Kaz FlinnVice President, Corporate Social ResponsibilityScotiabank

Millennium Development Goals: Enhancing a CSR Strategy

Agenda

1. About Scotiabank

2. The Business Case for Corporate Social Responsibility

3. Millennium Development Goals and the UN Global Compact

4. Scotiabank’s approach to Corporate Social Responsibility

5. Benefits to CSR for Corporations

Scotiabank

United Nations Global Compact:defining CSR

CSR is first and foremost, a long‐term strategy

CSR means aligning business strategy and operations with universal values

CSR can lead to a fundamental transformation of strategies, operations, 

relationships, corporate culture and identity

CSR is proactive strategic planning, not defensive communication.

CSR includes philanthropy –

but it is much more.

Scotiabank – CSR Objective Statement

Scotiabank helps to build bright futures worldwide through ethical banking practices, environmental awareness and

a commitment to communities.

The Scope of CSR at Scotiabank

The Business Case for CSR

CSRas

Corporate Philanthropy

CSR as

Risk Management

CSRas

ValueCreation

Provide funding and skills

Little Strategic or Operational Impact

ComplianceMedium to High Strategic and Operational Impact

Innovation Sustainable Business Models

Fundamental Strategic and Operational Impact

The Business Case for CSR

• CSR matters increasingly to stakeholders:– Employees

• want to work for companies that are considered good corporate citizens

• Deepens loyalty• Excellent recruitment tool – attraction

– Shareholders• are increasingly demanding high levels of ethical standards,

transparency and stakeholder management capabilities– Customers

• are increasingly taking CSR into account when making purchasing decisions

• Accessibility (both accessibility to financial services and physical accessibility to branches)

– Regulators • are looking for more transparency around social, environmental,

governance and reputational risk reporting

The Business Case for CSR

Consumers are calling for business leaders to genuinely embed Purpose into their every day operations:

– 56% believe CEOs need to create innovative products that are socially responsible

– 55% believe CEOs need to make a long-term commitment to address societal issues

– 55% believe CEOs need to publically support societal issues

– 52% believe CEOs need to motivate employees to take part in societal issues

The 2012 Edelman Good Purpose Report: measuring 16 markets with 8,000 consumers

The Business Case for CSR

The 2012 Sustainability Leaders: A GlobeScan/SusatainAbility Survey

• 3 year global strategic plan• Business line and function area support – integrated into the

way we do business• CSR is a metric on the Bank’s Balanced Scorecard• Approved by President & CEO, Rick Waugh• Presented to the Executive Management Committee annually• Specific CSR updates provided to the Board of Directors on

an annual basis (eg. Environmental Policy, Bright Future Program)

Scotiabank’s CSR strategy

Millennium Development Goals

Goal 1: Eradicate Extreme Poverty & Hunger

Goal 2: Achieve Universal Primary Education

Goal 3: Promote Gender Equality and Empower Women

Goal 4: Reduce Child Mortality

Goal 5: Improve Maternal Health

Goal 6: Combat HIV‐AIDS, Malaria and other diseases

Goal 7: Ensure Environmental Sustainability

Goal 8: Develop a Global Partnership for Development

UN Global Compact

The United Nations Global Compact is a strategic policy initiative for businesses that are committed to aligning their operations and strategies with ten universally accepted principles in the

areas of human rights, labour, environment and anti-corruption.

Scotiabank signed the UN Global Compact in 2010

Benefits:– Participation in local UNGC networks– Access to research and best practices– Training around various global issues– Opportunities to collaborate with other signatories around

key issues

UN Global Compact – 10 Principles

Human Rights Labour

Environment

Anti-Corruption

Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and Principle 2: make sure that they are not complicit in human rights abuses.

Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining; Principle 4: the elimination of all forms of forced and compulsory labour; Principle 5: the effective abolition of child labour; and Principle 6: the elimination of discrimination in respect of employment and occupation.Principle 7: Businesses should support a

precautionary approach to environmental challenges; Principle 8: undertake initiatives to promote greater environmental responsibility; and Principle 9: encourage the development and diffusion of environmentally friendly technologies.

Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.

Expectations of a UNGC Signatory

Leadership Commitment (CEO and Board)Leadership Commitment (CEO and Board)

Commitment to transparency, accountability & public disclosure.Commitment to transparency, accountability & public disclosure.

Openness to dialogue and learning around critical issuesOpenness to dialogue and learning around critical issues

Willingness to engage in continuous performance improvementWillingness to engage in continuous performance improvement

Letter from Chief Executive to UN Secretary- General Letter from Chief Executive to UN Secretary- General

Setting strategic and operational goals, measuring results, communicating internally and externally Setting strategic and operational goals, measuring results, communicating internally and externally

Participate in events at local (and global), engage in stakeholder dialogue Participate in events at local (and global), engage in stakeholder dialogue

Annual Communication on Progress (COP)Annual Communication on Progress (COP)

UNGC – Annual Reporting Requirement

• All signatories must submit a Communication on Progress on an annual basis.

• Reporting requirements are linked to the Global Reporting Initiative (GRI)

• Promotes transparency, accountability and public disclosure

CSR at Scotiabank – Scope & UNGC Principles

Corporate Governance

and Shareholders

The Board of Directors isultimately

accountable for theBank’s actions and

results.

UNGC Principles:10

Customers

Scotiabank’s core purpose is

to help customers become

financially better off.

UNGC Principles:1

Employees

Scotiabank aims to providea place for talented

employees to thrive.

UNGC Principles:2,3,4,5,6,10

Environment

Scotiabank’s integrated

approach to environmentalissues helps improve the

Bank’senvironmental

footprint.

UNGC Principles:

7,8,9

Communities

Through the Bright Future

Program, Scotiabank

contributes to communities

and causes across the globe.

UNGC Principles:1

Global strategies with local focus and implementation:

1. Scotiabank’s global Environmental Policy• Scotiabank El Salvador’s partnership with FUNDEMAS on the

Limpiemos El Salvador project• Scotiabank El Salvador’s Recycling Program(MDG #7; UNGC: 7,8,9)

2. Scotiabank/CUSO International Employee Fellowship Program• Scotiabank volunteer in Suchitoto(MDG # 8; UNGC: all)

3. Scotiabank Bright Future Program(MDG all; UNGC: all)

CSR at Scotiabank - Examples

UNGC promoting Collaboration

Opportunities for 

collaboration

Governments 

& 

NGOs

Businesses

& 

Corporations

Millennium Development Goals United Nations Global Compact

UNGC – Benefits to Scotiabank

Framework for responsible business practices

Global network of like-minded businesses

Wealth of practical resources and instruments to support implementation of CSR policies

Learning forum for sharing best practices and experiences

Platform for individual/collective action and for innovation.

Questions