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Environmental Leadership


Building The Better Bank Material Issues How We Operate Responsible Banking Extraordinary Workplace Environmental Leadership


Natural Capital Adapting to a Changing Climate Eco-Efficiency


Responsible Finance and Investing Green Product Options


Strengthening Communities Reporting


HEADLINE PERFORMANCE 100%


of transactions were reviewed against TD’s E&S Credit Risk Management Process


150


shareholder proposals supported by TDAM on E&S issues in 2014


Top Holding


among 100 SRI investors, TD is the Top Holding out of Canada’s Big Five Banks


MANAGEMENT APPROACH


Our goal is to make informed and transparent decisions by proactively identifying opportunities and mitigating E&S risks. In order to do this we’ve integrated E&S factors into our non- retail finance and investment decision-making processes and procedures.


TD 2014 Corporate Responsibility Report Page 42


Responsible Finance and Investing


G4-14 WHY IT’S MATERIAL TO TD +


We recognize that the activities of companies we finance and invest in can have environmental impacts. Understanding and managing the environmental and social (E&S) risks associated with the companies with whom we work is essential to being a responsible bank and to our commitment to environmental leadership.


PROHIBITED TRANSACTIONS


TD does not finance transactions relating to the following: • Activities within World Heritage sites • Activities that would result in the degradation of protected critical natural habitats as designated according to World Conservation Union classification and International Finance Corporation Standards


RESPONSIBLE LENDING


We manage E&S risk based on a lifecycle approach that begins well before our formal engagement with a client and continues throughout our relationship. TD’s Environmental and Social Risk Policy for Non-Retail Credit Business Lines applies to all general corporate- purpose, project and fixed-asset financing. Our risk-review procedures are based on a progressive five-step process that includes a review of the borrower’s policy, process and performance:


1. A high-level screen to assess for financing policy exclusion


2. An environmental and social risk assessment


3. An Equator Principle evaluation and categorization


4. Sector-specific due diligence for environmentally high-risk sectors


5. Escalation to senior executive review, if required


TD undertakes a review of our E&S Risk Policy every three years. Our policy will be updated in 2015 and will incorporate the Equator Principles III requirements.


GO DEEPER


TD’S ENVIRONMENTAL AND SOCIAL CREDIT RISK PROCESS


TD AND THE EQUATOR PRINCIPLES


POSITION STATEMENT ON RESPONSIBLE ENERGY DEVELOPMENT


+ + +


• Activities that would involve the purchase of timber from illegal logging operations


• Mountaintop-removal coal mining • Production or trade in any product or activity deemed illegal under host-country laws or regulations, including: o Those ratified under international conventions and agreements


o Production or trade of wildlife or products regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES)


o Deals that directly relate to the trade in or manufacturing of material for nuclear, chemical or biological weapons or for land mines or cluster bombs


o Lending deals that are directly related to the mining of “conflict” minerals.


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