Since 2022, SHARE has been engaging with the ‘Big Six” Canadian banks to manage systemic discrimination risks through the undertaking of a third-party Racial Equity Audit (REA). There has been significant progress as illustrated by commitments made by Bank of Montreal, Royal Bank of Canada, Canadian Imperial Bank of Commerce, National Bank of Canada, and the Toronto-Dominion Bank, yet the Bank of Nova Scotia (“Scotiabank”) has been slower to align their practices with peers.
At Scotiabank’s 2025 Annual General Meeting of Shareholders, a shareholder proposal filed by SHARE, on behalf of the Hamilton Community Foundation, requested Scotiabank to undertake and disclose a REA, which received more than 37% support from shareholders — over twice the average vote for a shareholder resolution at a Canadian company in 2024.
Following unresponsiveness to the request, SHARE re-filed a similar proposal, on behalf of the Hamilton Community Foundation, for consideration at Scotiabank’s 2026 Annual Meeting of Shareholders. The proposal was withdrawn upon receiving commitments from Scotiabank to advance financial inclusion across its business for Black, racially minoritized people, and Indigenous Peoples, and commitments to mitigate systemic discrimination risks, in line with the scope of a REA.
Broadly, Scotiabank has agreed to undertake a number of actions in exchange for the withdrawal of the shareholder proposal, to be completed in fiscal year 2026 and 2027. The commitments include a series of internal assessments and public disclosures related to the race-based impacts of the Bank’s employment systems, procurement processes, and lending and investment activities. The commitments touch upon topics such as financial inclusion, affordable housing, and complaints handling.
Additionally, Scotiabank made a commitment to assess the merits of a REA of business practices. An evaluation of the merit of such an audit will allow Scotiabank to assess peer bank practices, identify the effectiveness of its current policies, programs, and practices, and better understand the importance of a REA as a risk management tool for the business. Such an assessment will be important for investors to better understand and assess the due diligence conducted by Scotiabank to inform its decision around the conduction of a REA.
Yulena Wan, Chief Financial Officer and Chief Operations Officer at the Hamilton Community Foundation, said the organization’s commitment to advancing racial equity and Indigenous reconciliation informs all of its work, including how it invests and stewards capital.
“In our current landscape, the Hamilton Community Foundation continues to see momentum and a need for a racial equity audit to meet Scotiabank’s existing goals on racial equity and Indigenous reconciliation. Working with SHARE, we look forward to continued engagement with the bank.”
Yulena Wan, CFO/COO, Hamilton community foundation
Following this progress, community leaders are watching closely to better understand whether and how Scotiabank will advance employment equity and financial inclusion across its business and operations.
“Black, Indigenous, and other racially minoritized and underserved entrepreneurs continue to navigate barriers that are not accidental. These barriers were built through generations of racism, exclusion, and biased decision-making that still shape who receives capital, whose ideas are trusted, and whose futures are invested in,” said Jillisa Brown, founder of Funding Impact, a non-profit dedicated to advocacy and capacity building for Black and underserved entrepreneurs.
“As one of the largest banks in Canada, Scotiabank has a responsibility to uphold equity in practice, not only in messaging. These new commitments are certainly welcome, though a racial equity audit will complement these commitments and is a critical first step toward naming the harm, understanding how these structures show up in their policies and processes, and taking meaningful action to create fair and accountable systems for all communities,”
Jillisa Brown, Founder, funding impact
At Scotiabank’s 2026 Annual Meeting of Shareholders, SHARE’s Associate Director of Corporate Engagement Juana Lee delivered a statement on the withdrawn proposal to Scotiabank shareholders, reiterating the importance of this progress.
“At present, we are in an environment that requires companies, such as Scotiabank, to continue advancing racial equity while managing for systemic discrimination risks to meet regulatory expectations and longstanding human rights and Indigenous rights frameworks. As illustrated by the commitments made by Scotiabank, preventing discrimination remains a priority for businesses, and the strengthening of systems to address these risks continues to be warranted.”
In the next year, SHARE will continue to engage with Scotiabank to monitor progress and provide support for its efforts to advance racial equity and Indigenous reconciliation.
