Bank of Nova Scotia an outlier among Canada’s “Big Six”
TORONTO. March 26, 2025. Investors are urging the Bank of Nova Scotia (TSX:BNS) to catch up with its peers by agreeing to assess both the impacts of its business practices on racialized communities, and the risks to shareholder value those impacts represent.
The request for Scotiabank to conduct a third-party racial equity audit (REA) is contained in a shareholder proposal submitted by SHARE, the Shareholder Association for Research and Education, on behalf of the Hamilton Community Foundation.
Sarah Couturier-Tanoh, Director of Shareholder Advocacy at SHARE, notes that Scotiabank is the lone outlier among Canada’s “Big Six” banks in failing to commit to this crucial risk-management practice.
“Other major Canadian banks — namely BMO, RBC, NBC, and CIBC — have committed to conduct these audits as part of their broader efforts to improve financial inclusion,” said Couturier-Tanoh.
“We are concerned that Scotiabank may fall behind its peers in adapting to emerging regulatory trends and shifting customer demographics.”
The Scotiabank proposal comes at a time of increased pushback against corporate diversity, equity and inclusion (DEI) initiatives in the U.S. During a “market open” event at the Toronto Stock Exchange last week to mark the United Nations International Day for the Elimination of Racial Discrimination, investors noted the need for Canadian companies to reaffirm their commitment to combating racism and inequity.
“Openness to diversity, equity and inclusion is a critical differentiator for Canadian businesses, Canadian capital markets, and Canadian investors — and a critical driver of value within those markets,” Yulena Wan, Chief Operating Officer and Chief Financial Officer of the Hamilton Community Foundation, said during her introductory remarks at the event.
Couturier-Tanoh said it’s imperative for Scotiabank to “step up” at this pivotal moment.
“The current political circumstances demand leadership from banks — not cold feet,” she said.
The shareholder proposal will be voted on at Scotiabank’s annual general meeting (AGM) on April 8.
For media inquiries or interview requests, please contact SHARE Communications Manager Adam Burns at aburns@share.ca
