57 Emerging Challenges for Socially Responsible Investing

Sustainability issues and a company’s ability to manage the associated risks are an increasing factor for investment managers. Within natural-resource- based sectors, environmental and social issues are in considerable focus. For the technology industry, labour standards have garnered wide media and investor interest.

It has also been a challenging year for clean technology investments, stemming from overcapacity in manufacturing, coupled with the economic headwinds in Europe. However, the costs of clean tech are decreasing, and we continue to see compelling investment opportunities linked to resource efficiency. These products have defined environmental attributes and cost savings for the end consumer.

Green options for customers

Our research shows that 60% of consumers will choose green product options if they are financially competitive.1

We are working to understand opportunities to

provide our customers with green product options and services, focusing on: • e-banking options; • Clean energy products and services; • The TD Global Sustainability Fund; and • Insurance.

TD ranked #1 on Interbrand’s list of Best Canadian Brands in 2012. The award noted that TD “takes corporate responsibility seriously and strives to be The Better Bank by investing in communities and environmental initiatives.”

1 Canadian Environment Barometer Report – Environics 2011(proprietary to TD). TD 2012 Corporate Responsibility Report 1.8

0.3 2011

million online statement accounts

2012 An update on online banking: In 2012, we

stopped printing 34 million

paper statements, saving almost…

700 metric tonnes of paper

The number of Canadian

customers opting for paperless statements rose from

4% to 23% in 1 year

In one year, the number of paperless accounts has risen from 1.5 million to

3.5

million accounts

1.2 2011 1.7

million online statement accounts

2012 Canada US e-Banking Options

TD has been a leader in online banking for a number of years, with offerings that include:

• Mobile banking; • Access to day-to-day account activity and online statements; • Money-market statements (TD Bank); and • Trade confirmations and tax slips (TD Wealth).

When asked how TD could improve its environmental performance, customers across North America raised “reduction of paper” as the leading issue. We responded by setting an aggressive reduction target of 20% less paper by 2015.

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