Victoria, Scotiabank

Appendix C.5 - Scotiabank

The Bank of Nova ScotiaWestern Canada Commercial Sales — GTB

702 Yates StreetVictoria, BC V8W 2T2

Scotiabank

June 30, 2016

City of Victoria1 Centennial SquareVictoria, BC V8W 1P6

Attn: Layla Monk, Accountant

Subject: Climate Action Pre-questionnaire

Dear Layla:

Thank you for inviting Scotiabank to present this response to the City of Victoria (the “City”).

Scotiabank has established a leading presence in the financial marketplace through a proven commitment to long-term relationships, and to continually delivering service innovation and enhancement. We have provided a responseto your questionnaire in order to help you evaluate our initiatives regarding climate action as requested.

We look forward to reviewing this response with you, answering any questions you may have, and welcomesuggestions on how we can partner with the region related to these important topics.

Sincerely,

:7

Joanne Rebner Patrick RobbinsSenior Manager, Global Transaction Banking Senior Client Relationship Manager and Market LeadWestern Canada Commercial Fraser Valley & Island Client Relationship Group250-588-5660 250-298-4403ioanne.rebner@scotiabank. com [email protected]

6 CITY orVICTORIA

Scotiabank’s Response tothe City of Victoria’s Request for

Proposal for Banking Services

5

‘

Pre-questionnaire—n—— '’

j

:7. Submitted:

jg‘-5 June 30, 2016

'

Presented to:

Layla MonkAccountant, Financial Reporting

Finance DepartmentCity of Victoria

1 Centennial SquareVictoria, BC V8W 1%

Presented by:

Joanne RebnerSenior Manager

Western Canada Commercial Sales — GTB702 Yates Street

Victoria, BC V8W 2T2

[email protected]

Patrick RobbinsSenior Client Relationship Manager and

Market LeadFraser Valley & Island Client Relationship

Group702 Yates St, Victoria BC V8W 2T2

250-298-4403patricl<[email protected]

www.scotiabank.com

§ Scotiabank”

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Toble of Contents1 INTRODUCTION....................................................................................................................................... ..3

2 PRE-QUESTIONNAIRERESPONSES........................................................................................................... ..5

2.1 Strategy .......................................................................................................................................... ..5

2.2 Footprint ........................................................................................................................................ ..5

2.3 Green Bonds .................................................................................................................................. ..6

2.4 Community Reinvestment ............................................................................................................. ..7

3 SUMMARY............................................................................................................................................... ..9

This proposal is intended for the benefitofthe City ofVictoria and may not be shared with any other party 2or ?nancialinstitution without the express written consent ofScotiabank

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1 IntroductionThe Bank of Nova Scotia (“Scotiabank”) is pleased to have the opportunity to present this response to the Cityof Victoria’s (the “City”) Request for Proposal Pre-questionnaire regarding eco-ef?ciency and communityinitiatives. Highlights of our response are outlined below.

0 Scotiabank reports publically on its Scope 3GHG emissions.

0 The integration of environmental and social risk factors into Scotiabank’s lending decisions allowsScotiabank to assess material climate change risks and opportunities in the organizations to whichit lends.

0 Scope 3 emissions are reported annually in Scotiabank’s Corporate Social Responsibility report.

0 Scotiabank provides ?nancing for a variety of initiatives that contribute to social andenvironmental sustainability

Corporate Social Responsibility — A Brief Overview

Operational Eco-efficiency

Scotiabank has a large global footprint and recognizes the need for meaningful environmental policies andprograms to help protect the planet. We work independently and in collaboration with stakeholders on a broadrange of initiatives aimed at reducing environmental impacts and promoting responsible actions.

Scotiabank has a global Environmental Policy that sets out environmental objectives and priorities, andcreates a foundation for Scotiabank’s environmental initiatives. The policy comprises 10 principles:

1. Comply with all environmental legal requirements in the countries in which Scotiabank operates.

2. Conduct internal operations in a manner consistent with environmental protection and the principlesof sustainable development, with due regard for associated bene?ts and costs.

3. Incorporate environmental risk assessment criteria in risk management procedures.

4. Consider the environmental performance of suppliers and contractors as well as the environmentalimpacts of products and services in the context of the procurement process.

5. Promote environmental responsibility by educating and motivating employees to become moreinvolved in resource conservation at work and in environmental practices at home.

6. Pursue product and service opportunities that support environmentally friendly customer choices.

7. Contribute to an ongoing dialogue with government, non-governmental organizations, industry andother relevant stakeholder groups with respect to environmental sustainability in business.

8. Support environmental initiatives undertaken by external groups through donations andsponsorships;

9. Report publicly on Scotiabank’s environmental performance on at least an annual basis.

10. Independently assess adherence to these environmental principles within business lines and controlfunctions.

Community Investment

Scotiabank aims to help communities become better off. By giving generously to important communityprojects and recognizing employees who volunteer their time and energy to local causes, Scotiabank strivesto make a positive difference wherever it does business.

Through our charitable efforts, we strive to be relevant and responsive to the needs of local communities at

the grassroots level across six pillars: social services, health care, education, sports, arts and culture, andenvironment. We are particularly interested in partnering with non-pro?t and charitable organizations thatempower people with the skills, tools and information to help them become better off. In the Caribbean andLatin America, we focus primarily on children and children’s causes.


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In 2015, Scotiabank contributed over CAD$70 million in donations, sponsorships and other forms ofassistance globally. Scotiabank employees dedicated more than 575,000 hours of volunteering andfundraising time to local causes.

Community Involvement

Scotiabank’s Corporate Social Responsibility philosophy is to integrate environmental, social, andgovernance practices into our day-to-day business activities. We measure our success not only in terms of?nancial criteria, but also in building customer satisfaction, employee engagement, and supporting thecommunities we serve.

Scotiabank is a proud supporter of many organizations and events in the Greater Victoria community,including:

This proposal is intended for the benefitofthe City ofVictoria and may not be shared with any other party

Scotiabank is the Title Sponsor for SPCA Paws for a Cause

Scotiabank is the title sponsor for MS Walk in both BC and the Yukon. On May 15th,2016 theScotiabank MS Walk in Victoria BC alone raised $104,446.50.

Scotiabank is the title sponsor for the Vancouver Island Ride to Live

Community Hockey Program (local Scotiabank branches donate at least $9,000 to local minorhockey every year)

Downtown Victoria Business Association

or ?nancialinstitution without the express written consent ofScotiabank

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2 Pre—ques’rionnoire Responses

2.] Strategy

1. Who] is _\'our insIiIuIi()n '3 /msine.s:s‘sImIeg_\,‘_fo/‘Iransilioning lo a /()H»'-('((l‘/)()I1 e('omm7_\' I/ml will Containglobal warming wil/iin 2"."

Scotiabank Response

Yes, Scotiabank reports publically on its Scope 3GHG emissions.

Climate change poses a signi?cant risk to the global economy and to society as a whole. As such, there is agrowing expectation among internal and external stakeholders that Scotiabank should have a position onclimate change, including setting targets for reducing its own greenhouse gas (GHG) emissions.

Scotiabank began measuring GHG emissions from its Canadian operations in 2007, covering 55% of itsglobal operations. In 2009, Scotiabank added international locations beginning with Chile and Peru,bringing its total coverage to 66%.

Scotiabank continues to expand its reporting boundaries each year and for the first time covers 100% ofglobal operations.

In 2015, Scotiabank set a formal GHG emissions reduction target of a 15% absolute reduction on CanadianScope 1 and Scope 2 emissions, using 2012 as the baseline year, with results to be fully realized by 2017.

2. Who] is _\'our insIiIuIi()n '3 /70/i('_\,'on /7rm'i(/ing?nancing In large Green House Gas (GHG) emillers."

Scotiabank Response

The integration of environmental and social risk factors into Scotiabank’s lending decisions allowsScotiabank to assess material climate change risks and opportunities in the organizations to which it lends.

Procedures are in place to identify, assess, measure and manage environmental risks, including climatechange risks, through the Credit Risk Policy. The Environmental Policy, Credit Risk Policy andOperational Risk Management Policy are regularly reviewed and approved by the Board of Directors.

Scotiabank is a member of the Equator Principles, whose principles include:

i. an alternatives analysis completed by the client for projects whose Scope 1 and 2 greenhouse gasemissions are expected to exceed 100,000 tonnes of CO2 equivalent per annum; and,

ii. public reporting by the client of Scope 1 and 2 greenhouse gas emission levels for projectsemitting in excess of 100,000 tonnes of CO2 equivalent annually during the operational phase.

2.2 FOOTDFIHTl . Does _\kom‘_fim(n('ia/inslilulion re/mrl /711/2/[Ca//_\'on [Is Scope 3GHG e/17i.s1s‘i()ns (clefinerl as inc/[rem

e117issions /‘eszi/Iing_f/‘(J/17value C/min a('Ii\'iIie,s‘)."

Scotiabank Response

Yes, Scope 3 emissions are reported annually in Scotiabank’s Corporate Social Responsibility report.

2. Ifso, /7/ease/7r()\'i(/e info/‘malionon Sm/7e3 GHG e117i.s'sions?u‘1/19117031recenl /7eri()(/for w/tic/1 dam isavai/a/2/e.

Scotiabank Response

In 2015, Scotiabank’s total Scope 3 reported emissions are as follows:


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Greenhouse Gas Emissions 2015

Scope 3

Long Distance MediumDistance Short Distance(over 3,700km) (463—3,700km) (under 463 km) Total

Totalair 20,071,490 42,214,737 5,882,430 68,168,657

Totalrail — 2,129 5,475 7,604

Total kilometres 20,071,490 42,216,866 5,887,905 68,176,261

2015 Greenhouse Gas Emissions (Canada and International)

GHGEmissions‘Source (tonnes C02e)

Scope 1 DirectCO2eemissionsproducedfromcombustionof fuels 15,314

Scope2 IndirectCO2eemissionsproducedfromelectricityand steam purchases 128,684

Scope 3 IndirectCO2eemissionsproducedfromemployeetravel 9,803

Total C02efootprint 153,801?

‘Calculatedinaccordancewiththe GreenhouseGas Protocolof the WorldResourcesInstituteand the WorldBusinessCouncilforSustainableDevelopment(www.ghgprotocol.org),includingemissionfactorsforelectricitypurchases,naturalgas and fuel.

2 Thecompletenessand accuracyof Scotiabank’stotalGHGemissionshas been verifiedbyan independentthirdparty.Proxydataamountingto 11%of ourScope 2 emissionswas notsubjectto veri?cation.

Three-year Results (Canada)

2015 2014‘ 2013‘

Energyconsumption(GJ) 1,350,852 1,403,860 1,278,440

GHGemissions(tonnesCO2e) 67,587 73,466 67,775

‘ Numbershave been restatedto account forthe amendmentto the GHGProtocolconcerningthe operationalboundariesofwhatqualifiesas Scope 1 emissions.Heatthat is not meteredwas movedintoScope 2. FuelpurchasesforownedpremisesinScope 1were restatedto 100%consumptionindicatingfullcontrol.

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Scotiabank Response

Not applicable (see above).

4. What is 1/19value ()_/'_\'()urin.s'IiIuIi()11 '.s'_/'i1mm'i1zg()_/'/‘elzewrt/1/(1mm/‘g_\‘ /7m_/e('I.s'."

2.3


Scotiabank Response

In 2015, Scotiabank’s Global Banking and Markets division had approximately CAD$1.7 billion incalculated authorized exposure to the renewable energy sector in Canada}approximately CAD$1.4 billionin authorized credit to the renewable energy sector in the United Statesland approximately CAD$241million in authorized credit to the renewable energy sector in Latin America.2

‘Calculatedbasedon each client'screditexposuremultipliedbythe client'srenewableenergygenerationcapacityas a percentageof its totalpowergenerationmix.Proportionof each client'srenewableenergygenerationwas obtainedfromclient-producedpubliclyavailablesourcesand reportingdocuments.

2 Calculatedbasedon the committedexposuresof the variousborrowers.

Green Bonds

What is 1/19value ()_/'(}/‘emBan:/.3’i.S'.S'll(’.S'/)_\'_\'()ur in.s'IiIuIi()n."

Scotiabank Response


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2.4


At this time, Scotiabank does not have a formalized Green Bond offering.

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Scotiabank Response


Who] is I/YE,’value ofGreen Bonds issued I/ml are Cerlifieclin 1/19C/imale Bonds SI((I1(/((l‘(/

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Scotiabank Response


P/ease c/e.s('ri/)9 ()1/ier re/evanl?nancing inilialives

Scotiabank Response

Scotiabank provides ?nancing for a variety of initiatives that contribute to social and environmentalsustainability. Some examples include:

0 eco.business Fund — eco.business Fund and Scotiabank Costa Rica signed a line of credit to

support companies that contribute to preserving Costa Rican biodiversity. These companies haveinternationally recognized environmental certifications such as Global GAP and MarineStewardship Council, among others. The credit line of USD$l0 million is one of the ?rst loansdisbursed by the eco.business Fund, which was released in December 2014.

0 Eglinton Crosstown LRT — Scotiabank acted as co-financial advisor, bank mandated leadarranger (MLA) and administrative agent, bond joint lead and bookrunner (CAD$543 millionsenior credit facility; CAD$732 million senior secured bonds) for the Eglinton Crosstown LRT, inToronto, Canada. The Eglinton Crosstown LRT is one of the ?rst large-scale transit projects forthe Toronto area in many years. Among its community and green benefits, the LRT will providefast, reliable and comfortable transit for Toronto residents and commuters, create jobs, and reducetraffic congestion, greenhouse gases and fuel consumption.

0 Saskatchewan Joint-Use Schools — Scotiabank acted as bond sole lead and bookrunner(CAD$2l3 million senior secured bonds) for the Saskatchewan government’s 18 new elementaryschools on nine new joint-use school sites in four communities experiencing unprecedentedgrowth: Saskatoon, Regina, Warman and Martensville. The new schools will be ready in time forstudents in September 2017. In partnership with the Ministry of Education and the ?ve involvedschool divisions, SaskBuilds is overseeing a design-build-?nance-maintain public-privatepartnership (P3) procurement model. The new schools will be fully owned and operated by theschool divisions.

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Scotiabank Response


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City of Victoria

During FY2015, we provided just over $80,000 through the central budget to initiatives in Victoria. Thiswould include corporate funding as well as funds paid through the 2 employee programs.

Capital Regional District

Scotiabank will be pleased to provide information for the Capital Regional District upon provision of thenames of the cities or the postal codes the City requires data for.

Vancouver Island

There is no data available for Vancouver Island as this area is not a city or province and has multiple postalcodes. Our Corporate initiatives drive a considerable amount of community involvement on VancouverIsland led by our branch network.

British Columbia

During FY2015, Scotiabank provided over $2.7 million in community support to BC.

Through Bright Future, our global philanthropic program, Scotiabank and its employees support causes at a

grassroots level across six pillars: health, education, social services, arts and culture, environment andsports. Recognized as a leader for our charitable donations and philanthropic activities, Scotiabank hascontributed on average some $50 million annually over the last five years to community causes around theworld.

In British Columbia Scotiabank has made signi?cant investment in education to North Island College,Emily Carr University of Art, and Okanagan College.

First Nations Communities

During FY2015, Scotiabank donated just under $90,000 to aboriginal initiatives in Canada. Our bankingservices cater specialized services to Aboriginal communities, Aboriginal Trusts, and Aboriginal bankingcentres. Scotiabank received The Progressive Aboriginal Relations (PAR) Gold rating which recognizescompanies that have demonstrated effective programs and policies to maximize involvement with theCanadian Aboriginal community.


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3 SummaryAs part of Scotiabank’s comprehensive Corporate Social Responsibility policies, we are committed to

developing product and service opportunities that support environmentally friendly customer choices. Thisincludes ongoing research and development, as well as the introduction of new products and services.

Innovation, Research, and Development

Scotiabank is continually upgrading and enhancing its products and services based on our own research anddevelopment, evolving client requirements, changes in the regulatory environment, and operational eco-efficiency. As well, our role as an active participant in key planning groups within both Payments Canadaand SWIFT allows us to in?uence and, at the same time, stay closely in tune with impending changes on allfronts.

Speci?c drivers of change over the next 4-5 years will include both foreseeable factors, such as theongoing migration from paper to electronic transactions, and less predictable factors such as the response ofinternational banking regulators and systems to rapidly shifting economic conditions and events.

Whether leveraging internal innovation or responding to external factors, the overarching theme in theevolution of our services has always been and will continue to be the harnessing of technology andinnovation to help our clients improve work?ows, increase ?exibility, and reduce costs.

Scotiabank has and will continue to make signi?cant investment into our digital services, which will havean enormous impact on our eco-ef?ciency due to:

0 Reduction or elimination as we migrate from paper to electronic transactions

0 More online services available to our clients, which significantly reduce the use of paper, fax andenvelopes.

0 Investment into the design and delivery of digital innovations and solutions for our clients to

provide seamless, personalized service.

New Products and Services

Remote Deposit Capture

Launching in the summer of 2016, Scotiabank’s Remote Deposit service will provide our clients with theability to deposit cheques without having to leave the of?ce. As a result, there will be a significantreduction in the number of cheques issued, as well as marked decrease in the reliance on transport orcouriers to deposit these cheques. This service is also working toward the elimination of physical chequesbeing sent to central processors for clearing, effectively eliminating the daily courier pick up and relatedgas emissions from every branch in Canada.

Rather than spend the time and money preparing and taking deposits to a branch or ABM, cheques arescanned at your place of business and the images are electronically transferred to Scotiabank for deposit.All that is required is a cheque scanner and subscription to our electronic banking platform, ScotiaConnect.This convenient and cost-effective solution is ideal for organizations that deposit a signi?cant number ofcheques, have multiple locations, and/or are remotely located

Bulk Interac e-Transfer®

Scotiabank was the first bank in Canada to launch a Bulk Interac e-Transfer service in 2015. This service ispart of our initiative to signi?cantly reduce the number of cheques used in the market by offering an emailoption for making payments to our clients.

With our Bulk Interac e-Transfer service, you can send one-time, low-value electronic payments to

multiple recipients — easily and securely — through a single ?le transmission. Rather than issue, mail, andmonitor cheques, this convenient and cost-effective alternative is ideal for organizations like the City, whowant decrease reliance on paper items.


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Deposit instructions are sent to the recipient by email, with immediate value given to upon receipt of funds.As an email address is used to send the deposit information, there is no need to obtain or store therecipient’s banking information; simply send the e-transfer and allow the recipient to deposit to funds to

their account, using their ?nancial institution’s online banking platform.

Ongoing Awareness

Anticipating the opportunities and challenges faced by each of our clients has helped make Scotiabank oneof the world’s premiere ?nancial institutions. Our commitment to the City is to be consistently attentive to

all of your current and future needs. To that end, we will schedule regular discussions to ensure we arealways aware of any new needs as soon as they develop. We will also use these discussions to provide youwith a dependable ?ow of information about evolving services and technologies that offer potential to helpyou conduct your business more efficiently, more cost-effectively, and with more corporate socialresponsibility for the communities we serve.



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