Since circulating our Proxy Alert regarding our climate action shareholder proposal at Bank of Nova Scotia (Scotiabank), we have learned that one of the bank’s peers, Toronto-Dominion Bank (TD Bank), has effectively implemented what we are seeking from Scotiabank—the disclosure of a client engagement framework for client decarbonization plans.
SHARE on behalf of Trottier Family Foundation has filed a proposal at Scotiabank, asking the bank to establish and evaluate the effectiveness of its clients’ net zero plans in relation to the bank’s 2030 emissions reduction and net zero goals.
Conversely, TD Bank has presented a similar report from this past year, setting a new baseline for climate reporting at Canadian banks.
On page 22 of TD’s 2022 Climate Action Plan: Report on Progress and Update on TCFD, the bank outlines its process and objectives for client engagement, and shares its “Client Assessment Framework.” The document continues by committing to roll out a new engagement framework in 2023.
This disclosure assists the banks investors who seek assurance that the bank is managing its transition risks effectively, and setting expectations for and requiring net zero transition plans and performance from their lending clients. It demonstrates that the bank is prepared to continue to improve and fine tune its approach to financed emissions by honing its expectations over time, in line with the Paris Accord.
Scotiabank investors would be well served to embrace a similar approach. Read our full proxy alert to learn more.
