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

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

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

4. 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

5. 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

6. 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

7. 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

8. 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 CSR Report

9. 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

10. 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

11. 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

12. 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

13. 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

14. Corporate Social Responsibility