56 Sustainable Investing

TD Asset Management (TDAM) is a fiduciary for its clients and a signatory to the United Nations Principles for Responsible Investing (UNPRI). TDAM integrates environmental, social and corporate governance consideration into investment decision-making in order to maximize the value of its clients’ investments without undue risk of loss.

Since 2008, TDAM has supported over 200 shareholder proposals on environ- mental and social issues. In 2012, TDAM supported 53 shareholder proposals on environmental and social issues at companies in which TDAM invests.

• Environmental topics included the nomination of directors with environmental expertise, environmental risk-reduction efforts, spill mitigation efforts, coal ash, coal reliance, hydraulic fracturing, waste recycling, greenhouse gas emissions, effects of climate change, energy efficiency and overall sustainability reporting.

• Social topics included plant closures, children’s health, employment diversity, board diversity, human rights policies and human rights issues in developing countries.

In 2012, TDAM was also active in:

• Supporting the work of the Carbon Disclosure Project (CDP) initiative by engaging with all 12 Canadian companies that the CDP had rated as having deficient disclosure;

• Engaging 45 Canadian companies on corporate governance issues through the Canadian Coalition for Good Governance;

• Helping the Toronto Stock Exchange design and run environmental and social disclosure workshops for 75 representatives of TSX-listed companies from a wide range of industries; and

• Publishing over 140 proxy voting reports stating how TDAM voted at hundreds of company meetings.

+ Sustainable Investing Policy (PDF) + 2011 Engagement Report (PDF) + Disclosure on Proxy Practices TDAM

TD Global Sustainability Fund

The aim of the fund, which is available to both retail and institutional investors, is to achieve long-term capital appreciation by investing primarily in companies around the globe that are viewed as best in class with respect to environmental, social and governance (ESG) factors and environmental specialists in the areas of clean energy, water and resource efficiency.

The fund takes a long-term view about sustainability and the related opportuni- ties and risks. The portfolio managers continue to play an active role in educating investors, clients and consumers about the importance of sustainability and clean technology. In 2012 they participated in:

• Deloitte’s Sustainability Reporting and Disclosure: Communicating ESG Performance to Investors roundtable;

• A discussion of sustainable investing and clean technology on The Pattie Lovett-Reid Show; and

• An Earth Day and sustainable investing discussion on the Business News Network (BNN).

Green Bonds

TD Securities was a lead underwriter in support of the World Bank’s first green bond program, launched in 2009, and is currently the second-largest North American lead manager of World Bank Green Bonds. Green Bonds raise funds for projects seeking to mitigate climate change or help affected people adapt to it. Transactions have been denominated in the Polish zloty, South African rand, Mexican peso and Australian dollar.

Impact Investing

In 2012 a number of TD’s business segments began a collaborative effort to understand the scope of impact investing. We commissioned a team from Purpose Capital and the MaRS Centre for Impact Investing to develop a white paper on impact investing. The paper provides investors with basic information on the current state and trends in this emerging area.

Be an Environmental Leader

TD 2012 Corporate Responsibility Report