THE BANK OF NOVA SCOTIA | Combating Forced Labour and Child Labour in the Loan and Investment Portfolios at THE BANK OF NOVA SCOTIA

Status
Withdrawn
AGM date
Previous AGM date
Resolution details
Company ticker
BNS
Lead filer
Mouvement d'éducation et de défense des actionnaires (MÉDAC)
Resolution ask
Report on or disclose
ESG theme
  • Social
ESG sub-theme
  • Human rights
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Financials
Company HQ country
Canada
Resolved clause
Be it proposed that, starting in 2027, the Bank produce a report for its shareholders and interested parties [stakeholders*] outlining the measures taken during the previous fiscal year to prevent and reduce the risk that loans may be granted to companies that rely on forced labour or child labour in the production of goods manufactured, purchased, or distributed by clients whose activities are financed by the Bank.
Supporting statement
On May 11, 2023, the Fighting Against Forced Labour and Child Labour in Supply Chains Act7 came into effect. This Act requires that certain companies report on their efforts to fight against forced labour and child labour, with the first of these reports due by May 31, 2024. While the purpose of this Act is to protect children from exploitation and human rights violations in supply chains, we propose that the Bank takes a proactive stance on this issue by publicly committing, as a responsible corporate entity, to prevent and reduce the risk that its loan and investment portfolio involves any form of support for companies that use forced labour or child labour in their commercial activities. It is important to us that the Bank adopt a more proactive approach for the following key reasons: 1. 2. 3. Financing, even indirectly, companies involved in forced child labour is inconsistent with Canadians’ core values, the banks’ public commitments to human rights and stakeholder expectations. Scandals related to forced labour can: • Trigger media scrutiny and boycott campaigns; • Cause lasting damage to the brand and public trust; • Undermine relationships with responsible institutional investors. Major institutional investors, particularly those committed to the Principles for Responsible Investment (PRI) and other ESG initiatives, expect robust management of human rights risks. Banks that are slow to act risk facing opposition votes at annual meetings and potential divestment. Quebec and Canada position themselves internationally as strong defenders of children’s rights and ethical values. As influential economic actors, the country’s banks have a responsibility to reflect these principles in their financial practices, thereby strengthening Canada’s credibility and influence. A proactive approach to reducing financing linked to forced child labour is not only a moral imperative; it is also a risk management strategy, a means of safegarding the Bank’s reputation, and a way to align with the expectations of investors and stakeholders. It enables Canadian banks to fulfill their role as responsible leaders in the global economy. This proposal received support from 21.02% of votes at the last Annual General Meeting. 7 https://www.parl.ca/legisinfo/en/bill/44-1/s-211

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