Scotiabank wins Euromoney’s award for best bank for ESG in North America for its comprehensive integration of sustainability into business strategy, pioneering Indigenous reconciliation efforts, and leadership in innovative climate finance.
The bank is racing ahead on the road to net zero, having committed to mobilising C$350 billion ($255 billion) to climate-related funding by 2030, with C$172 billion already delivered. The roadmap is set. In 2024, it launched a climate transition plan and established an enterprise-wide climate transition steering committee to oversee execution of climate objectives and ensure deep business integration.
Scotiabank’s proprietary Transition Preparedness Rating assesses clients at Early, Progressing, or Leading maturity levels based on alignment with interim climate targets, while the bank’s comprehensive approach encompasses the full spectrum of sustainable finance products.
“At Scotiabank, we are proud to partner with our clients on their sustainability efforts by offering a wide variety of innovative and customised financing and advisory solutions to support them in implementing their own environmental and social objectives,” says Fanny Doucet, global head of sustainable finance.
Setting the example
Scotiabank practices what it preaches. Sustainable finance volumes increased in 2024, with C$13.5 billion in sustainable bonds (green, social sustainability and sustainability-linked) against C$13.1 billion in 2023. Green and sustainability-linked loans stood at C$15.2 billion, up from C$9.7 billion in 2023.
The bank issued landmark transactions including its own €1 billion green bond in the European market and a C$1.25 billion sustainability note, both the largest ever by a Canadian financial institution. The notes also stood out by being the first from any major bank globally to allow allocation of proceeds to nuclear energy.
A flagship achievement was the creation of Cedar Leaf Capital, Canada’s first majority Indigenous-owned investment dealer
Nuclear-inclusive issuance was a common theme in 2024, with Scotiabank supporting green bonds including Bruce Power’s C$600 million issuance and the Government of Canada’s landmark green bond. Canada became the first sovereign to issue green bonds with nuclear power eligibility.
On the retail front, the bank launched innovative products including sustainability guaranteed investment certificates (GICs) – a use-of-proceeds deposit product allowing individual investors to contribute to eligible green and social assets. Scotiabank pioneered agricultural supply chain financing with Nutrien Ag Solutions, incentivising nitrous oxide emissions reductions at the grower level, reflecting the bank’s 190-year commitment to supporting Canadian agriculture.
The bank also has a dedicated team focused on battery technology, electric vehicle charging infrastructure, low carbon fuels, and carbon capture utilisation and storage, positioning Scotiabank at the forefront of clean technology financing.
Indigenous reconciliation leadership
One of the highlights of the review period was Scotiabank’s Truth and Reconciliation Action Plan. “To begin addressing today’s gaps for Indigenous communities in the financial system, we have to start by acknowledging the systemic barriers that have existed for generations. That reflection and extensive consultation led to the creation of Scotiabank’s Truth & Reconciliation Action Plan, which includes 37 commitments across our business. With each step we take, we aim to create relationships of trust between Scotiabank Indigenous employees, clients and communities,” says Meigan Terry, chief corporate affairs and sustainability officer at Scotiabank.
A flagship achievement was the creation of Cedar Leaf Capital, Canada’s first majority Indigenous-owned investment dealer, designed to foster greater Indigenous participation in capital markets. The initiative launched in October 2024 in partnership with Nch’ḵay̓ Development Corporation, Des Nedhe Group, and Chippewas of Rama First Nation.
The bank has excelled on the sustainability of its own operations too. It reduced its Scope 1 and 2 emissions by 3.2% year-on-year and raised its internal carbon price to C$80/tCO2e, with plans to increase it to C$95 in 2025. Since 2018, the bank has invested C$87.8 million in decarbonisation and energy efficiency projects, of which C$11.5 million was spent in 2024.
ESG disclosures align with Task Force on Climate-related Financial Disclosures and Office of the Superintendent of Financial Institutions B-15 guidelines, and in 2024, KPMG provided limited assurance over key ESG metrics, including financed emissions in high-impact sectors for the first time.
Internally, Scotiabank launched Scotia Climate College, delivering climate education to over 1,100 live viewers, with 341 employees accessing additional online resources. More than 1,200 employees participated in the Live Net-Zero Challenge, while all board members completed the “4 Seasons of Reconciliation” training module as part of mandatory Indigenous cultural awareness education.
By embedding sustainability across every aspect of its operations – from nuclear-inclusive bonds to Indigenous partnerships – Scotiabank proves that ESG leadership and business success go hand in hand.
