Equitable Group Inc. (ETC) 2024年CSR報告「TSX」.pdf

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1、 x Table of contents 29 Creating value for EQB challengers,customersand communities 30 Talent management 37 Inclusion,diversity,equity,accessibility,anti-racism 40 Rights of Indigenous peoples and EQBs commitment to Truth and Reconciliation 42 Philanthropic activities 43 Investing in Canadian ars 44

2、 Contributing to afordable housing 46 Financial inclusion 48 Product innovation&technology 49 Building a greener future with digital banking50 Climate change 52 Climate strategy 53 Climate risks&opporunities 58 GHG emissions 69 Appendices3 Caution regarding forward-looking statements4 About this rep

3、or5 To our stakeholders8 About EQB10 2024 Perormance highlights11 Approach to responsibility12 Stakeholder engagement14 Governance16 Risk Management17 Social covered bond impact19 Leading with integrity:Governance in action20 Board diversity and composition 22 Business ethics and conduct 26 Customer

4、 privacy&satisfaction 28 Data security&cybersecurity EQB Inc.|Responsibility Report 2024 Page 2 of 82 Caution regarding forward-looking statements Statements made in this Report,and in other filings with Canadian securities regulators and in other communications,include forward-looking statements wi

5、thin the meaning of applicable securities laws(forward-looking statements).These statements include,but are not limited to,statements about EQBs objectives,strategies and initiatives,financial performance expectations and other statements made herein,whether with respect to EQBs businesses or the Ca

6、nadian economy,which includes its subsidiaries and affiliates(collectively,“EQB”).The forward-looking information contained in this Report is presented for the purpose of assisting our stakeholders in understanding our future business,our ESG outlook and future disclosures,anticipated events or resu

7、lts,and may include information regarding our business strategies as we address talent management,the communities in which we operate and serve and climate-related risks and opportunities.Generally,forward-looking statements can be identified by the use of forward-looking terminology such as“plans”,

8、“expects”or“does not expect”,“is expected”,“scheduled”,“guidance”,“planned,“estimates”,“forecasts”,“outlook”,“intends”,“anticipates”or“does not anticipate”,or“believes”,or variations of such words and phrases which state that certain actions,events or results“may”,“could”,“would”,“should”,“might”or“

9、will be taken”,“occur”,“be achieved”,“will likely”or other similar expressions of future or conditional verbs.Forward-looking statements are subject to known and unknown risks,uncertainties and other factors that may cause the actual results,level of activity,closing of transactions,performance or a

10、chievements of EQB to materially differ from those expressed or implied by such forward-looking statements,including but not limited to risks related to capital markets and additional funding requirements,fluctuating interest rates and general economic conditions including,without limitation,impacts

11、 as a result of global geopolitical risk including but not limited to uncertainty arising from ongoing United States/Canada tariff concerns and related impacts,business acquisition,legislative and regulatory developments,changes in accounting standards,the nature of EQBs customers and rates of defau

12、lt and competition as well as those factors discussed under the heading“Risk Management”herein and in EQBs documents filed on SEDAR+at www.sedarplus.ca.All material assumptions used in making forward-looking statements are based on managements knowledge of current business conditions and expectation

13、s of future business conditions and trends,including their knowledge of the current credit,interest rate and liquidity conditions affecting EQB and the Canadian economy.Although EQB believes the assumptions used to make such statements are reasonable at this time and has attempted to identify in its

14、 continuous disclosure documents important factors that could cause actual results to differ materially from those contained in forward-looking statements,there may be other factors that cause results not to be as anticipated,estimated or intended.Certain material assumptions are applied by EQB in m

15、aking forward-looking statements,including without limitation,assumptions regarding its continued ability to fund its loan business,a continuation of the current level of economic uncertainty that affects real estate market conditions including,without limitation,continued acceptance of its products

16、 in the marketplace,as well as no material changes in its operating cost structure and the current tax regime.There can be no assurance that such statements will prove to be accurate,as actual results and future events could differ materially from those anticipated in such statements.Accordingly,rea

17、ders should not place undue reliance on forward-looking statements.EQB does not undertake to update any forward-looking statements that are contained herein,except in accordance with applicable securities laws.This report and the information contained within it is unaudited.KPMG has performed a limi

18、ted assurance engagement for a select number of performance indicators,and the remainder of the information within this report was not subject to the limited assurance engagement.More details about the nature and scope of the engagement with KPMG can be found on page 79 of this Report.While certain

19、matters discussed in this Report may be of interest and importance to EQBs stakeholders,the use of the terms“material”,“significant”,“important”,or similar words or phrases should not be read as necessarily rising to the level of materiality used for the purposes of securities or other laws and regu

20、lations.EQB has no obligation to update the information or data in this Report.EQB Inc.|Responsibility Report 2024 Page 3 of 82 About this report Scope This report covers EQBs ESG commitments,policies,activities and performance for fiscal year 2024.All facts and figures are as of October 31,2024,unl

21、ess stated otherwise.All financial figures are stated in Canadian dollars.This is a voluntary report issued by EQB Inc.(TSX:EQB).It incorporates the results of EQB Inc.(EQB)and its entities(collectively,the“Affiliates”),Equitable Bank,Equitable Trust,Concentra Bank,Concentra Trust,Bennington Financi

22、al Corp and ACM Advisors,unless otherwise stated.On December 14,2023,EQB Inc.acquired a 75%interest in ACM Asset Management Ltd.,which owns 100%of ACM Advisors Ltd.(ACM),a Canadian alternative asset manager that specializes in the creation,structuring and management of pooled Canadian commercial mor

23、tgage funds.Results of ACM within this report are limited to GHG Emissions data only within the Environmental section starting on page 68 of this Report.In this Report,unless otherwise specified,references to“Equitable”and the“Bank”are to Equitable Bank,references to“Concentra”are to Concentra Bank,

24、references to“Bennington”are to Bennington Financial Corp,references to“ACM”are to ACM Advisors,references to“us”,“our”,and“we”are to EQB and Affiliates,references to“Challengers”is to our employees,unless otherwise specified.This Report complements EQBs Management Information Circular,Management Di

25、scussion and Analysis,Annual Information Form and the Banks Public Accountability Statement,all of which offer more information about our financial position,priorities,responsibilities and commitments.All these documents and previous reports relating to environmental,social and governance matters ar

26、e available on our website().Reporing Frameworks EQB is committed to providing transparent disclosures and ensuring compliance with evolving regulations relevant to our business and our approach to integrating environmental,social and governance practices within.This report is produced in alignment

27、with the recommendations of the Task Force on Climate-related Financial Disclosures(TCFD recommendations)and Sustainability Accounting Standards Board(SASB)Standards for Mortgage Finance,Commercial Banks and Consumer Finance.These SASB standards were selected based on their relevance to our business

28、.The SASB Index can be found as supplemental material in the Appendix.Greenhouse gas emissions data is reported in accordance with the Greenhouse Gas(GHG)Protocol Corporate Accounting and Reporting Standard.Our Responsibility strategy reflects our commitment to act in accordance with laws and regula

29、tions.As a result,EQB is monitoring the evolving ESG regulatory and reporting landscape,including the International Financial Reporting Standards(IFRS)Sustainability Disclosure Standards and the Canadian Sustainability Disclosure Standards Board(CSSB)s published Canadian Disclosure Standards(CSDS).W

30、e intend to prioritize the requirements of the CSDS and expect to report under those requirements,when required.Pursuant to OSFIs issuance of Guideline B-15 Climate Risk Management,EQB is focused on its implementation.It is our intention to make climate-related financial disclosures in compliance wi

31、th Guideline B-15 Climate Risk Management for our period ending October 31,2025,and on an annual basis thereafter.We expect much of our progress under the TCFD to lay the groundwork for these disclosures.By integrating these frameworks,we seek to offer stakeholders a comprehensive view of how sustai

32、nability factors particularly those related to climate change and broader environmental,social and governance(ESG)considerations are incorporated into our business model.Limited Assurance KPMG has performed an independent,limited assurance engagement for selected performance indicators denoted by th

33、e symbol in the report.KPMGs Independent Limited Assurance report is on page 79 of this Report.Contact Information Any questions,comments and feedback about the Report can be directed to:investor_ EQB Inc.|Responsibility Report 2024 Page 4 of 82 To our stakeholders As a purely Canadian business and

34、owner of Canadas Challenger Bank,we have always had a clear and compelling sense of responsibility to invest in and for the benefit of Canadians.Recent geopolitical events,namely the concerns related to U.S.and Canada tariffs and potential responses,have brought the importance and value of our all-C

35、anadian approach into even sharper focus.It is a responsibility we take seriously.In this report,we provide a fiscal 2024 update on progress toward our sustainability priorities and share how EQB supports an ecosystem of innovation and growth that serves our purpose of driving change in Canadian ban

36、king to enrich peoples lives.We encourage you to read it cover to cover because our actions take various forms,are purposeful and informed not just by compliance with requirements or best practices but by something deeper:our abiding sense of doing whats right for our people,our customers,our commun

37、ities,our business partners and those who have put their trust in us as shareholders.Writing the forward for any work of this scale is always a challenge,but we are pleased to draw your attention to a few key developments within our business.Record support for homeownership and the development of af

38、fordable housing for Canadians CMHC is on the record stating that Canada needs approximately 3.5 million additional housing units by 2030 to restore affordability1.We are doing our part to address this need by financing the construction and preservation of affordable rental housing units in urban ce

39、ntres across Canada,including in Ontario and British Columbia where the gaps are said to be most pronounced.Fiscal 2024 was a record year as we funded$4.3 billion in multi-unit residential loans,supporting the development of 170 properties across the country.We also committed to investing in a new S

40、ocial and Climate Fund created by our alternative asset manager,ACM Advisors.It will pool mortgages secured against Canadian real estate properties evaluated for contributions to affordable housing as well as climate,Indigenous groups and local communities.Beyond all of this,Equitable Bank provided

41、its record amount of credit to Canadians purchasing homes through our single-family residential business.A much better deal for Canadians through banking innovation EQ Bank,our all-digital platform,has a proud legacy of bringing innovation to Canadian banking in ways that serve our customers and our

42、 purpose while increasing competitive intensity in the industry that is good for our country.In 2024,we sustained that legacy by introducing the EQ Bank Notice Savings Account.It provides a higher deposit rate than demand products and has more flexible holding periods than GICs.With no fees or minim

43、um balance requirements,it is the first of its kind in Canada.Recognizing that the micro and small business sector in Canada is underserved by banks,we introduced the EQ Bank Small Business Account in beta.It offers high daily interest on all balances and access to competitive business GICs along wi

44、th free(and unlimited)transactions and no hidden or monthly fees.It is scheduled to launch in full in 2025.In line with our Challenger Bank ethos,we enriched the EQ Bank US Dollar Account such that the CAD/USD exchange rates are superior to other banks while maintaining a high deposit rate on every

45、dollar our customers save.Today,more than half a million Canadians enjoy convenient,no-fee banking as a result of EQ Bank.Financial inclusion for all Canadians Financial services can contribute to broader economic development,especially when they are available to all Canadians.With that in mind,we c

46、ontinue to find success in serving the needs of Canadas growing population of retirees through our wealth decumulation business,including reverse mortgages and insurance lending.This portfolio surpassed$2 billion in fiscal 2024,up 47%y/y demonstrating the value of these unique Challenger Bank produc

47、ts to Canadians.We also collaborated with Canadian credit unions to provide Registered Disability Savings Plans.These efforts ensure greater awareness of this important government matching program.Our support for Indigenous Canadians is a point of pride and a reflection of our commitment to the ongo

48、ing work of Truth and Reconciliation.Our engagement includes our deposit-taking operations where EQ Bank was the first in Canada to employ photo recognition of Status Cards to open accounts and the Banks lending operations where we finance the cost of land entitlement claims.1As quoted in“Housing sh

49、ortages in Canada:Updating how much housing we need by 2030|CMHC”EQB Inc.|Responsibility Report 2024 Page 5 of 82 Stable,meaningful and rewarding employment for Canadians Our business success is due to the hard work of our employees.It therefore stands to reason that they should share in the success

50、 they create.To ensure they do,we took several actions in 2024 to enrich the employee experience and the benefits of working at EQB.Notably,we codified and launched a comprehensive Competency Framework as part of our commitment to structured talent development;through our tuition reimbursement progr

51、am,we funded over$800,000 of external training and development;and,under the auspices of our EQ Strong benefits program,we introduced programming designed to enhance employee wellbeing.We also continued to run our Leadership Development Program which gives participants exposure to key areas of our b

52、usiness including ESG matters.In fiscal 2024,we recruited over 100 new Challengers(our term for employees)on a net basis,promoted from within and noted that 70%of employees participated in our employee share purchase plan a sign of their belief in the future of our company.Diversity that reflects th

53、e beauty of Canada Workforce diversity makes EQB a better company in many ways.It ensures we can reflect the needs and preferences of all Canadians in developing product innovations,serve Canadians in many different languages and it makes our culture more vibrant and our workplace more enjoyable.For

54、 these reasons,we are intentional about our hiring and engagement practices and in 2024,our promotion policies were enhanced to ensure a level playing field for all while mitigating the potential for unconscious bias.We also gain a great deal from the inspiring work of our six Employee Resource Grou

55、ps and encourage you to read profiles of each Group beginning on page 38 of this Report.To call out just one,in 2024,our Women in Tech ERG developed a new partnership with Scientists in Schools which supports STEM skills training in 1,700 educational institutions including several in Indigenous comm

56、unities.We recognize more can be done to further equity,diversity,inclusion and anti-racism,and we are committed to further action.Active engagement to enrich Canadian society As our business has grown(we are Canadas 7th largest bank by assets),our responsibility for and impact on society have incre

57、ased as well.Fortunately,corporate philanthropic giving has long been a defining pillar of our culture.Giving back in our case includes financial assistance for charities that address houselessness and mental health,support for over 180 Canadian artists and 18 Canadian arts organizations and scholar

58、ships and bursaries such as those we offer to Indigenous students.But we go beyond all of this by encouraging our Challengers to volunteer as community leaders which they did in 2024,registering well over 2,700 hours in support of important causes.In these ways,we prove that there is more to our pur

59、pose of enriching peoples lives than meets the eye.More details can be found in our 2024 Public Accountability Statement available at .Addressing climate risks and opportunities througha made-in-Canada approach As readers of our past sustainability reports(since 2021)know,EQB has taken a serious-min

60、ded approach to tracking GHG emissions across all Scopes the first bank in Canada to include financed emissions in our calculations establishing appropriate and relevant Board and management-level governance structures,addressing sustainability and climate-related risks and opportunities in EQBs str

61、ategic plan and transparently reporting on our actions.This preparatory work positions us well for the introduction of Canadian Sustainability Disclosure Standards(CSDS 1 General Requirements for Disclosure of Sustainability-related Financial Information and CSDS 2 Climate-related Disclosures)when t

62、hey come into effect for Canadian corporate issuers later this decade.EQB Inc.|Responsibility Report 2024 Page 6 of 82 Whats far more important is what we are doing to reduce our own emissions and mitigate risks in our loan portfolio,beginning on page 49 of this Report.To that,we would highlight the

63、 successful completion of Equitable Banks first social covered bond issued under our recently created Sustainable Bond Framework.Proceeds of 500 million(CAD$735 million)raised in fiscal 2024 are earmarked to finance new or existing Canadian residential buildings in support of affordable housing and

64、homeowners of equity deserving groups.This bond issuance and others that will follow demonstrate that doing the right thing for the environment can also be right for our customers and our business.Building a better banking system for Canadians Canada enjoys the benefits of a stable,well-regulated fi

65、nancial system.But like everything,that system needs to keep up with the times and it needs to serve the interests of customers,not just banks.That is why we have chosen to use our position as Canadas Challenger Bank to advocate for modest reforms and the introduction of Open Banking.While it will t

66、ake the will of others in the policy arena to make reforms,we will not stand idly by;we will work every day to drive change in Canadian banking to enrich peoples lives.This is our purpose,and we accept all the profound responsibilities that come along with it.Whether you are a customer,employee,part

67、ner or shareholder,we encourage you to take pride in Canada and join EQB in investing right here at home.With thanks,Vincenza Sera Andrew Moor Chair of the Board President and Chief Executive Officer EQB Inc.|Responsibility Report 2024 Page 7 of 82 About EQB Who we are EQB Inc.(TSX:EQB,“EQB”)is a le

68、ading financial services company with$132 billion in total assets under management and administration1 as at January 31,2025.For more than 50 years,EQBs wholly owned subsidiary Equitable Bank and its operating companies2 have proudly served and addressed the unique financial needs of Canadians.ACM A

69、dvisors,a majority-owned subsidiary of EQB Inc.acquired on December 14,2023,specializes in the management of alternative assets primarily for institutional investors.Equitable Bank,Canadas 7th largest bank by assets,holds a unique position as Canadas Challenger BankTM,a distinction rooted in its pur

70、pose to drive change in Canadian banking to enrich peoples lives.The Bank serves over 718,000 Canadians and nearly 200 Canadian credit unions with approximately six million members(as at January 31,2025),through two businesses:Personal Banking including EQ Bank,the leading digital bank in Canada and

71、 Commercial Banking.The Bank enjoys leadership positions in several areas,including uninsured single-family residential and multi-unit residential lending.In the single-family market,we use a Challenger Bank approach to serve independent mortgage brokers and mortgage customers.In commercial lending,

72、the Bank serves customers who build and renovate much-needed rental apartment stock.EQ Bank is Canadas first born all-digital bank,providing an exceptional experience and value to Canadians,and serving as a convenient and compelling alternative to traditional banks.It was the first to move to a clou

73、d-based platform and its digital capabilities are proven and differentiated to support innovation and cost-effective product development,strengthened through fintech collaborations through our strategic partnership model.As a subsidiary of EQB Inc.,ACM Advisors specializes in the creation,structurin

74、g and management of pooled Canadian commercial real estate funds.ACM is one of the largest private investment fund managers in Canada with over 2,000 clients including institutional investors and accredited retail investors.ACM contributes to EQB Inc.s fee-based revenue and supports long-term ROE pe

75、rformance without adding credit or balance sheet exposure.Full year 2024 performance highlights3$1.26B 15.0%28%growth$9.05B Record revenue ROE EQ Bank customer base EQ Bank Deposits reached 286%$1.06B$205MM+9%YoY14.3%10-year TSRNII NIR Loan portfolio growth CET1 ratio 20 years TSX listed company 5 y

76、ears TSX Composite Index 1,946Employees4+5%y/yWorkforce growth 1 This is a non-GAAP measure.Refer to Q1 2025 Management Discussion and Analysis for adjustment and details.2 Inclusive of operating companies Equitable Trust,Bennington Financial Services,Concentra Bank and Concentra Trust 3 2024 Perfor

77、mance Highlights are non-GAAP adjusted measures.Refer to Q4 2024 Management Discussion and Analysis for adjustments and details.4 Number of employees inclusive of full-time employees,part-time employees and long-term contractors.Excludes ACM.EQB Inc.|Responsibility Report 2024 Page 8 of 82 EQB strat

78、egy Our mission is brought to life through the dedication and expertise of our talented workforce of over 1,900 Challengers,who embody the core values of service,integrity,empowerment,respect and agility.These values are the cornerstone of our strategic objectives,guiding us in every aspect of our b

79、usiness decision-making,including how we create and deliver differentiated and long-term value to our customers and shareholders.EQB strategic principles We choose to operate in areas where our service,technology and business model can best serve stakeholders,and we constantly explore ways to delive

80、r new and better banking ideas,products and applications for customers using our Challenger mindset.Our time-tested strategy and approach to drive change in Canadian banking has led to long-term growth in our customer base and strong customer retention.With Return on Equity(ROE)as our financial anch

81、or point,EQB has outperformed the ROE average of Canadas big six banks for the past decade.This success has always been underpinned by our strategic principles,including exceptional customer service,ongoing innovation and a prudent approach to risk management.Customer and service mission Being the b

82、est at service,from building great digital experiences to empowered customer-facing teams to address customer needs Diferentiated value creation model Deliver long-term shareholder value through disciplined capital allocation and business management that generates 15-17%ROE annually1 Innovating and

83、advocating for Canadians Innovate across product and technology as Canadas leading digital bank and advocate for regulatory change to benefit Canadians,including Open Banking Robust risk management Consistently achieve the lowest credit losses of all Canadian bank peers by leveraging risk as a compe

84、titive advantage and benefitting from decades of underwriting expertise Building long-term franchise value Allocate capital and investment dollars consistently to build lasting franchise value that translates into superior performance through cycles 1This is a non-GAAP measure.Refer to Q4 2024 Manag

85、ement Discussion and Analysis for adjustments and details.EQB Inc.|Responsibility Report 2024 Page 9 of 82 2024 Performance Highlights Awards 2024 Best Bank Lender Morgage Awards Excellence Named to list of“Canadas Most Responsible Companies”ESG Perormance Highlights Issued C$735 million Social Cove

86、red bond,the first of its kind issued by a Canadian Bank Seeded ACMs Social and Climate Fund Funded$4.3 billion in loans contributing to afordable housing in Canada Donated$342,580 to impactful causes and 2,775 volunteer hours to meaningful community initiatives Continued commitment to carbon neutra

87、lity of Scope 1 and Scope 2 through retirement of 995 tCO2e Verified Emissions Reductions Decreased overall emissions profile by 6%y/y,excluding ACMs managed client invested emissions Grew females in Junior Executive level by 17%y/y and racialized persons in Middle Management level by 24%y/y Celebra

88、ted 10th anniversary of Emerging Digital Arists Award Exceeded Board Diversity target of independent directors self-identifying as women,at 44%EQB Inc.|Responsibility Report 2024 Page 10 of 82 Approach to responsibility Our mission is to drive change in Canadian banking to enrich peoples lives.With

89、a deep passion for serving Canadians with complex needs,we focus on market segments where the banking experience can be reimagined.We specialize in creating unique value through innovative,customer-centric solutions that challenge traditional approaches and promote smarter,more efficient ways of doi

90、ng business.As a Challenger Bank,we are dedicated to advocating for competition in an industry historically dominated by six large banks.We focus on opportunities to better serve the people and communities in which we operate,positioning ourselves at the intersection of our customers,shareholders an

91、d employees to drive meaningful impact.Our agility,innovation and deep understanding of customer needs empower us to make a difference in the communities we serve while upholding high standards of integrity and maximizing value to our shareholders.While environmental,social and governance principles

92、 underpin our strategy,business and operations,it is our focus on social responsibility that sets us apart.We are dedicated to addressing societal challenges in Canada such as affordable housing and ensuring competitive choices for consumers through digital banking and strong credit union partners.B

93、y leveraging our digital-first model,we create efficient,scalable solutions that reach all communities,provide better access to financial services and contribute to a more prosperous and inclusive Canadian economy.We are committed to enhancing lives in ways that are both socially impactful and envir

94、onmentally conscious.Our Responsibility Framework that overarches our ESG strategy encompasses key areas of impact for EQB across the pillars of governance,social and environmental.Governance Adhering to the highest standards of corporate governance,ensuring transparency,accountability and ethical c

95、onduct in our decision-making,as a responsibility to our shareholders Board diversity and composition Business ethics and conduct Customer privacy and satisfaction Data security and cybersecurity Social aking differentiated impact on the customers e serve,Challengers we work with and the ommunities

96、we operate within,to meet the iverse needs of Canadians Talent management Inclusion,diversity,equity,accessibility,anti-racism(IDEAA)Rights of Indigenous peoples and EQBscommitment to Truth and Reconciliation Philanthropic activities Investing in Canadian arts Contributing to affordable housing Fina

97、ncial inclusion Product innovation and technology MwcdEnvironmental Transparency on the impact our business has on the environment and our efforts in mitigating climate risk Climate strategy Climate risks and opportunities Greenhouse gas(GHG)emissions EQB Inc.|Responsibility Report 2024 Page 11 of 8

98、2 Stakeholder engagement Environmental,social and governance risks and opportunities that have an impact on our business are often influenced by our stakeholders,including customers,community partners,employees,shareholders and the industry.We recognize that continuous engagement with stakeholders i

99、s foundational to the evolution of our Responsibility approach and ESG strategy.How we engage with stakeholders Customers We engage with borrowers,mortgage brokers and our digital banking customers through surveys,interviews and prototype testing.These insights shape our market strategies,improve pr

100、ocesses and refine designs to deliver the best products and services Employees Our employees engage through dynamic and collaborative channels including surveys,internal social networks,townhalls,Employee Resource Groups and events Shareholders We engage with investors on our Responsibility achievem

101、ents and progress through meetings,surveys and annual disclosures Community We believe we owe a duty of care to the communities that house our employees,customers and business partners.We actively engage with long-term community partners through volunteering,sponsorship and donations Parners We part

102、ner with like-minded organizations,whose values and behaviours are aligned with ours.We receive GHG Emissions data from select suppliers to continuously improve our emissions data quality Industry engagement We are an active participant in the Canadian Bankers Association (CBA)and the Banks and Trus

103、t Companies Association(BATCA)EQB Inc.|Responsibility Report 2024 Page 12 of 82 ESG rating agencies As part of our commitment to transparency and continuous improvement in our approach to Responsibility,we actively engage with leading sustainability and climate-rating agencies,including MSCI1,Sustai

104、nalytics2 and S&P.3 By participating in these assessments,we gain valuable insights into ESG matters and identify opportunities to enhance our efforts.These independent evaluations also allow us to benchmark EQB against industry standards and enable us to track our progress in key areas such as gove

105、rnance practices,social responsibility and environmental impact.Our engagement with these organizations supports our ongoing dedication to achieving higher ESG standards and continuing to deliver long-term value to our stakeholders.1 In 2024,EQB Inc.received a rating of AA in the MSCI ESG Ratings as

106、sessment.The use by EQB Inc.of any MSCI ESG Research LLC or its affiliates(“MSCI”)data,and the use of MSCI logos,trademarks,service marks or index names herein,do not constitute a sponsorship,endorsement,recommendation,or promotion of EQB Inc.by MSCI.MSCI services and data are the property of MSCI o

107、r its information providers,and are provided as-is and without warranty.MSCI names and logos are trademarks or service marks of MSCI.2 Copyright 2024 Morningstar Sustainalytics.All rights reserved.This section contains information developed by Sustainalytics().Such information and data are proprieta

108、ry of Sustainalytics and/or its third-party suppliers(Third-Party Data)and are provided for informational purposes only.They do not constitute an endorsement of any product or project,nor investment advice and are not warranted to be complete,timely,accurate or suitable for a particular purpose.Thei

109、r use is subject to conditions available at https:/ S&P,S&P Global,and the S&P Global logo are trademarks of S&P Global Inc.or its subsidiaries,registered in many jurisdictions worldwide.EQB Inc.|Responsibility Report 2024 Page 13 of 82 Governance Board oversight We believe that strong governance an

110、d dedicated oversight are critical to the successful implementation of our ESG strategy.The Board,through its four committees,oversees specific components of our approach to Responsibility,including the integration of environmental,social and governance matters into strategy,business and operations

111、and related risks and reporting.The Governance and Nominating Committee oversees the ESG strategy as a whole and receives updates from management on a quarterly basis.The Audit Committee,Human Resources and Compensation Committee and the Risk and Capital Committee receive updates as required.Oversig

112、ht responsibilities for the Board and its committees are summarized in the table to the right.EQB Board Oversees EQBs environmental (including climate),social and governance initiatives,risks and reporting through the Board Committees Governance and Nominating Commitee Oversees ESG and climate strat

113、egy,initiatives and governance frameworks and related reporting and public disclosures Monitors ESG and climate emerging trends,standards and best practices Oversees governance across the Boards Committees and updating the Board on ESG matters as necessary Oversees engagement efforts with stakeholde

114、rs,including ESG r ating agenciesand suppliers Human Resources and Compensation Commitee Oversees strategies related to diversity,equity and inclusion,employee health,safety and wellbeing,and other environmental,social and governancematters related to the Committees mandate Reviews and recommends fo

115、r Board approval the general criteria and design of material incentive plans,including selection of appropriate financial and non-financial performance goals,incorporating ESG measures Audit Commitee Reviews results from Internal Audit on the operating effectiveness of internal controlsover ESG and

116、climate reporting and metrics Oversees any external assurances or attestations regarding reported ESG and climate metrics Risk and Capital Commitee Receives reports on the integration of significant environmental and social riskexposures within EQBs Enterprise Risk Management Framework EQB Inc.|Resp

117、onsibility Report 2024 Page 14 of 82 Management responsibility The Governance and Nominating Committee is supported by Executive Management,specifically the Chief Financial Officer(CFO),in its responsibility for oversight of EQBs ESG strategy.Our Management Committee,which consists of Senior Executi

118、ves,integrates various elements within their mandates and reports to the relevant Board Committees,as required.For instance,our Chief Risk Officer oversees climate risks and the impact on credit risk,our Chief Human Resources Officer manages human capital and diversity,equity,inclusion,accessibility

119、 and anti-racism,and our Chief Technology Officer aims to weave sustainability into our technology roadmap.With Senior Executive support,sustainability is inextricable from our core values,long-term goals and strategic priorities.Reporting to the CFO,the VP of Strategy,Corporate Development and ESG

120、leads EQBs environmental,social and governance work to ensure it is tightly woven into our corporate strategy and long-term performance goals.The Strategy,Corporate Development and ESG team serves as a strategic partner to the business,driving decisions that contribute responsibly and add value to o

121、ur employees,the community we serve and the environment we operate in,while balancing regulatory and compliance considerations.Recognizing aspects of the ESG mandate cascade and impact different areas of the business,cross-collaboration proves to be an effective model in supporting integration of en

122、vironmental,social and governance considerations across the business.The following functions and groups enable the execution of work aligned with our ESG strategy:Enterprise Risk Management Committee(ERMC):Comprised of executive managementmembers,the ERMC assists the Risk and Capital Committee of th

123、e Board in fulfilling its oversightand governance responsibilities in relation to our risk management practices and Internal CapitalAdequacy Assessment Process(ICAAP).On a quarterly basis,the ERMC reviews and monitors keyand emerging risks,including ESG and climate risks,trends,results of enterprise

124、-wide stress andscenario tests,relevant policies and related risk management considerations.Operational Risk Steering Committee(ORSC):Chaired by the Vice President,Operational RiskManagement,the ORSC meets on a regular basis to review,discuss and provide input to the BanksOperational Risk profile,pr

125、ovide input to the Operational Risk Management Team on trends,emerging risks and potential changes or improvements to program,processes and practices.TheSub-Committee utilizes information and materials as prepared and provided by key participants andsubject matter expertise across operational Resili

126、ence,business continuity,IT/cyber risk,change riskmanagement,fraud risk management and ESG and climate risk.Cross-functional Working Group:In 2024,a cross-functional working group was established toundertake climate risk efforts in readiness of meeting the Banks regulatory climate requirements.This

127、group,comprised of subject matter expertise from Risk Model Development,Risk DataManagement,Operational Risk and Strategy,Corporate Development and ESG,proved to be asuccessful operating model in collaboration.By bringing the required expertise to the discussions,foundational principles and processe

128、s were established to enhance the assessment and monitoringof climate risk exposure to the Bank.Inclusion,Diversity,Equity,Accessibility,Anti-Racism(IDEAA):Overseen by the Vice President,Talent Programs,the IDEAA Team is responsible for leading the development,coordination andimplementation of strat

129、egies,initiatives and programs that focus on supporting the Banks inclusion-and equity-focused goals and objectives.Employee Resource Groups(ERGs):The celebration of human differences is championed byEQBs Employee Resource Groups-The Black Collective,Indigenous ERG,Women in Tech,Newcomers to Canada,

130、Proud and The Green Team ERGs.Comprised of individuals with diverseexperiences and relevant and informed perspectives,the ERGs are a driving force behind manyIDEAA initiatives and events.ERGs provide valuable insights and education sessions to all levels ofthe organization.EQB Inc.|Responsibility Re

131、port 2024 Page 15 of 82 Risk management ESG and Climate risks Through our wholly owned subsidiaries,we are exposed to risks like those of other financial institutions,including the symptoms and effects of both domestic and global economic conditions and other factors that could adversely affect the

132、business,its financial condition and operating results.The Risk and Capital Committee(RCC)of the Board assists the Board in fulfilling its oversight and governance responsibilities for the management of Equitable Banks core and emerging risks,supported by the Enterprise Risk Management Committee(ERM

133、C)that reports to the RCC quarterly.Our objective is to establish and maintain integrated risk identification and assessment processes that enhance the understanding of risk interdependencies,consider how risk types intersect and support the identification of emerging risks,including environmental a

134、nd climate risks and emerging ESG regulatory risks.Serving as the foundation to our approach to risk management across the enterprise,Equitable Banks Risk Management Framework(RMF)is designed to ensure all risks are managed within the Banks pre-defined risk appetite threshold and to align our overal

135、l corporate strategy,financial and capital plans,business unit strategies and day-to-day operations across the organization.The RMF is supported by a set of specific-risk frameworks,policies,standards and procedures,enabling us to meet the expectations of our shareholders,the Board,regulators and ot

136、her key stakeholders,including the communities we serve.As discussed in the Risk Management section of Q4 2024 Management Discussion and Analysis,we have established governance and processes to support a strong risk culture and ensure risks impacting our businesses are identified,appropriately categ

137、orized,assessed,managed and communicated to the Board in a timely manner.We use a three lines of defence model so that risks are adequately managed through the enterprise to achieve strategic objectives.Environmental and climate risk is identified as a component of the Banks business and strategic r

138、isk,defined as a risk of loss of strategic,financial,operational or reputational value resulting from the impact of environmental issues or concerns,including climate change,and related social risk.These risks can be defined as physical and transition risks.Further details are provided in the Enviro

139、nmental section on pages 54 and 55 of this report.Business unit leaders are our first line of defence for identifying and reporting such risks and are supported by Risk Oversight functions(including Finance,Risk and Compliance).A wide range of activities support the identification of these risks,inc

140、luding but not limited to our Risk and Control Self-Assessment program,Enterprise Change Management and New Initiative Risk Assessment practices and regular stress testing activities.We conduct analyses of environmental and climate risk at periodic intervals to determine potential impact on the Bank

141、s assets,for example in certain geographical regions that have greater propensity for natural disasters.Reporting and analysis of such risks is reviewed by the ERMC.Climate scenario analysis is a key process for climate risk identification that we continue to evolve.Furthermore,we have a consistent

142、approach to where we lend and have limited our potential exposure to areas prone to fire and flood risk.Proposed changes in business strategy or increases in risk identified through environmental-related analysis would be reviewed alongside the Banks risk appetite.We continue to elaborate on the def

143、inition and management of climate risk and emerging ESG risks.The development of industry views and alignment of standard taxonomy in areas such as Physical risk,Transition risk and Liability risk will inform the ongoing development of the Banks own risk classification.Recognizing that internal and

144、external factors may change the risk profile of these risks and its impact to our exposure,the bank may evolve its RMF over time based on climate assessments.The RMF is reviewed at least annually and is expected to change commensurately with the companys evolving size,complexity and business and ris

145、k profiles.EQB Inc.|Responsibility Report 2024 Page 16 of 82 EQB Inc.|Responsibility Report 2024 Page 17 of 82Social covered bond impact As Canadas Challenger Bank,our purpose of driving change in banking to enrich peoples lives comes with an implicit pledge to always do what is right for our custom

146、ers,employees,business partners,shareholders and the communities we serve.A sustainability mindset is foundational to our core values,long-term objectives,strategic priorities and our commitment to advance environmental,social and governance practices to meet the needs of Canadian society.Inherent i

147、n this is our belief that making a positive impact goes beyond the provision of financial services.Equitable Banks first of its kind Social Covered Bond issuance is a natural extension of our business practices that enables us to further support projects and lending activities with a direct social b

148、enefit.Housing in Canada remains a challenge with rising costs and a lack of affordable options for many individuals and families.Since the introduction of Equitable Banks Sustainable Bond Framework in March 2024,we completed our first issuance of a social bond under the framework,which was also our

149、 largest-ever covered bond offering at approx.C$735 million and the first-ever issuance of a social covered bond by a Canadian bank.Ultimately,our goal with this issuance is to make meaningful contributions to the provision and promotion of affordable housing,to reduce the risk of poverty and increa

150、se the opportunities for social participation of people and families in lower income groups.Equitable Bank social covered bond Issue date April 23,2024 Maturity dateMay 28,2027 Net Proceeds C$735.6 million Net proceeds allocated toeligible loans100%Allocation of net proceeds65%refinance and 35%purch

151、ase Use of proceedsEligible projects that fall within the scope of the Social Categories outlined in the Sustainable Bond Framework ISIN XS2808183649 Social&afordable housing1 Percentage of asset allocation:52%Eligibility criteria:Financings related to the construction,development,acquisition,operat

152、ion and maintenance of new or existing buildings or single-family residences that provide housing that meet one of the following criteria:Housing for households or individuals whose income is below 80%of the area median income (AMI),or 120%AMI for high-cost areas2,and where housing costs3 are 30%of

153、pre-tax income4 Canada Mortgage and Housing Corporation (CMHC)MLI Select Affordability5 Social indicators and 2024 performance Number of borrowers with access to safe,affordable and/or sustainable housing .1,403 Value of eligible loans to those seeking access to social and affordable housing.$381.6

154、million Access to essential services1 Percentage of asset allocation:48%Eligibility criteria:Financings for the acquisition of housing for households or individuals whose income is below 100%of the area median income (AMI),or 120%AMI for high-cost areas and that meet one of the following criteria:In

155、dividuals with low6 or no FICO,or equivalent,credit scores Self-employed individuals Other equity deserving groups and/or marginalised populations7 Financings that support micro-,small-and medium-sized enterprises8 that are at least 51%or more owned,managed or controlled by other equity deserving gr

156、oups.Social indicators and 2024 performance Number of homeowners in underserved groups supported.1,184 Value of eligible loans granted to underserved individuals.$354.0 million KPMG has provided limited assurance on this figure 1 Figures are as at October 31,2024 2 Aligned with the definition of low

157、-or moderate-income household provided by the US Federal Reserve.High-cost areas include City of Toronto,Ottawa,Mississauga,Vancouver,Victoria and North Vancouver.3 Housing costs include principal or rent+interest+taxes+heat divided by gross annual income.4 Aligned with the definition of affordable

158、housing provided by the Canada Mortgage and Housing Corporation.5 The Bank commits to taking a pro rata approach based on units that meet CMHC MLI Select affordability criteria and report the estimated(if during construction)or actual percentage of affordable units among the portfolio of financed pr

159、operties.6 A low FICO score is defined as 660.7 Other equity deserving groups and/or marginalised populations:Women,Black,Indigenous and People of Colour(BIPOC),newcomers,LGBTQ+,and/or persons with disabilities.Newcomers are defined as those individuals who have been admitted to Canada permanently i

160、n the 5 years or less prior to the date the person obtained the financial product from Equitable,e.g.,mortgage.8 The Framework defines micro/small and medium enterprises(SME)as those that have fewer than 100 and 100 to 499 employees respectively.Small and medium-sized enterprises in particular suppo

161、rt the local labour market,promote social participation and are especially dependent on credit financing from bank.EQB Inc.|Responsibility Report 2024 Page 18 of 82 Leading with Integrity:Governance in Action EQB Inc.|Responsibility Report 2024 Page 19 of 82 Board diversity and composition Why this

162、maters Our Board is integral to the sustainability of our business.By operating with a robust corporate governance framework,the Board provides strategic guidance,effectively challenges and assists Management and sets the tone for integrity,engagement and personal accountability as part of its duty

163、to all stakeholders.A diverse Board enhances decision-making by bringing a range of perspectives,experiences and insights,which are essential to navigating complex challenges and driving long-term success.Strong governance and formal oversight and governance processes for Responsibility-related matt

164、ers are critical to the successful implementation of any companys strategy.A robust ESG approach starts with a companys Board and Executive Management,but responsibility for sustainable business practices is shared across a companys workforce.EQB approach EQB and its Board of Directors Corporate Gov

165、ernance Guidelines,published on ,reflect the Boards commitment to the highest standards of corporate governance practices,assist the Board in the exercise of its governance responsibilities and serve as a framework within which the Board may conduct its business.EQB is committed to equity,diversity

166、and inclusion at all levels of the organization.Diversity promotes the inclusion of different perspectives and ensures EQB benefits from all available talent to help drive growth,innovation and success.EQBs Board Diversity Policy,articulated within the Corporate Governance Guidelines,and approach to

167、 Board membership supports our commitment to diversity considerations including gender/gender neutrality,sexual orientation,age,ethnicity,Indigenous peoples and persons with disabilities.The Board recognizes the value of diversity among its members and believes it should be composed of highly qualif

168、ied individuals with a broad spectrum of competencies,experience and perspectives which produces better corporate governance and effective decision-making.The Board has established a target for women to represent at least 30%of its independent directors.The Board recognizes the importance of enhanci

169、ng the representation of other diverse and historically under-represented groups.A commitment to further improving diversity on the Board is considered when reviewing any anticipated vacancies.Any firm engaged in assisting the Board in a director search is required to identify a diverse slate of can

170、didates with particular competencies.The table below provides key diversity metrics as at October 31,2024 and for the ten independent directors on the Board at that time.EQB Inc.|Responsibility Report 2024 Page 20 of 82 Perormance EQBs Board diversity and composition metrics remain largely consisten

171、t with the prior fiscal year with changes in measures driven by a reduction in the number of directors to ten as of October 31,2024 from eleven at October 31,2023.The table below provides a summary of the Boards performance against key diversity metrics,as at October 31,2024,and for the ten director

172、s on the Board at that time.2024 2023%of independent directors 90%91%of executive board members 10%9%of independent directors who self-identify as women (target is at least 30%)44%40%of independent directors who self-identify as visible minority/racialized person 22%20%Average board tenure 8.2 years

173、 6.6 years Average board tenure of independent members 7.1 years 5.7 years Age diversity of directors:Youngest director 48 years 47 years Age diversity of directors:Oldest director 69 years 68 years Board age limit 72 years 72 years Average mandates of board members (ex.Chair of the Board and Presid

174、ent&CEO)2.0 2.3%of independent board members with four or fewer mandates 100%100%EQB Inc.|Responsibility Report 2024 Page 21 of 82This metric discloses the percentage of independent board members that were on fewer than four EQB Board Committees within the reporting period.1 Business ethics and cond

175、uct Why this maters Our values are the foundation of who we are as a business and reflect our underlying commitment to our people,business partners,customers,shareholders and the public.One of our value pillars is integrity,reflecting our belief that,through mindful personal behaviour,we will consis

176、tently produce good ethical outcomes.Respect for and adherence to our values begins with the tone at the top,as both the Board and senior management play a significant role in communicating expectations for conducting business.Challengers,as our employees are known,are required to maintain high ethi

177、cal standards in their daily operations,considering conduct,corporate values and culture in their actions and decisions.EQB approach Code of Conduct&Third-Party Code of Conduct Our Code of Conduct (the“Code”)provides guidance and sets expectations on how we should behave and how to make sound decisi

178、ons as we strive for the highest standards in everything we do.The Code outlines the mandatory minimum standards of behaviour expected from all employees,including the Board of Directors and contractors.Within the Code,we have several policies and procedures that underpin our commitment to operating

179、 with high ethical standards,including the Insider Trading Policy,Related Party Policy and Conflict of Interest Policy.The Code describes roles and accountabilities relating to training,investigating,monitoring and reporting.While the Board oversees our business conduct and reviews and approves the

180、Code,the CEO i s responsible for ensuring the Code is duly implemented and monitored,working closely with the Chief Compliance Officer (CCO)and Chief Human Resources Officer (CHRO).All employees undertake mandatory training on the Code within 90 days of joining EQB and thereafter attest to understan

181、ding of the Code on an annual basis.Our Third-Party Code of Conduct extends our high standards of business dealings to suppliers with whom we conduct business by outlining our corporate values and communicating the principles that we desire or require from suppliers,vendors,partners,services provide

182、rs and subcontractors across Canada.When sourcing products and services we aim to partner with third-party organizations that show a strong commitment to human rights,ethics and the environment.Minimum expectations for partners include compliance with all applicable laws and regulations,avoiding or

183、successfully managing all conflicts of interest including promoting moral and ethical behaviour,and protecting information which includes restricting insider trading and closely managing non-public information.EQB Inc.|Responsibility Report 2024 Page 22 of 82 Additional policies encapsulated in the

184、Code of Conduct include the following:Fair competition One of the Banks core beliefs is that competition in the financial services industry is in the best interest of Canadians.Further it is our belief that all competition must be conducted legally and ethically.Our Code expressly prohibits anti-com

185、petitive practices such as price fixing,collusion or prohibitive conduct (including coercive selling)and we have processes in place to live by our commitments,including regular reviews of best practices with our General Counsel and CCO.Our Conflict of Interest Policy encapsulates our approach to fai

186、r competition and holds our people,including Executive Management and our directors,to high ethical standards while promoting transparency and fairness.Whistleblower policy and program This policy establishes how we report concerns,perceived or otherwise,about unethical behaviour,violations of the C

187、ode,breaches of our policies and matters relating to financial issues(such as fraud,misstatements,deliberate omissions or errors).All employees receive training to understand the policy as well as their rights and protections.Anyone reporting concerns in good faith is protected from reprisals,harass

188、ment or victimization.Employees may report concerns to the CCO or Chair of the Audit Committee directly,through the Ethics or Complaints Hotline,or to the Commissioner of the Financial Consumer Agency of Canada(FCAC),OSFI or any other government agency that regulates or supervises the financial inst

189、itutions,or law enforcement agency.On average,less than five complaints are received under this policy per calendar year and all concerns are reviewed,investigated and escalated by the CCO.The CCO r eports the concerns to the Chair of the Audit Committee,the CEO and the CRO.The Audit Committee assis

190、ts and oversees the investigation to conclusion and action taken depends on the type of concern.Anti-money laundering(AML)and Anti-terrorist financing(ATF)program The Banks extensive and effective AML and ATF program is strictly enforced,and the Bank does not tolerate corruption or bribery in any fo

191、rm.The AML and ATF Policy and corporate procedures outline EQBs expectations that all employees are required to meet.The Chief AML Officer has accountability for the implementation and effectiveness of the program,while the Board has oversight accountability for monitoring the effectiveness of the A

192、ML policy and corporate procedures and has delegated this responsibility to the Governance and Nominating Committee.All customer-facing employees and those supporting customer-facing efforts receive and complete AML/ATF training when onboarded and annually thereafter.As part of our standard practice

193、,our Risk team conducts regular risk assessments as well as internal and external audits and reviews to detect and prevent money laundering and terrorist financing activities including corruption.We comply with all appropriate rules,regulations and guidelines applicable to EQB,including the United N

194、ations Act(Canada),Canadas Criminal Code,the Corruption of Foreign Public Office Officials Act(Canada),Freezing Assets of Corrupt Foreign Officials Act(Canada)and Special Economic Measures Act(Canada).EQB Inc.|Responsibility Report 2024 Page 23 of 82 Marketing and sales approach At the Bank,we belie

195、ve in honest,plain and transparent communication with customers and ethical remuneration practices for loan originators.In our Disclosure of Information Policy,we clearly state our obligations for responsible customer-facing and shareholder communications.We base our responsible marketing and sales

196、practices on a set of principles that include:Ensuring fair treatment of all customersregardless of financial status;Encouraging customers to ask questionsand providing them with the informationthey need to make informed decisions;Being transparent about all fees,ratesand conditions across all lendi

197、ng productsand platforms;Avoiding conflicts of interest in salespractices;Providing accurate information aboutproducts and services,never makingfalse or misleading statements oroverstating benefits;and,Protecting customer information throughstrict controls,policies and procedures.Lobbying and politi

198、cal expenses Any engagement between the Bank and regulatory,government and political associations or bodies is driven by our Code of Conduct with strict adherence to values of Integrity,Respect and Service.Our approach in these interactions is collaborative,data-driven and stakeholder focused,with a

199、n intended outcome of advocating for consumers and helping shape banking policy in support of the integrity of the financial system.To this end,we engage with OSFI,the government and appropriate public and private bodies to gather insights,research and opinion on public policy matters.We have only o

200、ne internal registered lobbyist:Andrew Moor,President and Chief Executive Officer,for whom lobbying represents less than 20%of his duties.Human rights The Bank operates solely in Canada where human rights are enshrined in the Human Rights Act(Canada),the Canadian Charter of Rights and Freedoms and t

201、he Canada Labour Code.We respect and are compliant with all relevant federal,provincial,regional and other human rights regulations.We operate with internal policies including our Code,Employee Handbook and our Violence and Harassment in the Workplace Policy,while expressly prohibiting discriminator

202、y lending practices that are biased against people based on their race,gender,age,religion and other protected characteristics.Practices include training for all members of our team,as well as regular community outreach and education to help all customers access our products and services.We are comm

203、itted to upholding human rights and ethical business practices across our business and supply chain.Looking ahead,as part of this commitment,we will be publishing our inaugural Modern Slavery Report in the coming year.This report will outline our approach to identifying,preventing and addressing ris

204、ks related to modern slavery and reinforcing our dedication to responsible conduct.EQB Inc.|Responsibility Report 2024 Page 24 of 82 Perormance1Consistent with previous years,EQB employees and managers continued to attest to the Code of Conduct and completed comprehensive training encompassing the C

205、ode of Conduct,Workplace Violence and Harassment,Conflict of Interest,Insider Trading,AML and ATF and Consumer Protection and Whistleblowing with no material changes or deficiencies from 2023 to 2024.The metrics below are not inclusive of ACM Advisors.2024 2023 Percentage of employees who have attes

206、ted to the Code of Conduct 100%100%Percentage of employees who completed Code of Conduct training 98%99%Percentage of Managers who completed Workplace Violence and Harassment training 99%99%Percentage of employees who completed Workplace Violence and Harassment training 98%97%Percentage of employees

207、 who completed Conflict of Interest training 98%100%Percentage of employees who completed Insider Trading training 98%97%Percentage of employees who completed Anti-Money Laundering and Anti-Terrorist Financing training 96%99%Total amount of monetary losses as a result of legal proceedings associated

208、 with fraud,insider trading,antitrust,anticompetitive behaviour,market manipulation,malpractice or other related financial industry laws or regulations$0$0 Total amount of monetary losses as a result of legal proceedings associated with selling and servicing of products$0$0 Total amount of monetary

209、losses as a result of proceedings associated with communications to customers or remuneration of loan originators$0$0 Total amount of monetary losses as a result of legal proceedings associated with discriminatory mortgage lending$0$0 All training and attestation metrics for 2023 cover EQBs 10-month

210、 fiscal year January 1,2023 through October 31,2023 and do not include employees of Bennington Financial Corp.2024 covers EQBs fiscal year November 1,2023 through October 31,2024 and includes employees of Bennington Financial Corp.EQB Inc.|Responsibility Report 2024 Page 25 of 82 1 Customer privacy&

211、satisfaction Why this maters Within financial services,customers have the benefit of choosing to bank with institutions that provide a level of customer service aligned to their expectations.At EQB,customer service is the core pillar of our strategy.We strive to differentiate by being exceptionally

212、responsive and respectful in our approach to customer service,strictly adhering to a customers right to protect their information and ensuring an easy path to both file and resolve customer complaints.EQB approach Our commitment to customer service entails not only ensuring excellence,but also assum

213、ing responsibility for safeguarding/handling customers personally identifiable information and operating with policies in place covering the provision of customer information for secondary purposes,such as targeted marketing or third-party use.Customer service is monitored closely and integrated int

214、o our executive compensation program,and all employees participate in comprehensive workforce training to encourage and perpetuate our customer service ethos.Privacy policies and principles EQBs Privacy Program follows the Privacy Principles in Schedule 1 of the Personal Information Protection and D

215、ocuments Act(Canada)(PIPEDA),which requires us to receive customer consent before we collect,use or share their personal information.We have strict controls to ensure only authorized employees can access customer data and we use encryption to prevent unauthorized access to sensitive information.We o

216、nly collect the information that we require and do not retain it longer than necessary.We have a transparent Privacy Agreement that we sign with every customer,which explains their rights and how we handle their personal information,as well as Code of Privacy Principles that guide our decisions and

217、actions regarding customer data protection and security.Our data privacy team,led by our Chief Privacy Officer and Chief Information Security Officer,is responsible for ensuring that our systems and processes comply with the highest standards of privacy and security.Financial protection On June 30,2

218、022,Parliament put in place the Financial Consumer Protection Framework overseen by the FCAC.Since then,EQB has made a number of enhancements not only to comply with our increased obligations,but also to ensure customers are served in a clear and transparent manner.Enhancements have included electro

219、nically notifying customers of low account balances and low available credit,and updating policies and procedures,websites and brochures to inform customers and staff about the revised regulations.All employees receive updated consumer protection and whistleblower training through a mandatory e-lear

220、ning training module,while the few who do not complete training are typically on leave or are new to the organization and yet to undergo training.Handling customer complaints Our front-line Challengers follow a three-step customer complaint handling process found in our Customer Complaint Handling P

221、rocedures posted on our websites and in brochures at our office locations.All employees are expected to adhere to our internal Complaint Handling Policy&Corporate Procedure.EQBs Dispute Resolution Office(DRO),the final step in our Customer Complaint Handling Procedure and most senior designated offi

222、ce authorized to address customer complaints,conducts investigations of complaints that were unable to be resolved within the first two steps.The DRO is committed to providing an impartial review based on the evidence available to help customers and EQB reach a fair,reasonable,and transparent resolu

223、tion.Where appropriate,the DRO recommends improvements to our operations,products and services.EQB Inc.|Responsibility Report 2024 Page 26 of 82 Perormance1Consistent with previous years,employees continue to complete training regarding both Complaints Handling and Consumer Protection and Whistleblo

224、wing at high rates.The increase in full investigation complaints conducted by the Dispute Resolution Officer in 2024 largely reflects growth in the customer base in 2024,in particular within EQ Bank,and fiscal 2024 having two additional months versus fiscal 2023 due to EQB changing its fiscal year e

225、nd from December 31,2023 to October 31,2023.The metrics below are not inclusive of ACM Advisors.2024 2023 Percentage of employees who have completed Complaints Handling training2 98%98%Full investigation complaints conducted by the DRO 21 11 Number of full investigation complaints that were resolved

226、 by the DRO to the satisfaction of the person who made the complaint 11 7 Percentage of employees who completed Consumer Protection and Whistleblower training 98%96%Total amount of monetary losses as a result of legal proceedings with customer privacy$0$0 1 All training and attestation metrics for 2

227、023 cover EQBs 10-month fiscal year January 1,2023 through October 31,2023 and do not include employees of Bennington Financial Corp.2024 covers EQBs fiscal year November 1,2023 through October 31,2024 and includes employees of Bennington Financial Corp.2 Employees in personal and commercial lending

228、,digital banking,deposit services,legal,compliance,internal audit and marketing,as well as all executives,are required to complete Complaints Handling training.Completion rate percentage is based on this population.EQB Inc.|Responsibility Report 2024 Page 27 of 82 Data security&cybersecurity Why thi

229、s maters Cybersecurity continues to present a significant risk to financial institutions,with potential impacts that could include service disruptions,theft of customer information,reputational damage and litigation.The tactics and techniques used in cyber-attacks have increased in sophistication,wh

230、ile the hackers behind these attacks have become more organized and well-financed.With the increase in sophistication comes a need for continuous improvement in cybersecurity safeguards related to both technology and employee training,ensuring that all financial institutions deliver digital banking

231、services that are safe,secure,private,efficient and worthy of the trust and confidence of customers.EQB approach EQ Bank,our digital platform,is the first in the Canadian banking industry to be hosted entirely in the cloud.While this allows us to build and innovate on a modern technical platform and

232、 infrastructure,providing value-added services and products,it comes with additional responsibility to earn the trust of our customers every day and in every interaction.As a digital company at heart,how we develop,apply,protect and govern our technological advances are all part of our competitive s

233、trengths and are of utmost relevance to our Board and Executive Management.As the technology and cybersecurity landscape is constantly changing,we update our cybersecurity strategy annually and execute several projects each year that improve our security controls,including the formation of a team ca

234、lled Security Assurance Services(SAS)which works alongside our technology partners to identify and remediate technical vulnerabilities.To ensure the security of our organizations information and systems,we adhere to industry-recognized frameworks,including the OSFI Cyber Security Self-Assessment(CSS

235、A)and the National Institute of Standards and Technology(NIST)Cybersecurity Framework.Our partnership with industry leaders like Microsoft also allows us to benefit from leading-edge security frameworks and robust compliance standards reinforcing trust with our customers.Our commitment to security e

236、xtends throughout the organization,safeguarding our operations and ensuring a resilient security framework.In addition to executive oversight,the RCC Board committee provides oversight through a quarterly update on the Banks cybersecurity risk posture,and the Board approves our Cybersecurity Policy

237、bi-annually.Accountability for implementation,adherence,monitoring and reporting of EQBs Cybersecurity Policy extends from the Board to the Chief Information Security Officer,Business Unit heads,Risk Management,Internal Audit and all employees,who receive data security training within 60 days of joi

238、ning and on an annual basis thereafter.Perormance1EQBs robust and comprehensive data security&cybersecurity programs,practices and policies once again protected customers and the Bank from breaches and associated monetary losses.The metrics below are not inclusive of ACM Advisors.2024 2023 Data priv

239、acy policy in place Yes Yes Number of data breaches 0 0 Percentage of data breaches that are personal data breaches 0%0%Number of account holders affected 0 0 Total amount of monetary losses as a result of legal proceedings associated with customer privacy$0$0 1All metrics for 2023 cover EQBs 10-mon

240、th fiscal year January 1,2023 through October 31,2023.EQB Inc.|Responsibility Report 2024 Page 28 of 82 EQB Inc.|Responsibility Report 2024 Page 29 of 82Creating value for EQB challengers,customersand communities Talent management Why this maters Our people strategy has consistently served as a corn

241、erstone of EQBs overarching corporate strategy.We monitor competition for diverse and skilled talent and understand that attracting and retaining strong performers is essential for maintaining operational continuity.Ensuring that talent management policies,processes and commitments align with the ev

242、olving needs and aspirations of a diverse workforce is necessary to maintaining workforce productivity and engagement.Our approach to promote employee engagement,work-life balance,competitive compensation and flexible benefits has been a powerful enabler in building a talented workforce of over 1,90

243、0 Challengers.EQB approach Our missionto drive change in Canadian banking to enrich peoples lives is deeply embedded in our approach to talent management.By thoughtfully engaging in areas where the interests of customers,employees and shareholders converge,we foster an environment that is both dynam

244、ic and respectful.Recognizing that the right talent is critical to a successful long-term strategy,we are committed to having a workforce of highly skilled and motivated individuals who embrace an ownership mindset.The deep sense of personal investment in the companys success fuels innovation,foster

245、s collaboration and drives collective action across the business,with everyone working towards a shared vision of sustainable growth and customer impact.Talent atraction and retention We are dedicated to attracting top talent,identifying and nurturing early-career professionals and supporting the on

246、going development and growth of talent from within.Our talent acquisition strategy begins with a meticulous understanding of business needs and the specific competencies required for each role.Hiring efforts are also aligned with identifying and recruiting talent that resonates with the companys mis

247、sion,culture and commitments to drive meaningful impact,while growing its industry profile.By leveraging a balanced approach to evaluating candidates,assessing cognitive,analytical and technical abilities,we ensure successful candidates are equipped to succeed in their roles and contribute to the su

248、ccess of the company.To maintain a consistent talent pipeline and tap into new pools of talent,we leverage strong partnerships with organizations,directly source through LinkedIn or internal recruiting software,engage in industry and education events and encourage referrals through fair and transpar

249、ent practices.Leveraging Canadas diverse population,we are committed to building a talent pipeline that reflects diversity.Through a thoughtful approach to inclusion,we have made meaningful progress in increasing representation,particularly with women in Junior Executive roles,and are continuing to

250、focus efforts on representation of Indigenous peoples and persons with disabilities.In 2024,we actively participated in 30 events,primarily across the Greater Toronto Area,aimed at connecting with and supporting marginalized communities,creating opportunities for exposure and enhancing access to emp

251、loyment and talent acquisition.Among these events were QueerTechs Leaders Summit,Jumpstart Refugee and World Education Services Toronto Hiring Event,Autism Workplace Development Hub,BFTUR Tech Summit and others,all of which directly aligned with at least one of our Employee Resource Groups.This alig

252、nment ensures we continue to provide meaningful support to candidates well beyond the hiring phase,fostering an inclusive and supportive environment throughout their journey within the company.Our continued partnership with agencies,such as Jumpstart and Achev,ACCES and JVS allows our job requisitio

253、ns to reach an extensive network of talented candidates.A combination of these efforts contributes to the creation of a talent pipeline that considers balanced representation,enabling parity across the organization.EQB Inc.|Responsibility Report 2024 Page 30 of 82 To foster the development of early

254、professionals,we proactively recruit from universities and colleges through our Leadership Development Program(LDP)and Internship program.Each year,4-6 graduates who apply to EQB are selected to participate in our Leadership Development Program,an immersive 24-month rotational program where they gai

255、n hands-on experience across areas of the business,including Strategy,Corporate Development and ESG,Risk,Digital Banking,Internal Audit and Investor Relations.This program is designed to cultivate future leaders by offering exposure to diverse functions and providing mentorship and training necessar

256、y to thrive within the organization.The tenure and retention of program graduates has steadily increased over the years,reflecting the core objective of this program,to drive long-term growth and opportunity for both the graduates and organization.Our internship program,in partnership with many coll

257、eges and polytechnics,creates opportunities for nascent professionals,newcomers to Canada and individuals transitioning careers.In 2024,the Talent Acquisition team attended six university events and partnered with three colleges,to strengthen brand presence and build awareness of the opportunities a

258、vailable at EQB.The journey of a Challenger does not end with the success of hiring;we are deeply committed to ongoing growth and development.Recognizing the challenges of job retention in a competitive environment,we provide pathways for employees to explore different areas of the business.One of t

259、hese pathways is job shadowing,where individuals can engage with teams from other departments to learn about their approaches,explore future opportunities and identify how their skills could be transferable across the business.This opportunity allows individuals to dedicate time to observe,participa

260、te in meetings and gain valuable insights.Alternatively,there are opportunities for a formal full-time secondment,where employees are fully integrated into a new team to gain in-depth experience.The secondment ensures the individuals investment in the teams success,while maintaining permanent employ

261、ment.By encouraging these opportunities to move laterally,individuals build broader skill sets,are more well-rounded,possess a deeper understanding of our customers and businesses and are equipped for leadership roles.Workforce engagement We conduct an anonymous semi-annual employee engagement surve

262、y that reports results at an aggregate level.Managers with fewer than five direct reports receive scores reflecting feedback from the broader business unit,ensuring confidentiality.The survey provides valuable insights into the experiences and perspectives of employees.Feedback from the survey is hi

263、ghly valued by managers and the Management Committee,who review major themes and insights from the survey before engaging in action planning at an enterprise and business unit level.In addition,where useful and appropriate,focus groups are conducted to dive deeper and explore underlying factors driv

264、ing employee sentiments.We take proactive measures to address the key findings of these surveys.For instance,from the fall employee engagement survey,we learned there was an opportunity to further refine communications to assist Challengers in understanding the direct impacts of their individual con

265、tributions to the broader strategic objectives of the company in alignment with business-unit priorities.In response,a renewed emphasis was placed by the Management Committee on communicating the corporate strategy and business unit-specific plans,especially important as we grow and continue to inno

266、vate.An additional company-wide town hall included a dedicated session on strategy to ensure comprehensive understanding across the organization.During the annual goal-setting period for employees,managers are expected to collaborate with their teams to explicitly link individual objectives to the o

267、verall corporate strategy,reinforcing alignment and purpose throughout the organization.Engagement remained strong in 2024,with particular improvements in areas that relate to connecting individual purpose to strategy,employee development and managerial capability-areas of priority identified from p

268、revious surveys.EQB Inc.|Responsibility Report 2024 Page 31 of 82 EQB Inc.|Responsibility Report 2024 Page 32 of 82Learning and Development Ongoing upskilling and development of our workforce are essential to keeping pace with rapid changes in the market,including technological advancements.Equippin

269、g our Challengers with requisite knowledge,we foster innovation and enable the delivery of exceptional value to our customers.We continue to prioritize investments in employee growth and managerial capabilities,which not only drive engagement but also build a competitive talent advantage.Central to

270、our talent philosophy of empowering employee-driven learning,we support this growth through initiatives like our annual tuition reimbursement program of$2,500,available to all full-time,active and salaried employees.Through our Education Assistance Policy,employees are reimbursed for external educat

271、ion or learning programs-such as courses,conferences,certifications or seminars.The policy strikes a balance between personal development and ongoing business needs,ensuring that the program chosen aligns with current job responsibilities,skill development,future aspirations and long-term career dev

272、elopment.In 2024,the tuition reimbursement program funded external training and development of approximately$841,122-equating to 44,500 learning hours.The organization has implemented several other key initiatives,including:Mandatory training through EQ University to equip the company in identifying

273、 and managingfinancial and non-financial risks;Optional training through EQ University on courses related to skill development;Delivering the Foundations of Managerial Excellence(FOME)program to all peoplemanagers within the workforce,following its launch and staged delivery;Launching advanced leade

274、rship programs targeted at senior managers and above;and,Expanding our coaching offerings tailored to different segments of the employee workforce.In response to key findings related to development opportunities in previous years engagement surveys,we codified and launched a comprehensive Competency

275、 Framework aligned with job levels,leading to the refinement of our promotion policy to ensure congruency with these defined competencies.In 2024,the organization formalized semi-annual talent and performance calibration cycles based on this competency model,reinforcing its commitment to fairness an

276、d structured talent development and evaluation.These efforts reflect our strategic focus on cultivating leadership capabilities and fostering a culture of continuous learning and development.Employee well-being Our Health and Safety Policy,overseen by the Chief Human Resources Officer,commits to pro

277、tecting the health and safety of all Challengers in accordance with industry standards and requirements stated in the Canada Labour Code.Supported by the Human Resources and Office Teams,initiatives are implemented to promote health,safety and wellbeing across the company through communications,info

278、rmation sessions and resources available on the Hub,the companys internal site which is accessible to all employees.The companys EQ Strong program reflects a focus on mental and physical wellbeing and establishing meaningful connections within the workforce.The program is structured around five pill

279、ars physical,emotional,psychological,financial and social and offers various initiatives to employees,catering to the diverse health needs of the workforce.In 2024,a campaign was launched through a series of webinars to educate employees on total wellness,including Will&Estate Planning,Fundamentals

280、of Canadian Taxes,Essentials of Workplace Mental Health,Art of Mobility and many more.Physical Annual home and wellness benefit of$300 Parental leave policy Corporate partnerships with GoodLife Corporate Gym On-site nutrition-oriented lunches Flexible and ergonomic in-office workspaces Emotional Hyb

281、rid work model Work-from-away policy Flex hours Vacation and Personal Days Parental leave policy Psychological Employee Assistance Program via TelusHealth Mental health coverage through SunLife expanded to include Clinical Counsellors Financial Employee Share Purchase Plan Group Retirement Savings P

282、lan and Deferred Profit Sharing Plan Education Assistance Policy Social Participation in sports clubs,charitable events,Viva engage communi ties EQ Ambassador Program for 25 Ontario Street Charitable and volunteerism EQB Inc.|Responsibility Report 2024 Page 33 of 82 Photo Credit:Jessica Kosmack Phot

283、ography Nutritious and diverse lunches We have undertaken measures to align the companys on-site lunch program with its Responsibility approach and wellness principles.To support our mission of achieving WELL certification,we introduced a variety of protein options in the catered lunches,consciously

284、 excluding beef.This decision was aimed at meaningfully reducing the companys greenhouse gas emissions and has saved approximately 2,450kg of beef.Additionally,high-sugar beverages like pop and juice have been replaced with healthier alternatives,such as sparkling water,in efforts to enhance employe

285、e health and energy levels.Our commitment to supporting small businesses within the communities in which we operate is evident through sourcing of meals from 35 local restaurants within the Greater Toronto Area.These restaurants were chosen to reflect the diversity of our customers,communities and e

286、mployees,including Indigenous-,Black-and female-owned businesses.To address food security,we partnered with The Good Shepherd to donate surplus food,successfully contributing twenty-two meals per day on average to those in need.We are committed to sustainable food choices,supporting local businesses

287、 and reducing food waste through these initiatives within our catering program.Operation:Make Bank The relocation of our new head office to 25 Ontario Street has been eagerly awaited and is set to bring exciting opportunities for us in 2025.Reflecting our Challenger culture,a company-wide contest wa

288、s initiated to name the 25 Ontario Street Project.The contest received sixty-four entries from across the organization,which were then shortlisted by the project team and the CEO.Employees voted on the top three names,ultimately selecting Operation:Make Bank.In preparation of the move,a program was

289、established featuring a team of departmental ambassadors.This program aims to ignite enthusiasm and facilitate effective two-way communication between employees and the project team overseeing the move.Ambassadors are empowered to contribute ideas for the functionality of departmental collaboration

290、areas to ensure that the new office layout effectively supports employees productivity and collaboration requirements and boosts in-office engagement.Social engagement on Viva Engage Viva Engage has become a cornerstone of our community-first corporate culture,seamlessly connecting like-minded emplo

291、yees through various communities of interest.Through the celebration of colleagues achievements and the dissemination of relevant updates,Viva Engage bridges our regional and hybrid teams,ensuring everyone feels included and informed.Moreover,it is instrumental in promoting cultural diversity and in

292、clusivity,particularly through the posts shared by our Employee Resource Groups,which highlight different cultures and important days of significance.With more than 1.9 million views in the first 12 months of using the platform,Viva Engage has grown to become a platform for sharing everything from t

293、eam updates to volunteer activities to photos from team-building events,all knitted together to foster a sense of belonging and unity across teams.EQB Inc.|Responsibility Report 2024 Page 34 of 82 2024 20231 Talent Attraction and Retention Total number of new hires 344 413 Open positions filled by i

294、nternal candidates 85 70 Total turnover rate2 16%13%Voluntary turnover rate2 12%9%Workforce Engagement Engagement score2 75%76%Learning and Development Total amount invested in training and development$1,844,528$1,672,093 Average hours of training per FTE 34 20 Average amount spent per FTE on traini

295、ng and development$999$906 Percentage of eligible employees who received a regular performance and career development review2 100%100%1 Metrics for 2023 cover EQBs 10-month fiscal year January 1,2023 through October 31,2023 2 Excludes Bennington Financial Corp.Perormance As our company continues to

296、grow,change will be constant and necessitates continually acquiring new skills,attracting top talent and focusing on addressing barriers to growth.As a testament to the strong career progression opportunities within the company,the continuous improvement of our internal hiring practices and the resu

297、lting ability to promote from within,we have seen a 29%increase in internal candidates filling positions.Nurturing homegrown leaders will continue.Although deeply invested in the development of our Challengers,we have seen overall turnover increase by 4%.While this underscores the challenges of toda

298、ys competitive talent market,it also reflects our investment in setting up employees for professional success wherever their career journeys take them.This ethos is part of our broader approach to supporting career growth and further backed by the substantial investments we have made in Learning&Dev

299、elopment in 2024,whereby our total amount invested on training and development materially outpaced workforce growth,at 10%y/y versus 5%y/y,respectively.Unless otherwise stated,we have restated 2023 numbers to include Bennington Financial Corp.and as a result these numbers will differ from ones previ

300、ously disclosed in the 2023 Responsibility Report.The metrics are not inclusive of ACM Advisors.EQB Inc.|Responsibility Report 2024 Page 35 of 82 Total rewards and pay equity We approach compensation and benefits with a total rewards mindset.While compensation is an important part of our rewards off

301、ering,it is one component of a meaningful suite of rewards for employees,including our comprehensive and differentiated benefits offerings,Employee Share Purchase Plan(ESPP)and a group retirement savings plan that includes a baseline employer contribution of 3%of base salary,with an additional dolla

302、r-for-dollar match up to 5%based on years of service.The goal of our compensation program is to attract and retain the right talent,motivate employees to perform well,ensure equity and fairness,promote transparency and clarity to foster trust and engagement and comply with regulations and risk best

303、practices.Ensuring fair and equitable pay practices in every part of the talent journey is important to us.Bonus for all employees is determined by a mix of individual performance and corporate performance,with more weighting placed on corporate performance as job level or seniority increases.For mo

304、re details on our compensation philosophy,refer to our 2024 Management Information Circular published on .We make decisions based on consistent standards to minimize bias in decision making.Our Compensation function provides recommendations and acts as control and advisory function to ensure interna

305、l equity and market competitiveness.Our efforts to date positioned us well to achieve compliance under the Federal Pay Equity Act in 2024.The table to the right provides a summary of compensation by level for women compared to men and for racialized employees compared to non-racialized employees.Ove

306、rall,our compensation ratios on gender and race have improved across levels.Perormance12024 2023 Total compensation Total Compensation of Racialized Persons of Women relative relative to Non-racialized Position Group to Men4 Persons4 2024 2023 2024 2023 Executive Management5 109%106%128%123%Junior E

307、xecutive 96%93%96%93%Management6 Middle Management7 96%96%99%100%All other employees 100%100%99%99%Total Rewards2 Participation Rate in ESPP 70%68%Banks ESPP Contribution3$2,589,292$1,801,882 1 Metrics for 2023 cover EQBs 10-month fiscal year January 1,2023 through October 31,2023 2 Excludes Benning

308、ton Financial Group 3 Integration of Concentra Bank with Equitable Bank was ongoing in 2023;Concentra Bank employees started contributing to ESPP in April 2023 4 Excludes CEO compensation 5 Executive Management refers to the CEO and CEOs direct reports 6 Junior Executive Management includes employee

309、s in job levels 11 to 12 7 Middle Management includes employees in job levels 8 to 10 8 All Other Levels includes employees in job levels 1 to 7 EQB Inc.|Responsibility Report 2024 Page 36 of 82 Inclusion,diversity,equity,accessibility,anti-racism Why this maters Workplace inclusion is essential to

310、contributing to a stronger,more dynamic organization.While gender diversity has steadily improved,we recognize there are opportunities to improve racial and ethnic representation,particularly at senior leadership levels.Addressing these gaps ensures a reflection of a broad range of perspectives and

311、experiences found in the diverse communities we serve in addition to improving decision-making,risk assessments and business outcomes.A diverse workforce also fosters trust and strengthens customer relations.Beyond representation,empowering and amplifying a diverse talent pipeline is key to meeting

312、the evolving demands of the industry.It encourages new ideas,better market insights and creative problem-solving,giving organizations a competitive edge to enhancing long-term resilience and success.EQB approach Celebrating the differences in our lived experiences is central to our challenger bank m

313、indset and goes beyond diversity,equity and inclusion.We use“IDEA2 to refer to Inclusion,Diversity,Equity,Accessibility and Anti-Racism work.This celebration of human differences is championed by EQBs ERGs and employee-led cultural days of celebration and commemoration.Diverse perspectives and life

314、experiences create the rich fabric of our workplace culture.We foster open discussions on our respective experiences sharing unique learnings and viewpoints to deepen mutual understanding of one another and cultivate an environment where employees feel understood and valued.EQBs approach to IDEA2 is

315、 multifaceted,shaping various aspects of the business from hiring to employee engagement,workforce demographics and promotions.It is a foundational element that underpins and drives progress across multiple business areas and practices.We take a thoughtful and pragmatic approach in applying an IDEA2

316、 lens across the business,to advance employment equity and foster an equitable and representative workplace.In 2024,promotion policies were enhanced to ensure a level playing field,including consistent application across the organization and mitigating the potential for unconscious bias.To better un

317、derstand factors driving retention and attrition among underrepresented groups,focus group sessions were conducted for specific job levels and performance categories to understand sentiments and ensure fair representation was actioned across equity-seeking groups.We have also ensured timely complian

318、ce with the Federal Pay Equity Act,ensuring the absence of pay disparities.A significant achievement for us was the development and launch of the Competency Framework supporting employee career pathing and professional development.This framework standardizes the evaluation of skills and competencies

319、 across roles,ensuring that all employees are assessed using consistent criteria to support equitable advancement opportunities.Mid-year and year-end performance calibrations are also facilitated through an IDEA2 lens to support fair and objective talent assessments.Employee Resource Groups(ERGs)Bey

320、ond our focus on advancing employment equity,the ERGs are also a driving force behind many IDEA2 initiatives.The ERGs are comprised of individuals with diverse experiences,each serving a meaningful purpose within the company.Each ERG has dedicated human resources support and an Executive Sponsor fro

321、m our Management Committee to ensure the requisite exposure and resources are available to support their objectives.The table below lists our six ERGs and their key objectives over the course of 2024.These efforts are all in service of the three-year strategy each ERG presented to the Management Com

322、mittee or Board in 2023,which included recommendations for ensuring the attraction and retention of individuals from underrepresented groups and engagement with the community.EQB Inc.|Responsibility Report 2024 Page 37 of 82 The Black Collective Objective To ensure equitable opportunities for people

323、 of African descent through promoting the hiring and development of Black employees,leveraging the Black Collective for leadership development.2024 Accomplishments Hosted the second Annual Black History Book Club event Worked with Talent Acquisition team to partner with organizations that could help

324、 increase diversity in our talent pipeline Introduced the Black Business Accelerator Grant (BBAG),awarding$25,000 between three black-owned small businesses.Winners will be announced in 2025 2SLGBTQ+employees Objective To cultivate a positive,inclusive and safe working environment for 2SLGBTQ+employ

325、ees through awareness,education and community partnerships.2024 Accomplishments Hosted the second annual Drag Brunch andraised funds for the 519 agency Trans Youth Mentorship Program Solidified partnership with queer-focused recruitment organization,QueerTech Indigenous Objective To support the impr

326、oved understanding of our history and wrongs of the past,while strengthening our organizational commitment to the ongoing work of truth and reconciliation.2024 Accomplishments As part of National Day for Truth and Reconciliation,hosted Cadmus Delorme,CEO of OneHoop,and former Chief of Saskatchewan F

327、irst Nations,to deliver an inspiring talk on actionable steps to advance reconciliation To kick off Pride Month and lead up to National Indigenous Peoples Day,hosted Sheri Osden Nault to speak on how they integrate cultural,social and experimental creative processes into their art Newcomers to Canad

328、a Objective To support the social and cultural integration of first-and second-generation Canadian immigrants by providing resources to empower them to thrive as they adjust to Canadian society.2024 Accomplishments Increased the number of personal days to four,to allow our diverse employee base to c

329、elebrate cultural holidays or traditions Supported the Talent Acquisition team in a job fair for immigrants Women in Tech Objective To promote equality,bridge the gender gap and break down barriers faced by women working in technology through advocacy,education and collaboration.2024 Accomplishments

330、 Hosted the first Women in Leadership event,centred on the importance of building a personal brand,mastering communication and overcoming self-doubt Developed a new partnership with Scientists in Schools,supporting over 1,700 schools and several First Nations communities across Canada develop STEM s

331、kills training Attended the University of Toronto Women in Science and Engineering (WISE)Day Gala The Green Team Objective To inspire greater appreciation for th e natural environment while contributing to climate advocacy initiatives and promoting sustainable practices within the company.2024 Accom

332、plishments Coordinated our third annual tree planting day,working with the Credit Valley Conservation Removed thousands of beef options from the lunch menu in service of reducing our methane gas emissions and carbon footprint Swapped out plastic utensils for lunches with wooden ones in efforts to di

333、vert plastic from landfills EQB Inc.|Responsibility Report 2024 Page 38 of 82 Perormance We are proud that our workforce reflects the diversity of our customers across Canada.The table below provides a breakdown of employee representation across priority categories.Our demographic is broadly similar to 2023,except for a notable increase in racialized persons,which reflects advances in hiring as we