Statement on Energy Exposure
Oil & Gas and ESG - Statement on Energy Exposure
In 2021, Scotiabank joined the Net Zero Banking Alliance. We have also committed to net-zero operations at the Bank by 2030 - as well as mobilizing $350 billion in capital for climate-related finance by 2030. As part of our commitment, we will also reduce the financed emissions intensity of our Oil & Gas portfolio by 30% and reduce the financed emissions intensity of our Power & Utilities portfolio by 55-60%, by 2030.
Moving towards our commitments requires a responsible transition strategy. As such, we are working with our clients across these sectors to support their greenhouse gas emissions reductions programs. As part of this responsible transition, the Bank’s loan exposure to the Oil & Gas sector has declined from 2.5% of our total loan portfolio in Q2/2020 to 1.4% today – a decline of $7.1 billion.
The Bank recently published its inaugural Net-Zero Pathways Report. The report articulated our prudent approach to a net-zero ambition that recognizes the complexity associated with a net-zero emissions pathway for the Bank, our clients, and the communities in which we live and work.
Moving forward, we will continue to work in partnership with our clients, governments, regulators, and other stakeholders to support the transition to a low-carbon economy.
Updated April 8 2022