Scotiabank Launches 2024 Net Zero Research Fund

On April 16, 2024, The Bank of Nova Scotiabank aka Scotiabank, one of the biggest Canadian multinational banking and financial services companies headquartered in Toronto, Ontario announced its acceptance of grant submissions across its operational footprint for the Net-Zero Research Fund. 

The press release states that organizations engaged in innovative research aimed at decarbonizing key sectors and facilitating the transition to a low-carbon economy can submit proposals for funding until May 28, 2024. 

Scotiabank’s Funding Range for 2024 

Scotiabank, with total assets of approximately $1.4 trillion as of January 31, 2024, is listed on both the Toronto Stock Exchange (TSX: BNS) and the New York Stock Exchange (NYSE: BNS)

Scotiabank’s grants will range from CAD $25,000 to CAD $100,000 for the year 2024. To qualify for support from the Scotiabank Net-Zero Research Fund (NZRF), eligible applicants must be registered charities or non-profit organizations.

It launched its bold $10 million Net-Zero Research Fund in 2021 as part of the Bank’s Climate Commitments. For the last three years, the bank has partnered with leading research and academic institutions to fund climate mitigation and sustainability research. 

Meanwhile, the bank has allocated CAD $3 million to over 30 registered charities and non-profit organizations involved in the climate sector. To qualify for funding through the Scotiabank NZRF, partner organizations must register as a charity or non-profit in their respective jurisdictions.

Submissions for the Scotiabank NZRF will undergo evaluation based on the following key criteria. 

1. Novelty: Firstly, emphasis will be placed on the novelty of the research, addressing gaps in current knowledge or understanding. 
2. Impact: Additionally, the potential impact of the research on sectoral, national, or global decarbonization endeavors, as well as its relevance to supporting financial institutions in these efforts, will be assessed. 
3. Expertise: Applicants’ climate change research expertise and organizational capacity to lead will be assessed. Projects must also provide clear deliverables, timelines, and budgets to qualify for funding. 

Study Scotiabank’s financing in the sustainability sector from the figure below:

source: Scotiabank, 2022 annual report

Projects in the pipeline…

Meigan Terry, Senior VP and Chief Social Impact, Sustainability and Communications Officer at Scotiabank.

“Climate change continues to be a major priority for Scotiabank and we are contributing to the development of sustainable options that help to advance a low-carbon economy,” 

For example, in 2023, Scotiabank awarded a grant to the University of Alberta to develop a net-zero vision and investigate transition pathways for Canada’s steel sector. 

Another recipient for 2022 was the Con Vida Foundation, a Colombian NGO dedicated to promoting sustainable, green avocado farming throughout the tropical Andes. The organization assesses the advantages of avocado crops mimicking a carbon sink across the region.

Various projects have received grants from the fund, including initiatives focused on 

• Expanding carbon sequestration.
• Enhancing greenhouse gas emissions measurement methodologies.
• Identifying policy and regulatory changes to expedite decarbonization.
• Stimulating demand for lower or zero-carbon technologies.

Navigating to Net Zero: All about Scotiabank’s Net-Zero Research Fund

Scotiabank has created the NZRF to facilitate the transition to a net-zero global economy by providing climate-related financing to clients in all sectors, including carbon-intensive sectors.

The bank’s prime mission is to advance to net zero by working with clients to achieve net-zero financed emissions by 2050. Furthermore, the company actively pursues emissions reduction efforts within its operations.

• MUST READ: How Will Canada’s Carbon Price Increase Affect You? (carboncredits.com)

The navigation pathways as highlighted by 2024 Scotiabank’s NZRF Submission Guide are:

1. Encouraging research and dialogue to transition towards achieving net-zero emissions globally by 2050 or earlier, aligning with the goals of the Paris Agreement.
2. Recognizing initiatives for investment to ease adoption or broaden the application scale.
3. Enhancing ties between academic and non-profit research institutions and the corporate sector through collaborative efforts and knowledge exchange.
4. Advancing the Bank’s climate change strategy and perspectives on the transition to a net-zero global economy.

Here’s the link to the submission guide: NZRF_2024_Guide_ENGLISH.pdf (scotiabank.com)

Scotiabank’s Sustainability Focused Lending and Investment Guide

Scotiabank plays a crucial role in facilitating the transition to a low-carbon future while fostering sustainable economic growth. Through its Sustainable Finance group, Scotiabank helps clients integrate sustainability into financing. It also aligns capital market outcomes with corporate sustainability goals. 

The bank identifies eligible environmental and social projects and provides financing solutions to boost sustainability. It subsequently evaluates the eligibility of these activities, thereby, significantly evolving in the sustainable finance landscape.

source: Scotiabank

Let’s hope Scotiabank delivers the best financing to support the most deserving applicant and achieves its goal of becoming a net zero bank by 2050.

• FURTHER READING: US EPA to Invest $20B in Climate and Clean Energy Projects for Underserved Communities (carboncredits.com)