Last week, Scotiabank announced it will support its clients in the transition to a low-carbon economy as well as decarbonize its own operations as part of its Climate Commitments.
The international, Canadian-based bank says its Climate Commitments program is made up of five individual commitments to address climate change, including:
- Mobilize $100 billion by 2025 to reduce the impacts of climate change.
- Ensure robust climate-related governance and reporting.
- Enhance integration of climate risk assessments in lending, financing and investing activities.
- Deploy innovative solutions to decarbonize operations.
- Establish a Climate Change Centre of Excellence to mobilize collaboration, dialogue and information-sharing and contribute to the global conversation on climate change.
“Scotiabank recognizes that the changing climate is impacting the business operating environment, creating new challenges as well as opportunities in the economy,” says Brian Porter, President and Chief Executive Officer of Scotiabank.
Through its Climate Commitments, Porter says Scotiabank is “building on our past efforts to capitalize on these opportunities and effectively manage risks across our business.” He adds that Scotiabank plays a “unique role through our core business activities in supporting our clients in the transition to a low-carbon economy.”
As well as Climate Commitments, Scotiabank also issued inaugural USD$500 million Green Bond this past summer. According to a press release from Scotiabank, this bond is aligned to eligible criteria in the Scotiabank Green Bond Framework, including renewable energy, clean transportation and green buildings.
Scotiabank also developed a climate change risk due diligence and rating method and implemented all training for all banking and credit teams. The bank also established an internal price on carbon in 2017 and it says it is on track to reach its greenhouse gas reduction target of 10 per cent by 2021. Finally, Scotiabank says it is adopting a new approach to its head office in Toronto, including cutting the square feet per employee by 40 per cent and reducing paper use by 86 per cent.