Bank of Nova Scotia has become the third major Canadian bank to earn a spot on the Dow Jones Sustainability World index.

The index tracks the financial performance of the leading sustainability-driven companies worldwide. It covers the top 10% of the biggest 2,500 companies in the Dow Jones Global Total Stock Market Index in terms of economic, environmental and social criteria. It considers factors such as corporate governance, risk management, environmental reporting and labour practices.

The index includes 317 global enterprises, including 11 Canadian companies. Other Canadian banks on the index include Royal Bank and Canada, which has been a member of the index for 10 years, and Canadian Imperial Bank of Commerce, which has been a constituent since 2002.

During the annual review of the index, Scotiabank was one of 33 companies around the world to be added, while 33 others were removed.

“Scotiabank is working diligently to continue to integrate environmental, social and governance principles into all our operations,” said Rick Waugh, president and CEO of Scotiabank. “We believe that paying close attention to sustainability issues provides us with a competitive edge.”

The bank has launched a number of environmental initiatives in the past few years. One of the considerations for the company’s inclusion in the index was its efforts in carbon disclosure.

“Our social and governance programs have traditionally been very strong, but now we have a more balanced approach to CSR, as the Bank’s environmental initiatives have really taken off in the last three years,” said Kaz Flinn, vice-president of corporate social responsibility at Scotiabank.

Other considerations included the bank’s support to micro-entrepreneurs in emerging markets, with the acquisitions of microfinance operations in Peru, Guatemala and the Dominican Republic; and its establishment of a new dedicated multicultural banking group that provides resources to new Canadians.