The Quest for the Theory of Everything in ESG an Evaluation of the Acceleration Toward Stakeholder Capitalism and Integrated Reporting

Home , Canadian Western Bank, Scotiabank

The Forces at Play – The Quest for the Theory of Everything in ESG An Evaluation of the Acceleration Toward Stakeholder Capitalism and Integrated Reporting

Patrick Bryden, CFA | Analyst 403-213-7750 Scotia Capital Inc. – Canada patrick.bryden@scotiabank.com

Klazina van den Berg | Senior Associate Nick Koch, MSc, P.Geo | Associate 416-862-3721 403-213-7754 Scotia Capital Inc. – Canada Scotia Capital Inc. – Canada April 2021

All currencies in Canadian dollars unless otherwise stated.

For Reg AC Certification and important disclosures see Appendix A of this report. Analysts employed by non-U.S. affiliates are not registered/qualified as research analysts with FINRA in the U.S. unless otherwise indicated in this report. Our Third Annual ESG Report

Source: Scotiabank GBM.

1 ESG Forces

Integrated Business & Government Market & Reporting Accounting & Policy Stakeholder

Source: Scotiabank GBM.

2 PRI Global Signatories – The Trend in AUM Continues to Defy Gravity

$110 14-Yr CAGR = 22% $100 $90 2020 $80 $70 R² = 0.96 $60 $50 $40 14-Yr CAGR = 32% AUM Trillion) AUM (USD $30 2006 $20 $10 $0 0 500 1,000 1,500 2,000 2,500 3,000 Number of Signatories

Source: UN PRI; Scotiabank GBM.

3 Sustainable Investing Assets by Strategy and Region (2018)

Source: 2018 Global Sustainable Investment Review (GSIA).

4 EV/EBITDA Multiples of the S&P/TSX Composite Index

50x

45x Comm. Services. Financials 40x Info. Tech. Cons. Disc. 35x Industrials 30x Health Care Real Estate Cons. Staples Materials 25x Utilities 20x

15x Energy

10x

Year Average EV/EBITDA Multiple Average EV/EBITDA Year -

5 5x

0x TSX Composite Companies Segmented by GICS Sectors and Ranked by EV/EBITDA Multiples

Source: Refinitiv; Scotiabank GBM.

5 Interest Levels in ESG over Time – Web Searches Worldwide

120

100

Interest Level Interest 40 Lockdowns in March 2020 20

0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source: Google Trends; Scotiabank GBM.

6 ESG Chaos

“We are in a state of ESG acceptance but also ESG chaos, because every firm is saying they do ESG, too.” – Buyside Investor

7 Aggregate Confusion: The Divergence of ESG Ratings

A paper by the MIT Sloan School of Management and University of Zurich showed how ratings from six different ratings agencies – KLD (MSCI Stats), Sustainalytics, Vigeo Eiris (Moody’s), RobecoSAM (S&P Global), Asset4 (Refinitiv), and MSCI Intangible Value Assessment – featured low correlations on aggregate ESG ratings and for each subset as follows:

8 ESG Forces

CDP CDSB GRI IIRC SASB Integrated Reporting Forces

WEF Big 4 IFAC IFRS IASB Business and Accounting Forces

UN EU USA CAN Others Government and Policy Forces

Capital Corporates Raters Stakeholders Public Market and Stakeholder Forces Market

Source: Scotiabank GBM.

9 The Quest for a Theory of Everything in ESG Business and Accounting Forces

WEF + Big 4 Five ESG Leaders IFRS

September 2020 September 2020 September 2020 White Paper Statement of Intent Consultation Paper

Aims for unified global Commitment to work Commitment to work reporting system for ESG together and align together and align

Source: Far left – World Economic Forum; middle – Impact Management Project, WEF, and Deloitte; far right – Copyright © 2020 IFRS® Foundation. Used with permission of the IFRS Foundation. All rights reserved.

11 How Standards and Frameworks Fit into Reporting Domains

Source: Impact Management Project; WEF; Deloitte.

12 Government and Policy Forces

EU Canada Other

European Green Deal Expert Panel on Australian Sustainable Sustainable Finance Finance Roadmap Non-financial Reporting Directive Leading Eight Pensions U.S. SEC

CSA Group CHN, GBR, JPN, NZL, etc.

Source: Far left – European Union; middle – Government of Canada; far right – Australian Sustainable Finance Initiative.

13 Case Studies in E, S, and G: Market and Stakeholder Forces at Work

We continue to take steps toward ESG integration in our Global Equity Research department. Our third annual ESG report offers targeted case studies that touch on examples of themes that are of crucial importance to all stakeholders today. Perspectives from our colleagues’ sector coverage are as follows: Environmental • Insights on Financial Institutions and the “E” of ESG – Meny Grauman, MA, CFA • Energy Transition Strategies Among Global Integrated Oil Companies – Paul Cheng, CFA • Corporate Leadership Through Disclosure: IGM Financial and Climate Change – Phil Hardie, P.Eng., MBA, CFA Social • COVID-19 and Inequality in LatAm: Elevating the “S” in ESG – Francisco Suarez • People, Planet, and Products: The Empire (Sobeys) Approach – Patricia Baker, MBA, PhD • Consequences of Mishandling Social Licence: Rio Tinto – Scotiabank GBM Mining and ESG Teams Governance • ESG Integration at Work: FirstEnergy Corp. – Andrew Weisel, CFA • ESG Integration at Work: SNC-Lavalin Group Inc. – Mark Neville, CFA

14 Environmental: Canada’s Climate Aims and Carbon Pricing Corridor

Strengthened Climate Plan – 2020: Components Strengthened Plan – 2020: Carbon Pricing Corridor

2015 - Base mtCO2e 815

Agriculture mtCO2e -2 1%

Transportation mtCO2e -12 4%

Land mtCO2e -27 9%

Waste and Other mtCO2e -28 9%

Buildings mtCO2e -44 14%

Heavy Industry mtCO2e -46 15%

Electricity mtCO2e -47 15%

Oil & Gas mtCO2e -104 34%

2030 - Target (New) mtCO2e 503 --

2030 - Target (Old) mtCO2e 511 -- 2030 - New vs. Old % -1.6% -- 2030 - New vs. Base % -38.3% -- 2030 - 15-yr CAGR (New) % -3.2% --

Source for both exhibits: Based on Environment and Climate Change Canada data; Scotiabank GBM.

15 Social: Correlations Between Diversity and Performance – Gender

Source: McKinsey & Company.

16 Social: Diversity Wins – Ethnicity

Source: McKinsey & Company.

17 Governance: S&P/TSX Composite – Gender Diversity, 2019

70 Comm. Services

60 Consumer Disc. Health Care Consumer Staples Industrials Real Estate Utilities 50 Financials Materials Energy Info Tech 40

20 % Gender % Gender Diversity (Female) 10

0 1 11 21 31 41 51 61 71 81 91 101 111 121 131 141 151 161 171 181 191 201 211 221 231 Number of Companies (Ranked High to Low by GICS Sector)

Board Executive

Source: Refinitiv; Scotiabank GBM.

18 Items Reported in Five-Year Data Set

Binary Affirmatives Numeric 140 140

120 120 5-Year Avg CAGR:10% 100 100

80 80

60 60

40 40 5-Year Avg CAGR:14%

Number of Items Reported Items of Number 20 20 Number of Items Reported Items of Number

0 0 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 Comm Services Cons Disc Comm Services Cons Disc Cons Staples Energy Cons Staples Energy Financials Health Care Financials Health Care Industrials Info Tech Industrials Info Tech Materials Real Estate Materials Real Estate Utilities Utilities

Source for both exhibits: Refinitiv; Scotiabank GBM.

19 Scotiabank GBM’s Leading and Trending ESG Equities

Leading (Flag Adjusted) Unadjusted Flag-Adjusted Total Total Company Industry Score Flags Company Industry Score • Canadian Imperial Bank of L Consumer Staples 81  CM Financials 75 Commerce (Financials) YRI Materials 80  CHP.UN Real Estate 75 CM Financials 75 AGI Materials 74 • Choice Properties REIT CHP.UN Real Estate 75 OTEX Information Technology 71 AGI Materials 74 REI.UN Real Estate 71 (Real Estate) RCI.B Communication Services 74  CVE Energy 71 OTEX Information Technology 71 ELD Materials 70 • Alamos Gold Inc. (Materials) REI.UN Real Estate 71 CRT.UN Real Estate 70 CVE Energy 71 CSH.UN Health Care 68 ELD Materials 70 CRT.UN Real Estate 70 CSH.UN Health Care 68

Trending (Flag Adjusted) Unadjusted Flag-Adjusted 1-Yr Over 1-Yr Over 5-Yr Avg 5-Yr Avg • Centerra Gold Inc. (Materials) Company Industry Increase Flags Company Industry Increase CG Materials 15 CG Materials 15 • Fortuna Silver Mines Inc. FVI Materials 13 FVI Materials 13 (Materials) CWB Financials 12 CWB Financials 12 CP Industrials 12   AGI Materials 11 AGI Materials 11 CPG Energy 11 • Canadian Western Bank CPG Energy 11 RNW Utilities 11 (Financials) RNW Utilities 11 NFI Industrials 11 NFI Industrials 11 NPI Utilities 10 NPI Utilities 10 REI.UN Real Estate 10 REI.UN Real Estate 10

Source: Refinitiv; Scotiabank GBM.

20 Additional Detail

Analytical Framework Examples, Observations and Conclusions, and Questions How the Scores Are Derived

Mechanics • Numerical items are ranked within each GICS sector on the basis of percentiles. • Percentiles are sorted into quartiles. • Aggregate policies and targets are ranked into quartiles, with positive data points being additive to scores. • Quartiles are assigned points: • Numerical items: +2 for top quartile, +1 for second quartile, -1 for third quartile, and -2 for fourth quartile. • Policies and targets: within each dimension of E, S, and G, the number of selected items that a company has implemented is summed and ranked versus its peers. Points are assigned as follows: +2 for top quartile, +1 for second quartile, -1 for third quartile, and -2 for fourth quartile within each E, S, and G dimension. • Numerical scores plus policy and target scores are aggregated to arrive at “total scores” for companies that have met a minimum threshold of disclosure (one-third of the numerical fields under study are assigned neither numerical nor total scores). • Normalized scores, ranging from 0 to 100, scale the company scores for comparability across sectors, based on the number of metrics evaluated under the framework for each one. • Overall rankings are established, with the companies ranked by total scores (composite only).

Note: The rankings and conclusions in this report are based on quantitative data. Scotiabank GBM’s covering fundamental analyst may issue a recommendation or publish opinions that differ from those in this report.

22 Rankings: Energy, One Year

ACE ACE ACE ACE (%) to ACE to ACE Board Social CO2e to to ACE Political Average EmployeeTurnover Executive RevenuesExecutive Executive Revenues Total Fresh Total Water Water Used Injuries Per Salary Gap Attendance CommitteeAttendance Total EnergyUse to ACE Energy Used Million Hours Diversity (%) Governance CO2e to ACE % Renewable Water to ACE Total TrainingCosts to ACE Board Gender Environmental NOx Emissions SOx Emissions Recycled to Total Total Waste to Total Donations Contributions to Average Board Accidental Spills Compensation to Compensation to Compensation to Gender Diversity Numerical Total Normalized Companies Environmental Social Governance ESG Targets and Policies Flags Score Score Score 1 CVE ------16 22 71 2 IPL ------17 14 63 3 PPL ------10 13 63 4 PXT -- -- 13 13 63 5 GEI ------6 11 61 6 CCO ------6 10 60  7 ARX ------8 9 59 8 ENB ------6 9 59   9 CPG ------4 8 58 10 IMO ------5 8 58  11 VII ------6 7 57 12 PKI ------5 5 55 13 SU -- -- 0 3 53  14 TRP ------3 3 53   15 TOU ------4 1 51 16 VET -- -2 1 51 17 CNQ ------4 0 50 18 HSE ------6 -1 49   19 PSK ------2 -1 49 20 MEG ------0 -2 48 21 WCP ------6 -8 42 22 ERF ------13 -10 40 23 KEY ------13 -19 32

AAV ------9 -14 37 AOI ------BIR ------1 -3 47 BTE ------6 -8 42 CNE -- -- 4 4 54 CR ------FRU ------GTE ------1 6 56 IPCO ------19 -15 36 KEL ------1 -4 46 NVA ------12 -10 40 OVV ------0 1 51 PEY ------3 -9 41 PL ------POU ------4 -10 40 SDE ------TOG ------5 -10 40 TPZ ------TWM ------12 -13 38

Source: Refinitiv; Scotiabank GBM.

23 Rankings: Energy, Five Years

ACE ACE ACE ACE (%) to ACE to ACE Board Social CO2e to to ACE Political Average EmployeeTurnover Executive RevenuesExecutive Executive Revenues Total Fresh Total Water Water Used Injuries Per Salary Gap Attendance CommitteeAttendance Total EnergyUse to ACE Energy Used Million Hours Diversity (%) Governance CO2e to ACE % Renewable Water to ACE Total TrainingCosts to ACE Board Gender Environmental NOx Emissions SOx Emissions Recycled to Total Total Waste to Total Donations Contributions to Average Board Accidental Spills Compensation to Compensation to Compensation to Gender Diversity Numerical Total 1-Yr vs Companies Environmental Social Governance ESG Targets and Policies Score Score 5-Yr Avg 1 CVE ------10 16 6 2 PPL ------14 16 -3 3 CCO ------7 13 -3 4 IMO ------6 12 -4 5 PXT ------6 10 3 6 TRP ------3 8 -5 7 SU ------2 7 -4 8 CNQ ------1 6 -6 9 ENB ------0 5 4 10 ARX ------1 3 6 11 MEG ------6 2 -4 12 VET -- -- 3 2 -1 13 TOU ------6 1 0 14 HSE ------5 0 -1 15 PKI ------1 -1 6 16 PSK ------4 -2 1 17 VII ------0 -2 9 18 CPG ------3 -3 11 19 KEY ------1 -5 -14 20 WCP ------1 -6 -2 21 ERF ------10 -8 -2 22 GEI ------23 IPL ------

AAV ------5 -6 -8 AOI ------BIR ------5 -1 -2 BTE ------5 -5 -3 CNE ------CR ------FRU ------GTE ------1 1 5 IPCO ------KEL ------NVA ------5 -5 -5 OVV ------3 7 -6 PEY ------6 -11 2 PL ------POU ------SDE ------TOG ------TPZ ------TWM ------

Source: Refinitiv; Scotiabank GBM.

24 Rankings: Financials, One Year

(%) ACE ACE ACE Social to ACE Board CO2e to Political Average EmployeeTurnover Executive RevenuesExecutive Executive Revenues Injuries Per Salary Gap Attendance CommitteeAttendance Governance Total EnergyUse to ACE Diversity (%) CO2e to ACE % RenewableEnergy Used Million Hours Total TrainingCosts to ACE Board Gender Environmental Total Donations Contributions to Average Board Compensation to Compensation to Compensation to Gender Diversity Numerical Total Normalized Companies Environmental Social Governance ESG Targets and Policies Flags Score Score Score 1 CM -- -- 16 20 75 2 BMO -- -- 8 13 66 3 MFC ------6 12 65 4 POW -- -- 4 10 63  5 CWB ------4 9 61 6 BNS ------3 8 60 7 RY -- -- 5 8 60 8 NA ------4 7 59 9 SLF ------0 6 58 10 IFC ------5 5 56 11 IGM -- -- -1 5 56  12 TD -- 1 3 54 13 BAM.A ------2 2 53 14 FFH ------4 0 50  15 IAG ------1 0 50 16 MIC ------2 0 50  17 CIX ------2 -1 49 18 EQB ------4 -1 49 19 HCG ------3 -1 49 20 LB ------0 -4 45 21 ONEX ------1 -4 45  22 GWO ------1 -7 41  23 SII ------7 -8 40 24 ECN ------6 -11 36 25 X ------10 -11 36 26 EFN ------9 -14 33

AD.UN ------2 -7 41 AGF.B ------1 0 50  FN ------ FSZ ------ GCG.A ------ TSU ------U ------

Source: Refinitiv; Scotiabank GBM.

25 Rankings: Financials, Five Years

ACE ACE ACE ACE to ACE Hours Board Social CO2e to Political Average Revenues EmployeeTurnover Executive Executive Salary Gap Attendance CommitteeAttendance Revenues Energy Used Diversity (%) Diversity (%) Governance CO2e to ACE % Renewable Total TrainingCosts to ACE Board Gender Environmental Contributions to Average Board Total Energy Use Compensation to Compensation to Compensation to Injuries Per Million Total Donations to Executive Gender Numerical Total 1-Yr vs Companies Environmental Social Governance ESG Targets and Policies Score Score 5-Yr Avg 1 CM ------12 18 2 2 RY ------9 14 -6 3 BMO ------5 11 2 4 MFC ------5 10 2 5 POW ------4 9 1 6 BNS ------3 8 0 7 TD -- -- 1 6 -3 8 NA ------1 5 2 9 IAG ------5 4 -4 10 SLF ------2 4 2 11 FFH ------6 3 -3 12 HCG ------1 3 -4 13 BAM.A ------2 2 0 14 LB ------4 2 -6 15 IFC ------2 1 4 16 MIC ------2 1 -1 17 IGM ------6 0 5 18 CWB ------3 -3 12 19 CIX ------5 -5 4 20 ONEX ------0 -5 1 21 GWO ------2 -7 0 22 X ------6 -7 -4 23 EFN ------8 -11 -3 24 ECN ------25 EQB ------26 SII ------

AD.UN ------6 -11 4 AGF.B ------1 0 0 FN ------FSZ ------GCG.A ------TSU ------U ------

Source: Refinitiv; Scotiabank GBM.

26 Rankings: Materials, One Year (Composite)

ACE ACE ACE ACE (%) to ACE to ACE Board Social CO2e to to ACE Political Average WasteRevenues to EmployeeTurnover Executive RevenuesExecutive Executive Revenues Total Fresh Total Water Water Used Injuries Per Salary Gap Attendance CommitteeAttendance Total EnergyUse to ACE Energy Used Million Hours Diversity (%) Governance CO2e to ACE % Renewable Water to ACE Total TrainingCosts to ACE Board Gender Environmental NOx Emissions SOx Emissions Recycled to Total Total Waste to Contributions to Average Board Total Hazardous Total Donations Compensation to Compensation to Compensation to Gender Diversity Numerical Total Normalized Companies Environmental Social Governance ESG Targets and Policies Flags Score Score Score 1 YRI -- -- 26 31 80  2 AGI -- -- 19 25 74 3 ELD ------16 21 70 4 LUN ------12 17 66   5 CG -- -- 10 16 65 6 K 9 15 64 7 OGC ------10 15 64 8 LUG ------13 13 63  9 SJ ------9 13 63 10 AEM -- 10 11 61 11 NGD ------7 10 60 12 FNV ------14 9 59 13 CAS ------5 8 58 14 FM ------5 8 58 15 PVG ------11 8 58 16 ABX ------1 7 57  17 CCL.B ------9 7 57  18 TECK.B -- 1 7 57  19 WPM ------12 7 57 20 MX ------4 5 55 21 FVI -- -- -2 4 54 22 HBM ------2 4 54  23 ITP ------0 4 54 24 OSB ------6 4 54 25 IFP ------3 3 53 26 NTR ------1 3 53 27 SSL ------7 3 53 28 SSRM ------0 3 53 29 TXG ------6 3 53 30 NG ------3 2 52 31 FR ------3 1 51 32 KL ------4 1 51 33 PAAS ------6 0 50 34 IMG -- -- -3 -1 49  35 IVN ------2 -1 49 36 CFP ------1 -2 48 37 DPM ------7 -2 48 38 WPK ------4 -2 48 39 TGZ ------2 -5 45 40 SVM ------5 -8 42 41 WFT -- -- -13 -8 42 42 WDO ------9 ------9 41 43 EDV ------7 -10 40 44 ERO ------9 -10 40 45 BTO ------13 -11 39 46 OR ------10 -13 38 47 EQX ------48 LIF ------49 MAG ------50 OSK ------51 SEA ------52 SIL ------

Source: Refinitiv; Scotiabank GBM.

27 Rankings: Materials, Five Years (Composite)

ACE ACE ACE ACE (%) to ACE to ACE Board Social CO2e to to ACE Political Average WasteRevenues to EmployeeTurnover Executive RevenuesExecutive Executive Revenues Total Fresh Total Water Water Used Injuries Per Salary Gap Attendance CommitteeAttendance Total EnergyUse to ACE Energy Used Million Hours Diversity (%) Governance CO2e to ACE % Renewable Water to ACE Total TrainingCosts to ACE Board Gender Environmental NOx Emissions SOx Emissions Recycled to Total Total Waste to Contributions to Average Board Total Hazardous Total Donations Compensation to Compensation to Compensation to Gender Diversity Numerical Total 1-Yr vs Companies Environmental Social Governance ESG Targets and Policies Score Score 5-Yr Avg 1 LUN ------21 26 -9 2 YRI ------17 23 8 3 FM ------12 17 -9 4 ELD ------12 16 5 5 OGC ------9 15 0 6 AGI ------9 14 11 7 NGD ------12 14 -4 8 AEM ------10 13 -2 9 MX ------9 11 -6 10 ABX ------4 10 -3 11 HBM ------3 9 -5 12 OSB ------7 9 -5 13 CAS ------3 8 0 14 FNV ------8 8 1 15 TECK.B -- -- 2 7 0 16 WPM ------10 7 0 17 IMG ------1 6 -7 18 K ------1 6 9 19 TGZ ------1 4 -9 20 WFT ------2 4 -12 21 IFP ------1 2 1 22 SSRM ------0 2 1 23 CG ------4 1 15 24 PAAS ------5 -1 1 25 CFP ------4 -2 0 26 FR ------4 -3 4 27 DPM ------9 -4 2 28 FVI ------11 -9 13 29 BTO ------30 CCL.B ------31 EDV ------32 EQX ------33 ERO ------34 ITP ------35 IVN ------36 KL ------37 LIF ------38 LUG ------39 MAG ------40 NG ------41 NTR ------42 OR ------43 OSK ------44 PVG ------45 SEA ------46 SIL ------47 SJ ------48 SSL ------49 SVM ------50 TXG ------51 WDO ------52 WPK ------

Source: Refinitiv; Scotiabank GBM.

28 Rankings: Real Estate, One Year

ACE ACE ACE ACE to ACE Hours Board Social CO2e to Political Average Revenues EmployeeTurnover Executive Executive Salary Gap Attendance CommitteeAttendance Revenues Energy Used Diversity (%) Diversity (%) Governance CO2e to ACE % Renewable Total TrainingCosts to ACE Board Gender Environmental Contributions to Average Board Total Energy Use Compensation to Compensation to Compensation to Injuries Per Million Total Donations to Executive Gender Numerical Total Normalized Companies Environmental Social Governance ESG Targets and Policies Flags Score Score Score 1 CHP.UN ------14 20 75 2 REI.UN ------11 17 71 3 CRT.UN ------15 16 70 4 FCR.UN ------8 11 64 5 HR.UN ------5 10 63   6 CAR.UN ------1 7 59 7 AP.UN ------5 6 58 8 BEI.UN ------1 6 58 9 CRR.UN ------1 6 58  10 DIR.UN ------4 6 58 11 AIF ------1 3 54 12 NVU.UN ------2 3 54  13 TCN ------2 3 54  14 AX.UN ------6 2 53 15 CUF.UN ------5 2 53  16 GRT.UN ------3 1 51 17 IIP.UN ------4 0 50 18 SRU.UN ------1 -2 48 19 CIGI ------2 -3 46 20 REAL ------2 -3 46 21 KMP.UN ------7 -4 45 22 D.UN ------7 -5 44 23 SMU.UN ------1 -6 43 24 FSV ------5 -7 41 25 BPY.UN ------26 NWH.UN ------27 WIR.U ------

APR.UN ------ERE.UN ------HOT.UN ------MI.UN ------MRT.UN ------SGR.U ------SVI ------

Source: Refinitiv; Scotiabank GBM.

29 Rankings: Real Estate, Five Years

ACE ACE ACE ACE to ACE Hours Board Social CO2e to Political Average Revenues EmployeeTurnover Executive Executive Salary Gap Attendance CommitteeAttendance Revenues Energy Used Diversity (%) Diversity (%) Governance CO2e to ACE % Renewable Total TrainingCosts to ACE Board Gender Environmental Contributions to Average Board Total Energy Use Compensation to Compensation to Compensation to Injuries Per Million Total Donations to Executive Gender Numerical Total 1-Yr vs Companies Environmental Social Governance ESG Targets and Policies Score Score 5-Yr Avg 1 FCR.UN ------8 13 -2 2 BEI.UN ------6 12 -6 3 CUF.UN ------11 10 -8 4 HR.UN ------5 10 0 5 CRR.UN ------3 9 -3 6 AP.UN ------3 8 -2 7 D.UN ------1 7 -12 8 NVU.UN ------2 7 -4 9 REI.UN ------2 7 10 10 CAR.UN ------3 5 2 11 TCN ------2 5 -2 12 CIGI ------1 3 -6 13 AX.UN ------0 1 1 14 SRU.UN ------4 0 -2 15 GRT.UN ------5 -1 2 16 FSV ------3 -4 -3 17 AIF ------18 BPY.UN ------19 CHP.UN ------20 CRT.UN ------21 DIR.UN ------22 IIP.UN ------23 KMP.UN ------24 NWH.UN ------25 REAL ------26 SMU.UN ------27 WIR.U ------

APR.UN ------ERE.UN ------HOT.UN ------MI.UN ------MRT.UN ------SGR.U ------SVI ------

Source: Refinitiv; Scotiabank GBM.

30 Observations and Conclusions

• Change takes time, although momentum is building. While the needle has moved on several items, with increased attention, disclosure, and conversation, much of the work is individualized and fragmented, and the industry as a whole needs time to coalesce and become more focused and standardized. Momentum continues to grow in the space, but there is still much room for improvement. • An under-researched area of investigation. The sell-side, positioned between companies and investors, is well positioned to identify, evaluate, and contextualize issues. Big data, artificial intelligence, and analytics will likely figure prominently in the search for further alpha, and the sell-side could potentially assist in catalyzing these opportunities. • Disclosure is improving and can yield valuable insights. While there are still large gaps in both the quantity and the quality of disclosure, an (informal) iterative process is underway whereby the data set is improving. That said, even today, we believe ESG data sets contain many important tipping points for investment mosaics that can often help explain why companies merit premium or discount valuations. Further, in this period where companies are becoming more thoughtful about ESG measures and their disclosures are increasing, yet data remains largely disaggregated and challenging to compare between peers, there is increasing opportunity for alpha for those investors willing to do the work. • Disclosure of quantifiable metrics suggests confidence in business fundamentals. Calculable, material measures offer the greatest insights into the efficiency and performance trends of a business. We believe these trends are important, given that each new data point sheds additional light on the previous one and encourages businesses operations to strive for greater achievements.

31 Observations and Conclusions

• Quality of disclosure is key, but non-disclosure can also be revealing. What is missing (and material) is often as telling as what is present. Lack of disclosure highlights some of the limitations associated with analyzing companies based on ESG performance, such as the cost to track and report on ESG metrics. Although poor performers can attempt to conceal themselves behind the curtain of non-disclosure, a lack of disclosure may itself be a red flag. • Disclosure is an opportunity. Increased disclosure should not be viewed by firms merely as a cost with no benefit but rather as an opportunity to build a case for a higher multiple from the market and for a company to effectively differentiate itself from its peers. • Theory and practice suit long-term investors. Companies that are deliberate and engaged vis-à-vis ESG topics likely also approach other areas of their business in the same way. • Other segments of the marketplace are more interested in ESG than expected. Markets today incorporate new information rapidly, and seemingly small indicators can be material, with big impacts. Ultimately, ESG factors can offer an edge, and competitors from all corners of the market have moved to capitalize on opportunities. • It starts with governance. While environmental and social issues tend to dominate the headlines, governance is crucial and has a real impact on the other two components. In particular, alignment and diversity are subject to much scrutiny; investors want trustworthy, yet agile, boards. Compensation motivates behaviour, and we believe firms with better alignment characteristics are poised to perform better over the long term. Meanwhile, enterprises that minimize unconscious bias and maximize different points of view that challenge groupthink are stronger, more nimble businesses.

32 Observations and Conclusions

• Ongoing discourse should move the needle further; it is still early days. Scrutiny is heightened in today’s investment world. As investors and corporates alike broaden their viewpoints around value and what constitutes long-term sustainability, ongoing dialogue should, over time, lead to more unity and a clearer path forward. A common language is important, and ESG reporting is increasingly becoming more standardized, with the many frameworks, mechanisms, ratings agencies, and recommendations working together to make their processes more streamlined and complementary to one another. • ESG integration is becoming an expectation. While incorporating ESG into investment and corporate decision-making can be challenging owing to the lack of clear information or direction, in our view, the struggle is worth it, and investors and corporates that either give up or take a half-hearted approach will end up being left behind. For corporates and investors alike, there are opportunities to embed ESG integration and considerations into each stage of disciplined decision-making processes to ensure that ESG risks are being appropriately considered and incorporated into longer-term strategies. • Integrated reporting is an exciting prospect but must be handled with care. While possible mandatory integrated sustainability reporting has the potential to drastically improve the accuracy and usefulness of data, it also has the potential to be misguided and prolong the process of materiality identification within and across sectors. When mandating sustainability reporting requirements across a diverse range of companies, the balancing act will be ensuring that material sector-specific metrics are included without unnecessarily sacrificing broad cross-sector analysis. This will require meaningful dialogue between regulators, issuers, different capital markets, and end-users.

33 Questions Appendix A: Important Disclosures

Company Disclosures (see legend below)*

Alamos Gold Inc. VS0445, VS0534, VS0603 Canadian Imperial Bank of Commerce G, HH, I, O1, O3, U Canadian Pacific Railway Limited I, O3, VS0609 Canadian Western Bank G, I, J, O3, U, V0155 Cenovus Energy Inc. G, N1, O3, U Centerra Gold Inc. C6, VS0216 Chartwell Retirement Residences HH Choice Properties REIT G, I, U Crescent Point Energy Corp. J, V0151, V0168 CT REIT I, J Eldorado Gold Corporation VS0006, VS0466, VS0626 Fortuna Silver Mines Inc. G, I, U Loblaw Companies Limited B28, G, I, U NFI Group Inc. G, I, J, O1, O4, U Northland Power Inc. O1 Open Text Corporation O3 RioCan REIT G, I, U Rogers Communications Inc. E1, G, I, N1, O1, U TransAlta Renewables Inc. HH Yamana Gold Inc. VS0186, VS0644

I, Patrick Bryden, certify that (1) the views expressed in this report in connection with securities or issuers that I analyze accurately reflect my personal views and (2) no part of my compensation was, is, or will be directly or indirectly, related to the specific recommendations or views expressed by me in this report. This document has been prepared by Research Analysts employed by The Bank of Nova Scotia and/or its affiliates. The Bank of Nova Scotia, its subsidiaries, branches and affiliates are referred to herein as "Scotiabank." "Scotiabank" together with "Global Banking and Markets" is the marketing name of the global corporate and investment banking and capital markets business of The Bank of Nova Scotia and its affiliates. Scotiabank, Global Banking and Markets produces research reports under a single marketing identity referred to as "globally branded research" under U.S rules. This research is produced on a single global research platform with one set of rules which meet the most stringent standards set by regulators in the various jurisdictions in which the research reports are produced. In addition, the Research Analysts who produce the research reports, regardless of location, are subject to one set of policies designed to meet the most stringent rules established by regulators in the various jurisdictions where the research reports are produced. Scotiabank relies on information barriers to control the flow of non-public or proprietary information contained in one or more areas within Scotiabank into other areas, units, groups or affiliates of Scotiabank. In addition, Scotiabank has implemented procedures to prevent research independence being compromised by any interactions they may have with other business areas of The Bank of Nova Scotia. The compensation of the Research Analyst who prepared this document is determined exclusively by Scotiabank Research Management and senior management (not including investment or corporate banking). Research Analyst compensation is not based on investment or corporate banking revenues; however, compensation may relate to the revenues of Scotiabank as a whole, of which investment banking, corporate banking, sales and trading are a part. Scotiabank Research will initiate, update and cease coverage solely at the discretion of Scotiabank Research Management. Scotiabank Research has independent supervisory oversight and does not report to the corporate or investment banking functions of Scotiabank. For Scotiabank, Global Banking and Markets Research Analyst Standards and Disclosure Policies, please visit www.gbm.scotiabank.com/disclosures. For additional questions, please contact Scotiabank, Global Banking and Markets Research, 4 King St W, 12th Flr, Toronto, Ontario, M5H 1A1.

35 *Legend

B28 Scott B. Bonham is a director of Loblaw Companies Limited and is a director of The Bank of Nova Scotia. C6 Research Associate Li Hua received remuneration from Centerra Gold Inc. in the past 12 months. E1 The common shares of this issuer are non-voting shares. G Scotia Capital (USA) Inc. or its affiliates has managed or co-managed a public offering in the past 12 months. HH The Head of Equity Research or a Supervisory Analyst owns securities of this issuer in his or her own account or in a related account. I Scotia Capital (USA) Inc. or its affiliates has received compensation for investment banking services in the past 12 months. J Scotia Capital (USA) Inc. or its affiliates expects to receive or intends to seek compensation for investment banking services in the next 3 months. N1 Scotia Capital (USA) Inc. had an investment banking services client relationship during the past 12 months. O1 Scotia Capital Inc. and its affiliates collectively beneficially own in excess of 1% of one or more classes of the issued and outstanding equity securities of this issuer. O3 The Bank of Nova Scotia and its affiliates collectively have a net long position in excess of 0.5% of the total issued share capital of the issuer. O4 The Bank of Nova Scotia and its affiliates collectively have a net short position in excess of 0.5% of the total issued share capital of the issuer. U Within the last 12 months, Scotia Capital Inc. and/or its affiliates have undertaken an underwriting liability with respect to equity or debt securities of, or have provided advice for a fee with respect to, this issuer. V0151 Scotia Capital Inc. is acting as financial advisor to Crescent Point Energy Corp in connection with the announced sale of its southeast Saskatchewan non-core assets. V0155 Scotia Capital Inc. acted as financial advisor to iA Financial Corporation Inc. in the announced sale of iA Investment Counsel Inc. to Canadian Western Bank. V0168 Scotia Capital Inc. is acting as financial advisor to Crescent Point Energy Corp. in relation to the announced acquisition of the Kaybob Duverney Assets from Shell Canada Energy, an affiliate of Royal Dutch Shell plc. VS0006 Research Analyst Tanya Jakusconek visited Efemcukuru, Kisladag, Perama Hill, Olympias, Skouries, Piavitsa, and Stratoni, operating mines and projects under development, on October 1-5, 2012. The issuer paid for a portion of the travel-related expenses incurred by the Research Analyst to visit the sites. VS0186 Research Analyst Tanya Jakusonek visited Canadian Malartic, a producing mine, on September 30, 2014. The issuer paid for all of the travel-related expenses incurred by the Research Analyst to visit the site. VS0216 Research Analyst Trevor Turnbull visited the Kumtor mine, an operating mine, on June 15 to 17, 2009. The issuer paid for a portion of the travel-related expenses incurred by the Research Analyst to visit the site. VS0445 Research Analyst Trevor Turnbull visited Mulatos, an operating mine, on January 11, 2017. The issuer paid for a portion of the travel-related expenses incurred by the Research Analyst to visit the site. VS0466 Research Analyst Tanya Jakusconek visited Skouries, a development asset, and Olympias, a producing asset, on June 8, 2017. The issuer paid for a portion of the travel-related expenses incurred by the Research Analyst to visit the site. VS0534 Research Analyst Trevor Turnbull visited the Island Gold Mine, an underground gold mine and processing plant in Dubreuilville, Ontario, on May 30, 2018. The issuer did not pay for any of the travel-related expenses incurred by the Research Analyst to visit the site. VS0603 Research Associate James Huntington visited Young Davidson and Island Gold, gold mines in Kirkland Lake and Wawa Ontario, on June 11-12, 2019. The issuer paid for a portion of the travel-related expenses incurred by the Research Associate to visit the site.

36 VS0609 Research Analyst Konark Gupta visited CP Railway’s Calgary-area operations on October 3 and 4, 2018. The issuer did not pay for any of the travel-related expenses incurred by the Research Analyst to visit the site.

VS0626 Research Analyst Tanya Jakusconek visited Eldorado Gold's Lamaque Mine in Val d'Or, Quebec on September 10, 2019. The issuer paid for a portion of the travel- related expenses incurred by the Research Analyst to visit the site. VS0644 Research Analyst Tanya Jakusconek visited Yamana's Jacobina mine in Brazil, on October 1-3, 2019. The issuer paid for a portion of the travel-related expenses incurred by the Research Analyst to visit the site.

37 Definition of Scotiabank, Global Banking and Markets Equity Research Ratings

Scotiabank has a three-tiered rating system, with ratings of Sector Outperform, Sector Perform, and Sector Underperform. Each Research Analyst assigns a rating that is relative to his or her coverage universe or an index identified by the Research Analyst that includes, but is not limited to, stocks covered by the Research Analyst. The rating assigned to each security covered in this report is based on the Scotiabank, Global Banking and Markets Research Analyst’s 12-month view on the security. Research Analysts may sometimes express in research reports shorter-term views on these securities that may impact the price of the equity security in a manner directly counter to the Research Analyst’s 12-month view. These shorter-term views are based upon catalysts or events that may have a shorter-term impact on the market price of the equity securities discussed in research reports, including but not limited to the inherent volatility of the marketplace. Any such shorter-term views expressed in research report are distinct from and do not affect the Research Analyst’s 12-month view and are clearly noted as such. Ratings

Sector Outperform (SO) Other Ratings The stock is expected to outperform the average 12-month total return of the analyst’s coverage universe or an Under Review – The rating has been temporarily placed index identified by the analyst that includes, but is not limited to, stocks covered by the analyst. under review, until sufficient information has been Sector Perform (SP) received and assessed by the analyst. The stock is expected to perform approximately in line with the average 12-month total return of the analyst’s Tender – As of January 25, 2021, Scotiabank GBM coverage universe or an index identified by the analyst that includes, but is not limited to, stocks covered by the discontinued the Tender rating. analyst. Risk Ranking Sector Underperform (SU) The Speculative risk ranking reflects exceptionally The stock is expected to underperform the average 12-month total return of the analyst’s coverage universe or an high financial and/or operational risk, exceptionally index identified by the analyst that includes, but is not limited to, stocks covered by the analyst. low predictability of financial results, and exceptionally Focus Stock (FS) high stock volatility. The Director of Research and the As of April 29, 2019, Scotiabank GBM discontinued the Focus Stock rating. A stock assigned this rating Supervisory Analyst jointly make the final determination represented an analyst’s best idea(s); stocks in this category were expected to significantly outperform the of the Speculative risk ranking. average 12-month total return of the analyst’s coverage universe or an index identified by the analyst that included, but was not limited to, stocks covered by the analyst. Scotiabank, Global Banking and Markets Equity Research Ratings Distribution*

Distribution by Ratings and Equity and Equity-Related Financings* 60% Percentage of companies covered by Scotiabank, Global Banking and Markets Equity 48.9% Research within each rating category. 44.7%

40% Percentage of companies within each rating category for which Scotiabank, Global Banking and Markets has undertaken an underwriting liability or has provided advice for a fee within the last 12 months.

20%

6.4% For the purposes of the ratings distribution disclosure FINRA requires members who use 30.8% 24.4% 2.9% a ratings system with terms different than “buy,” “hold/neutral” and “sell,” to equate their 0% Sector Outperform Sector Perform Sector own ratings into these categories. Our Sector Outperform, Sector Perform, and Sector Underperform Underperform ratings are based on the criteria above, but for this purpose could be equated * As of February 28, 2021. Source: Scotiabank GBM. to buy, neutral and sell ratings, respectively.

38 General Disclosures

This document is for distribution only as may be permitted by law. It is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or would subject Scotiabank to any registration or licensing requirement within such jurisdiction. It is published solely for information purposes; it is not an advertisement nor is it a solicitation or an offer to buy or sell any financial instruments or to participate in any particular trading strategy. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained in this document except with respect to information concerning Bank of Nova Scotia (TSX: BNS; NYSE: BNS). This document is not intended to be a complete statement or summary of the securities, markets or developments referred to in this document. Scotiabank does not undertake to update or keep current the information contained herein, nor make any commitment as to the frequency of publication. If you are affected by MiFID II, you must advise us in writing at [email protected]. Any opinions expressed in this document may change without notice and may differ or be contrary to opinions expressed by other business areas or groups of Scotiabank. Any statements contained in this document attributed to a third party represent Scotiabank’s interpretation of the data, information and/or opinions provided by that third party either publicly or through a subscription service, and such use and interpretation have not been reviewed by the third party. Nothing in this document constitutes a representation that any investment strategy or recommendation is suitable or appropriate to an investor's individual circumstances or otherwise constitutes a personal recommendation. Investments involve risks, and investors should exercise prudence and their own independent judgement in making their investment decisions and carefully consider any risks involved. The financial instruments that may be described in this document may not be eligible for sale in all jurisdictions or to certain categories of investors. Instruments such as options, derivative products, and futures are not suitable for all investors, and trading in these instruments is considered risky. Mortgage and asset-backed securities may involve a high degree of risk and may be highly volatile in response to fluctuations in interest rates or other market conditions. Foreign currency rates of exchange may adversely affect the value, price, or income of any security or related instrument referred to in this document. For investment advice, trade execution, or other enquiries, clients should contact their local sales representative. The value of any investment or income may go down as well as up, and investors may not get back the full amount invested. Past performance is not necessarily a guide to future performance. To the full extent permitted by law, neither Scotiabank nor any of its directors, employees or agents accepts any liability whatsoever for any direct or consequential loss arising from any use of the information or this document. Nothing in this document constitutes financial, investment, tax, accounting or legal advice. Investors should seek their own legal, financial and tax advice regarding the appropriateness of investing in any securities or pursuing any strategies discussed in the document. Any prices stated in this document are for information purposes only and do not represent real-time valuations for individual securities or other financial instruments. There is no representation that any transaction can or could have been effected at those prices, and any prices do not necessarily reflect Scotiabank's internal books and records or theoretical model-based valuations and may be based on certain assumptions. Different assumptions by Scotiabank or any other source may yield substantially different results. All pricing of securities in reports is based on the closing price of the securities' principal marketplace on the night before the publication date, unless otherwise explicitly stated. The Research Analyst(s) responsible for the preparation of this document may interact with trading desk personnel, sales personnel and other parties for the purpose of gathering, applying and interpreting market information. In the normal course of offering investment and banking products and services to clients, Scotiabank may act in several capacities (including issuer, market maker, underwriter, distributor, index sponsor, swap counterparty, and calculation agent) simultaneously with respect to a product, giving rise to potential conflicts of interest. Scotiabank uses controls such as information barriers to manage conflicts should they arise. Scotiabank and its affiliates, officers, directors, and employees may have long or short positions (including hedging and trading positions), trade as principal and buy and sell in instruments or derivatives identified herein; such transactions or positions may be inconsistent with the opinions expressed in this document. Recipients of this document should expect that Scotiabank will from time to time perform services (including investment banking or capital market services) in connection with the services and activities described in this document and that they may perform services for and engage in transactions with other market participants, including the issuers of certain of the investments underlying the transactions herein.

39 The information in this document has been prepared without taking into account any investor's objectives, financial situation or needs, and investors should, before acting on the information, conduct independent due diligence when making an investment decision and consider the appropriateness of the information, having regard to their objectives, financial situation and needs. For further information, please contact your sales representative. Scotiabank specifically prohibits the redistribution of this document in whole or in part without Scotiabank's prior written permission, and Scotiabank accepts no liability whatsoever for the actions of third parties in this respect. Images may depict objects or elements that are protected by third-party copyright, trademarks and other intellectual property rights. Equity research reports published by Scotiabank are initially and simultaneously made available electronically to intended recipients through its proprietary research website, ScotiaView, e-mail, and through third-party aggregators. The mediums in which research is disseminated to clients may vary depending on client preference as to the frequency and manner of receiving research reports. Institutional clients with questions regarding distribution of equity research or who wish to access the proprietary model used to produce this report should contact Scotiabank at 1-800-208-7666. As of April 29, 2020, in line with U.S. market practice and in compliance with all applicable regulatory requirements, Scotiabank, Global Banking and Markets discontinued its policy application of IIROC Rule 3400 (13), the site visit disclosure requirement, for Analysts employed by Scotia Capital (USA) Inc., its U.S. affiliate. A list of all investment recommendations in an equity security or issuer that have been disseminated during the preceding 12 months is available at the following location: gbm.scotiabank.com/disclosures.

40 Additional Disclosures

Australia: This report is provided in Australia by the Bank of Nova Scotia, an APRA-regulated Authorised Deposit-Taking Institution (Foreign Bank ADI) holding an Australian Financial Services License (AFSL). Canada: Distributed to eligible Canadian persons by Scotia Capital Inc., a registered investment dealer in Canada. Chile: This report is distributed by Scotia Corredora de Bolsa Chile Limitada, a subsidiary of The Bank of Nova Scotia. Colombia: This report is distributed in Colombia by Scotiabank Colpatria, S.A. as authorized by the Superintendencia Financiera de Colombia to The Bank of Nova Scotia (“Scotiabank”). Scotiabank and Scotia Capital Inc. promote and advertise their products and services through Scotiabank Colpatria, S.A. This document does not contain any type of investment advice nor does it aim to provide advice. This report is prepared by analysts employed by The Bank of Nova Scotia and certain of its affiliates, including Scotia Capital Inc. Hong Kong: This report is distributed by The Bank of Nova Scotia Hong Kong Branch, which is authorized by the Securities and Future Commission to conduct Type 1, Type 4 and Type 6 regulated activities and regulated by the Hong Kong Monetary Authority. Japan: This research report is provided for information purposes only and it is not intended to solicit any orders for securities transactions or commodities futures contracts. While we believe that the data and information contained in this research report are obtained from reliable sources, we do not guarantee the accuracy or completeness of the data and information. Mexico: The information contained in this report is for informational purposes only and is not intended to influence the decision of the addressee in any way whatsoever with respect to an investment in a certain type of security, financial instrument, commodity, futures contract, issuer, or market, and is not to be construed as an offer to sell or a solicitation of an offer to buy any securities or commodities futures contracts. Scotia Inverlat Casa de Bolsa, S.A. de C.V., Grupo Financiero Scotiabank Inverlat, is not responsible for the outcome of any investment performed based on the contents of this research report. Peru: This report is distributed by Scotia Sociedad Agente de Bolsa S.A., a subsidiary of The Bank of Nova Scotia. This report is prepared by analysts employed by The Bank of Nova Scotia and certain of its affiliates, including Scotia Capital Inc. Singapore: For investors in the Republic of Singapore, this document is provided via an arrangement with BNS Asia Limited pursuant to Regulation 32C of the Financial Advisers Regulations. The material contained in this document is intended solely for accredited, expert or institutional investors, as defined under the Securities and Futures Act (Chapter 289 of Singapore). If there are any matters arising from, or in connection with this material, please contact BNS Asia Limited, located at 1 Raffles Quay, #20-01 North Tower, One Raffles Quay, Singapore 048583, telephone: +65 6305 8388. This document is intended for general circulation only and any recommendation that may be contained in this document concerning an investment product does not take into account the specific investment objectives, financial situation, or particular needs of any particular person, and advice should be sought from a financial adviser based in Singapore regarding the suitability of the investment product, taking into account the specific investment objectives, financial situation, or particular needs of any person in receipt of the recommendation, before the person makes a commitment to purchase the investment product. BNS Asia Limited and/or its affiliates may have in the past done business with or may currently be doing or seeking to do business with the companies or issuers covered in this report. The information provided or to be provided or actions taken by or to be taken by BNS Asia Limited and/or its affiliates in such circumstances may be different from or contrary to the discussion set out in this report. United Kingdom and the rest of Europe: Except as otherwise specified herein, this material is distributed by Scotiabank Europe plc to persons who are eligible counterparties or professional clients. Scotiabank Europe plc is authorized by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. United States: United States: Distributed to U.S. persons by Scotia Capital (USA) Inc. or by an authorized subsidiary or affiliate of The Bank of Nova Scotia that is not registered as a U.S. broker-dealer (a ‘non-U.S. affiliate’) to major U.S. institutional investors only. Scotia Capital (USA) Inc. accepts responsibility for the content of a document prepared by its non-U.S. affiliate (s) when distributed to U.S. persons by Scotia Capital (USA) Inc. To the extent that a U.S. person wishes to transact in the securities mentioned in this document through Scotiabank, such transactions must be effected through Scotia Capital (USA) Inc., and not through a non-U.S. affiliate. The information in this document has not been approved, disapproved, or recommended by the U.S. Securities and Exchange Commission (“SEC”), any state securities commission in the United States or any other U.S. or non-U.S. regulatory authority. None of these authorities has passed on or endorsed the merits or the accuracy or adequacy of this document. Any representation to the contrary is a criminal offense in the United States.

41 ™ Trademark of The Bank of Nova Scotia. Used under license, where applicable. Scotiabank, together with "Global Banking and Markets," is a marketing name for the global corporate and investment banking and capital markets businesses of The Bank of Nova Scotia and certain of its affiliates in the countries where they operate, including Scotia Capital Inc., Scotia Capital (USA) Inc., Scotiabank Europe plc, Scotiabank (Ireland) Designated Activity Company, Scotiabank Inverlat S.A., Institución de Banca Múltiple, Grupo Financiero Scotiabank Inverlat, Scotia Inverlat Casa de Bolsa S.A. de C.V., Grupo Financiero Scotiabank Inverlat, Scotia Inverlat Derivados S.A. de C.V. – all members of the Scotiabank Group and authorized users of the mark. The Bank of Nova Scotia is incorporated in Canada with limited liability. Scotia Capital Inc. is a member of the Canadian Investor Protection Fund and regulated by the Investment Industry Regulatory Organization of Canada. Scotia Capital (USA) Inc. is a broker-dealer registered with the SEC and is a member of FINRA, NYSE, NFA and SIPC. Scotiabank Europe plc is authorized by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Scotiabank Inverlat, S.A., Institución de Banca Múltiple, Grupo Financiero Scotiabank Inverlat , Scotia Inverlat Casa de Bolsa, S.A. de C.V., Grupo Financiero Scotiabank Inverlat, and Scotia Inverlat Derivados, S.A. de C.V., are each authorized and regulated by the Mexican financial authorities.

© The Bank of Nova Scotia 2021 This report and all the information, opinions, and conclusions contained in it are protected by copyright. This report may not be reproduced in whole or in part, or referred to in any manner whatsoever, nor may the information, opinions, and conclusions contained in it be referred to without the prior, express consent of Scotiabank, Global Banking and Markets. The Bank of Nova Scotia, Scotiabank, and Global Banking and Markets logo and names are among the registered and unregistered trademarks of The Bank of Nova Scotia. All rights reserved.

™ Trademark of The Bank of Nova Scotia. Used under license, where applicable. Scotiabank, together with “Global Banking and Markets,” is a marketing name for the global corporate and investment banking and capital markets businesses of The Bank of Nova Scotia and certain of its affiliates in the countries where they operate, including Scotia Capital Inc. Scotia Capital Inc. is a Member of the Canadian Investor Protection Fund.