2009 employment equity narrative report

2009 Employment Equity Narrative Report

Scotiabank (005027) Executive Offices, Human

Resources 44 King Street West, 12th Floor

Toronto, Ontario M5H 1H1 www.scotiabank.com

Scotiabank Employment Equity Narrative Report 2009

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TABLE OF CONTENTS

TABLE OF CONTENTS ______________________________________________________ 2 I. GENERAL OVERVIEW _____________________________________________________ 3 II. EMPLOYMENT MILESTONES IN 2009_____________________________________ 3 III. QUANTITATIVE INFORMATION____________________________________________ 4 IV. QUALITATIVE MEASURES________________________________________________ 7 V. INVESTING IN THE COMMUNITY________________________________________ 20 VI. SPONSORSHIPS & DONATIONS ______________________________________ 20 VII. CONSTRAINTS ______________________________________________________ 21 VIII. FUTURE STRATEGIES _______________________________________________ 21 APPENDIX A: AWARDS & ACHIEVEMENTS __________________________________ 23 APPENDIX B: SPONSORSHIPS & DONATIONS_______________________________ 24


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I. GENERAL OVERVIEW

Scotiabank strives to employ a diverse workforce that reflects the communities in which we operate because we know that harnessing the skills of all employees generates innovative thinking and stronger business results.

from Sylvia Chrominska, Group Head, Global Human Resources & Communications, April 2009 – as noted in the Best Diversity Employer Award letter. The Scotiabank Group of Companies (Scotiabank Group) is Canada’s most international financial institution. Scotiabank Group employs approximately 67,800 people worldwide, and serves over 12 million customers in more than 50 countries around the globe. In Canada, Scotiabank Group provides a wide range of products and services including retail, personal, commercial, corporate, and investment banking. Despite ongoing turbulent economic markets, 2009 again saw Scotiabank Group undertake a number of important acquisitions and business relationships aimed at increasing the organization’s presence in both the domestic and international marketplaces. In December 2009, Scotiabank Group announced the acquisition of a further 13.2% stake in Xi’an City Commercial Bank (XACB), a leading city commercial bank in Western China. When this transaction is formally completed, this will amount to an investment of C$162 million. XACB is one of China’s leading city commercial banks. Established in 1997 through the consolidation of 42 urban credit cooperatives, XACB provides a full range of personal and commercial banking services to 1.2 million local residents and regional companies. With 2,200 employees in 113 branches ranks third in terms of loan market share in Xi’an, the capital of Shaanxi Province. With its base in Canada – one of the world’s most multicultural nations – and significant operations around the world, Scotiabank Group understands that embracing diversity and harnessing the skills of the broadest possible spectrum of talent will generate more innovative thinking, better decision-making and stronger business results. This conviction drives our commitment to establishing Scotiabank Group as a global employer of choice. As the following pages will reveal, we combine quantitative data with leading edge programs to meet employment equity requirements and create an inclusive and accessible workplace culture that welcomes, supports and leverages diversity.

II. EMPLOYMENT MILESTONES IN 2009

Scotiabank Group’s commitment to creating and maintaining a great place to work is reflected in a number of accomplishments and milestones reached in 2009. Once again, Scotiabank has been recognized and awarded by several international and Canadian-based institutions as both a Bank of Choice and an Employer of Choice for its achievements across business lines and in areas related to innovation, customer service and


satisfaction, and financial services criteria. A listing of these awards can be found in Appendix A.

III. QUANTITATIVE INFORMATION

Each year, Scotiabank Group relies on two methods to measure workforce representation:

1. The quarterly People Report (i.e. a database that tracks designated group representation by business lines and key support functions) measures progress against diversity targets that are set for each fiscal year.

2. An on-line Workforce Census in which employees self-identify as belonging to a designated group. This census ensures that Scotiabank Group has up-to-date and accurate employment equity data. This survey is also made available in alternate formats.

This census survey is available at all times to new employees, and employees are reminded at several key points in their employment to revisit the census, such as, on their anniversary date, during benefit enrolment, or when returning from a leave.

Table 1 represents Scotiabank Group’s Canadian workforce statistics over the past six years. The worldwide recession that affected many Western nations, including Canada, was reflected in significant declines in the number of employees who were hired, promoted and who terminated employment during 2009. The number of promotions in 2009 again declined by approximately 880 from the previous year. The number of exits dropped by just under 900, while hiring was down about a third from 2008. In spite of these employment declines, Scotiabank Group retains an enviable position as one of Canada’s 50 Best Employers as noted by Report on Business.

Table 1: Scotiabank Group’s Canadian Workforce

Total (Regular full-time and

part-time)

Hires Promotions Exits

2009 31,046 3,058 2,001 3,074 2008 30,977 4,502 2,881 3,931 2007 30,276 5,643 3,465 3,739 2006 28,398 4,001 2,894 3,198 2005 27,370 3,480 2,503 3,316 2004 27,061 2,642 2,262 2,950

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A. WOMEN IN SCOTIABANK GROUP’S WORKFORCE:

Scotiabank Group’s status as a recognized leader in the advancement of women was again reflected in workforce representation statistics for 2009. Overall, as of December 31, 2009, 69.3% of Scotiabank Group’s employees in Canada were women. This significantly exceeds the external government availability numbers. Of particular note is an increase in senior management representation when compared with 2008.

Table 2 shows that representation rates for women in Middle Management and Professional roles continued to be strong at 52.1% and 48.2% respectively. Despite some minor declines, Scotiabank Group’s overall representation of women is exemplary, and the hiring and promotion of women remains an important organizational priority.

Table 2: Women in the Scotiabank Group Workforce

Workforce Representation

of Women

Scotiabank Group 2009

(%)

Scotiabank Group

2008 (%)


(%)


(%)

External Government Availability (2006)* (%)

Overall 69.3 69.6 70.3 71.2 59.6 Senior Management

31.4 30.7 32.3 30.5 24.2

Middle Management

52.1 52.4 54.5 52.4 39.1

Professional 48.2 49.2 45.3 46.2 39.6 (Source: 2006 Census of Canada and Employer's Internal Data. using methodology suggested by HRSDC) Finally, Scotiabank Group has long been an advocate in the Canadian financial sector for the hiring and promotion of women. The Advancement of Women initiative is committed to promoting representation of women globally as well as across Canada.

B. VISIBLE MINORITIES IN SCOTIABANK GROUP’S WORKFORCE

Scotiabank Group remains strongly committed to ensuring that its’ workforce reflects the diverse multi-cultural composition of the communities in which it operates. Scotiabank Group continues to surpass the external government availability for Visible Minorities by a significant percentage, particularly in the Professional category.

Table 3 shows that representation rates for Visible Minorities improved overall in 2009 from 22.2% in 2008 to 22.4% in 2009. Scotiabank Group exceeds the government availability in all categories by significant margins.


Table 3: Visible Minorities in Scotiabank Group’s Workforce

Workforce Representation of Visible Minorities


(%)


(%)


(%)


(%)


Overall 22.4 22.2 21.6 20.5 19.3 Senior Management 12.2 12.1 10.3 11.5 8.7 Middle Management 21.5 20.6 19.6 19.0 14.0 Professional 31.1 31.9 33.7 32.6 22.5

(Source: 2006 Census of Canada and Employer's Internal Data. using methodology suggested by HRSDC)

C. ABORIGINAL PEOPLE IN SCOTIABANK GROUP’S WORKFORCE

The overall representation of Aboriginal Peoples remained static in 2009. Although the total number of Aboriginal employees remained almost constant (i.e. 331 in 2008 versus 334 in 2007), the overall representation level declined slightly. Like other financial institutions, Scotiabank continues to face challenges in attracting qualified Aboriginal applicants. In 2009, 7 full-time and 7 part-time Aboriginal applicants were hired, whereas 25 full-time and 1 part-time employees were promoted. Unfortunately, these gains were offset by 14 full-time and 11 part-time terminations. Gaps between availability and representation were most apparent at the EEOG 10 level (i.e. Clerical Personnel), and amounted to 9. However, the size of this designated group is not as large as others, so any change in representation levels is amplified. Scotiabank Group was the first chartered Bank to open a branch on an Aboriginal reserve in 1971. Scotiabank Group remains committed to welcoming members of Canada’s Aboriginal communities into the workforce, and operates four on-reserve branch locations and 22 Aboriginal banking centres across Canada. Table 4: Aboriginal Peoples in Scotiabank Group’s Workforce

(Source: 2006 Census of Canada and Employer's Internal Data. using methodology suggested by HRSDC)

Workforce Representation of

Aboriginal Peoples


(%)


(%)


(%)


(%)

External Government Availability

(2006) * (%)

Overall 1.1. 1.1 1.1 1.2 2.0

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Scotiabank Group has recently partnered with its internal employee resource group, Scotia Aboriginal Network, and initiated an internship program to actively recruit and engage Aboriginal interns, and then move them to permanent employment after their internship.

D. PERSONS WITH DISABILITIES IN SCOTIABANK GROUP’S WORKFORCE

Overall in 2009 Scotiabank Group has made a significant step towards equalling the government’s benchmark for representation of persons with disabilities in the workforce through increases in the percentage of Persons with Disabilities at the Middle Management level.

Table 5: Persons with Disabilities in Scotiabank Group’s workforce

Workforce Representation of

Persons with Disabilities


(%)


(%)


(%)

Scotiabank Group 2006 (%)


Overall 4.1 3.8 3.8 4.0 4.2 Senior Management

2.3 2.9

3.1

4.7

3.2

Middle Management 5.1

5.0

4.9

4.5

3.2

Professional 3.0 2.8 2.8 2.7 4.5 (Source: 2006 Census of Canada and Employer's Internal Data. using methodology suggested by HRSDC)

In 2009, departures from Scotiabank Group of Persons with Disabilities represented about 3.2% of all terminations. This is below their representation level, and equal to last year’s percentage. These terminations were partially offset by 1.4% of all hires. This lower percentage relative to their availability is likely due to reduced hiring activity corporately, coupled with the reality that many applicants do not always self-declare their status as a person with a disability at the time of hire.

IV. QUALITATIVE MEASURES

Scotiabank Group believes in open, continuous and two-way communication with our employees through structured formal channels, as well as informal feedback methods. For example, our performance management process is designed around a coaching and feedback model that encourages honest, frequent conversations between employees and their managers or supervisors. In recent years, we have continued to add tools, resources and training to improve the quality of these communications. Scotiabank Group recognizes that strong feedback mechanisms encourage diverse voices to speak up. Information in this section details new activities and processes that were introduced during 2009


throughout Scotiabank Group which are intended to promote and facilitate a diverse and inclusive workplace. Although these measures are applicable to all Scotiabank Group employees, where possible, linkages to specific designated group members and employment equity considerations have been noted.

Communications:

Scotia World Magazine - Produced five times a year in three languages, and available in print and online, this publication is designed to enhance employee knowledge, understanding and experience through coverage of Scotiabank Group news and business strategy, human resource policies and initiatives, as well as corporate social responsibility, sponsorships, donations and community involvement. Scotia World Express – A new online bi-monthly publication designed to keep employees up-to-date on what is happening around the Scotiabank Group. A Canadian version is distributed in English and French and an International version is distributed in English and Spanish in PDF format.

Feedback From Employees:

Viewpoint - An annual ‘ViewPoint’ survey is conducted for employees of the Scotiabank Group across the globe, which provides participants with the chance to express their opinions on their employment experience and work environment. Survey results are collected and analyzed by an external vendor, ensuring employee responses remain anonymous. Together, employees and their leaders use the results to celebrate successes and to create action plans for an even better workplace environment. Employee participation in Viewpoint increased significantly to 91% (over 56,000 participants) in 2009 from 82% the previous year. This high degree of participation indicates that employees from around the world want to provide input that would help shape their employment experience.

Overall, for 2009, 86% of our employees worldwide agree that Scotiabank is a great place to work (same as 2008), as measured by our Employee Satisfaction Index. The Bank has also seen a strong Diversity Index score at 89%, which measures the Scotiabank Group’s success in providing an inclusive environment, an increase from 88% in 2008.

Team Voice – Team Voice allows employees to provide feedback via e-mail or via a toll-free telephone line on policies, procedures, programs and processes that impact their ability to be a leader in customer service. This feedback is then shared with the applicable business line for action. The voice of Scotiabank Group’s own President and CEO greets employees on the hotline signaling the importance that Scotiabank Group places on Team Voice as a communication channel. A total of 5,724 Team Voice messages were received in 2009. Ideas in Action – Scotiabank Group encourages employees to share their ideas on ways to support our business success through the Ideas In Action program. In May 2009, the program

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marked 42 years of rewarding employees for their initiative and ingenuity, making it one of the longest-running suggestion programs in Canada. We receive on average 3,000 suggestions yearly from domestic and international staff. The ideas proposed cover a broad spectrum of topics ranging from, but not limited to, increased productivity to reduction in consumable resources. Employees can be rewarded with compensation from $300 to $10,000 depending on the potential savings or profitability their implemented ideas bring to the Bank. In 2009, our program generated $1,299,697 in savings and cost reductions.

Note: This is a fiscal year figure (Nov.1-Oct.31)

Scotia Employment Relationships Council (SERC) - This volunteer committee created in 2002 represents a cross-section of employees and leaders from various Canadian regions, job levels (clerical to senior management), and business lines. SERC meets on a quarterly basis to address the latest issues related to the attraction and retention of diverse talent, and to review Scotiabank Group’s progress on the quarterly People Plan which measures our progress towards the achievement of diversity goals.

The mission of the Scotia Employment Relationship Council is to bring the employee experience to the review and development of Scotiabank Group’s policies and practices so that they reflect and promote inclusiveness and legislative compliance as a primary business objective. The mandate is realized by providing a forum through which employees can provide input into Scotiabank Group’s policies and practices, and offer advice on options that focus on how to increase employee satisfaction and engagement.

The council has always had representation from various diverse groups including Aboriginal People. As of November 2009, SERC has evolved to include representation from our Employee Resource Groups (ERGs) including: Scotia Women’sConnection, ScotiaPride, Scotiabankers for Universal Access, Scotia Young Professionals and the Scotia Aboriginal Network. ERG representatives add to SERC’s diversity of thought, the sharing of best practices and vital networking among the Scotiabank community. Some of the activities that SERC was involved with in 2009 include: a Days of Awareness event to provide training and promote global awareness of Persons With Disabilities. They also provided valuable feedback and participation towards key diversity projects at Scotiabank including the new internal and external Diversity and Inclusion websites; the creation of global principles and policy review; the workforce census campaign for Canadian employees; and Scotiabank’s internal campaign to recognize the UN International Days for the World’s Indigenous Peoples.

Responding to Employee Concerns:

Chain of Communication - Employees are encouraged to voice issues, including human rights issues, with their manager through the Chain of Communication. The resolution method encourages work level resolutions through direct contact between an employee and his or her manager or supervisor. In situations where problems cannot be resolved, an employee is directed to the next level of management for discussion and hopefully, resolution. Different issues and diverse values held by employees in conflict lead to the need for options - both formal and informal - in conflict resolution and complaint handling. Having a choice of


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options may help employees to come forward with concerns. The coordination of both of these formal and informal channels provides Scotiabank with an effective conflict management system.

Employee Relations – This department comprises the subject matter experts in matters such as human rights, violence and employee conflict assists employees and managers through coaching, intervention or investigation. They also provide advice and assistance on performance and conduct management, conflict resolution, employment and human rights issues, settlement and termination. Employee Relations can assist in bringing resolution to contentious employment issues in a manner that minimizes risk, liability and operational disruption, but most of all, encourages respect amongst employees.

Employee Relations conducts Human Resources Reviews, but most important of all it provides training on issues such as Respect in the Workplace, Human Rights, Accommodation, among others. Employee Relations facilitates presentations on Absenteeism, Making the Most of Viewpoint Survey, Human Rights, Appreciating Diversity and Respectful Workplaces which compliment Scotiabank Group’s Employment Equity initiatives. The Absenteeism presentation, designed to be presented to management level staff, introduces awareness of disability management as well as accommodation obligations.

Staff Ombuds Office - An independent body that serves Scotiabank Group globally, this group offers informal, confidential assistance to prevent, manage and resolve conflicts and provides mediation and dispute resolution coaching. The Staff Ombuds Office supports Scotiabank Group in its commitment to treating all employees equitably and to maintaining a work environment that supports the personal productivity, individual goals, dignity and respect of all employees. The Staff Ombuds Office is committed to assisting in the reversal of negative trends and to playing a pro-active role in helping to shape the future by effecting positive change – fairly, impartially, confidentially.

Policy Framework: Scotiabank Group maintains a rigorous maintenance program for the review and revision of policies on a regular basis. In addition, any new policies or policy changes are subjected to a comprehensive review by stakeholders and filtered through the Employment Law Group, Legal Department for mandatory approvals. Guidelines for Business Conduct – This key document sets out the standards of behaviour required of all employees regarding the equitable treatment of all members of Scotiabank Group’s workforce. All directors, officers and employees must acknowledge annually, in writing, that they have read, understood and adhere to the guidelines and all applicable supplements. Human Rights Policy - Scotiabank Group’s Human Rights policy states that it will not tolerate any behaviour that conflicts with the spirit or intent of the Canadian Human Rights Act or other human rights and anti-discrimination laws that apply to subsidiaries, or to Scotiabank Group’s operations outside of Canada.


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Scotiability Fund - To support accommodations for current and prospective employees with disabilities, the Scotiability Fund is available to purchase assistive devices, personal services such as sign language interpreters, or technical equipment (hardware and software). The fund covers items such as TTY machines, enlarging software (e.g. Zoomtext), and voice recognition systems intended to accommodate individual needs and avoid individual budgetary constraints. For the past seven years, Scotiabank Group has engaged the services of the Canadian Council on Rehabilitation and Work (CCRW) to arrange for professional assessments to determine the most suitable accommodation. CCRW is a Canada-wide network of organizations and individuals that support the equitable employment of people with disabilities. Flexible Work Options Policy – This policy was significantly updated in 2009, and is intended to provide flexible work options for employees for purposes of accommodating disabilities, religious requirements, and other personal needs.

Workplace Accommodation Policy – this policy provides access to accommodation for the purposes of accommodating disabilities, and other needs based on protected grounds.

Performance Management - Scotiabank Group has an established, comprehensive Performance Management process to ensure our employees with diverse needs are engaged in helping Scotiabank Group achieve its goals. This process helps employees connect their on-the-job performance with the broader organizational strategy by aligning their objectives to business outcomes.

Training & Development:

My Learning Centre - The diversity initiative launched in 2007 on this internal training portal remains active. Seven courses dealing with various aspects of this subject are offered, and include: Designing a Diversity Initiative; Diversity in the Future; Getting Past Clashes; Managing Team Diversity; Managing Diversity Simulation; Stakeholder Interests; and Cultural Diversity.

Recruitment, Interview & Selection Training - Diversity objectives of this program include Scotiabank Group equity and staffing principles; the purpose of employment equity and human rights legislation; appropriate questions to ask in a selection interview based on the Canadian Human Rights Act; recruitment strategies for creating a diverse workforce and the importance of leveraging diversity. Targeted Programs: WorkAssist - a voluntary counselling support service offered through Shepell-FGI, Scotiabank Group’s Employment Assistance Provider (“EAP”), which primarily focuses on emotional and mental health. It is designed to help employees on Short-Term Disability (STD), and Long-term Disability (LTD) return to healthy and productive living. In addition, WorkAssist can also help those employees who are actively at work but who may be struggling with stress, anxiety or depression to the point that it is impacting their work-life activities and interests.

Employee Assistance Program (EAP) - Provides professional counselling services (either in


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person, by telephone or electronically) and specialized services designed to support employees’ health and well-being. Shepell-FGI is Scotiabank Group’s EAP provider for Canada. Shepell-FGI provides services aimed at improving physical health and overall well-being, for example, nutritional counselling, smoking cessation, work/life solutions, resiliency coaching and mental health management. This program is key to providing our diverse workforce with sensitive and relevant support for their individual needs.

New in 2009:

Health Assistance Program (HAP) – a telephone service provided by Shepell-FGI, Scotiabank Group’s Employment Assistance Provider (“EAP”), offering practical, personalized and individualized support for non-urgent physical health issues and health-related lifestyle choices. The HAP is designed to help employees’ and their families identify their personal health risks and make healthy choices to feel better now and prevent more serious illness or disability later by assessing health risks, creating an action plan and motivating behaviour change. The HAP works in conjunction with the Bank’s Health Risk Assessment. Best Doctors (BD) – Connects seriously ill employees (and their eligible family members), and their treating physicians with world-renowned specialists to confirm the diagnosis and treatment options. Medical results (including complete medical history records, diagnostic test results, specialists’ reports and unstained pathology samples) are analyzed by a multi-disciplinary team of Harvard-trained physicians and reviewed by an appropriate specialist(s) from the Best Doctors Inc. global network to confirm diagnosis and recommend treatment options in a comprehensive report provided to the employees’ physician.

Specific Initiatives for Designated Groups:

INTERSECTIONAL: Diversity and Inclusion website (external) (re-launched in July 2009)

The new site now offers information to support our Employer of Choice statement and our value proposition for diverse talent. New content includes showcasing diversity-related employee videos, Scotiabank Group’s diversity history since 1889, our various sponsorship and donations and awards, and our employee participation and employment equity information.

Diversity and Inclusion Fountain internal website (created in November 2009)

Launched in November 2009, the Diversity and Inclusion Fountain provides a forum for employees to engage in diversity and inclusion issues. Included on the website is information regarding our diversity council (SERC) and employee resource groups, a diversity calendar with various cultural, religious and Scotiabank Group related events, and a knowledge centre for resources related to specific issues in diversity and inclusion.


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1. WOMEN

The Advancement of Women (AoW) initiative continues to assist the Scotiabank Group in making positive strides in the representation of women at all levels of our workforce. Scotiabank’s vision is to be a recognized leader in the advancement of women in all countries in which we operate, as an extension of our commitment to being a global employer of choice. The AoW Strategy Framework, which has been communicated globally includes seven elements that address various challenges. These elements are as follows:

1. Senior management commitment; 2. Accountability (execution and measurement); 3. Networking; 4. Mentoring; 5. Broadening/deepening the talent pool; 6. Clarifying career advancement process; and, 7. Leveraging external presence.

These seven elements provide the framework for executing divisional or country specific initiatives. Some of the different programs and activities that support each element are detailed below. Note: Unless otherwise indicated, all items are continuing activities or programs. A. Senior Management Commitment - Advancement of Women Steering Committee: The committee is comprised of senior

women representing all business lines and key support functions across the Scotiabank Group. The team is primarily responsible for setting and guiding the Bank’s AoW vision and strategy, influencing senior leadership commitment and accountability, and championing the initiative in their respective business lines.

Advancement of Women Community of Champions (CoC): Complimenting the Steering Committee, the AoW CoC consists of representatives from across the different business lines that are directly responsible for executing against the AoW strategy within their respective areas. Through quarterly meetings, participants are able to network, share best practices and calendar of events as well as collaborate on activities, eliminating duplication of effort.

Taking AoW Global: The AoW initiative continues to be a key global initiative for Scotiabank.

B. Accountability -

Quarterly Reporting: Executives and business line leaders are directly accountable for the advancement of women through representation targets, at the VP+ and equivalent levels


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and the feeder pool (Senior Managers and Directors), and satisfaction index measures. Tracking of progress against targets is made possible through on-line “People Reports”. These metrics are included on leaders’ Balanced Scorecards which are used to assess performance.

NEW – To continue to make leadership a competitive advantage, as well as to encourage the development of current and future talent within the feeder pool, tracking began in 2009 of a new metric (Percentage of Opportunities to Women). This full year of data will form the benchmark as targets for this new metric is introduced for each EVP in Fiscal 2010.

C. Networking -

ScotiaWomen’s Connection Networking Series: Each quarterly event is comprised of facilitated table networking and a formal presentation on career/personal development. The Series continues to provide female employees (Manager to Director levels) with opportunities to network with peers as well as gain access to female role models / senior leaders.

Women currently on a Maternity or Child Care Leave are invited to attend each event, providing them with the opportunity to keep their work networks active.

ScotiaWomen's Connection – Network in a Box: The ScotiaWomen’s Connection is a website dedicated to AoW. One of its key components is the “Network-in-a-box”, which contains easy-to-use templates and checklists for building and sustaining networks.

D. Mentoring -

ScotiaWomen's Connection – Mentoring Toolkit: The Mentoring Toolkit is also available through our AoW-dedicated website and it provides resources, definitions, and how-to tools that will assist prospective mentors and mentees in establishing and sustaining a self-directed mentoring relationship.

E. Broadening and Deepening the Talent Pool -

ScotiaWomen's Connection: A website dedicated to AoW, it is the primary means through which employees can obtain information on the initiative. The website is also a central repository of resources, tools and best practices aimed at helping all Scotiabank employees to grow, succeed and realize their potential.

NEW – In 2009, the ScotiaWomen’s Connection website was refreshed. Format and content was amended to provide more practical information and tools, to better support the development of employee skills.

Sponsorship of external research: Scotiabank once again participated in the Catalyst Benchmarking Survey and the Women in Capital Markets: Benchmarking Survey in 2009. These reports provide comparative data between the Bank and other international


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organizations and industry competitors on such issues as female representation, policies and programs.

NEW – Internal research: In line with Scotiabank’s continued efforts to develop leaders and ensure a robust feeder pool to meet future leadership needs, a Career Development Survey was launched in November 2009. Its objective is to determine whether and how the employee experience has changed over the past four years since a similar comprehensive survey was conducted in 2005. All employees at levels 06–09 (or equivalent) in Canada and our international locations are invited to share their thoughts and perceptions about career development and advancement at Scotiabank.

Results of the survey will form the basis of the AoW focus in the coming years.

F. Leveraging External Presence -

External Presence: The Bank continues to support organizations that foster women’s advancement and provide Scotiabank women with opportunities to speak or network.

o The Women’s Executive Network (WXN) is Canada’s leading organization dedicated to the advancement and recognition of executive-minded women in the workplace. Scotiabank continues to be the co-presenting partner of WXN’s Breakfast Series, which involved 34 breakfast events across 7 major cities in Canada, namely: Vancouver, Calgary, Toronto, Mississauga, Ottawa, Edmonton and Montreal.

o We also are the co-presenting partner of WXN’s Canada’s Most Powerful Women Summit: Top 100 Awards.

o NEW – Scotiabank is a Founding member of the Canadian Board Diversity Council, whose goal is to increase the percentage of Financial Post 500 corporate board seats held by women to 20% over 4 years.

o NEW – Scotiabank entered into a 3-year partnership with Women in Capital Markets (WCM), a non-profit organization that promotes the entry, advancement, and development of women in the Capital Markets industry. Sponsorship of WCM provides our women with access to networking, mentoring, and professional development with peers.

o In 2009, Scotiabank increased our level of support of the Young Women of Influence Evening Series, to Title Sponsor. The series, initially Toronto-specific, expanded to Calgary in the Fall. These sessions provided a forum for female career starters to connect with peers and to participate in career development presentations.

Numerous executives and feeder pool female employees speak and, or participate in all events sponsored above.


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International Women’s Day (March 8, 2009): Scotiabank supported “International Women’s Day” through media and financial donations. In the downtown Toronto offices, a “mini-fair” was arranged, with representatives from several women organizations and charities in attendance. A special ScotiaWomen’s Connection Networking event was also organized to commemorate this day.

2. ABORIGINAL PEOPLES

In 2009, we continued to invest into the Aboriginal community by creating a deeper pipeline to build and grow talent. We focussed on creating partnerships that provide pre-employment training, financial literacy workshops and participation in large-scale student career fairs. Scotiabank Group started a strategic 3-year partnership with the Aboriginal Human Resources Council in August 2009 to deepen its commitment to the Aboriginal community and its employees. Through the partnership, Scotiabank sponsored the Inclusion Works Career Fair and, with the AHRC, offered employees at all levels the opportunity to attend national events. The AHRC in turn provided support to Scotiabank Aboriginal Network by providing customized training, resources and articles through the internal Diversity and Inclusion website, The Diversity and Inclusion Fountain. Executive involvement will play a key role in fostering this tripartite relationship between the AHRC, the Scotiabank Aboriginal Network and Scotiabank Group’s employees on a go-forward basis. Also new for 2009, Scotiabank Group sponsored the National Aboriginal Health Organization’s annual Role Model Program which selects inspiring and educated Aboriginal youth up to 30 years of age. The selected participants act as Role Models to Aboriginal youth, helping them to discover real solutions that motivate Aboriginal youth to finish high school and seek higher education. Role Models acknowledge Scotiabank Group as an Employer of Choice for Aboriginal students and also showcase in their presentation a new employee video featuring our Rama Ontario Branch Manager and Scotia Aboriginal Network Chair. See Carol’s video: http://www.scotiabank.com/cda/files/HR/Diversity/diversity_video/carol/diversity_carol.html In September 2009, Scotiabank Group partnered with Nation Talk, a national communications hub available online and by fax service. Scotiabank Group is highlighted in many ways as an Employer of Choice, including:

sponsorship of the employment listings section of the service and advertising careers; the creation of a partner page on their website which features Scotiabank; and the issuing of press releases related to Scotiabank Groups presence in the community.

As of December 2009, Scotiabank has posted over 50 employment listings with a transfer rate to our Careers website of over 450 clicks. This service has enabled Scotiabank Group to reach a talented online audience to hire and help build our Aboriginal candidate pool. In 2009, Scotiabank also participated in a variety of Career or Job Fairs to broaden its outreach into the Aboriginal community:


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AHRC Inclusion Works ’09 – (300 post-secondary grads attended) NAAF Blueprint for the Future Aboriginal Youth Career Fair (800 students attended)

o Invited NAHO to be second workshop offering to present Role Model program to students.

A Day of Inspiration – Dreamcatcher Foundation (1200 students attended) The Future Is Yours

Scotia Aboriginal Network In May of 2009, a working committee began discussions regarding the creation of an Employee Resource Group. To coincide with United Nations International Day for the World’s Indigenous Peoples, the Scotia Aboriginal Network (SAN) was officially launched at our Ontario – on-reserve branch in Rama on August 14, 2009.

SAN’s Mission is to support the Bank’s overall commitment to create an inclusive and accessible workplace for all employees. SAN provides a forum for existing Bank employees who are passionate about Aboriginal people’s employment experience at Scotiabank.

3. VISIBLE MINORITIES Scotiabank Group takes great pride from its diverse workforce in this area. Local branches and other departments and units throughout Canada celebrate this diversity everyday through support of local cultural and internal events that recognize our diversity. Many of the initiatives that support other designated groups in Scotiabank Group (e.g. Advancement of Women; programs for Persons with Disabilities) also benefit this group as well. Scotiabank Group continues to provide support to community organizations that assist new Canadians with settlement services and pre-employment training. Scotiabank Group has been visible in the community by being involved in settlement assistance. In 2009, our Multicultural Banking Department partnered with Skills For Change for recruitment initiatives. We also continued our partnerships from 2008 with ACCES, the TDSB’s Financial Corp Practice Firm and the Toronto Region Immigrant Employment Council (TRIEC). These organizations are all dedicated to preparing new Canadians for career employment. ACCES

ACCES Employment assists job seekers from diverse backgrounds to find employment, and to integrate into the Canadian job market. One of the programs they manage is the Financial Services Connections™ program which is designed for internationally trained finance professionals (ITFP) seeking work in Toronto’s financial services sector. Through this specialized and comprehensive three-week program, participants learn everything they need to know about the nature of the financial sector in Canada, Ontario and Toronto. Key components include job search strategies and preparation for candidates wishing to write the Canadian Securities Course exams, a basic requirement for entry into many careers in financial services sector. Financial Services Connections™ is currently being offered at the Toronto and Mississauga


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locations. Through this program Scotiabank Group has hired a number of talented individuals.

Toronto Region Immigrant Employment Council (TRIEC) Scotiabank Group is one of the top five corporate partners in the Toronto Region Immigrant Employment Council’s (TRIEC) “The Mentoring Partnership”. This undertaking is a collaboration of community organizations and corporate partners that bring together skilled immigrants with established professionals in occupation-specific mentoring relationships. The program is delivered through a coalition of community organizations in the City of Toronto and regions of Peel, York and Halton. Scotiabank’s participation has grown from 2008 with the program expanding from the VP-level to now include mentors from the Director-level and above. In 2009, 62 mentors participated in the program, an increase from 25 in 2008. Scotiabank Group is currently the top-ranking partner to have the largest attendance at a program information session.. At the end of the 2009 cycle, 28 mentees found employment. Of these mentees, 26 were employed in their field, and 3 were employed by the Scotiabank Group (similar to 2008 cycle). 4. PERSONS WITH DISABILITIES

Scotiabank Group is dedicated to supporting employees with disabilities through our recruitment activities, flexible work arrangements and assistive technologies and resources that help accommodate their needs. Scotiabank Group routinely sets specific referral and hiring goals for Staffing and Recruitment Managers for each business line.

Scotiabank Group is fortunate to have a dedicated resource in the role of a Manager, Workforce Diversity whose primary role is to recruit Persons with Disabilities, a fact which underscores the seriousness and commitment Scotiabank Group has placed on the hiring of Persons with Disabilities. A key element of this role is community outreach for the purpose of educating employees, students and members of the public regarding employment of People with Disabilities. The following is a sample of the numerous events supported by Scotiabank Group during 2009:

Information Sessions - Scotiabank delivered a number of sessions to students with disabilities at various Colleges and Universities in order to promote Scotiabank as an employer of choice. The following schools were visited in 2009: George Brown College, Seneca College, Ryerson University, University of Toronto, and York University.

York University - Developed a scholarship program for students with disabilities who

are enrolled in the Business and Finance programs. (Ongoing); JOIN Business Leadership Network Breakfast at Scotiabank – Scotiabank Group is

proud to have partnered with the Job Opportunities Information Network (JOIN) to be the title sponsor of their 2009 Conference in Toronto. More than 600 people attended the


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Conference to learn more about new initiatives that impact Persons with Disabilities in the workplace. Scotiabank Group coordinated, provided and hosted a panel discussion in collaboration with IBM and KPMG to discuss the elements and importance of an inclusive workplace. In 2009, Scotiabank Group also became a member of JOIN’s Business Leaders Network (BLN), and attended corporate sessions that created awareness of the importance of inclusion of Persons with Disabilities.

Awareness Presentations – targeted disability awareness presentations are given

to all existing and new Managers of Staffing and Recruitment at Scotiabank Group.

Toronto District School Board – The Employment Accessibility Exchange – Financial Corp. Practice Firm provides a simulated work environment where the unemployed, including persons with disabilities can gain current work experience in their fields, as well as customer service and soft skills training and attend computer and job search workshops to assist participants in finding full-time employment.

Integrated Support Services (ISS) Networking Event – ISS group provided 2

internship opportunities for Persons with Disabilities. Resumes were sourced various agencies and Colleges and Universities. Hiring Managers met face to face with prospective candidates during an interactive luncheon.

Days of Awareness Networking Event – Various vendors for accessible technology

displayed and demonstrated products to Scotiabank Employees. A panel discussion followed, which featured speakers from CCRW, EAP, Enabling Solutions, and Shared Services. The event concluded with a networking session for Persons with Disabilities in which representatives from Electronic Banking, International Banking, Securities Operations, Canadian Banking, and Scotia Capital participated. Approximately 25 candidates attended, and we have hired directly from this pool of candidates.

Scotiabank Group sponsored the Abilities Arts Festival Youth and Children’s Forum in 2009. The forums provided an opportunity for Scotiabank Group to connect with a pool of current and developing candidates to reinforce our commitment to an inclusive workplace and to our policies that help to foster this goal. A screener ad was created based on the new employee video posted on our external Diversity and Inclusion website. See Mark’s video: http://www.scotiabank.com/cda/files/HR/Diversity/diversity_video/mark/diversity_mark.html Originally launched in 2000 as the Advisory Council for People with Disabilities, the employee resource group has regrouped to launch as the Scotiabankers for Universal Access (SUA). SUA is made up of Scotiabank employees dealing with or facing accessibility barriers in their workplace and those who have a passion for these issues. The renewed purpose of the group is to create a united, influential voice and team within the Bank for persons with disabilities, with the intention to drive change by removing barriers to access, information and career mobility.


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Scholarships: Capilano University – 2 scholarships for students with disabilities in business studies. PAANS – 2 scholarships for students with disabilities in business studies.

V. INVESTING IN THE COMMUNITY

Scotiabank Group is committed to helping build the communities in which we operate – in Canada and around the world – by dedicating both financial and human capital. In 2009, Scotiabank Group contributed roughly $39 million to community causes in Canada and around the world. Of that total, $31 million went to charitable initiatives in Canada, focused mainly on the areas of health, education, social service and arts and culture, and makes us one of the country’s largest philanthropic donors. Scotiabank Group has set a number of objectives to enhance the level of community involvement, and our progress is reported through our annual Corporate Social Responsibility Report. More information can be found in our Corporate Social Responsibility report for 2009 on Scotiabank’s website at www.scotiabank.com.

VI. SPONSORSHIPS & DONATIONS Scotiabank Group manages a specialized budget for Diversity Sponsorships and Donations which allocates funding and support to organizations servicing the needs of designated group members. Scotiabank Group focuses its diversity sponsorships at the community level in the areas of education and career or professional development. We are particularly interested in partnering with non-profit and charitable organizations that could help us strengthen our relationship with diversity groups.

All proposals must meet the following criteria: 1) Must focus on one or more designated groups: Women, Visible Minorities, Aboriginal

People, Persons with Disabilities or other recognized groups; 2) Must support one or both of the following: Career or Professional Development and

Education. Specific details of some of the first-time contributions made during 2009 are outlined in Appendix B. For a more complete listing, please see the Scotiabank Diversity website or the Corporate Social Responsibility Report available at www.scotiabank.com


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VII. CONSTRAINTS

Despite funding and direct support of a number of programs and initiatives in 2009 to identify, attract and retain Aboriginal People candidates, Scotiabank Group, like many other employers, continues to face challenges in meeting its representation targets for this designated group. Our experience has shown that many students from Aboriginal communities are attracted to post-secondary education in the health and social sciences rather than business. Many entry-level positions in the Bank require a business background, or a willingness to undertake training leading to the acquisition of designations such as the Certified Financial Planner or the Canadian Securities Course. As a result, Scotiabank Group has focused its efforts on a long-term relationship with the Aboriginal Human Resources Council. Through this partnership, Scotiabank Group is exploring unique ways to address under-representation in our workforce. We are also aware that many employees may have a shallow understanding of the importance of self-identifying as a Person With a Disability on the Workforce Census. This may be due to a variety of factors,, and Scotiabank Group is seeking to build awareness through various internal campaigns.

VIII. FUTURE STRATEGIES

Diversity & Inclusion, including Employment Equity at Scotiabank Group, is founded on a compelling business case that reflects the need to capitalize on the business benefits of a diverse workforce. Scotiabank Group’s commitment in this area mirrors changing customer demographics, leverages the skills and abilities of our employees, and attracts, develops and retains top talent. Our new Global Diversity & Inclusion Strategy was approved by the Human Investment Committee in 2009, and is championed by our President and Chief Executive Officer. In addition, it is visibly supported by the executive management team through Executive Champions, performance targets and action plans. This comprehensive system of goal setting, tracking, measurement and evaluation ensures strong and credible data, creates momentum, and sustains our diversity and inclusion efforts. We utilize a variety of innovative and interactive communication channels to promote top-down, bottom-up, and cross-functional communication between Scotiabank Group and its employees, and customers. By following a systematic, business-focused approach, we create awareness and accountability, engage employees to achieve results, and solicit input and feedback. These mechanisms enable us to have a constant reading on our organizational climate both in the employment equity arena and as an Employer of Choice. In 2009, we launched our new site dedicated to Diversity & Inclusion on www.scotiabank.com. This site comprehensively outlines our commitment, belief and goals in this area, and, most importantly, allows our most important resource, our employees, to tell their own stories. In parallel, we also launched an internal website, updated regularly, dedicated specifically to awareness building and employee engagement in the diversity issues that affect us all. Over the years, our progressive programs and policies have enabled us to make a meaningful


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and lasting difference that satisfies the Scotiabank Group’s Diversity, Inclusion and Employment Equity, objectives, its employees, and all of the communities we serve, not only in Canada, but also across our global operations. Recognition of this can be seen through the many accolades Scotiabank Group has received. Going forward, Scotiabank Group remains mindful of the need to continually upgrade and improve its Diversity, Inclusion and Employment Equity programs to support an inclusive and accessible workplace for all existing and prospective employees.


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APPENDIX A: AWARDS & ACHIEVEMENTS

Once again, Scotiabank has been recognized and awarded by several international and Canadian-based institutions for its achievements across business lines and in areas related to innovation, customer service and satisfaction, and financial services criteria. Below is a list of prominent awards Scotiabank received from a variety of publications and research firms in 2009. Please see www.scotiabank.com for additional details.


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APPENDIX B: SPONSORSHIPS & DONATIONS

Please see our Diversity website at www.scotiabank.com for a complete portfolio of Sponsorships and Donations. .

2009 employment equity narrative report

Documents