The Bank of Nova Scotia (BNS or the Bank) announced today the closing of its inaugural USD 500 million 3.5-year Green Bond offering (the Green Bonds), boosting its commitment to Sustainable Business and creating a better future for all.
The net proceeds from the Green Bond offering will be used to fund the financing or refinancing, in whole or in part, of eligible green assets, which refer to new or existing assets, businesses or projects that meet the Scotiabank Green Bond Framework Eligibility Criteria, including renewable energy, clean transportation and green buildings. Other areas of investment may include sustainable water and wastewater management, environmentally sustainable management of living natural resources and land use, energy efficiency, terrestrial and aquatic biodiversity conservation, and pollution prevention and control.
“This Green Bond offering marks a major milestone for Scotiabank,” said Tom McGuire, Executive Vice President and Group Treasurer at Scotiabank. “It will bring more diversity to our investor base and strengthen our commitment to a sustainable future.”
This Green Bond offering is a natural next step in Scotiabank’s Sustainable Business strategy, which was launched in March 2018 with the goal of creating economic, social and environmental value for its customers, employees, communities and the planet, while also delivering returns for its shareholders. Other environmental achievements to date include:
- Setting a global target to achieve 10% reduction in Scope 1 and 2 GHG emissions by 2021 (based on 2016 levels). To date Scotiabank is 90% of the way towards meeting this target
- Implementing an internal carbon price in 2018 ($15/tonne of C02). Scotiabank reinvests that money into energy efficiency initiatives such as HVAC replacement and solar panel installation to help meet GHG reduction targets
- Supporting a low-carbon economy through providing financing for the renewable energy sector, increasing from $4.7 billion in 2017 to $8.5 billion in 2018
- Reporting sustainability results annually to CDP since 2004
- Supporting the Task Force on Climate-related Financial Disclosures (TCFD). Initial disclosures can be found in Scotiabank’s 2018 Annual Report and 2018 Sustainable Business Report.
- Participating as a member, signatory or participant of the following: UN Global Compact, UNEP Finance Initiative, Carbon Pricing Leadership Coalition, Equator Principles, and Principles for Responsible Investing (PRI), amongst others.
BNS launched its Green Bond Framework in June 2019. The framework has received a Second-Party Opinion from Sustainalytics, a global leader in ESG and Corporate Governance research and ratings, and is in line with the four core pillars of the Green Bond Principles as administered by the International Capital Market Association.
“The global green economy is growing,” said Bob Nguyen, MD & Head Corporate Fixed Income Origination, Global Banking and Markets at Scotiabank. “Scotiabank’s inaugural Green Bond offering will help to meet the growing demand to fund, finance, and build sustainable assets that have positive environmental benefits while matching investors’ ever-expanding appetite for green financial products.”
“We all have an important role to play in protecting our environment for current and future generations, to ensure that everyone can become better off,” said Meigan Terry, Senior Vice President, Global Communications, Sustainability and Social Enterprise at Scotiabank. “This inaugural Green Bond offering helps Scotiabank put into practice the commitments we have made to a sustainable future.”
Source: CSR Wire