TD Bank acknowledges that “there are two principal sources of environmental risk to [its] business: 1) ownership or operation of physical premises and, 2) the actions of [its] borrowers.” To address the risks associated with the company’s physical premises, TD Bank conducts environmental audits on existing and new branches and has established energy optimization standards, including rooftop solar panels on all new branches. TD has also developed a green information technology strategy and has built the company’s new data center to LEED (Leadership in Energy and Environmental Design) Gold standards. Despite accounting for just a fraction of the company’s overall revenues, TD Bank’s lending and investment activities pose the largest environmental risk to the company. To address this risk, TD Bank has signed on to the United Nations Principles of Responsible Investment and the Equator Principles. In addition, all project finance transactions are analyzed according to TD Bank’s Environmental and Social Credit Risk Process, which defines the company’s priorities in forestry, mining, oil and gas, oil sands, and power generation.
As a result of the company’s work to incorporate Environmental, Social, and Governance factors into its investment analysis, Portfolio 21 believes TD Bank has the necessary tools to mitigate risk from financing potentially environmentally impactful projects. Portfolio 21 will continue to monitor the company’s environmental accounting to ensure that TD Bank remains on track to meet its key performance indicator goals.
To the best of our knowledge the above information is accurate and was obtained from sources we believe to be reliable. Neither the information presented above nor any opinion expressed shall be construed as an offer to sell or a solicitation to buy the security. The views expressed are those of portfolio management as of 9/30/12 and may not reflect current opinions or subsequent events.