Post on 22-Dec-2015
CSR at Scotiabank
Kim Brand
Santiago, Chile
December 9, 2008
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Summary Summary
• Introduction to Scotiabank
• CSR – General • CSR at Scotiabank
– Global– Chile
• Equator Principles
• Conclusion
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Canada + 3 Geographic Regions
Caribbean &Central America
Latin America
• 50+ Countries
• 2,557 branches & offices
• 5,531 ABMs
• 66,198 Employees
Asia/Pacific
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Santiago
Argentina
Bolivia
Peru
Chile
• Majority ownership of Sud Americano acquired in 1999
• Purchase of Banco del Desarrollo in 2007
Today: • 139 branches• 6,65% market share• Strong geographic presence across the
country
Scotiabank in Chile
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Evolution of CSREvolution of CSR
•Create jobs•Maximize profits•Follow the law•Corporate philanthropy
Past plus: •Transparency•Ethics•Environment•Human Rights•Community
Expectations faced by Corporations
Past Present
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CSR at ScotiabankCSR at Scotiabank
1. Definition
The way we interact with our stakeholders to meet our social, economic,
environmental and ethical responsibilities
2. Structure• CSR department headed by a VP
• CSR Advisory Committee
• Ad Hoc Working Groups
3. Overall Strategy • Balance the interests of all stakeholders• Manage reputational risk
• Leverage CSR opportunities
CSR
Customers
Employees Investors
Community Environment
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CSR at Scotiabank – Global CSR at Scotiabank – Global
• Scotiabank Guidelines for Business Conduct
• Customer Protection : Privacy and Fraud
• Advancement of Women Strategy
• Equator Principles
• Environmental/Social Due Diligence – Corporate Lending
• Community Giving / Promoting Employee Volunteerism
• Recycling and energy conservation
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CSR at Scotiabank – Chile CSR at Scotiabank – Chile
Creation of first CSR Committee and CSR Strategic Plan
Integration of CSR into performance management
Microfinance
Energy conservation and Employee engagement: Ahorro Ahora Challenge
Launch of Bright Future program in Chile
Stakeholder Engagement / CSR Best Practices: Prohumana, Accion RSE, UN Global Compact, “Local Committees” approach
Development of CSR Reporting structure according to GRI for 2009 CSR Report
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CSR: Attitudes of Chileans and CSR: Attitudes of Chileans and CanadiansCanadians
What social and environmental actions should a company be responsible for?*
Chile Canada
Companies should be held responsible for ensuring its products and operations do not harm the environment
75 79
Companies should be held responsible for ensuring that the supplies it purchases are produced in a socially and environmentally responsible manner
72 67
Companies should be held responsible for reducing their impact on climate change
57 66
Companies should be held responsible for improving education and skills in communities where they operate.
57 34
Companies should be held responsible for supporting charities and community projects
58 33
*Based on Globescan’s 2007 CSR Monitor
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Equator PrinciplesEquator Principles
• Voluntary approach • Focus on developing countries• 63 signatories to date covering approx. 85% of project
finance worldwide• Based on World Bank and International Finance
Corporation (IFC) guidelines that set out standards for social and environmental risk assessment and project development
• Scotiabank signed on in 2005 and has integrated the EPs into internal policies and practices. Ongoing IFC-approved training and development of tools for banking and credit officers on how to apply the EPs
• In Chile, BBVA, CORPBANCA also signatories
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Equator PrinciplesEquator Principles
Example: Mining project in Country X • Environmental & Social Risk Assessment / Management Plan:
– Will proposed development require displacement of native peoples?– Is proposed development located in a environmentally sensitive natural habitat
or near a limited and important water source for local populations? – Is proposed development located on a cultural heritage site? – Is there significant local protest?– Are health & safety standards sufficient to properly protect workers?
• Categorize Project “A”, “B”, “C” according to risk level; • Application of IFC Performance Standards and World Bank EHS
Guidelines to construction and operation of the project; • Consultation requirement (including “free, prior and informed consultation”
with local communities);• Independent review of ESRA/ESRM;• Incorporation of EP requirements into Loan Documentation; • Ongoing Monitoring and Public Reporting requirements
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Equator PrinciplesEquator Principles – – LimitsLimits
• Voluntary initiative;• Non-signatory financial institutions continue to finance
environmentally and socially questionable projects;• Climate change not (yet) included in Equator Principles; • Only apply to project finance transactions;• Can create a parallel system of standards and requirements –
problematic in countries with strong institutions, laws and enforcement mechanisms
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Conclusion: From Risk to Conclusion: From Risk to OpportunityOpportunity
• Ethics and transparency are more relevant than ever for global financial institutions;
• CSR has moved beyond risk management – New market opportunities are emerging from the CSR space;
• CSR practices are gaining momentum at Scotiabank domestically and internationally
Corporate Social Responsibility