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CSR at Scotiabank
Kim Brand
Santiago, Chile
December 9, 2008
Summary
• Introduction to Scotiabank
• CSR – General
• CSR at Scotiabank
– Global
– Chile
• Equator Principles
• Conclusion
2
Canada + 3 Geographic Regions
Caribbean &
Central America
Asia/Pacific
Latin America
• 50+ Countries
• 5,531 ABMs
• 2,557
• 66,198 Employees
branches & offices
3
3
Scotiabank in Chile
Peru
Bolivia
• 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
4
Argentina
Santiago
Chile
Evolution of CSR
Expectations faced by Corporations
•Create jobs
•Maximize profits
•Follow the law
•Corporate philanthropy
Past plus:
•Transparency
•Ethics
•Environment
•Human Rights
•Community
Present
Past
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CSR 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
Customers
Employees
Investors
CSR
3. Overall Strategy
Community
•
Balance the interests of all stakeholders
•
Manage reputational risk
•
Leverage CSR opportunities
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Environment
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
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
Canadians
What social and environmental actions should a
company be responsible for?*
Companies should be held responsible for ensuring its
products and operations do not harm the environment
Chile Canada
75
79
Companies should be held responsible for ensuring that the
supplies it purchases are produced in a socially and
environmentally responsible manner
Companies should be held responsible for reducing their
impact on climate change
72
67
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 Principles
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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 Principles
Example: Mining project in Country X
• Environmental & Social Risk Assessment / Management Plan:
–
–
–
–
–
•
•
•
•
•
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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 Principles – Limits
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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
Opportunity
• 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
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Corporate Social Responsibility