1. Millennium Development Goals: Enhancing a
CSR Strategy
Kaz Flinn
Vice President,
Corporate Social Responsibility
Scotiabank

2. Agenda
1. About Scotiabank
2. The Business Case for Corporate Social Responsibility
3. Millennium Development Goals and the UN Global Compact
4. Scotiabank’s approach to Corporate Social Responsibility
5. Benefits to CSR for Corporations

3. Scotiabank

4. United Nations Global Compact:defining CSR
CSR is first and foremost, a long‐term strategy
CSR means aligning business strategy and operations with universal values
CSR can lead to a fundamental transformation of strategies, operations,
relationships, corporate culture and identity
CSR is proactive strategic planning, not defensive communication.
CSR includes philanthropy – but it is much more.

5. Scotiabank – CSR Objective Statement
Scotiabank helps to build bright futures worldwide through
ethical banking practices, environmental awareness and
a commitment to communities.

6. The Scope of CSR at Scotiabank

7. The Business Case for CSR
Fundamental
Innovation Sustainable CSR Strategic and
Business Models as Operational
Value Impact
Creation
CSR Medium to High Strategic
Compliance as and Operational Impact
Risk Management
Provide
funding CSR Little Strategic
and as or Operational
skills Corporate Philanthropy Impact

8. The Business Case for CSR
• CSR matters increasingly to stakeholders:
– Employees
• want to work for companies that are considered good corporate
citizens
• Deepens loyalty
• Excellent recruitment tool – attraction
– Shareholders
• are increasingly demanding high levels of ethical standards,
transparency and stakeholder management capabilities
– Customers
• are increasingly taking CSR into account when making purchasing
decisions
• Accessibility (both accessibility to financial services and physical
accessibility to branches)
– Regulators
• are looking for more transparency around social, environmental,
governance and reputational risk reporting

9. The Business Case for CSR
Consumers are calling for business leaders to genuinely embed
Purpose into their every day operations:
– 56% believe CEOs need to create innovative products that are socially
responsible
– 55% believe CEOs need to make a long-term commitment to address
societal issues
– 55% believe CEOs need to publically support societal issues
– 52% believe CEOs need to motivate employees to take part in societal
issues
The 2012 Edelman Good Purpose Report: measuring 16 markets with 8,000 consumers

10. The Business Case for CSR
The 2012 Sustainability Leaders: A
GlobeScan/SusatainAbility Survey

11. Scotiabank’s CSR strategy
• 3 year global strategic plan
• Business line and function area support – integrated into the
way we do business
• CSR is a metric on the Bank’s Balanced Scorecard
• Approved by President & CEO, Rick Waugh
• Presented to the Executive Management Committee annually
• Specific CSR updates provided to the Board of Directors on
an annual basis (eg. Environmental Policy, Bright Future
Program)

12. Millennium Development Goals
Goal 1: Eradicate Extreme Poverty & Hunger
Goal 2: Achieve Universal Primary Education
Goal 3: Promote Gender Equality and Empower Women
Goal 4: Reduce Child Mortality
Goal 5: Improve Maternal Health
Goal 6: Combat HIV‐AIDS, Malaria and other diseases
Goal 7: Ensure Environmental Sustainability
Goal 8: Develop a Global Partnership for Development

13. UN Global Compact
The United Nations Global Compact is a strategic policy initiative
for businesses that are committed to aligning their operations
and strategies with ten universally accepted principles in the
areas of human rights, labour, environment and
anti-corruption.
Scotiabank signed the UN Global Compact in 2010
Benefits:
– Participation in local UNGC networks
– Access to research and best practices
– Training around various global issues
– Opportunities to collaborate with other signatories around
key issues

14. UN Global Compact – 10 Principles
Human Rights Labour
Principle 1: Businesses should support and Principle 3: Businesses should uphold the
respect the protection of internationally freedom of association and the effective
proclaimed human rights; and recognition of the right to collective
Principle 2: make sure that they are not bargaining;
complicit in human rights abuses. Principle 4: the elimination of all forms of
forced and compulsory labour;
Principle 5: the effective abolition of child
labour; and
Environment Principle 6: the elimination of discrimination
Principle 7: Businesses should support a in respect of employment and occupation.
precautionary approach to environmental
challenges;
Principle 8: undertake initiatives to promote Anti-Corruption
greater environmental responsibility; and
Principle 9: encourage the development and Principle 10: Businesses should work
diffusion of environmentally friendly against corruption in all its forms, including
technologies. extortion and bribery.

15. Expectations of a UNGC Signatory
Leadership Commitment (CEO and Board)
Leadership Commitment (CEO and Board)
Letter from Chief Executive to UN Secretary-
Letter from Chief Executive to UN Secretary-
General
General
Willingness to engage in continuous performance improvement
Willingness to engage in continuous performance improvement
Setting strategic and operational goals, measuring
Setting strategic and operational goals, measuring
results, communicating internally and externally
results, communicating internally and externally
Openness to dialogue and learning around critical issues
Openness to dialogue and learning around critical issues
Participate in events at local (and global), engage
Participate in events at local (and global), engage
in stakeholder dialogue
in stakeholder dialogue
Commitment to transparency, accountability & public disclosure.
Commitment to transparency, accountability & public disclosure.
Annual Communication on Progress (COP)
Annual Communication on Progress (COP)

16. UNGC – Annual Reporting Requirement
• All signatories must submit a
Communication on Progress
on an annual basis.
• Reporting requirements are
linked to the Global Reporting
Initiative (GRI)
• Promotes transparency,
accountability and public
disclosure

17. CSR at Scotiabank – Scope & UNGC Principles
Corporate
Governance Customers Employees Environment Communities
and Shareholders
The Board of Scotiabank’s core Scotiabank aims Scotiabank’s Through the Bright
Directors is purpose is to provide integrated Future
ultimately to help customers a place for approach to Program,
accountable for the become talented environmental Scotiabank
Bank’s actions and financially better employees to issues helps contributes to
results. off. thrive. improve the communities
Bank’s and causes across
environmental the globe.
footprint.
UNGC Principles: UNGC Principles: UNGC Principles: UNGC UNGC Principles:
10 1 2,3,4,5,6,10 Principles: 1
7,8,9

18. CSR at Scotiabank - Examples
Global strategies with local focus and implementation:
1. Scotiabank’s global Environmental Policy
• Scotiabank El Salvador’s partnership with FUNDEMAS on the
Limpiemos El Salvador project
• Scotiabank El Salvador’s Recycling Program
(MDG #7; UNGC: 7,8,9)
2. Scotiabank/CUSO International Employee Fellowship Program
• Scotiabank volunteer in Suchitoto
(MDG # 8; UNGC: all)
3. Scotiabank Bright Future Program
(MDG all; UNGC: all)

19. UNGC promoting Collaboration
Governments Businesses
& &
NGOs Corporations
Millennium Development Goals United Nations Global Compact
Opportunities for
collaboration

20. UNGC – Benefits to Scotiabank
 Framework for responsible business practices
 Global network of like-minded businesses
 Wealth of practical resources and instruments to support
implementation of CSR policies
 Learning forum for sharing best practices and experiences
 Platform for individual/collective action and for innovation.

21. Questions