TD Commits to Ambitious Climate Action Plan and Targets Net-Zero Emissions by 2050
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Establishes Sustainable Finance and Corporate Transitions Group to support clients and promote long-term sustainable economic growth
Prohibits new project-specific financial services directly related to the exploration, development or production of oil and gas in the Arctic Circle
TORONTO, Nov. 9, 2020 /CNW/ - TD Bank Group (TSX: TD) and (NYSE: TD), ("TD" or "the Bank") today announced its commitment to a global climate action plan, which includes a target to achieve net-zero greenhouse gas (GHG) emissions associated with its operations and financing activities by 2050, aligned to the associated principles of the Paris Agreement. The Bank has also established dedicated teams to advise and support clients as they work to capture the opportunities of the low-carbon economy. The ambitious actions outlined today support the Bank's Environmental, Social and Governance (ESG) strategy, which leverages TD's business, people and financial resources to help deliver sustainable economic prosperity.
"Climate change is a critical environmental and business challenge and will require significant effort over the long term to help economies transition successfully to the low-carbon future," said Bharat Masrani, Group President and CEO, TD Bank Group. "TD's climate action plan builds on a long history of environmental leadership and positions the Bank as a central player in the work needed to enable sustainable growth for our customers and clients, the communities we serve and the economies we support."
Reporting and Improved Methodologies
A key aspect of TD's climate action plan is a focus on data measurement and analytics. TD intends to use an industry-specific approach to prioritize and advance GHG reduction opportunities in each sector. The Bank has established the ESG Centre of Expertise, drawing on experts across TD to participate in this work, invest in research and support academic progress and technological innovation. TD has also joined the Partnership for Carbon Accounting Financials (PCAF) to support the development of carbon accounting methodologies for financial institutions globally.
While the precise path to achieve the 2050 target remains unclear, TD intends to establish GHG emissions baselines across its business and financing portfolio and will work closely with clients as it sets interim GHG reduction goals on the path towards 2050. TD will continue to engage with governments, non-governmental organizations, businesses and other groups to develop and promote measurement and tracking methodologies for financed emissions, as well as GHG reduction strategies aligned to science-based transition pathways. The Bank will report on its progress starting with 2021.
Enabling our Clients' Future
TD intends to take a thoughtful approach to understand the different challenges and opportunities associated with key industries. To support its clients, TD Securities has established a Sustainable Finance and Corporate Transitions Group to provide clients with advisory services and important transition and sustainability-focused financing globally. Amy West, Global Head of Sustainable Finance and Corporate Transitions, leads this new Group.
"Across all industries, leadership teams are seeking trusted advice to navigate the challenges and realize the opportunities of the climate-driven changes taking place in our economy," said Bob Dorrance, Chairman, CEO and President, TD Securities. "The newly established Sustainable Finance and Corporate Transitions Group will be central to our efforts as we work together with clients to support their transition plans through ESG-related advice, financing and affiliated products."
The Arctic Circle is a unique and fragile environment, home to protected species, and of crucial importance to the local Indigenous populations. From a climate perspective, this area is warming significantly faster than the rest of our planet, which poses the risk of increased GHG releases and further warming.
Given these facts, TD will not provide new project-specific financial services, including advisory services, for activities that are directly related to the exploration, development, or production of oil and gas within the Arctic Circle, including the Arctic National Wildlife Refuge (ANWR).
Track Record of Progress
"Today's announcements further strengthen the work we've done over many years to drive change within the Bank and across our footprint," said Norie Campbell, Group Head and General Counsel. "We plan to leverage our experience to extend our efforts even further, and together with thousands of dedicated TD Bankers, will deliver new approaches and creative solutions for the future."
TD's environmental leadership includes:
"I commend TD Bank Group for taking a step forward to increase its ESG performance and recognize the role it can play in building pathways to sustainability and contributing to positive climate action in North America. It won't be easy, and it will require collective action, however I am confident that TD's leadership will inspire other North American corporations to tackle environmental and social challenges and to develop meaningful solutions to climate change and global sustainability," said Bruce Lourie, PhD, President Ivey Foundation.
About TD Bank Group
The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Group ("TD" or the "Bank"). TD is the sixth largest bank in North America by branches and serves over 26 million customers in three key businesses operating in a number of locations in financial centres around the globe: Canadian Retail, including TD Canada Trust, TD Auto Finance Canada, TD Wealth (Canada), TD Direct Investing, and TD Insurance; U.S. Retail, including TD Bank, America's Most Convenient Bank®, TD Auto Finance U.S., TD Wealth (U.S.), and an investment in The Charles Schwab Corporation; and Wholesale Banking, including TD Securities. TD also ranks among the world's leading online financial services firms, with more than 14 million active online and mobile customers. TD had CDN$1.7 trillion in assets on July 31, 2020. The Toronto-Dominion Bank trades under the symbol "TD" on the Toronto and New York Stock Exchanges.
Caution Regarding Forward-Looking Statements
This news release may contain forward-looking statements and is subject to the Bank's caution regarding forward-looking statements, as set out in the Bank's quarterly report to shareholders for the quarter ended July 31, 2020, which is available at www.td.com. TD's ability to achieve its target of net-zero financed emissions by 2050 is based on a number of assumptions and is subject to a number of factors, including the availability of comprehensive and high-quality GHG emissions data, the need for active and continued participation of stakeholders (including enterprises, financial institutions and governmental and non-governmental organizations), the development and deployment of new technologies and industry-specific solutions, international cooperation, and the development of regulations internationally. These and other factors may cause actual results to differ materially from the expectations expressed in the forward-looking statements and may require the Bank to adapt its initiatives and activities or adjust its plans to reflect a changing landscape.
SOURCE TD Bank Group