Manage our impact responsibly
Table of Contents
Maintain a foundation of trust
Obsessed with your success
Supplemental reporting
Overview
Appendices
FUTURE PRIORITIES
We are committed to continue to advance our risk management practices related to social and environmental risks. Our current focus is on climate risks and our upcoming priorities include: • Completion of an industry-level heatmap assessment to identify risks related to the physical and transition impacts of climate change within our lending portfolios; • Leveraging the heatmap to establish climate-related key risk metrics as part of the Enterprise Risk Appetite framework and identify business opportunities that are aligned with our risk appetite and climate-related risk profile; • Establishing reporting to identify and assess borrowers within industries or geographies that may be subject to elevated or emerging climate risks and develop monitoring capabilities; • Developing our capabilities to perform climate scenario analysis that incorporates short-, medium- and long-term impacts and plausible scenarios; and, • Continued collaboration with industry working groups to share insights and formulate best practise approaches to climate-related risk management.
Refer to our TCFD report on page 57 for further information on our approach to environmental risks specifically related to climate change.
Responsible procurement
To maintain strong ethical, social and environmental performance across our supply chain, we strive to work with partners and suppliers who operate in a manner that is aligned with our values and demonstrate responsible and sustainable business practices.
OUR SUPPLIER CODE OF CONDUCT
Our Procurement team governs our sourcing activities across a broad range of suppliers, and we continue to further integrate ESG considerations into our processes. Under our Third-party Risk Management program, we initiated a process to complete a risk-based assessment for all supplier engagements and those that are determined to be higher risk are subject to additional due diligence processes. During due diligence processes for higher risk engagements, we assess the supplier’s approach to specific ESG factors, including ethical business practices, policies and programs, corporate governance, and other areas of reputational or legal concern. We also screen our suppliers for money laundering, terrorist financing and economic sanctions. We expect our due diligence processes to evolve and increase in sophistication as we move forward.
In 2022, we initiated the development of our Supplier Code of Conduct, which is expected to be finalized in 2023. The principles of our Supplier Code will be aligned with our internal Code of Conduct and set out our expectations for our suppliers related to ethical business conduct, compliance with applicable legislation, responsible employment practices, and acting in an environmentally responsible manner. We are committed to work collaboratively with our suppliers through the implementation of our Supplier Code of Conduct to ensure adherence to our expectations.
55 2022 SUSTAINABILITY REPORT AND PUBLIC ACCOUNTABILITY STATEMENT
Powered by FlippingBook