Task Force on Climate-related Financial Disclosures (TCFD)

Scotiabank recognizes that climate change poses a significant risk to the global economy and to society as a whole. As a major financial institution, we have both the responsibility and opportunity to take action, which is why we fully support the TCFD recommendations. Following our public commitment by our President and CEO in February 2018, we have had significant engagement with a number of investors, NGOs and governments, to discuss climate-related impacts in the short-, medium- and long-term. We began reporting according to the TCFD recommendations in our 2018 Annual Report.

The table below is an Index using the TCFD, and is complementary to the language found on pages 39 and 40 of the 2018 Sustainable Business report.

Theme and area	Disclosure/Further information for reference
GOVERNANCE: Disclose the organization’s governance around climate-related risks and opportunities.
a) Board Oversight	2018 Annual Report: Climate Change (TCFD) and Governance of Climate Change risk (p. 87-88), Environmental Risk (p. 108) 2018 Management Proxy Circular: Shareholder proposal – Commitment to Decarbonization (p. 24) 2018 CDP Response: Governance C1.1a, C1.1b (p. 3-4)
b) Management Role	2018 Annual Report: Climate Change (TCFD) and Governance of Climate Change risk (p. 87-88), Environmental Risk (p. 108) 2018 Management Proxy Circular: Shareholder proposal – Commitment to Decarbonization (p. 24) 2018 CDP Response: Governance C1.2, C1.3 (p. 4-8)
STRATEGY: Disclose the actual and potential impacts of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning where such information is material.
a) Risks and Opportunities	2018 Annual Report: Provision for Credit Losses (p. 29), Risk Identification and Assessment (p. 76), Climate Change Risks (TCFD) and Governance of Climate Change risk (p. 87-88), Environmental Risk (p. 108) 2018 CDP Response: Risks and Opportunities C2 (p. 7-16), Business Strategy C3.1c (p. 17-18)
b) Impact of climate risk and opportunities on business	2018 Annual Report: Climate Change (TCFD) and Governance of Climate Change risk (p. 87-88), Environmental Risk (p. 108) 2018 Management Proxy Circular: Shareholder proposal – Commitment to Decarbonization (p. 24) 2018 Sustainable Business Report: Environmental Governance (p.38-40), Sustainable Finance (p. 41) 2018 CDP Response: Risks and Opportunities C2.3, C2.4, C2.5, C2.6 (p. 11-17)
c) Resilience of corporate strategy, considering climate scenarios	To be completed in FY2019 and FY2020
RISK MANAGEMENT: Disclose how the organization identifies, assesses, and manages climate-related risks.
a) Process to identify and assess climate risks	2018 Annual Report: Risk Identification and Assessment (p. 76), Climate Change Risks (p. 87-88), Environmental Risk (p. 108) 2018 Sustainable Business Report: Environmental Governance (p.38-40), Sustainable Finance (p. 41) 2018 CDP Response: Governance C1 (p.3-6), Strategy C2.1-C2.2c (p. 7-10), 2.3 (p. 11-13)
b) Managing climate risk	2018 Annual Report: Risk Identification and Assessment (p. 76), Climate Change Risks (pg. 88), Environmental Risk (p. 108) 2018 Sustainable Business Report: Stakeholder Engagement and Materiality (p. 10-13) 2018 CDP Response: Strategy C2.2d (p.10-11), 2.3 (p. 11-13)
c) Integrating climate risk into overall risk management	2018 Sustainable Business Report: Environmental Governance (p.38-40) 2018 CDP Response: Governance C1 (p. 3-5), Strategy 2.2 (p. 8-11)
METRICS AND TARGETS: Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material.
a) Metrics used to assess climate-related risk and opportunities	2018 Annual Report: Credit Risk – Loans and Acceptances by type of borrower (p. 122), Climate Change Risks (pg. 88) 2018 Management Proxy Circular: Shareholder proposal – Commitment to Decarbonization (p. 24) 2018 Sustainable Business Report: Our Progress (p. 15, 17), Climate Change (p. 37), Climate Change – Sustainable Finance (p. 42-43); Climate Change – Operational Footprint (p. 45) 2018 CDP Response: Governance 1.3 (p. 6-7), Targets and Performance, C4.1-C4.3 (p. 19-23), 4.5a Low Carbon Products (p. 23-24)
b) GHG disclosure for Scope 1, 2 and 3	2018 Sustainable Business Report: Our Progress (p. 15, 17), Climate Change – Operational Footprint (p. 45), Appendix (p. 45) 2018 CDP Response: C5 Emissions Methodology, C6 Emissions Data and C7 Emissions Breakdowns (p. 25-37)
c) Targets used to manage climate-related risks and opportunities and performance	2018 Management Proxy Circular: Shareholder proposal – Commitment to Decarbonization (p. 24) 2018 Sustainable Business Report: Our Progress (p. 15, 17), Climate Change (p. 37), Climate Change – Sustainable Finance (p. 42-43); Climate Change – Operational Footprint (p. 45)