1. 1 Private Sector Steps Towards Meeting the MDGs September13, 2005

2. 2 Summary of Presentation Introduction What is CSR? Business and the MDGs The Financial Sector and the MDGs Scotiabank and the MDGs The Equator Principles Microfinance Advancement of Women

3. 3 Introduction Scotiabank – A global company that operates in close to 50 countries, with branches in the Carribean, Central and South America 27% of earnings from international operations and 37% of employees Scotiabank’s contribution to the achievement of the MDGs is through its Corporate Social Responsibility (CSR) Strategy

4. 4 What is CSR? Scotiabank has adopted a stakeholder approach to CSR: “The way we interact with our stakeholders to meet our social, economic, environmental and ethical responsibilities”

5. 5 What is CSR? CSR is an umbrella concept that touches on a number of topics all of which are related to the MDGs, directly or indirectly: EmployeesCustomers Community Environment Governance CSR

6. 6 Business and the MDGs First step is to come up with a plan about how your company can contribute to the MDGs most effectively Key Questions for the company –How do you perceive your role in society? –What is your core business activity? –What are your greatest social and environmental risks and opportunities?

7. 7 The Financial Sector and the MDGs Financial Sector – Some MDG risks –Lack of qualified and healthy employees –Customer base without the tools, knowledge or trust necessary to use banking products –Market environment too unstable to support financial products and services

8. 8 The Financial Sector and the MDGs Financial Sector – Some MDG Opportunities –Grow client base through microfinance activities –Grow client base through offering affordable remittance process –Financing of renewable energies –Recruiting high-calibre employees

9. 9 The Financial Sector and the MDGs Methods for the Financial Sector to Address MDGs –Philanthropic activities –Affordable banking products / Microfinance –Providing financial education –Best practice in environmental and social standards for lending (e.g. the Equator Principles) –Best practice in environmental and social standards for supply chain management –Advancement of Women

10. 10 Scotiabank and the MDGs MDG Philan- thropic BNS Policies/Initiatives 1. Extreme poverty X Microfinance Strategy Access to Banking Strategy 2. Primary Education X 3. Gender Equality X Advancement of Women Strategy 4. Child Mortality X 5. Maternal Health X 6. AIDS and other X Currently under review 7. Environmental Sustainability X Equator Principles 8. Global Partnership for Development Equator Principles Supply Chain Standards

11. 11 Scotiabank and the MDGs Core Business Functions MDGs Equator Principles Micro-finance Women

12. 12 Scotiabank and the MDGs: Microfinance Microfinance Helps achieve a number of the MDGs: Eradication of extreme poverty and hunger Empowering women Reducing child mortality

13. 13 Scotiabank and the MDGs: Microfinance Microcredit is a small amount of money (as small as $50) loaned to a client (mostly women) by a bank or other institution. It can be offered, often without collateral, to an individual or through group lending. Microfinance is a bundle of financial services, such as credit, savings, insurance and remittances.

14. 14 Scotiabank and the MDGs: Microfinance Scotiabank Microfinance Activities –Microfinance activities in Jamaica and Guyana –Developing a Bank-wide strategy on microfinance –Founding member and Treasurer of UN International Year of Microcredit 2005, Canadian Steering Committee

15. 15 MDGs and Microfinance MicroEntreprise Financing Limited, Jamaica –Partnership between CIDA (start-up funding), Scotiabank (seed money) and a local organization to create MEFL –Based on group lending model –Clients also receive business and personal development training free of cost –Clients required to save a small percentage of profits –3,137 recipients to date since 2002

16. 16 Business and the MDGs CONCLUSIONS www.scotiabank.com