Ahead of the upcoming annual general meeting, SHARE on behalf of Trottier Family Foundation is asking shareholders to vote “yes” on Proposal No. 2 at the Bank of Nova Scotia. We encourage shareholders to read our full proxy alert to learn more about the background of the vote.
Shareholders are asking the Bank of Nova Scotia to report on its plans to establish and evaluate the effectiveness of its clients’ net zero plans in relation to the bank’s 2030 emission reduction and net zero goals. Such a report will provide shareholders with information they need to assess Bank of Nova Scotia’s framework and expectations for its client’s transition plans. This framework is crucial to understanding the bank’s progress toward meeting its climate goals. Current reporting refers to client engagement but the standards against which the bank assesses its clients plans remain opaque.
The Intergovernmental Panel on Climate Change (IPCC) has advised that greenhouse gas (GHG) emissions must be halved by 2030 to limit global temperature rise to 1.5 degrees Celsius.
The scale and urgency of the climate crisis has prompted calls for high emitting companies to produce and disclose climate transition plans, and by extension, for banks to make the same requirements as their high-emitting corporate lending clients. Corporate climate transition plans are emerging as an essential tool in the toolbox.
Bank of Nova Scotia remains internationally and domestically a leading lender to the fossil fuel sector. Many of Bank of Nova Scotia’s global peers have published their guidelines for evaluating the credibility of client climate action plans, which are being requested in this shareholder proposal.