Private Sector Steps Towards Meeting the MDGs

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Private Sector Steps Towards Meeting the MDGs

• September13, 2005

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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

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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
• Scotiabanks contribution to the achievement of
  the MDGs is through its Corporate Social
  Responsibility (CSR) Strategy

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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

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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

Environment
Employees
Customers
CSR
Community
Governance
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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?

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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

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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

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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

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Scotiabank and the MDGs
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Scotiabank and the MDGs
Equator Principles Micro-finance Women

• Core
• Business
• Functions

MDGs
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Scotiabank and the MDGs Microfinance

• Microfinance
• Helps achieve a number of the MDGs

Eradication of extreme poverty and hunger
Empowering women
Reducing child mortality
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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.

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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

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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

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Business and the MDGs

• CONCLUSIONS
• www.scotiabank.com