 Provide the climate-related finance our clients need to address their own climate-related projects and objectives$350 billion by 20302 Climate-related finance since fiscal 2019$132 billion(cumulative)2+$36 billion38%of targetDecarbonize our operations 40%decre

158、ase in Scope 1 and 2 greenhouse gas(GHG)3 emissions by 2030(2016 base year)%decrease GHG emissions Scope 14 Scope 2(Location-Based)4 34%decrease27,402 tCO2e 64,777 tCO2e+5%decrease85%of targetSecure 100%emission-free electricity in Canada by 20255%emission-free electricity83%83%of targetEconomic Res

159、ilience,Inclusive Society6 Empower women in our workplace to succeed and reach their fullest potential40%of women in VP+roles by 2025 globally%women in VP+roles Global4 women VP+roles Canada4 women VP+roles International4 39%44%27%+1%98%of targetScotiaRISE:Community investment in support of economic

160、 resilience$500 million by 2030 through ScotiaRISE$of community investment since 2021$102 million (cumulative)+$42 million20%of targetIncrease economic and professional opportunities for women-led businesses$10 billion by 2025 in Canada$of capital deployed through The Scotiabank Women Initiative in

161、Canada since 2021$8.05 billion(cumulative)+$2.45 billion81%of targetLeadership&Governance Aim to have gender parity on the BoardMinimum 30%representation of women on the Board%women on Board7 36%Achieving targetValuing employee feedback and cultivating an environment of trust Above three-year rollin

162、g average for financial institutionsEmployee Engagement Index score4 87%Above target1 Please refer to the Climate Report(p.59)for information relating to financed emissions.2 The$350 billion target,which involves the provision of$350 billion in climate-related finance by 2030,represents a small port

163、ion of the Banks lending and advisory services.3 Greenhouse gas,or GHG,is defined in the Greenhouse Gas Protocol as including the six gases included in the Kyoto Protocol:carbon dioxide(CO2),methane(CH4),nitrous oxide(N2O),hydrofluorocarbons(HFCs),perfluorocarbons(PFCs)and sulphur hexafluoride(SF6).

164、The Bank currently measures CO2,CH4 and N2O for our operational emissions.4 Definitions for assured metrics are provided in the Data Tables(p.94)within this report.See relevant data tables for“Employee Engagement”(p.100),“GHG Emissions from Our Own Operations”(p.104)and“Women in Leadership and Workf

165、orce”(p.117).5 Either physically or virtually.Emission-free sources includes renewable(hydro,solar,wind,geothermal,tidal)and nuclear sources,and may include the use of renewable energy certificates(RECs).Electricity from emission-free sources in Canada is based on provincial electricity mix sourced

166、from Natural Resources Canada Energy Fact Book 20232024,pp.62 and 63.Electricity from emission-free sources internationally is based on reports from the International Energy Agency(IEA)electricity generation by country,by source.6 Performance indicators related to diversity,equity and inclusion targ

167、ets for Canada are presented on p.59.7 Figures may differ from the Management Proxy Circular,which highlights the slate of directors proposed for election in the spring.Integral to our ESG approach is our performance against our ESG goals and targets.We have identified several key performance indica

168、tors(KPIs)that are designed to help us meet these goals and are externally verified.As expectations from stakeholders evolve related to these topics,we will update the scope of indicators covered.Our 2023 progress towards key targets is summarized in the table below.Please refer to the related Data

169、Tables(p.94)for comprehensive year-over-year performance data associated with this report.KPMG was engaged to provide a limited assurance conclusion over indicators identified with this symbol.Refer to KPMGs Independent Limited Assurance Report.Independent verification of Scotiabanks total community

170、 investment spend is provided by LBG Canada according to the LBG model.LBG Canada did not independently verify community spending attributed specifically to ScotiaRISE.2023 ESG REPORT INTRODUCTION GOVERNANCE ENVIRONMENT SOCIAL APPENDIX DATA TABLESGovernanceOur business is built on trust.We work ever

171、y day to earn and maintain the trust of our stakeholders by acting with integrity and prioritizing oversight in the markets where we operate.Our governance structures are designed to promote accountability,transparency and ethical behaviour consistent with our corporate standards and values worldwid

172、e.This trust has allowed us to develop long-standing,deep relationships.IN THIS SECTION:16 TRUST AT THE TOP OF OUR BUSINESS 22 KEEPING OUR BANK SAFE AND PROTECTING CLIENTS25 ADVANCING HUMAN RIGHTS26 RESPONSIBLE PROCUREMENT AND SUPPLY CHANGE MANAGEMENT28 LEADERSHIP:SUPPORTING OUR TEAM 152023 ESG REPO

173、RT 16INTRODUCTION GOVERNANCE ENVIRONMENT SOCIAL APPENDIX DATA TABLESTRUST AT THE TOP OF OUR BUSINESS|KEEPING OUR BANK SAFE AND PROTECTING CLIENTS|ADVANCING HUMAN RIGHTS RESPONSIBLE PROCUREMENT AND SUPPLY CHAIN MANAGEMENT|LEADERSHIP:SUPPORTING OUR TEAMTrust at the Top of Our Business1 In fiscal 2024,

174、a Climate Transition Steering Committee will assume the Corporate ESG Committees mandate on climate-related matters,with accountability for compliance climate-related regulations,and design and execution of the Banks Climate Transition Plan.WH Y IT MAT TE R S We view trust as foundational to the rel

175、ationships we have built with our clients,our shareholders,our fellow Scotiabankers and the communities in which we have operated in for more than 190 years.Trust means acting with integrity and championing a culture where every employee takes ownership of their actions and understands that transpar

176、ency and accountability are vital to Scotiabanks success.We seek to act pursuant to best practices,embed a robust risk culture and encourage the highest ethical standards and conduct.BOA RD A N D S E N I O R MA NAG E M E NT G OV E RN A N CEThe Banks Board of Directors oversees the management of the

177、Banks business and sets the tone at the top,promoting trust and confidence with our shareholders,clients,employees,regulators and communities.Its duties and responsibilities are set out in the Boards mandate and committees charters.Our Board of Directors brings diverse skills,experience and expertis

178、e to managing our business,with the majority having ESG expertise,including experience in sustainability matters,climate-related issues,and other ESG issues,familiarity with standards for climate change reporting and community involvement.Several committees and councils composed of senior leaders fr

179、om across the Bank provide oversight of regular ESG-related updates to our senior leadership,Board and Board committees.This includes recommendations,strategic guidance and regular briefings from:The Asset&Liability Committee(ALCO)provides oversight of the Banks Sustainable Bond Framework.In 2023,a

180、new ALCO ESG Sub-Committee was established to support ALCO members in their review and oversight of the Framework.Climate-related risks and opportunities are overseen by a Climate Transition Steering Committee.1 The Climate Transition Committees mandate will include accountability for compliance wit

181、h OSFI B-15 and other regulatory initiatives relating to climate,as well as the execution of the Banks Climate Transition Plan.The Community Investment Committee,responsible for the execution of the Banks Community Investment Strategy,as well as reviewing and approving community investments,such as

182、ScotiaRISE.The Disclosure Committee acts in an advisory capacity to the President and CEO and the Board to ensure that all public disclosure of information made by the Bank in whatever form is timely,accurate and balanced and that appropriate controls are in place and working effectively.The Scotiab

183、ank Global Inclusion Council on the Banks Diversity,Equity and Inclusion(DEI)strategy.The Operational Risk Committee(ORC)provides effective oversight and challenge of the Banks management of environmental and social risks.Its responsibilities include monitoring of the ESG risk profile,recommending a

184、pproval of relevant risk frameworks,policies,risk appetite statements and limits to the ORC.2 In Q2 2024,the position of Senior Vice President and Head,Corporate and Commercial Credit Risk is replaced with Senior Vice President and Head,Enterprise Risk.G OV E RN A N CE O F E SG AT SCOTI A BA N KOVER

185、SIGHTMANAGEMENTOVERSIGHTBoard of DirectorsCEO&Operating CommitteeOversight of ESG Issues Related to MandateESG OversightAudit&Conduct Review Committee Human Capital&Compensation CommitteeRisk CommitteeCorporate Governance Committee ESG LeadershipExecutive Vice President and General CounselSenior Vic

186、e President and Chief Sustainability,Social Impact and Communications OfficerGlobal Risk ManagementGroup Head and Chief Risk OfficerSenior Vice President and Head,Corporate and Commercial Credit Risk2Related Management CommitteesAsset&LiabilityCommitteeClimate TransitionSteeringCommitteeDisclosureCo

187、mmitteeGlobalInclusionCouncilCommunityInvestmentCommitteeOperationalRiskCommitteeRE LE VANT LI N K SCorporate Governance Policies Board of Directors Scotiabank Annual Reports,Proxy and AGM Materials See annual Management Proxy Circular for:Board structure and composition Executive compensation and E

188、SG metrics ESG-related responsibilities and activities2023 ESG REPORT 17INTRODUCTION GOVERNANCE ENVIRONMENT SOCIAL APPENDIX DATA TABLESTRUST AT THE TOP OF OUR BUSINESS|KEEPING OUR BANK SAFE AND PROTECTING CLIENTS|ADVANCING HUMAN RIGHTS RESPONSIBLE PROCUREMENT AND SUPPLY CHAIN MANAGEMENT|LEADERSHIP:S

189、UPPORTING OUR TEAMMA I NTA I N I N G A S TRO N G RIS K CU LTU RE Effective risk management is essential for good governance and requires a strong risk culture that promotes responsible conduct.We have invested in developing a strong risk culture where managing risk is a responsibility shared by all

190、Bank employees.Our risk culture is built on underlying norms,attitudes and beliefs that positively influence risk management behaviour across the Bank.Our Board of Directors is responsible for oversight and governance of the Banks risk management program.The Audit&Conduct Review Committee is respons

191、ible for risk culture,conduct risk and monitoring our ethical standards and has dedicated considerable time to its oversight of these risks.Together with our senior management teams oversight,the Audit&Conduct Review Committee helps ensure that our program reflects the Banks values and maintains our

192、 strong risk culture,where everyone has ownership and responsibility for managing risk and doing the right thing for our clients,shareholders,employees and the communities we serve.Our Scotiabank Code of Conduct(our“Code”)reinforces our values and promotes a strong risk culture.Adherence to both the

193、 letter and spirit of our Code is a condition of employment at Scotiabank.Risk Culture Our actions,words and behaviours align with the Banks values.We identify risk-taking activities that are beyond the established risk appetite in order to keep our Bank safe.RI S K CU LTU RE SU RV E YOur third ente

194、rprise-wide Risk Culture Survey in 2023 showed positive sentiment across our four enterprise risk culture indicators:Tone from the Top,Accountability,Risk Management and People Management.Our results were above global benchmarks,1 demonstrating the Banks strong risk culture and commitment to trust.1

195、 Benchmarks provided by Qualtrics,a leading experience management company providing survey,reporting and action planning tools and benchmarks for several industries.Our risk culture is built on underlying norms,attitudes and beliefs that positively influence risk management behaviour across the Bank

196、.“Being the most trusted financial partner for our clients starts with a strong risk culture.Our commitment to ethical and responsible business conduct and continued enhancement of our compliance program supports us to operate with integrity while keeping the Bank and our clients safe.”NICOLE FREW(S

197、HE/HER),EXECUTIVE VICE PRESIDENT&CHIEF COMPLIANCE OFFICER2023 ESG REPORT 18INTRODUCTION GOVERNANCE ENVIRONMENT SOCIAL APPENDIX DATA TABLESTRUST AT THE TOP OF OUR BUSINESS|KEEPING OUR BANK SAFE AND PROTECTING CLIENTS|ADVANCING HUMAN RIGHTS RESPONSIBLE PROCUREMENT AND SUPPLY CHAIN MANAGEMENT|LEADERSHI

198、P:SUPPORTING OUR TEAMMA N AG I N G E N V I RO N M E NTAL AN D SO CIAL RI S K SESG risks are complex and there is often an interplay with other risk types(see Risk Identification and Assessment in the 2023 Annual Report,pp.7786).We integrate ESG risks into the Banks existing risk management framework

199、s to manage them consistently with applicable laws and regulations,industry standards and practices,and the Banks risk appetite.Our business lines are responsible for day-to-day risk management activities,while our Global Risk Management team and Board of Directors oversee our risk management progra

200、m.Our risk management processes and control structures enable the Board,executive management and employees to identify,assess,measure,monitor and report ESG risks.Our enterprise-wide Risk Appetite Framework includes an ESG performance metric that serves as a risk appetite metric.We base our composit

201、e measure of ESG risk in our framework on sub-metrics,which inform reputational,credit and operational risk categories.Our ESG performance metric helps ensure alignment with the Banks overall business and financial strategies,and the Banks risk appetite operates within acceptable ESG risk tolerance

202、levels.Examples included in the metric are portfolio-level high-transition risk exposure and operational risk events attributed to environmental events.We internally report against this metric quarterly to the Risk Committee of the Board similarly to other risk appetite metrics.For more information

203、on how we oversee and manage risk,see our 2024 Management Proxy Circular(pp.3132,4347)and our 2023 Annual Report(pp.7375,109111).For information on how we manage environmental risk,including climate risk,see p.50.Considering Human Rights Risks As part of our Human Rights Strategy,we regularly assess

204、 our corporate,commercial and international banking policies,processes and practices.In 2023,we identified best practices and completed a gap assessment for human rights due diligence.We are evaluating ways to strengthen human rights considerations in due diligence processes.LI N KI N G PAY WITH E S

205、G A N D CLI M ATE PE RFO RM A N CE We recognize the importance of ESG factors in evaluating the Banks performance and determining executive variable incentive awards.Several key ESG-related metrics formed a discrete section of the Banks strategic and operational scorecard,to allow for more explicit

206、evaluation of the Banks progress against critical ESG objectives.Beginning in 2023,Scotiabank added further core ESG metrics,with a focus on climate-related financing,decarbonization of the Banks operations and representation of equity-deserving groups,combined with customer experience in determinin

207、g the all-Bank business performance factor,with an overall weighting of 20%.Results are discussed in our 2024 Management Proxy Circular,pp.67,69,9394.“Building and sustaining trust with our stakeholders requires robust oversight,transparency and good governance practices.This is how we continue to b

208、uild confidence in the Bank and drive a sustainable,effective and inclusive organization.”JULIE WALSH(SHE/HER),SVP CORPORATE SECRETARY&CHIEF CORPORATE GOVERNANCE OFFICER2023 ESG REPORT 19INTRODUCTION GOVERNANCE ENVIRONMENT SOCIAL APPENDIX DATA TABLESTRUST AT THE TOP OF OUR BUSINESS|KEEPING OUR BANK

209、SAFE AND PROTECTING CLIENTS|ADVANCING HUMAN RIGHTS RESPONSIBLE PROCUREMENT AND SUPPLY CHAIN MANAGEMENT|LEADERSHIP:SUPPORTING OUR TEAMPRO M OTI N G RE S P O NS I B LE AN D E TH I C A L CO N DU C TScotiabank Code of Conduct and Whistleblower Program Our Code reflects our commitment to the highest ethi

210、cal standards,in alignment with our shared beliefs and guiding values.1 All Bank employees,directors,officers and partners who conduct business on our behalf are accountable for acting according to the behaviours described in our Code.Based on six principles aligned with our values,our Code promotes

211、 and encourages a speak-up culture and makes resources and support available for employees to raise concerns.Annual review and attestation of our Code is mandatory for all employees,directors and officers.Raising concerns:Scotiabank employees are encouraged to speak up and raise concerns without fea

212、r of retaliation.When a concern is raised,employees can expect to be treated with fairness,dignity and respect.We take concerns seriously and respond to them with sensitivity,consistency and in a timely manner.Employees can raise a concern of actual,suspected or potential breaches of our Code throug

213、h several channels,including:A manager or business area leader Human Resources Our Staff Ombuds Office,which provides advice on how to resolve or escalate an issue Our Whistleblower Program with the option of remaining anonymousRegardless of how an employee raises their concerns,our Code affirms tha

214、t Scotiabank will not tolerate retaliatory action against individuals who raise a concern in good faith.1 Scotiabanks Anti-Bribery&Anti-Corruption Policy provides guidance on the obligations contained in our Code related to bribes,payoffs and corrupt practices.The Bank has zero tolerance for any for

215、m of corruption and prohibits practices such as bribery,facilitation payments,fraud,extortion,collusion and money laundering.Facilitation payments include unofficial payments made to expedite(but not to change or alter a public officials decision about)routine administrative activities to which the

216、payor is already entitled and a public official is obligated to do(for example,speeding up the processing of a visa application or drivers license).The Whistleblower Program is a formal reporting channel for raising concerns of actual,suspected or potential breaches of our Code,or violations of law,

217、regulations or internal policies by employees,contingent workers,directors,officers or service providers of the Bank.This channel may also be used to report problems or deficiencies with Scotiabanks policies,procedures,guidelines,processes or controls.Operated by an independent third party,the Whist

218、leblower Program Portal is available in English,Spanish and French and enables employees to raise their concerns through a website or by telephone.Our Whistleblower Policy governs how concerns raised through this channel are reviewed,investigated and addressed.Employee misconduct identified through

219、the Whistleblower Program is addressed in accordance with Bank policy,which includes remediation and disciplinary actions ranging from coaching to termination for cause.Open risks identified through the Whistleblower Program are addressed through policy or process reviews or audits.RE LE VANT LI N K

220、 SScotiabank Overview of ESG Risk Framework and PolicyScotiabank Code of Conduct Scotiabank Whistleblower PolicyWhistleblower PortalOU R CO DE PRI N CI PLE S1Follow the law wherever Scotiabank does business.2Avoid putting yourself or Scotiabank in a conflict of interest position.3Conduct yourself ho

221、nestly and with integrity.4Respect privacy,confidentiality and protect the integrity and security of assets,communications,information and transactions.5Treat everyone fairly,equitably and professionally.6Honour our commitments to the communities in which we operate.We conduct business ethically,wit

222、h integrity and in compliance with the laws and regulations governing our business and industry everywhere we operate.2023 ESG REPORT 20INTRODUCTION GOVERNANCE ENVIRONMENT SOCIAL APPENDIX DATA TABLESTRUST AT THE TOP OF OUR BUSINESS|KEEPING OUR BANK SAFE AND PROTECTING CLIENTS|ADVANCING HUMAN RIGHTS

223、RESPONSIBLE PROCUREMENT AND SUPPLY CHAIN MANAGEMENT|LEADERSHIP:SUPPORTING OUR TEAMSU PP O RTI N G PRO D U C T AN D S E RV I CE RE S P O NS I B I LIT Y Putting Our Clients FirstOur clients place their trust in us to deliver financial solutions and advice to help them meet their goals.We do not take t

224、hat trust for granted.Our employees are committed to protecting our clients and continually working to provide exceptional advice and banking experiences.Scotiabank designs our products,services and investment offerings to align to and comply with consumer protection laws,regulations and Voluntary C

225、odes of Conduct and Public Commitments for the fair design and sale of financial products and services.Our management committees meet regularly to discuss and review matters relevant to our clients.Scotiabanks product groups,functional areas and distribution channels work together to help ensure the

226、 Bank adheres to all consumer protection regulations where we operate.The Audit&Conduct Review Committee of our Board oversees consumer protection across the Bank.1 In accordance with regulatory requirements.We train employees on our consumer protection policies and procedures and provide tools to r

227、einforce them daily.We require employees to report suspected compliance violations of any kind(see p.19).In 2023,we conducted mandatory training and education for existing and new employees in client-facing roles on Canadas Financial Consumer Protection Framework.Ways in which we protect clients inc

228、lude:1 Prohibiting the use of coercion,undue pressure or any actions that take advantage of a client when offering financial products and services.Embedding tools and controls within the Banks systems to help employees recommend appropriate client offerings.Developing marketing and product materials

229、 in clear,simple language,with transparent descriptions of consumer rights and obligations,associated fees,charges or penalties,limitations,risk tolerance and related exclusions(see also Accessibility Services).Supporting client confidence in online banking through step-by-step instructions within o

230、ur Digital Banking Guide.Outlining how clients can refuse or withdraw consent through our Privacy Agreement.Providing free tools to help clients stay on top of their finances,including electronic balance alerts advising them when their personal accounts fall below$100 and/or available credit for a p

231、ersonal credit card or line of credit drops below$100 or a custom amount they select.In addition,our clients can receive real-time,24/7 fraud alerts.We regularly assess client experience through client surveys(such as the Net Promoter Score),client complaints and client retention rates(see p.86 for

232、more information).PROTEC TI N G CLI E NT SOur employees are dedicated to building and maintaining long-lasting client relationships by consistently doing the right thing.We hold all employees accountable to the standards in our Code,Compensation Policy and Employee Misconduct&Consequence Management

233、Policy.Our Global Sales Principles and Sales Conduct Management Policy apply to all employees in sales and support roles.We monitor adherence and strive to detect improper sales conduct by evaluating the performance of sales and support employees using balanced,financial and non-financial,operationa

234、l and compliance KPIs.Employees who violate laws,regulations,our Code or internal policies and procedures are subject to remedial action,up to and including termination.Scotiabank is a signatory to several Voluntary Codes of Conduct and Public Commitments.For information about how we support the cli

235、ent experience for seniors and other client groups,see Empowering Our Clients.RE LE VA NT LI N K SCodes of Conduct and Public CommitmentsCustomer Care ResourcesCustomer Complaint Resolution ProcessCustomer Complaints Appeals Office2023 ESG REPORT 21INTRODUCTION GOVERNANCE ENVIRONMENT SOCIAL APPENDIX

236、 DATA TABLESTRUST AT THE TOP OF OUR BUSINESS|KEEPING OUR BANK SAFE AND PROTECTING CLIENTS|ADVANCING HUMAN RIGHTS RESPONSIBLE PROCUREMENT AND SUPPLY CHAIN MANAGEMENT|LEADERSHIP:SUPPORTING OUR TEAMRE SO LV I N G CLI E NT CO M PL AI NT S Our complaint-handling process offers an accessible and convenien

237、t way for clients to contact us.Our Complaints Management Framework tracks complaints from submission through analysis,root cause identification and remediation.Throughout this process,the Bank ensures communication with clients by acknowledging their complaint,providing status updates and working t

238、o settle the matter.The Customer Complaints Appeals Office(CCAO)is the final step in our internal complaint handling process and annually compiles a report on complaints received and actioned by their office,including the number and nature of concerns escalated to them.The report is provided to the

239、Board of Directors and also posted to the Banks website.MAI NTAI N I N G A RE S P O NS I B LE CO RP O R ATE TA X P O LI C Y As a multinational bank,Scotiabank has established clear accountability,strong governance mechanisms and a robust risk management culture across our global operations.We strive

240、 to maintain strong tax risk management practices that ensure the Bank fully complies with all filing obligations and tax disclosure requirements in all jurisdictions in which we operate.The Bank monitors proposed changes in tax law,jurisprudence and government pronouncements to identify any potenti

241、al impact on our business.Scotiabanks tax risk management process is governed by our global Tax Risk Management Framework,which applies to all Bank branches and to our direct and indirect subsidiaries.The framework is aligned with the Banks enterprise-wide Risk Management Framework.It covers the Ban

242、ks approach to tax risk governance,tax risk appetite and tax risk identification,mitigation and reporting.We commit:To complying with all tax filing obligations and tax disclosure requirements in all of the jurisdictions in which the Bank operates.To paying the amount of tax legally due within the s

243、tipulated timeframes and to observe both the spirit and the letter of all applicable tax laws in all jurisdictions in which the Bank operates.To apply recognized transfer pricing methodologies and approaches to all intra-group transactions.To fostering good relationships with tax authorities and gov

244、ernments by undertaking all such dealings in a professional,courteous and timely manner in all the jurisdictions in which the Bank operates.A DVA N CI N G PU B LI C P O LI C Y A N D A DVOC AC Y Financial services is a highly regulated industry,and our policies are developed to support compliance wit

245、h the law in every jurisdiction where we operate.We participate responsibly in public policy discussions affecting our sector directly and through trade associations in which we are members.Our Policy for Communicating with Government Officials is included in our Code and applies to all employees,di

246、rectors and officers of the Bank.We review our advocacy and political engagement activities for consistency with Bank policy positions,including our revised enterprise-wide climate goals.Scotiabank does not make political contributions and is firmly against“pay-to-play”access to elected officials an

247、d decision-makers.Scotiabank reports lobbying activities in jurisdictions with this requirement.Scotiabanks public policy activities and many of the issues on which we engage are disclosed on our Public Policy web page.Our employees are dedicated to building and maintaining long-lasting client relat

248、ionships by consistently doing the right thing.We strive to maintain strong tax risk management practices.RE LE VANT LI N K SPublic Policy Activities2023 ESG REPORT 22INTRODUCTION GOVERNANCE ENVIRONMENT SOCIAL APPENDIX DATA TABLESTRUST AT THE TOP OF OUR BUSINESS|KEEPING OUR BANK SAFE AND PROTECTING

249、CLIENTS|ADVANCING HUMAN RIGHTS RESPONSIBLE PROCUREMENT AND SUPPLY CHAIN MANAGEMENT|LEADERSHIP:SUPPORTING OUR TEAMKeeping Our Bank Safe and Protecting ClientsWH Y IT MAT TE R S Our ability to provide secure,efficient banking services and protect personal information is fundamental to maintaining trus

250、t with our clients.It is core to why clients choose us to fulfil their banking needs and why our partners view Scotiabank as a leader in the fight against fraud and money laundering.E NSU RI N G DATA PRI VAC Y AN D S ECU RIT Y We recognize the importance of ensuring the privacy and security of clien

251、t data.To that end,Scotiabank has established strong measures and safeguards to protect the confidentiality,integrity and resilience of our systems that process and maintain personal information.Based on industry practices,our enterprise-wide Privacy Risk Management Framework aligns with the expecta

252、tions of the Organisation for Economic Cooperation and Development.It is our primary governance system for overseeing and managing privacy risks and data protection.As a function of our Code,our Privacy Commitment helps ensure all employees comply with privacy laws,regulations,standards and the reas

253、onable expectations of the individuals with whom they interact.Principle 4 of our Code outlines employee responsibilities for respecting privacy and confidentiality and protecting the integrity and security of assets,communications,information and transactions.1 The following transactions are not co

254、vered by our Global Procurement Policy:intermediaries who refer customers to the Bank,construction projects(except in some instances in our international footprint),real estate leasing for the Banks own account,counterparty activities in relation to(a)our own funding,liquidity management,hedging and

255、(b)hedging on our clients account,and(c)commodities transactions,charitable contributions,and one-time sponsorships.Led by our Executive Vice President and Chief Compliance Officer,the Banks Global Compliance department oversees the Banks compliance with established privacy standards and requirement

256、s.Our Global Privacy Officer leads the Banks Enterprise Privacy Office,which establishes and maintains Scotiabanks privacy program.Key components of our approach include:An enterprise-wide Employee Privacy Policy that describes how we treat employee personal information,including the types of person

257、al information we collect,when and why we collect and use personal information,and the circumstances in which we share and disclose it.Privacy policies or agreements,available online in all countries in which Scotiabank operates,that formalize how we responsibly manage client information and keep pe

258、rsonal data safe.Mandatory privacy training for all new employees to mitigate privacy risks and promote awareness.It covers data privacy practices,data retention and destruction obligations,privacy impact assessments,and how to report and manage privacy breaches.Management of individual privacy righ

259、ts as outlined in our privacy policies or agreements,which explain how individuals can request access to their personal information,correct inaccurate personal information and withdraw consent.Scotiabank Privacy Incident and Breach Management Procedures to proactively escalate incidents,including th

260、ose involving third parties,to senior management and our Board of Directors.Privacy and transfer impact assessments for all new initiatives and services that use personal information to examine potential risks and help ensure compliance with relevant regulatory requirements.Internal and external pri

261、vacy trends and emerging issues monitoring,evaluation and,as necessary,escalation of potential impacts to our business to senior management and our Board of Directors;and the development of compliance and/or mitigation strategies.Privacy risk reporting to senior management,our Board of Directors and

262、 its committees,including independent testing results of our privacy controls.With certain exceptions,1 we ask suppliers to acknowledge our updated Supplier Code of Conduct(“Supplier Code”)which requires suppliers to have written policies or governance or oversight mechanisms which aim to help ensur

263、e they,and those within their supply chains,operate lawfully and in accordance with Scotiabanks core values and the principles outlined in the Supplier Code.Our ability to provide secure,efficient banking services and protect personal information is fundamental to maintaining trust with our clients.

264、RE LE VANT LI N K SScotiabanks Privacy Commitment Scotiabanks Privacy Agreement Scotiabanks Digital Privacy and Interest-Based Advertising PolicySupplier Code of Conduct2023 ESG REPORT 23INTRODUCTION GOVERNANCE ENVIRONMENT SOCIAL APPENDIX DATA TABLESTRUST AT THE TOP OF OUR BUSINESS|KEEPING OUR BANK

265、SAFE AND PROTECTING CLIENTS|ADVANCING HUMAN RIGHTS RESPONSIBLE PROCUREMENT AND SUPPLY CHAIN MANAGEMENT|LEADERSHIP:SUPPORTING OUR TEAMS TRE N GTH E N I N G C Y B E R S ECU RIT Y Our global Cybersecurity Policy formalizes Scotiabanks commitment to effectively managing cybersecurity risks,helps ensure

266、compliance with applicable regulations wherever we operate and protects the Bank and our clients against emerging security threats.It informs our Information Security Governance Framework and cybersecurity programs aligned with the National Institute of Standards and Technology standards and the fou

267、ndational pillars of confidentiality,integrity and availability.Our policy and framework are integral to Scotiabanks risk management and control structure.Scotiabanks Chief Information Security Officer is accountable for the Banks global cybersecurity strategy and provides quarterly updates to the R

268、isk Committee of the Board of Directors regarding our cybersecurity programs,risks and trends.The Board reviews and approves the strategy annually.Our cybersecurity team is comprised of accredited subject matter experts.It routinely executes comprehensive end-to-end programs to review,test and simul

269、ate the Banks cybersecurity program,systems,products and practices.This includes conducting vulnerability assessments such as penetration testing and red team exercises with internal and independent external parties.Based on the results,the team carries out remediation efforts and activities to furt

270、her mitigate threats from malware,and to strengthen data protection and access management controls.Our Information Security&Control team monitors cyber risk through an established measurement and reporting mechanism against pre-defined targets.We have fully integrated these risk processes into the o

271、verall risk management framework of the Bank.If cyber incidents occur,Scotiabank complies with the applicable global notification regulations.We require all employees to participate in annual cybersecurity training and conduct cybersecurity awareness events throughout the year.We also conduct regula

272、r phishing tests to create awareness and learning for employees regarding suspicious emails.Supporting Safe Banking Through our redesigned Cybersecurity and Fraud Hub,Scotiabank was the first Canadian bank to offer interactive fraud simulations to help clients identify cybercrime.The Hub also contai

273、ns several best practices to help owners of small-and medium-sized businesses protect themselves from cyber risk.In 2023,we implemented a new vulnerability identification and management solution.“We are committed to continually strengthening our cybersecurity controls to protect the Bank and our cli

274、ents through monitoring emerging cybersecurity threats and consistent upgrades to our tooling and processes.”STEVE SPARKES(HE/HIM),EXECUTIVE VICE PRESIDENT,CHIEF INFORMATION SECURITY OFFICER&ENTERPRISE PLATFORMSSTRENGTHENING SECURITY GLOBALLYIn Chile,we collaborated with the Universidad Tcnica Feder

275、ico Santa Mara in 2023 to establish the Network and Cybersecurity Laboratory.The partnership is focused on developing hardware and software for the implementation of both offensive and defensive cybersecurity solutions.In addition,all Technology and Automation Scotiabank employees in Costa Rica and

276、Panama participated in a specially designed two-month IT Risk Defense program.RE LE VANT LI N K SSafe Computing PracticesCybersecurity and Fraud Hub2023 ESG REPORT 24INTRODUCTION GOVERNANCE ENVIRONMENT SOCIAL APPENDIX DATA TABLESTRUST AT THE TOP OF OUR BUSINESS|KEEPING OUR BANK SAFE AND PROTECTING C

277、LIENTS|ADVANCING HUMAN RIGHTS RESPONSIBLE PROCUREMENT AND SUPPLY CHAIN MANAGEMENT|LEADERSHIP:SUPPORTING OUR TEAME M B E DD I N G DATA E TH I C SScotiabanks Data Ethics and Data and AI Risk teams promote responsible data and AI use across the Bank through education,guidelines,tools and processes,incl

278、uding our AI Risk Management Guidelines.Our approach is guided by our Code and our Data Ethics Principles,and is governed by our Data Risk Management Framework and Policy(see 2023 Annual Report,p.111).Scotiabanks Ethics Assistant program,which includes the Trusted AI and Trusted Data Use tools,helps

279、 reduce the risk of potential ethical concerns,such as bias and discrimination,when working with client data and developing AI models and machine learning solutions.In 2023,Scotiabank made data ethics training available to all employees and a requirement for those working in advanced analytics.Manag

280、ing the Risk of New Initiatives As Scotiabank explores new markets and leverages advanced technologies,our enterprise-wide New Initiatives Risk Assessment(NIRA)process helps us manage potential risks.It covers seven financial and 26 non-financial risks,including those related to data privacy and eth

281、ical regulatory requirements.We require our product developers to follow the NIRA process when creating new or significantly changing existing Bank products,services or supporting technology.New Initiative Risk Review committees in our business lines and control functions oversee the NIRA process an

282、d compliance with it.A NTI-M O N E Y L AU N DE RI N G (A M L)Scotiabank has no appetite to allow its products or services to be used to facilitate money laundering,terrorist financing or sanctions evasion.Scotiabanks Enterprise AML Program is designed to comply with applicable laws and regulations i

283、n the jurisdictions in which we operate and all employees receive mandatory AML and sanctions training.Our program is guided by policies and controls and supported through technology solutions to mitigate the Banks potential risk exposure.For more information and to read our AML Statement,please vis

284、it our website.Combatting Money Laundering Through Public-Private Partnerships Scotiabank,alongside the Financial Transactions and Reports Analysis Centre of Canada(FINTRAC),co-lead public-private partnerships aimed at disrupting financial transactions associated with online child exploitation(Proje

285、ct Shadow)and wildlife trafficking(Project Anton).More information on other partnerships,aimed at combatting money laundering,that the Bank supports can be found here.“Data is at the heart of our business and,as such,must be applied with deliberate care.We have designed and operationalized tools,pro

286、cesses and governance to ensure we can be both proactive and responsive to the evolving needs of our clients while safeguarding their data.”GRACE LEE(SHE/HER),SVP,CHIEF DATA&ANALYTICS OFFICEROur Data Ethics Principles guide how we collect,manage,use and share client data in a responsible and account

287、able manner.RE LE VANT LI N K SScotiabanks Data Ethics CommitmentRE LE VANT LI N K SStatement on Scotiabanks Anti-Money Laundering/Anti-Terrorist Financing ProgramStatement on Scotiabanks Sanctions Policy2023 ESG REPORT 25INTRODUCTION GOVERNANCE ENVIRONMENT SOCIAL APPENDIX DATA TABLESTRUST AT THE TO

288、P OF OUR BUSINESS|KEEPING OUR BANK SAFE AND PROTECTING CLIENTS|ADVANCING HUMAN RIGHTS RESPONSIBLE PROCUREMENT AND SUPPLY CHAIN MANAGEMENT|LEADERSHIP:SUPPORTING OUR TEAMAdvancing Human RightsWH Y IT MAT TE R SSafeguarding human rights is intrinsically connected to our commitment to high ethical stand

289、ards,client protection and our vision for an equitable and inclusive society for every future.We respect,protect and promote universal human rights in our operations and business relationships.O U R CO M M ITM E NT TO H U MAN RI G HT S Our commitment to human rights applies across our global footpri

290、nt as outlined in our Human Rights Statement and Principle 5 of our Code.Our statement describes the Banks commitments and approach to respecting human rights as an employer,financial services provider,business partner and member of the communities in which we operate.The Board of Directors reviews

291、and approves key human rights disclosures and is kept up to date on key projects.The Chief Sustainability,Social Impact and Communications Officer oversees the global Human Rights Strategy,which is led by the Social Impact team.This team is responsible for guiding the implementation of the Human Rig

292、hts Statement,training employees on the Banks human rights commitments and responsibilities,embedding the Human Rights Statement throughout the Banks policies,programs,products and services,and updating human rights disclosures.The Social Impact team collaborates with teams across the enterprise,who

293、se senior leaders are responsible for integrating human rights into their respective mandates.These teams include but are not limited to Legal,Global Sustainability,Global Procurement Services,Third-Party Risk Management,Global Compliance&AML,Global Wealth Management,Global Human Resources,Internal

294、Controls and ESG Risk.1 Refer to the“Attestations and Training”data table on p.95.Several courses in the employee Global Mandatory Learning program include content about human rights.This includes training related to our Code;Advancing Diversity,Inclusion and Belonging;Your Health and Safety;and Ret

295、hinking Accessibility at Scotiabank.1 We conduct human rights assessments every four years,with our next planned for 2025.During an assessment,we commission a third party to map,analyze and prioritize potential and actual human rights impacts related to the Banks operations and business relationship

296、s based on criteria in the UN Guiding Principles.The result is a priority list of human rights issues we monitor and manage.See our website for a list of key impact areas and our corresponding management approach.Beyond formal assessments,we monitor salient and emerging risks through stakeholder eng

297、agement(see p.11)and act to strengthen our approach.In 2023,we began implementing priority action plans as part of our refreshed Human Rights Strategy.Some of these action plans included:Identifying opportunities to improve public access to remedy.Assessing ways to strengthen our human rights due di

298、ligence when evaluating and approving credit requests.Piloted an ESG scorecard of top strategic suppliers which included a review of human rights and modern slavery.Initiating the development of a Truth&Reconciliation Action Plan to formalize Scotiabanks commitments to Indigenous reconciliation (see

299、 p.68).Scotiabank is also a member of the BSR Human Rights Working Group and The Mekong Club,through which we gain access to strategic insights,expertise and guidance on topics such as modern slavery and human rights.We seek to align our actions with the UN Guiding Principles on Business and Human R

300、ights(UN Guiding Principles).E M PLOY E E E N G AG E M E NT O N H U M A N RI G HT SIn 2023 We hosted an“ESG Talk”for Scotiabank employees on the UN Guiding Principles on Business and Human Rights,featuring a panel of external experts.We leveraged our Mekong Club partnership to offer three modern sla

301、very online training sessions in Spanish and English to targeted teams across the Bank.We marked international Human Rights Day with a Q&A in our internal communications portal to raise awareness of Scotiabanks human rights commitments and initiatives.RE LE VANT LI N K SHuman Rights StatementEnterpr

302、ise Statement on Modern Slavery2023 ESG REPORT 26INTRODUCTION GOVERNANCE ENVIRONMENT SOCIAL APPENDIX DATA TABLESTRUST AT THE TOP OF OUR BUSINESS|KEEPING OUR BANK SAFE AND PROTECTING CLIENTS|ADVANCING HUMAN RIGHTS RESPONSIBLE PROCUREMENT AND SUPPLY CHAIN MANAGEMENT|LEADERSHIP:SUPPORTING OUR TEAMRespo

303、nsible Procurement and Supply Chain ManagementOur Global Procurement Services team,led by our Chief Procurement Officer,is responsible for Scotiabanks strategic acquisition of products and services worldwide.Our Supplier Code outlines Scotiabanks expectations of third-party suppliers and service pro

304、viders who conduct business with,provide goods and services to and/or act on behalf of Scotiabank.1 The following transactions are not covered by our Global Procurement Policy:intermediaries who refer customers to the Bank,construction projects(except in some instances in our international footprint

305、),real estate leasing for the Banks own account,counterparty activities in relation to(a)our own funding,liquidity management,hedging and(b)hedging on our clients account,and(c)commodities transactions,charitable contributions,and one-time sponsorships.2 Supplier spend excludes transactions with non

306、-vendors such as government agencies and non-governmental organizations,corporate card transactions,taxes and spending not managed by global procurement(non-procurement managed vendors).Every two years,we refresh our Supplier Code to align with the Banks strategic objectives and priorities.Our Suppl

307、ier Code was updated during 2023 and published on our website in November 2023.With certain exceptions,1 we ask suppliers to acknowledge our updated Supplier Code every two years.Our Supplier Code requires suppliers to have written policies or governance or oversight mechanisms which aim to help ens

308、ure they,and those within their supply chains,operate lawfully and in accordance with Scotiabanks core values and the principles outlined in the Supplier Code.Our Global Procurement Policy sets required procurement practices and standards,which includes ESG considerations,for all Bank employees in t

309、he selection of suppliers.Those suppliers invited by the Banks Global Procurement Services team to participate in formal Requests for Proposals(RFPs)must review and acknowledge our Supplier Code.In Canada,we evaluate each RFP response on a set of quantitative and qualitative criteria,which includes

310、ESG factors where relevant.MANAG I N G TH I RD-PA RT Y RI S KOur third-party risk management program helps reduce the risk of the Bank doing business with third parties associated with money laundering,terrorism financing,sanctions violations or human rights violations.Aligned with regulatory expect

311、ations,our third-party risk management program assesses potential and current suppliers for inherent risks,and the criticality of the product or service to the Banks operations.It also evaluates the quality of the suppliers operational risk controls.Identified risk(s)may require additional due dilig

312、ence and review by internal subject matter experts.Mandatory third-party risk management training is also provided to all Bank departments responsible for third-party contracts worldwide.S COT I A B A N K S SU PPL I ER S PEN D2 BY C AT EG O RYIT&Telecommunications36%Banking Operations33%Professional

313、 Services11%Real Estate7%Human Resources6%Marketing6%Travel&Entertainment0.5%$6.0billion2In 2023,we worked with approximately15,000 suppliers globally.RE LE VANT LI N K SSupplier Code of Conduct2023 ESG REPORT 27INTRODUCTION GOVERNANCE ENVIRONMENT SOCIAL APPENDIX DATA TABLESTRUST AT THE TOP OF OUR B

314、USINESS|KEEPING OUR BANK SAFE AND PROTECTING CLIENTS|ADVANCING HUMAN RIGHTS RESPONSIBLE PROCUREMENT AND SUPPLY CHAIN MANAGEMENT|LEADERSHIP:SUPPORTING OUR TEAMSU PPLI E R D I V E R S IT Y We strive to remove barriers and increase access to procurement opportunities for diverse suppliers where applica

315、ble,including Indigenous Peoples,LGBT+People,People of Colour,People with Disabilities,and veteran-and women-owned businesses.Supporting and expanding our work with diverse suppliers helps to strengthen the economic base of the communities we serve and to build a supply chain that more accurately re

316、flects the diversity of our clients and employees.Scotiabank is a corporate member of all five Canadian supplier diversity councils.Our membership with each council provides access to certified diverse suppliers and helps us connect with those suppliers that match our procurement needs.It also provi

317、des us with mentorship opportunities to support growth of diverse suppliers.Our Partners“It is exciting to work on how we can better embed social,environmental and human rights imperatives into how we both select suppliers and manage our supply chain.I am proud of the important role procurement play

318、s in advancing Scotiabanks efforts to become more sustainable and responsible.”JACKIE WANG(SHE/HER),SENIOR VICE PRESIDENT&CHIEF PROCUREMENT OFFICER2023 ESG REPORT 28INTRODUCTION GOVERNANCE ENVIRONMENT SOCIAL APPENDIX DATA TABLESTRUST AT THE TOP OF OUR BUSINESS|KEEPING OUR BANK SAFE AND PROTECTING CL

319、IENTS|ADVANCING HUMAN RIGHTS RESPONSIBLE PROCUREMENT AND SUPPLY CHAIN MANAGEMENT|LEADERSHIP:SUPPORTING OUR TEAMLeadership:Supporting Our Team WH Y IT MAT TE R SGood leaders are integral to the success and wellbeing of our employees.At Scotiabank,leaders inspire others to achieve our purpose and ambi

320、tions.They lead with inclusivity and integrity,and create a work environment where teammates feel safe,valued and respected.Leaders also hold themselves and their teams accountable to our Code,standards and policies and do the right thing for our clients and one another.DE V E LO PI N G FUTU RE-RE A

321、 DY LE A DE R S To keep pace with our rapidly changing world,we are developing resilient,inspiring and inclusive leaders at every level.This helps ensure we have the best team in our industry and empowers our employees to thrive and grow their careers with Scotiabank.We provide the tools,programs an

322、d guidance to help our people own their development pathways.Our global Performance Development Policy sets out expectations for ongoing engagement between employees and their managers to plan,develop and assess individual objectives that support our business and employee development goals.Working w

323、ith their managers,employees develop an annual plan to enhance the skills,competencies and behaviours required in their current roles and to prepare for future roles.During the year,managers provide transparent feedback and coaching to build high-performing individuals and teams while employees cont

324、inue to set,align,track and report progress against their goals.Employees are expected to be proactive and solicit feedback from a variety of sources,including their manager,colleagues and clients to identify blind spots,improve performance and enhance their development.Learning and Development Prog

325、rams The Scotia Academy global learning platform provides a single source for employee training and development.Our Global Mandatory Learning Policy and training program communicates employee responsibilities in meeting regulatory and/or Bank policy requirements.Courses available through the Scotia

326、Academy cover discrimination and harassment in the workplace,ethics,inclusion,privacy and other subjects.In 2023,we updated our Global Mandatory Learning program by embedding real-life scenarios in our training relevant to our business.The Scotia Academy also allows employees to grow their skills th

327、rough courses and explore new areas at any level or career stage.In 2023,we redesigned the platform based on user feedback,added new content(in English,French and Spanish)and expanded access beyond Canada to employees in Chile,Colombia,Peru and Mexico.In 2023,top-trending courses in Scotia Academy(e

328、xcluding Global Mandatory Learning)focused on risk culture and escalation,social engineering,preventing discrimination and harassment in the workplace,client-first experiences,data protection and building Indigenous cultural competency.2023 ESG REPORT 29INTRODUCTION GOVERNANCE ENVIRONMENT SOCIAL APP

329、ENDIX DATA TABLESTRUST AT THE TOP OF OUR BUSINESS|KEEPING OUR BANK SAFE AND PROTECTING CLIENTS|ADVANCING HUMAN RIGHTS RESPONSIBLE PROCUREMENT AND SUPPLY CHAIN MANAGEMENT|LEADERSHIP:SUPPORTING OUR TEAMTR A I N I N G S E SS I O NS FO R E M PLOY E E S WH O S E RV E O R DE S I RE TO S E RV E O N BOARDSI

330、n 2023,in partnership with Capacity Canada,we hosted training sessions for our employees(VP+and above)about serving on a board of directors for not-for-profit organizations.The opportunities were attended by over 40 VP+employees from across the Bank.Sessions provided resources and insights on succes

331、sful board governance,strategic planning,effective board collaboration,the landscape of non-profits and expectations of board members.Participants also reflected on their personal experiences of board service.Within Scotia Academy,iLEAD is our flagship leadership development experience.To date,11,58

332、6 employees have completed the iLEAD People Manager Essentials program.In 2023,we continued to survey managers to understand if they were attending and applying what they learned from leadership training and if they believed they had improved their overall leadership performance.We exceeded our goal

333、 of 76%by achieving a score of 90%,indicating high participation in leadership training that resulted in positive improvements.In addition,employees can take virtual,on-demand training through LinkedIn Learning,Pluralsight and Get Abstract through Scotia Academy.Beyond Scotia Academy,we provide employees opportunities to build leadership skills through external programs such as McKinseys Leadershi