Investors hope BMO, CIBC and TD will also commit to disclosing key climate metric
TORONTO/COPENHAGEN. March 7, 2025. The Bank of Nova Scotia (TSX:BNS) has committed to disclosing a key metric for measuring a financial institution’s ability to deal with our new climate reality.
In its proxy statement released Friday, Scotiabank announced it will disclose its Energy Finance Ratio by June 1, 2026.
“For investors looking to understand climate financing by these influential institutions — not to mention navigating the new landscape of greenwashing regulations in Canada — nothing can replace a dollar-to-dollar comparison of a bank’s core financing of the energy sector,” said Amanda Carr, Associate Director, Climate Advocacy at SHARE.
After more than a year of investor engagement with Scotiabank, this decision was ultimately prompted by a shareholder proposal filed by a coalition of international investors led by SHARE, the Shareholder Association for Research and Education, and including Denmark’s largest pension fund, PFA Pension forsikringsaktieselskab, and IBVM Foundation of Canada Inc.
The ratio, which compares a bank’s investment in low-carbon and high-carbon energy sources, is a key indicator for investors to track how a bank is doing in reducing exposure to fossil fuels and harnessing the opportunities of the energy transition.
By committing to disclosing the ratio, Scotiabank joins several of North America’s biggest financial institutions — including Royal Bank of Canada (TSX:RY), JPMorgan Chase and Co. (NYSE: JPM) and Citigroup Inc. (NYSE:C) — in providing investors with much-needed insight.
Carr added that investors are focused on maintaining strong investor support for the Canadian banking sector as a whole, and said that while Scotiabank’s commitment is encouraging, it also highlights the lack of progress by its peers Bank of Montreal (TSX:BMO), CIBC (TSX:CM) and Toronto-Dominion (TSX:TD).
“BMO, CIBC and TD are intimately familiar with the Energy Finance Ratio, as investors have been asking after it for over a year. Today, their main peers and competitors here in Canada have taken a step ahead of them on reporting this crucial metric,” said Carr.
“As the banking industry moves toward a consensus on the need to report this crucial metric, financial institutions that continue to drag their feet risk being left even further behind in seizing opportunities in the energy transition,” said Carr.
For more information or to arrange an interview, contact SHARE Communications Manager Adam Burns at aburns@share.ca.
Quotes
“Having co-filed resolutions asking for energy finance ratios from four Canadian banks, we are pleased to see this leadership from Scotiabank. We hope BMO, CIBC and TD will now reconsider and make a commitment before we have to go to vote.”
— Rasmus Bessing, MD, ESG Investments & CO-CIO at PFA Pension
“We respect and applaud Scotiabank’s willingness to provide leadership in this significant work of supporting opportunities for safe energy transitions. We hope that other banking institutions, including BMO, CIBC and TD, will take leadership in reporting their crucial metrics. Every voice at the global table helps move the needle toward a healthier planet.”
— Mary Teresa Kane, Chair, Board of Directors, IBVM Foundation of Canada
