Manage our impact responsibly
Table of Contents
Maintain a foundation of trust
Obsessed with your success
Supplemental reporting
Appendices and Glossary
Overview
Key roadmap areas of focus in 2023 included:
Manage our direct and indirect environmental impact:
Provide robust and transparent reporting of our progress:
• 2.6% reduction of our Scope 1 and 2 GHG emissions across our national operational footprint. • Development of an absolute Scope 1 and 2 GHG emissions reduction target of 42% by 2030 over our 2022 baseline, leveraging the guidance of the Science Based Targets initiative (SBTi) for targets in line with 1.5 o C of warming. • Improvement to our processes to estimate our Scope 3 Category 15 GHG emissions, commonly referred to as financed emissions, using the methodology developed by the Partnership for Carbon Accounting Financials (PCAF). • Refer to the Metrics and targets section for further information.
• Disclosure of initial estimates of financed emissions related to our residential mortgage and oil and gas extraction lending portfolios. • Continuous investment in our sustainability reporting processes and procedures informed by emerging voluntary standards and regulatory expectations. • We are committed to continue to enhance our climate change-related disclosures in alignment with the TCFD recommendations.
Continue to embed sustainability within our strategy:
Increase our capacity to assess and manage climate risks:
• Developed a climate-risk heat map as an initial assessment of the impact of physical and transition climate risks to key industries within our loan portfolio. • Continued to integrate social and environmental risk factors, including climate risk, into our existing Risk Management framework. • Refer to the Risk management section of our Climate related disclosures for further details.
• Refreshed our Sustainability Roadmap to incorporate expectations of the new Office of the Superintendent of Financial Institutions (OSFI) Guideline B-15 (Climate Risk Management). • Continued to have strong management and Board of Directors oversight of ESG factors, with quarterly sustainability discussions with the Board.
Enhancing our ability to identify climate risks and opportunities We recognize that not all sectors are impacted equally by climate risks and opportunities. In addition to continued efforts to measure and manage our own carbon footprint, which is further discussed in the Metrics and targets section, we are focused to develop a deeper understanding of the risks and opportunities that climate change presents for our clients. In 2023 we made progress on estimating our Scope 3 financed GHG emissions and developed an industry-level heatmap assessment to identify the physical and transition impacts of climate change within our lending portfolios. When considered together, this analysis provides direction for our Sustainability and GRM teams on how our lending portfolios may be impacted by climate risks as well as potential opportunities and areas to support our clients in their climate journeys, in alignment with our growth strategy and prudent risk appetite. We are committed to expand our knowledge and assess climate risks and opportunities as industry standards, data quality, tools and our approach mature.
61 2023 SUSTAINABILITY REPORT AND PUBLIC ACCOUNTABILITY STATEMENT
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