Customers
Workplace
Environment
Communities
How We Operate
63
Material Topic
Responsible Finance
Context
• There is increased demand by environmental stakeholders for comprehensive and transparent risk management processes in the financial services industry – including the management of environmental and social (E&S) risk.
• Although E&S risks are more difficult to quantify, they have the potential to have an impact on project budgets and schedules and corporate reputation. These factors can affect financing decisions.
Materiality and Strategy
Environmental risk is integrated into TD’s risk management framework. Our goal is to make balanced, informed and transparent decisions by proactively identifying and mitigating environmental and related social risks based on both short-term and long-term considerations.
Our primary business is retail lending, which comprises 72% of the dollar value of our financing activities. Wholesale banking and commercial lending account for 28% of our financing and are focused on companies based in North America, with approximately 2% involving clients operating in environmentally sensitive sectors.
Targets 2013 Targets
100% of general corporate purpose, project and fixed-asset financing transactions are reviewed under TD’s Environmental and Social Credit Risk Management Process, which includes the Equator Principles.
100% of project finance transactions are reviewed under the Equator Principles.
Meet our commitments as a signatory to the United Nations Principles for Responsible Investing (UNPRI).
Rating
2013 Results
100% of transactions were reviewed against TD’s E&S Credit Risk Management Process.
2014 Targets Further align the E&S review processes within our commercial bank.
Continue to participate in a Technical Working Group of the GHG Protocol and UNEP Finance Initiative to develop greenhouse gas accounting guidance for the financial sector as a supplement to the GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard.
100% of project finance transactions were reviewed under the Equator Principles.
Met our commitments as a signatory to the UNPRI.
Embedded ESG factors as part of investment risk analysis for research process for investments.
Update our Environmental Management Systems for the recent revisions to the Equator Principles III.
Meet our commitments as a signatory to the UNPRI.
Continue to integrate ESG factors into our research process, including the analysis behind proxy votes.
TD 2013 Corporate Responsibility Report
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