2014 Employment Equity Narrative Report

Scotiabank (005027) Human Resources 44 King Street West, 12th Floor Toronto, Ontario M5H 1H1 www.scotiabank.com Updated September 25, 2015

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I. INTRODUCTION

ABOUT SCOTIABANK

Scotiabank is Canada’s international bank and a leading financial services provider in North America, Latin America, the Caribbean and Central America, and parts of Asia. We are dedicated to helping our 21 million customers become better off through a broad range of advice, products and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking.

Scotiabank has assets of $805.7 billion (as at October 31, 2014) and trades on both the Toronto and New York stock exchanges.

Scotiabank is the third largest bank in Canada and among the 25 largest and soundest banks in the world. The Bank’s strength in Canada provides a solid foundation for our significant operations in select international markets, which in turn, further enhances the Bank’s growth potential and diversification.

Scotiabank delivered sound financial results in 2014, including record net income of $7.298 billion. Consistent with our proven track record, a total compound annual shareholder return of 13% was realized over the last five years and 10% over the last 10 years. Going forward, the Bank will invest in initiatives aimed at delivering an excellent customer experience, which should drive expanded business activity. With these investments, coupled with Scotiabank’s industry-leading capital levels, we are well positioned to create even greater value over the medium and long term. Scotiabank has a strong culture, a successful history, a genuine desire to serve our customers, and our footprint is unique and coveted by many banks around the world. In 2014, we were recognized as one of the “World’s Best Multinational Workplaces” by the Great Place to Work® Institute. Scotiabank is the first Canadian company to receive this honour.

ENSURING DIVERSITY IN RECRUITMENT

We hire people who show the right fit for a career as a Scotiabanker. When it comes to recruitment, we try to do it right the first time and we have had great success. The average tenure of all Scotiabankers in Canada is 12.0 years, which is above the 75th percentile for Canada’s big-five banks (source: Saratoga/PWC Survey).

In three ways, our hiring process ensures that successful job candidates fit with our culture:

1. Emphasizing our values;

2. Ensuring diversity to strengthen our culture of inclusion;

3. Building from within.

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Our recruitment sites are much more than job postings. They demonstrate and reinforce our values so that potential candidates have a place to get a clear picture of what it means to be a Scotiabanker.

Our Corporate Careers website www.scotiabank.com/careers delivers an invitation to specialized talent to join in specialized job opportunities. It seeks to match potential candidates’ personal interests with how Scotiabank can add value, and it speaks to them on their own terms. It’s a state-of-the-art user experience, and it supports Scotiabank as an employer of choice in multiple geographies.

Employee videos on our corporate website www.scotiabank.com/careers allow prospective Scotiabankers to learn about our values from Scotiabankers’ personal stories about careers with us. We also use these videos to showcase our opportunities and culture at campus events across Canada.

We seek to ensure diversity on our team and hire people who will embrace and strengthen our culture of inclusion. To support that objective, we provide microsites aimed at recruiting diverse talent:

www.scotiabank.com/accessyourcareer is our career microsite for candidates with disabilities who want to self-identify as a Person with a Disability in the recruitment process and are seeking information on accommodation and other questions commonly asked by Persons with Disabilities when applying for a career.

www.scotiabank.com/aboriginaltalent is our career microsite for Aboriginal candidates who want to self-identify as Aboriginal, First Nations, Inuit, or Métis in the recruitment process and are seeking information on Scotiabank’s involvement in the Aboriginal community and other questions commonly asked by Aboriginal people when applying for a career.

When candidates submit their resume through either our Access Your Career or Aboriginal Talent career microsites, their resumes are reviewed by our dedicated Persons with Disabilities and Aboriginal recruiters, and are contacted for available opportunities that meet their qualifications.

www.scotiabank.com/newcomers is dedicated to helping newcomers to Canada connect with our community partners for training and development opportunities to start their careers at Scotiabank.

To help make sure we reach a diverse pool of talent, we post to the following online job boards: Aboriginal Job Centre, Eluta.ca, HireDesk (ACE), Monster.ca, NationTalk, NEADS Online Work System, OCCMundial and Workopolis. These are just a sample, and we are continually sourcing new ones to meet the needs of our specialized positions and ensure that we are attracting candidates who are the right fit for our organization.

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We recruit students from colleges and universities across Canada, and over the years, we have built strategic partnerships with the education sector. For our new graduate programs, we target schools and programs that we know (through qualitative and quantitative research) produce students that are the best fit for our positions and the Scotiabank culture. In many cases, we begin building relationships with the students early on in their programs through information sessions, networking events and co-op placements, so that by the time they graduate, they are very familiar with our organization.

Our recruitment teams participate in many career and recruitment fairs each year, with targeted outreach in multiple segment groups such as Persons with disabilities, Aboriginal people, newcomers and Lesbian, Gay, Bisexual and Transgender (LGBT). (More detail on diversity career fairs is listed throughout Section II OUR WORKFORCE).

For most of our positions, candidates will have multiple interviews and will meet several Scotiabankers during the recruitment process. This helps candidates get a clear sense of the role they are being considered for, as well as our workplace culture, our business priorities and of Scotiabank as a whole.

OUR GLOBAL DIVERSITY AND INCLUSION STRATEGIC FRAMEWORK

We take a strategic and global approach to diversity and inclusion at Scotiabank. It is the reach and depth of our strategy combined with our programs and initiatives that make our strategy come to life.

Our approach to diversity and inclusion comes from both strategic (macro) and operational (micro) perspectives. The programs and initiatives that promote diversity and inclusion at Scotiabank are operationalized through strategic pillars. The pillars are led by our Executive Champions, broadcast through our innovative communication channels, driven by the passionate volunteer efforts of our employees, and strengthened by the shared-value approach with our community partners. Our strategy positions Scotiabank as an employer of choice.

New in 2014: The Global Diversity and Inclusion Council was created in 2014 with the objective to provide strategic direction and insight on diversity and inclusion globally. Members of the council include 10 senior executives, co-chaired by Brian Porter, our President and CEO and Barbara Mason, our Chief Human Resources Officer. Of the 10 executives, five are also Executive Champions of Employee Resource Groups (ERGs).

The primary objectives are to:

1. Promote a culture of inclusion and diversity of perspective for better business results;

2. Embed diversity and inclusion in strategic business initiatives

3. Enhance leadership development specific to open-mindedness and cross cultural awareness

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OUR STAND ON EMPLOYMENT EQUITY

At Scotiabank, we pursue employment equity not only because we know it’s the right thing to do, but also because it makes business sense.

Canada, our home base, is one of the world’s most multicultural nations. As a business operating here and around the world, we don’t just embrace diversity, we need it. We don’t just hope that Canadian Scotiabankers reflect all Canadians; we need to make sure they do.

The best talent from all communities, and with all abilities, is what we seek in order to truly understand and serve our customers. As our customer demographics change, we need to leverage the abilities of a workforce that responds to the diversity of our communities. It’s a compelling business case, a competitive advantage, and good business strategy. We say it is an important key to business sustainability.

Our comprehensive policies, combined with a focus on a culture of inclusion, reflect our commitment to employment equity. We engage our employees in innovative programs that support our culture of inclusion and bring to life our global community of Scotiabankers.

We have numerous programs that allow us to tap into a diverse range of potential new hires, engage our diverse workforce across Canada and educate Scotiabankers on practices to promote and foster an inclusive workplace. Our watchwords for enabling diverse talent are “transparent, non-discriminatory and accessible”.

This approach has helped us attract a full spectrum of great people, and together we’re a global winning team. In addition to being recognized in 2014 as one of the “World’s Best Multinational Workplaces”, the Great Places to Work® Institute has recognized Scotiabank as Best Workplace® in Canada each year since 2010.

REPORTING ON EMPLOYMENT EQUITY

In this report, we start with where we are on representation for the four designated groups and what we’re doing to implement our Global Diversity and Inclusion Strategic Framework. Then we talk about how we create and promote a culture of inclusion throughout our organization and how we show that we value and respect every one of our unique Scotiabankers.

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II. OUR WORKFORCE

OUR TOTAL CANADIAN WORKFORCE

The table below shows statistics about our total Canadian workforce over the past five years. In 2014, we had more new hires, promotions and exits than in 2013.

Table 1: Scotiabank’s Total Canadian Workforce as of December 31

Note that any variances in the above Canadian workforce numbers are attributable to changes in employee status, transfers within Scotiabank worldwide, or changes in National Occupation Classification coding.

DESIGNATED GROUPS IN OUR WORKFORCE

Employment Equity is about more than just numbers, but numbers are very important. They can affirm that our plans and policies are working well or signal that we need to try something different to reach our goals. We gather information about our workforce through a Workforce Census. As employees participate in this survey (accessible online and in alternate formats), they can self-identify as members of one or more designated groups. New employees complete the survey, but we also remind employees to revisit it at key points (such as on their work anniversary date, when they enroll for benefits, or when they come back from a leave of absence).

In the tables below for each of the designated groups, there are columns for “Workforce Availability.” These numbers give an estimate of how many people would be available for each job category, based on the most recent Census (2011) and our own data (using a formula suggested by Employment and Social Development Canada). The figures are benchmarks, and comparing them with our actual numbers gives us an indication of how well we’re doing in attracting and retaining talented people from the designated groups.

Total (Regular full-time & part-time) Hires

Promotions (Employees Promoted) Exits

2014 33,490 4,042 4,485 4,026

2013 33,321 3,933 3,447 3,637

2012 33,064 4,465 3,147 3,565

2011 32,111 3,870 3,261 3,618

2010 31,921 4,073 3,096 3,307

2009 31,046 3,058 2,001 3,074

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A. WOMEN IN OUR WORKFORCE

Where We Are

Compare the Workforce Availability figures in the last column of the table below with our actual numbers each year. We have consistently exceeded the benchmarks in every category.

At the end of 2014, 64.5% of our Canadian employees were women. That’s impressive, but it’s important to look at how many of our managers are women. Over half of our professionals are women, as are over one-third of our senior management. As always, we want to do even better—and we will. With women in close to half of our middle management positions, we have a strong pool of talent to draw on for our future senior decision-makers.

Table 2: Women in the Scotiabank Workforce as of December 31

2014 (%)

2013 (%)

2012 (%)

2011 (%)

2010 (%)

2009 (%)

Workforce Availability* (%)

Overall 64.5 65.2 66.0 67.4 68.4 69.3 55.3

Senior Management

35.4 34.4 33.7 33.2 32.1 31.4 27.4

Middle Management

48.8 51.7 52.4 52.8 53.3 52.1 52.2

Professional 54.5 46.3 46.0 46.8 47.5 48.2 39.6

*Source: 2011 Census of Canada and Employer's Internal Data, using methodology suggested by ESDC.

What We’re Doing

We are committed to creating opportunities that enable all Scotiabankers to reach their full potential. We focus on creating a culture that values and builds a diverse pool of Scotiabankers with the broadest range of skills, knowledge and talent. We’re also committed to being a leader in gender inclusion, supporting the equality of voices and contribution to serve our customers. With this, we support development and career progression for representation of women at all levels of our organization globally.

1. Senior Executive Commitment and Accountability: Executive Vice-Presidents and business line leaders are accountable for the development of women through all-Bank collaborative targets included on each of their respective business line scorecards. Through specific targets, accountability cascades further into the organization with action plans related to the depth, diversity, and deployment of talent, including women.

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2. Measurement and Focus: We measure the representation of women at all levels to gauge our progress, including the emerging leader, vice president and above, and the executive leader segments. However, to effect meaningful and sustainable change at the executive level leader, we believe it is critical to focus our efforts at the emerging leader level so that we have the broadest and highest quality talent pipeline possible. As a result, in lieu of an organizational target for representation of women at the executive officer level, the President and CEO and the bank’s most senior leaders have committed to measure.

3. Employee Networks: Scotiabank Women’s Connection Network is a networking opportunity that brings together our women leaders (managers and above) who aspire to advance their careers. All employees are encouraged to broaden their professional networks and gain advice from leaders in the organization. Networking is about connecting Scotiabankers with more senior people in the organization who can support and guide development. This can be a valuable source of insight and advice from people who have overcome similar challenges. Networks provide women with role models, career development, and opportunities to learn from peers and leaders across the organization. Networks exist across various business lines and geographies around the world enabling Scotiabankers to expand their networks, share best practices, and increase their awareness of the Bank.

4. Leveraging external presence: We’re a strong supporter of organizations dedicated to the advancement of women, especially within the financial services industry, and are actively engaged with the following:

The Women’s Executive Network (WXN): Co-presenting partner for WXN’s Breakfast Series, which includes a total of 46 events in eight Canadian cities (Vancouver, Calgary, Toronto, Richmond Hill, Mississauga, Ottawa, Edmonton and Montreal).

WXN’s Canada’s Most Powerful Women: Top 100 Awards and Leadership Summit: Co-presenting partner.

Young Women of Influence Evening Series: Title sponsor, which includes a total of 10 events in two Canadian cities (Toronto and Calgary).

For International Women’s Day on March 7, 2014 we hosted an event in Toronto featuring keynote speaker and moderator Barbara Mason, Chief Human Resources Officer and an executive panel. Close to 750 Scotiabank women in the Greater Toronto Area gathered to learn how to reach their full potential and advance their careers.

Scotiabank Bright Future: Through our global philanthropic program, we support many women’s initiatives in local communities.

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B. VISIBLE MINORITIES IN OUR WORKFORCE

Where We Are

Our dedication to diversity shows in our results. Compare the Workforce Availability figures with our numbers, and it’s clear that we consistently exceed the benchmarks. And we’ve improved again this year.

Table 3: Visible Minorities in Scotiabank’s Workforce as of December 31

2014 (%)

2013 (%)

2012 (%)

2011 (%)

2010 (%)

2009 (%)

Workforce Availability * (%)

Overall 28.5 26.8 25.9 25.0 23.7 22.4 26.3

Senior Management

15.4 13.7 14.0 10.2 11.4 12.2 10.1

Middle Management

28.3 26.9 25.3 24.5 22.8 21.5 21.6

Professional 32.3 34.7 34.2 33.2 32.1 31.1 29.8

*Source: 2011 Census of Canada and Employer's Internal Data, using methodology suggested by ESDC.

What We’re Doing

We know that diversity in the workplace does not necessarily create a culture of inclusion. That takes effort and planned action, and we look to our employees and some key partners in the community to help us with this.

In Canada, we’ve focused on supporting community organizations that assist newcomers with employment-related services including pre-employment training. We know that a large number of visible minorities are also newcomers to Canada and that this source of talent is increasingly important throughout the country. Over the last year, we have continued to work with our partners to further develop programming initiatives that aim to better integrate skilled newcomers into the workplace while offering Scotiabankers the opportunity to engage in these programs to develop coaching, leadership, and cross-cultural competencies.

Working with our key partners:

Overall, we’re very proud of the steps we’ve taken in the last year to assist in building a system of support for newcomers, many of whom are visible minorities. The variety of initiatives in which we are involved offers many ways to help newcomers navigate the job market and find suitable and challenging careers in Canada—often, with Scotiabank.

ACCES Employment: We’re title sponsor of the Financial Services Connections™ pre-employment training program and we actively recruit graduates of this program into many of our retail banking roles.

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TRIEC (Toronto Region Immigrant Employment Council): Partnering with TRIEC to deliver The Mentoring Partnership program at Scotiabank—a program that Scotiabanker have participated in for over six years, with more than 800 completed partnerships to date. We also support TRIEC’s Professional Immigrant Network’s (PIN’s) initiative and website.

ALLIES (Assisting Local Leaders with Immigrant Employment Strategies): Partnering to provide resources and funding to immigrant employment councils across Canada.

Canadian Immigrant Career, Education and Settlement Fair: We’re the proud founding title sponsor of this national event taking place in Toronto and Vancouver.

New in 2014: We were title sponsor of the inaugural Canadian Immigrant Career, Education and Settlement Fair in Calgary.

BBPA (Black Business and Professional Association): We’re long-time supporters of many of BBPA’s key initiatives, including the National Black Business and Professional Convention, the Harry Jerome Awards, and the National Scholarship Fund.

Hire Immigrants Ottawa’s Employer Council of Champions Summit: We supporting this three-part annual event that brings together newcomer jobseekers and employers.

C. ABORIGINAL PEOPLE IN OUR WORKFORCE

Where We Are

In 1971, we were the first Canadian chartered bank to open a branch on an Aboriginal reserve. We now operate four on-reserve branch locations and 27 Aboriginal banking centres across Canada.

From 2009 to 2011, despite our continuing efforts to recruit candidates from Aboriginal communities, representation remained static. We know that other financial institutions faced the same recruitment hurdles. In 2012, we were proud to see positive movement, with our representation moving the dial to 1.2 per cent. This reflected our continued and strategic efforts in support of the Aboriginal community through education, financial literacy training, and career support. In 2014, it increased to 1.4 per cent.

Table 4: Aboriginal Peoples in Scotiabank’s Workforce as of December 31

2014 (%) 2013 (%) 2012 (%) 2011 (%) 2010 (%) 2009 (%) Workforce Availability* (%)

Overall 1.4 1.2 1.2 1.1 1.1 1.1 2.0

*Source: 2011 Census of Canada and Employer's Internal Data, using methodology suggested by ESDC.

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What We’re Doing

Focused Recruitment:

In 2013, we expanded our recruitment staff to include a dedicated Aboriginal recruiter to enhance our efforts to recruit Aboriginal candidates. With the new Aboriginal recruiter on board, a complete analysis of the various Aboriginal job boards was done and recommended technology enhancements were made. Over the past year, our Aboriginal recruiter has been very active in building relationships with many community organizations and First Nations communities across Canada. We hope to see positive results from these outreach efforts.

Here are some of the career fair events we have participated in to source Aboriginal talent in 2014, up from 5 events in 2013:

University of Victoria (UVIC) Indigenous Students Info Session, Victoria Aboriginal Human Resource Council Inclusion Works, Vancouver Belcourt Brosseau Métis Awards, Edmonton Rupertsland Institute Gala Dinner and Awards, Edmonton Aboriginal Futures Career Fair, Spring and Fall, Calgary YES Symposium, Calgary Creating Opportunities Career and Resource Fair, Lethbridge Vision Quest, Winnipeg University of Winnipeg University of Manitoba, Winnipeg Red River College, Winnipeg Tahltan Nation Career Fair, Dease Lake WDSS Entrepreneurship Program , Wallaceburg WFN Career Fair, Westbank UNBC and CNC Career Fair, Prince George Cape Breton University, Cape Breton

We invite the Aboriginal candidates we meet at these events to visit our Aboriginal Talent career microsite (scotiabank.com/aboriginaltalent) and submit their resume. In this way, we’re building a talent database that we use to actively source Aboriginal candidates and we engage our larger recruitment team to consider qualified candidates for available career opportunities. As mentioned in the Introduction section, the microsite offers Aboriginal candidates the option to self-identify as Aboriginal, First Nations, Inuit, or Métis in the recruitment process, provides information on our involvement in the Aboriginal community and answers questions commonly asked by Aboriginal candidates when applying for a career.

Progressive Aboriginal Relations (PAR) Gold Level certification:

PAR is a certification program of the Canadian Council for Aboriginal Business Relations, confirming corporate performance in Aboriginal relations at the Bronze, Silver or Gold level. PAR Gold is Canada's only recognition of performance and success in building positive relations with Aboriginal businesses, people and communities. PAR companies have

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demonstrated the ability to establish effective programs and policies to maximize involvement with the Canadian Aboriginal community. Through PAR, organizations are able to conduct a comprehensive self-assessment of their performance. The results and findings are externally verified and rated by a PAR jury for designation of PAR certification at the Bronze, Silver or Gold Level. Gold certified companies have exhibited long-standing leadership and sustainability in Aboriginal relations.

Scotiabank’s Gold certification recognizes our continued dedication to Aboriginal initiatives, our activities in support of prosperity in Aboriginal communities, and our dedication to building a culture of diversity and inclusion.

Working with our Key Partners:

Young people in Aboriginal communities tend to gravitate toward post-secondary education in the health and social sciences fields rather than finance. Recognizing this trend led to our focus on Aboriginal youth. We want to show young Aboriginal youth he interesting careers a career in financial services at Scotiabank can offer, and working with our key partners, we’ve already laid some important groundwork.

Martin Aboriginal Education Initiative (MAEI): On-reserve youth entrepreneurship program, the first of its kind in Canada. In January, 2014 the second phase of the project was launched at a school in Stand-Off, Alberta as part of Scotiabank’s MAEI partnership. The program encourages students to stay in school where they can develop the attitudes, knowledge, and skills necessary to achieve success in secondary school, postsecondary education or training in the workplace and daily life.

Indspire: We support the Building Brighter Futures Scotiabank Business and Commerce Bursary Award for Aboriginal, First Nations, Inuit and Métis youth to build brighter futures and develop their full potential. We also participate in the Soaring Indigenous Youth Career Conference each year by speaking with hundreds of Aboriginal high school students and facilitating career and financial literacy workshops.

Aboriginal Human Resources Council (AHRC): As Leadership Circle partners we’re deepening our commitment to the Aboriginal community and our Aboriginal employees. Each year we sponsor and participate in the Inclusion Works Recruitment Fair—Canada’s largest Aboriginal recruitment fair.

FIPAR (Financial Industry Partnership for Aboriginal Relations): We partner with four other banks to support fipar.ca, a website targeted to Aboriginal youth.

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D. PERSONS WITH DISABILITIES IN OUR WORKFORCE

Where We Are

Given our passion for creating an inclusive and accessible workplace, we’ve been concerned by the mixed results we’ve achieved in recruiting persons with disabilities. We are still shy of the Workforce Availability benchmarks, except at the management level. There, we met the benchmark, which means that we are building a substantial pool of talent poised for future senior management positions.

Table 5: Persons with disabilities in Scotiabank’s Workforce as of December 31

2014 (%)

2013 (%)

2012 (%)

2011 (%)

2010 (%)

2009 (%)

Workforce Availability* (%)

Overall 4.6 3.1 3.3 3.8 3.9 4.1 5.4

Management 4.3 3.3 3.6 4.8 5.1 5.1 4.3

Professional 3.7 2.2 2.4 2.5 2.8 3.0 3.8

*Source: 2011 Census of Canada and Employer's Internal Data, using methodology suggested by ESDC.

What We’re Doing

Focused Recruitment:

We have a Manager, Workforce Diversity, and Assistant Manager, Diversity Initiatives whose primary role is to recruit persons with disabilities. A key element of both roles is outreach within our organization and in the community to educate Scotiabankers, students, and members of the public about inclusive practices for persons with disabilities in recruitment and employment, and career opportunities with us.

New in 2014: This year our Manager, Workforce Diversity was granted the “Angel of Diversity” Award for our work in diversity and in particular, to ensure that media is accessible and reflects people with disabilities. The founder of Innoversity granted the award at a special ceremony in October.

We continue to engage all of our Recruitment Managers to encourage proactive sourcing of persons with disabilities, and we’re building a solid database of qualified candidates. At the same time, we’re striving to enhance our relationships with universities and colleges in order to directly link our scholarship opportunities with internships for students with disabilities.

We also continue to use our career microsite, Access Your Career (scotiabank.com/accessyourcareer) to source candidates with disabilities. As mentioned in the Introduction section, the microsite offers candidates with disabilities the option to self-identify in the recruitment process, provides information on accommodation and answers questions commonly asked by Persons with Disabilities when applying for a career. Candidate resumes

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are reviewed and qualified candidates are provided to recruiters and hiring managers for further review and consideration in available opportunities.

Working with our Key Partners:

With our community partners we support persons with disabilities through research and by participating in events and initiatives that promote employment of persons with disabilities.

Career Edge Organization: Partnering to provide work experiences through internships for persons with disabilities (as well as newcomers and recent graduates from Canadian universities and colleges).

New in 2014: Scotiabank was the recipient of the Leadership Award at the 2014 Career Edge Achievement Awards.

Networking career sessions: These are informal networking sessions where hiring managers meet potential candidates with disabilities that match current available career opportunities. We hosted three networking events this year with candidates sourced from many of our community partnerships.

New in 2014: We attended the inaugural WESP (Workplace Essential Skills Partnership) Career Fair.

WESP is CCRW’s (Canadian Council on Rehabilitation and Work) pre-employment training program for university and college graduates with disabilities, and is a program we actively recruit from. High potential candidates we met at this career fair were invited to attend one of our networking career sessions. Ontario JOIN (Job Opportunity Information Network): We’ve been title sponsor of the Annual Employer Conference for six consecutive years, bringing together employers across all sectors to share best practices to include people with disabilities in our workplaces.

Career Information Sessions: Every year, our Manager, Workforce Diversity, and

Assistant Manager, Diversity Initiatives present to students with disabilities at universities, colleges and community agencies about career opportunities with Scotiabank. This year their efforts included the following institutions in the Greater Toronto Area: York University, Seneca College, Centennial College, Humber College, George Brown College, Ryerson University, University of Waterloo and CCRW’s WESP Program.

NEADS (National Educational Association of Disabled Students) Scholarship Award: We sponsor this scholarship award presented to a student with a disability who is studying business, IT or finance.

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Educating Scotiabankers: Lunch and Learns: We host sessions throughout the year to create awareness about

disability, accommodation and accessibility. Persons with Disabilities Webinar Series: This training series provided manager training on best practices specific to employees with disabilities during the hiring and onboarding phases of employment. An important part of integrating employees into the workplace, particularly those who need specific job accommodations to perform their job, is to ensure they have the right tools in place to enable their success.

Accessibility and Accommodation: All new Scotiabank branches and all facilities in Canada have undergone major renovations since 2003 to meet or exceed the Canadian Standards Association’s (CSA) accessibility guidelines.

New in 2014: Scotiabank has an Accessibility Policy that states we are committed to creating and maintaining an inclusive and accessible workplace.

To support our policy, we have a commitment statement and an Accessibility Plan that adopted accessibility standards similar to the Accessibility for Ontarians with Disabilities Act (AODA). Our policies reflect our commitment to supporting our employees who have disabilities by putting an accommodation plan in place, which may include assistive technologies, resources and flexible work arrangements, as required. When new Scotiabankers join us, part of welcoming them is making sure they have the right accommodation in place. Our Accommodation in the Workplace Policy covers an assessment to identify the right equipment, tools or services that an employee needs to enable their success, and our centralized budget, the Scotiabank Abilities Fund, covers these accommodation costs.

III. OUR CULTURE OF INCLUSION

Employment equity is more than numbers; True equity means a workplace where everyone feels valued and respected, and knows that they belong. We promote and reinforce these qualities in our workplace in many different ways:

A. Communication and engagement; B. Responding to employee concerns; C. Policy framework; D. Learning and development; and E. Employee health.

Our initiatives in these areas apply to all of our employees. We think it’s important to stress that we value and respect the unique abilities that each Scotiabanker brings to our workplace.

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A. COMMUNICATION AND ENGAGEMENT

“Let’s talk.” “Let’s get involved.” For us, those are two key ways to promote engagement. “Let’s talk” means two-way communication—we keep our employees informed, but we also encourage them to give us feedback and ideas. “Let’s get involved” means that we give Scotiabankers a voice in issues that matter to them and a role in shaping our programs and achieving our employment equity goals. We also encourage their involvement in the community and we count on them to drive our many charitable and community events.

Employee engagement at Scotiabank has increased from last year, as evidenced by our ‘ViewPoint’ annual employee survey. In Canada, the top box scores (the most positive responses to the survey questions) improved 4% (from 47 to 51%), while the percent favourable scores (the ‘strongly agree’ scores plus the ‘agree’ scores) improved 1% (from 83-84%). Both scores remain above norms for the top 10% of all global financial organizations.

These findings also show that the overall employee experience (engagement) for employees who identified themselves in the survey as Aboriginal employees and Persons with Disabilities (55% top box), is well ahead of the Bank average (49%), while percent favourable scores are consistent with the Bank average (85%).

Using a variety of communication channels to reach all Scotiabankers globally, we deliver clear and consistent messaging that is designed to educate our employees on inclusive practices and behaviours in our workplace. Our communication channels include interactive mediums that support our accessible and inclusive culture.

Our Diversity and Inclusion public website: Welcome to our Diversity and Inclusion website (scotiabank.com/diversityandinclusion). The site offers rich content, such as our diverse history since 1832, our sponsorships, donations, awards, employee participation opportunities, and our commitment to Diversity and Inclusion including Employment Equity. We’re especially proud of our “Employee Experience” videos. They showcase our people telling their own stories about their work experience with Scotiabank. We hope they will encourage people from diverse backgrounds to consider a career with us.

Scotiabank Live: Our global internal communication network and primary way to bring the global community of Scotiabankers together. This community offers the opportunity to connect with Brian Porter, our President and CEO, and his executive team, and to learn more about how we are executing on our strategy. It offer instant access to the latest Scotiabank news and information, and is a platform to collaborate and connect with colleagues around the world. As a large and diverse organization, we need to be connected to our leaders, to our strategy, and to each other in order to deliver the best solutions for customers. Scotiabank Live helps the flow of information across businesses, corporate functions and geographies.

The Diversity and Inclusion Fountain: Our internal community on Scotiabank Live where we have information on our programs and initiatives within the Global Diversity & Inclusion Strategic Framework, and where Scotiabankers can come to learn how to get involved.

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Team Voice: Gathers telephone or email feedback from our employees on policies and processes that impact their ability to be leaders in customer service. Their feedback is channeled to the right business line for action.

Ideas in Action: Our employee suggestion program that was launched in 1967 and is one of the longest running suggestion programs of its kind in Canada. The program engages Scotiabankers in submitting innovative ideas and rewards them for doing so.

Scotiabank Employment Relationships Council (SERC): Our employees provide insights and feedback on the Diversity and Inclusion programs and policies. Members represent our Canadian regions and several international locations, job levels from clerical to senior management, and our various business lines. SERC has always enjoyed diversity in its membership, including representatives from our Employee Resource Groups. SERC keeps an eye on our quarterly “People Plan,” which measures our progress toward achieving our diversity goals. The members meet quarterly to review our results and explore ways to attract and retain diverse talent.

We support the creation of Employee Resource Groups (ERGs) as a forum for Scotiabankers to network and communicate about issues in the workplace. We tap into these groups as a segment knowledge and insight that helps us better understand the needs of our employees and our customers. ERGs are an important part of the employee experience at Scotiabank by creating a sense of community within our larger global community of Scotiabankers.

We have ten ERGs at Scotiabank, created by a shared vision and each with a unique mission propelled by the passionate efforts of many Scotiabankers—and many of whom are members of the four designated groups. Membership and new chapters are expanding across Canada and globally each year:

Scotiabank Aboriginal’s Network (SAN) Scotiabank Alliance for Mental Health (SAMH) Scotiabank Caribbean Network (SCN). Scotiabank Diversability Alliance (SDA) HOLA Scotiabank Scotiabank Intercultural Alliance (SIA) Scotiabank Pride Scotiabank South Asian Alliance (SAA) Scotiabank Young Professionals (SYP) Scotiabank’s Women’s Connection (SWC)

New in 2014: We launched the ERG Portal – an information centre for Scotiabankers to explore what ERGs are, the part they can play and the resources that are available to support ERGS.

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One of the important ways in which we build and reinforce employee engagement is through our community and charitable activities, many of which also support our diversity and inclusion goals. In fiscal 2014 (November 1, 2013 to October 31, 2014) we contributed roughly $65 million to community causes in Canada and around the world through our global philanthropic program Bright Future. Of this total, just over $50 million went to charitable initiatives in Canada. Our employees dedicated roughly 650,000 hours to volunteering and fundraising in some 3,300 community initiatives and events.

We have a dedicated budget for sponsorships and donations to support organizations that serve the needs of the members of designated groups. We focus our diversity sponsorships at the community level, in the areas of education and career or professional development. We’re particularly interested in partnering with non-profit and charitable organizations that can help us strengthen our relationships with designated groups.

We set objectives for our community involvement and report on our progress in our annual Corporate Social Responsibility (CSR) Report (see our CSR website at scotiabank.com/csr).

B. RESPONDING TO EMPLOYEE CONCERNS

We strive to create a work environment where our employees are treated equitably and where personal productivity; individual goals, dignity, and respect for all are promoted. From time to time however, conflicts, disputes and concerns will inevitably arise.

We encourage open, two-way communication about issues and concerns that may create conflict in the workplace, and strongly support an environment where Scotiabankers can freely communicate about issues or concerns. We want our employees to proactively raise issues that may be troubling them rather than letting problems escalate. Some employees are more comfortable with a formal process and others prefer a more informal approach. Through offering options, we think employees are more likely to speak up.

Pathways to Resolution Process:

Our Pathways to Resolution process provides Scotiabankers with several options to raise issues for subsequent discussion and resolution:

Raising issues directly with their manager or supervisor through an official “Open Door” approach, with the option of escalating to senior management directly;

Seeking support (confidentially, if desired) through the Staff Ombuds Office; or Speaking with an Employee Relations Officer or a Local HR representative.

The Staff Ombuds Office is an independent internal department that reports jointly to the President and CEO, and the Chief Human Resources Officer. The office serves Scotiabank globally, in English, French, and Spanish and is dedicated to supporting Scotiabank in its commitment to treating all employees fairly. Our employees can turn to the Staff Ombuds Office in confidence for help with preventing and managing conflicts and concerns. The office works with employees to identify options and alternatives for resolving their conflict or concern and also helps parties resolve communication breakdowns.

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The role of Employee Relations is to provide specialized expertise to employees and managers to address and resolve contentious employee issues. Their responsibilities include providing guidance and direction to employees so that they can address their concerns directly with their supervisors or managers. In some instances, if appropriate, Employee Relations may help facilitate the discussion between the employee and manager. Employee Relations may mediate or investigate disputes and advise on matters relating to employee relations and human resources policies.

Training is available to employees through online courses that help to build skills, techniques and confidence to raise issues directly and in a timely manner. A poster and brochure are available globally to all Scotiabankers.

Within our Pathways to Resolution policy, employees can expect the following:

Receive information on the resources available to assist in addressing questions and concerns;

Be treated with fairness, dignity and respect, without fear of retaliation if they raise a concern;

Have concerns taken seriously and handled with sensitivity, confidentiality and consistency;

Receive a timely response to questions or concerns; and Receive an answer to or a decision about a concern, where necessary, and an

explanation of the rationale behind it.

C. POLICY FRAMEWORK

Global Human Resources Policy and Compliance Framework:

Through our Global Human Resources Policy and Compliance Framework, all of Scotiabank’s Human Resources policies undergo a process of comprehensive and regular review. New policies and any proposed changes to existing ones have to pass a rigorous review by our stakeholders and must receive approval from our Employment Law department.

We have a Global HR Policy Governance Committee of key senior management representatives from several departments to monitor and oversee compliance with the Global Human Resources Policy & Governance Framework. The Committee will fulfill this objective in the following ways:

The standardization of Human Resources principles, policies, programs and procedures;

Consistent archiving, monitoring and trend analysis; and

Providing learning and tools to assist managers in the interpretation and application of Human Resources policies equitably.

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Guidelines for Business Conduct:

The Guidelines for Business Conduct is a key document that sets out our standards of behaviour in the equitable treatment of all members of our workforce. All Scotiabankers at every level must provide annual acknowledgement in writing, that they have read, understood, and adhere to the guidelines.

Scotiabank’s The Whistleblower Policy and Procedures is a supplement to the Guidelines for Business Conduct and is designed as a control to help safeguard the integrity of Scotiabank’s financial reporting, business dealings and to support adherence with the Guidelines. The Policy requires all directors, officers and employees to report concerns in these areas:

Financial reporting;

Suspected fraudulent activity;

Breaches of the guidelines and other compliance policies; and

Retaliation or retribution against an individual who reports a concern.

Human Rights Policy:

In 2013 we revised our Human Rights Policy for Canada. The revised policy reaffirms our commitment to respecting human rights and provides very clear definitions of the actions and behaviours that constitute harassment, discrimination and workplace violence. This policy is supplemented with an Inclusive Workplace Guide on Non-Discrimination in the Workplace that provides guidance to employees and managers in recognizing discriminatory behaviour as well as examples of inclusive behaviour. Scotiabank does not tolerate any behaviour that conflicts with the spirit or intent of the Canadian Human Rights Act or any other human rights and anti-discrimination laws that apply to our subsidiaries or operations outside of Canada.

Flexible Work Options:

Our Flexible Work Options Policy provides a set of options to enable employees and their supervisors to manage where and how their work is completed. These include flextime, compressed workweeks, job-sharing, temporary moves from full-time to part-time work, work at an alternate location, and phased retirement. Our policy also contains guides and checklists to enable employees and managers to determine which flexible work option suits their needs.

Studies have repeatedly shown that Flexible Work Options not only enable employees to better balance both personal and work commitments, but may also provide additional benefits such as reduced commuting time, reductions in stress, as well as financial savings. Organizations that have adopted flexible work options benefit from a more engaged and committed workforce, improved productivity, and in some cases, reduced facilities expenses.

Absences and Voluntary Leaves Policy:

Our Absences and Voluntary Leaves Policy covers a great many situations where our employees need time off. Some examples of paid leave include Bereavement Leave, Jury or

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Witness Duty Leave, Top-Up Period of Maternity Leave, and Reserve Forces Training Leave; and unpaid leave includes Compassionate Care Leave and Education Leave.

Workplace Accommodation Policy:

New in 2014: An enhanced version of our Workplace Accommodation Policy was launched in 2014. The policy addresses accommodation for employees with disabilities and other needs based on human rights protected grounds.

Helping Scotiabankers Achieve Work-Life Balance:

We understand that Scotiabankers always want to give their best to their jobs, but also want to give their families their best. We encourage every Scotiabanker to achieve a healthy work-life balance through our many family-friendly policies and programs, and our approach to time off, health and wellness, and on-site services that stave to serve the diverse needs of all Scotiabankers.

D. LEARNING AND DEVELOPMENT

Continuous learning sets the stage for creating and reinforcing our culture of inclusion. We make sure our employees gain the knowledge that leads to a better understanding of others’ needs, perspectives, and rights. Formal learning is also a way to send a clear message about the depth of our commitment to employment equity, and about the details of our policies.

New in 2014: “Accessibility and Human Rights in the Workplace” is one our new accessibility courses that was launched to all Canadian employees in 2014.

This course, along with the “Accessibility for Customers and Employees with Disabilities” e-learning course, make up the accessibility curriculum available to all Canadian employees. Designed to meet the Accessibility for Ontarians with Disabilities (AODA) Customer Service and Integrated Accessibility Standards, the courses focus on how employees can provide better customer service to persons with disabilities, as well as the human rights and accommodation policies and programs that help support an inclusive workplace. Although the AODA is a provincial legislation in Ontario, Scotiabank made the decision to make these courses necessary for all current Canadian-based employees, as well as all new employees in Canada.

My Learning Centre is the Bank’s online platform for employee learning, available to all employees. We offer several courses related to Diversity & Inclusion, such as Getting Past Clashes, Managing Team Diversity, Managing Diversity Simulation, Stakeholder Interests, Cultural Diversity, Creating and Maintaining a Positive Work Environment: Improving Your Cross-Cultural Communications, Management Essentials: Caring about Your Direct Reports, and Sexual Harassment at Work.

Our Employee Relations department delivers core employment equity training components, including focused presentations, tailored to job level, on subjects like Absenteeism, Human Rights, Appreciating Diversity, and Respectful Workplaces. As an example, Absenteeism

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Management Training teaches our managers about the need for accommodation when the root cause of absenteeism is due to a disability.

Training for recruitment, interviewing, and selection includes equity 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.

There are a number of ways Scotiabankers can be involved in mentoring relationships across the organization. More formal mentoring relationships are also strategically established within individual lines of business to help meet the talent need of the business. The Scotiabank Mentoring Toolkit offers resources, definitions, and how-to tools for establishing and sustaining a self-directed mentoring relationship.

We have a wide range of leadership programs to develop our talent pool. Business lines and key support functions help to identify, develop, and deploy talent early as part of the annual Leadership Resource Planning (LRP) process. The LRP identifies emerging leaders who have the ability, aspiration and engagement to contribute at higher levels.

The Leader Profile sets the foundation of what it means to be a leader at Scotiabank. It outlines the behaviours leaders must demonstrate, the values Scotiabankers must model, and the leadership experiences that would be beneficial to advance to more senior roles. The profile provides a framework and basis for assessing candidates for leadership positions: Building for the Future – customer focus, strategic thinking, building strategic relationships, strategic influencing; Building Personal and Team Capability – self-awareness and personal development, developing and coaching talent, cross-cultural leadership; and Executing Business Plans – communication, change leadership, results focus.

Employees and managers are accountable for ensuring that development plans are executed to drive the leadership strategy and achieve the Bank’s goals. The Performance Management process for all employees is supported by tools resources for setting objectives and completing career development plans. Some business lines and key support functions also provide their own online career development modules and self-help tools.

Employees are encouraged to build leadership capabilities through a blend of methods, which include experience-based learning, feedback channels, knowledge development and education. Launched in 2012, Scotiabank iLEAD is our first global leadership development program that provides learning opportunities for employees globally to enhance their development at all stages of their career. The overall framework of iLEAD aligns to the Scotiabank Leader Profile and is designed to help employees at all levels prepare for success in both their current and future roles.

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E. EMPLOYEE HEALTH

By integrating wellness into our programs and policies, it becomes a part of our Scotiabank culture. We offer a variety of programs and services to support, encourage, and promote sustainable, healthy lifestyles for our employees. These programs and services are outlined on our internal website, HR Passport, and include the following:

Scotiabank Vitality: Is our health and wellness website that provides a rich source of information, tips, and tools in the areas of home, health, work, and wealth for employees, retirees and their family members. Through Scotiabank Vitality, retirees also have direct access to information about their benefits claims, including online claims submission and claims history.

The Scotiabank Reflection Room: Is available in several of our corporate offices across Canada as a space to meet personal wellness needs—mental, physical, emotional, or spiritual. Scotiabankers can use the space to relax, pray, read, do light exercise or meditation.

Our Employee Assistance Program (EAP): Offers confidential, professional counselling services (in person, by telephone, or a variety of electronic formats) and specialized services that promote health and wellbeing (such as nutritional counselling, smoking cessation, work and life solutions, resiliency coaching, and mental health management). This program gives our diverse workforce, and their eligible dependents, access to sensitive and relevant support to meet individual needs.

The Health Assistance Program (HAP): A confidential telephone service offering practical, personalized help with non-urgent physical health matters and health-related lifestyle choices. It helps our employees and their eligible dependents identify personal health risks and make healthy choices to feel better now, and prevent more serious illness or disability later. The HAP assesses health risks, creates an action plan, and motivates behaviour change.

Best Doctors Inc.: Gives employees and their eligible dependents access to experts to help them find the right information about their diagnosis and treatment plan. The following services are covered:

InterConsultation™ provides a second opinion for your condition to confirm if you have the right diagnosis and or the right treatment plan;

Best Doctors 360°® offers tools and information on a wide variety of health-related topics;

FindBestDoc™ provides assistance finding a specialist in Canada;

FindBestCare™ provides assistance finding a specialist or treatment facility outside of Canada; and

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Ask the Expert provides a more detailed understanding of medical conditions or treatment options.

Employees on short-term or long-term disability participate in an Active Treatment Plan, a comprehensive treatment plan designed to promote wellness, build resiliency, and help employees return to health and productivity, both at work and at home. Case Managers work with employees and their physicians to create a personalized plan, which includes access to community programs and resources in addition to Scotiabank programs and services.

At Work Services helps employees who are able to continue to work but need some help to manage stress, anxiety, depression or other health conditions.

A LAST WORD

Our culture of inclusion is the heart of our global community of Scotiabankers. It’s a big part of our success and what makes us a global employer of choice. We are very proud of the accolades we receive but our goal is to always do better—and we will.

We’re confident that our Global Diversity and Inclusion Strategic Framework is the right blueprint for more progress toward employment equity, and that it will help make Scotiabank an even better place to work.