Scotiabank Issues Sustainability Bond
In August this year, Canadian Scotiabank announced the closing of its inaugural one billion US-Dollar three-year Sustainability Bond offering.
As reported, the bank is committed “to making a positive impact and creating better communities for every future”. Net proceeds from the Sustainability Bond offering would be used to fund the financing or refinancing – in whole or in part – of eligible green and/or social assets, which refer to new or existing assets, businesses or projects that meet the eligibility criteria of Scotiabank’s Sustainable Bond Framework (www.scotiabank.com/content/dam/scotiabank/canada/en/documents/about/investors-shareholders/funding-programs/SCOTIABANK-SUSTAINABLE-BOND-FRAMEWORK-2021.pdf). These criteria include inter alia the category “Pollution Prevention and Control”. Examples of Eligible Green Assets are “loans related to activities that contribute to soil remediation, waste prevention and collection, waste reduction and waste recycling such as:
- Development, operation and upgrade of recycling (metals, plastic and paper) plants
- Facilities, systems and equipment that are used to divert waste from landfill.”
Another category is “Sustainable Water and Wastewater Management”.
According to Scotiabank, this is the largest Sustainability Bond issued by a Canadian Financial or Corporate to date. A portion of the proceeds of this bond would help advance women-owned and women-led businesses through the bank’s women initiative – a signature program that breaks down economic barriers for women through unbiased access to capital, specialized education and holistic advisory services and mentorship.
The bank launched its Sustainable Bond Framework in July 2021. “The framework has received a Second-Party Opinion from Sustainalytics, a global leader in ESG and Corporate Governance research and ratings, and is in line with the Green Bond Principles 2021, Social Bond Principles 2021, and the Sustainability Bond Guidelines 2021, as administered by the International Capital Market Association,” the information said.
Earlier this year, the bank had launched its inaugural Net Zero Research Fund as part of its commitment to pursuing net-zero targets and pathways. It was designed with the objectives of the Paris Agreement in mind to stimulate research, dialogue and understanding of the shift to a net-zero emission global economy. From the beginning of June until the beginning of July this year, the one million Dollar fund accepted applications from think tanks and academic institutions. These are supporting key sectors in their efforts to decarbonize the economy.
(Published in GLOBAL RECYCLING Magazine 3/2021, Page 3, Photo: Scotiabank)
