Equator Principles Implementation Report

This report serves as an implementation document for the Equator Principles (EPs) by the Bank of Nova Scotia, covering the period from November 1, 2022, to December 31, 2023. The EPs are a voluntary framework for environmental and social risk management in financing development projects. The report outlines the governance structures and risk management elements established by the Bank to identify and manage environmental, social, and governance (ESG) risks. It details the integration of EPs into the credit due diligence process, including the use of a detailed questionnaire and the involvement of the ESG Risk team. The report also highlights the dedicated resources and training provided to ensure compliance with the EPs. During the reporting period, fourteen project finance transactions and three project-related corporate loans were financed under the EP framework, with a breakdown of these transactions by risk category, sector, and region. Specific projects financed are also described, illustrating the application of the EPs in real-world scenarios.