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Second-Party Opinion Download

Project Details


Scotiabank Sustainable Bond Framework Second-Party Opinion (2021)


The Bank of Nova Scotia

Project Type

Sustainability Bond/Loan

Industry Group


Use of Proceeds

Renewable energy; Energy efficiency; Pollution prevention and control; Natural resources/land use management; Clean transport; Affordable basic infrastructure; Access to essential services;



Evaluation Date

Jun 2021

Evaluation Summary

Sustainalytics is of the opinion that the Scotiabank Sustainable Bond Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021. This assessment is based on the following:

Use of Proceeds

The eligible categories for the use of proceeds – Renewable Energy, Energy Efficiency, Pollution Prevention and Control, Environmentally Sustainable Management of Living Natural Resources and Land Use, Terrestrial and Aquatic Biodiversity Conservation, Clean Transportation, Sustainable Water and Wastewater Management, Green Buildings, Affordable Basic Infrastructure, Access to Essential Services, Women-Owned Business Lending, Affordable/Community Housing, Creating Economic Resilience, and Leadership in Diversity & Inclusion – are aligned with those recognized by both the Green Bond Principles 2021 and Social Bond Principles 2021. Sustainalytics considers that investments in the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDGs 3, 4, 5, 6, 7, 8, 10, 11, 12, 14 and 15.

Project Evaluation/Selection

Scotiabank’s Asset & Liability Committee (ALCO), comprised of the Bank’s CFO, CRO, Treasurer, and business line heads, will oversee the project evaluation and selection process. The ALCO will also be responsible for post-issuance reviews, producing annual reports for investors, and for monitoring market practices which may affect the Framework. Sustainalytics considers the project selection process in line with market practice.

Management of Proceeds

Scotiabank will deposit the net proceeds into its general account, and an amount equal to the net proceeds will be earmarked for allocation to the eligible assets. Scotiabank’s Treasury team will be responsible for monitoring Sustainable Bond allocations and adjusting on a quarterly basis to ensure that the amount allocated matches the balance of proceeds. The Bank will apply a 36-month lookback period and intends to fully allocate proceeds within 18 months of each issuance. This is in line with market practice.


Scotiabank has committed to providing allocation and impact reporting on its website on an annual basis, until full allocation of the bond. Allocation reporting will include the net proceeds from each issuance, the aggregated amount allocated to each eligible asset category, and the balance of unallocated proceeds, while impact reporting will be provided where feasible and will include relevant quantitative metrics and methodological disclosure. Sustainalytics views the Bank’s reporting commitments as aligned with market practice.