CSR at Scotiabank Kim Brand Santiago, Chile December 9, 2008

Summary Introduction to Scotiabank CSR – General CSR at Scotiabank Global Chile Equator Principles Conclusion

Canada + 3 Geographic Regions Caribbean & Central America Asia/Pacific Latin America 50+ Countries 2,557 branches & offices 5,531 ABMs 66,198 Employees 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 Argentina Chile Santiago

Expectations faced by Corporations Evolution of CSR Expectations faced by Corporations Create jobs Maximize profits Follow the law Corporate philanthropy Past plus: Transparency Ethics Environment Human Rights Community Past Present

CSR at Scotiabank Definition The way we interact with our stakeholders to meet our social, economic, environmental and ethical responsibilities Structure CSR department headed by a VP CSR Advisory Committee Ad Hoc Working Groups Overall Strategy Balance the interests of all stakeholders Manage reputational risk Leverage CSR opportunities Customers Employees Investors CSR Community 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

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

CSR: Attitudes of Chileans and Canadians 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. 34 Companies should be held responsible for supporting charities and community projects 58 33 *Based on Globescan’s 2007 CSR Monitor

Equator 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

Equator 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

Equator Principles – Limits 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

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

Corporate Social Responsibility