Global warming is one of the most important issues facing our planet. In 2007, concern about climate change reached new heights in many countries. Scotiabank is committed to playing our role in reducing harmful greenhouse gas (GHG) emissions, in our operations and through our spheres of influence. In particular, we are committed to better addressing material climate change risk in our risk management processes, and being proactive on climate-related opportunities.

The following categories represent potential spheres of action and responsibility regarding climate change for the financial sector, and helps Scotiabank assess where we can have a positive impact. Information on specific Scotiabank policies and practices in these areas are found throughout the Environment section of our CSR Report.

1. Employees and internal operations: Global financial institutions have large employee and branch networks and, as a result, can make a positive impact on reducing GHG emissions by promoting energy efficiency throughout their operations; for example, by encouraging behaviour among employees that will help reduce individual carbon footprints, both at work and at home, and measuring energy consumption and GHG emissions to help better identity opportunities for improved efficiencies.


2. Suppliers: In purchasing products for their operations, banks can choose those with lower carbon footprints whenever possible; for example, choosing energy-efficient photocopiers or fax machines, or carpeting with a low-carbon footprint.


3. Customers: Climate change presents both risks and opportunities among a bank’s customer base. From a risk perspective, banks can assess material climate change risks in lending activities. From an opportunities perspective, they can assist those companies that are having a positive impact on the environment. Examples include lending to the renewable energies and clean technologies sectors, providing carbon- and energy-related services, such as emissions trading and weather derivatives, and offering retail products such as climate-friendly mutual funds.


4. Communities: Dialogue with external stakeholders allows financial institutions to obtain valuable feedback on climate change policies and programs, as well as share their expertise – in areas such as risk management, reporting and supply chain management – within the industry and among multiple stakeholder groups focused on climate change. Banks can also provide financial support to the growing number of important charities and think tanks dedicated to addressing climate change.