Investing for a better tomorrow
We focus on influential Environmental, Social, and Governance (ESG) issues that are likely to impact the long-term value of an investment.
Sustainable investing is an approach that accounts for ESG factors in the investment process. ESG references three factors that measure the sustainability and social impact of an investment:
Environmental
This criteria identifies a company's impact, positive and negative, on our planet.
Social
This criteria focuses on the human element of a company, from culture to issues that reach employees, consumers and suppliers.
Corporate Governance
This criteria tackles issues concerning the board of directors and company oversight. It notes how boards relate to stakeholders, how businesses are run, and financial considerations.Achievements and Initiatives
- Supporting Principles for Responsible Investment (PRI) since 2008. TDAM was among the first Canadian bank-owned asset managers to sign the United Nations-backed PRI.
View the 2020 PRI Transparency Report for TDAM and TD Greystone* - A Carbon Disclosure Project (CDP) signatory for CDP Climate Change, Forests, and Water. CDP envisions a thriving economy that benefits our people and planet in the long-term.
- A Canadian Coalition of Good Governance (CCGG) participant that promotes good governance in Canadian public companies, improves the regulatory environment, and aligns board interests with shareholder interests.
- A Climate Action 100+ signatory for an investor initiative that holds the world's largest greenhouse gas emitters accountable for their impacts on climate change.
- An Investor Stewardship Group (ISG) signatory for an investor-led organization that established a framework of basic investment stewardship and corporate governance standards.
- An active member of the Global Real Estate Sustainability Benchmark (GRESB), the leading ESG benchmark for real assets.
- Strong collaboration with regulators, stock exchanges, global peers, and ESG data providers to strengthen the sustainable finance agenda. TDAM was one of twenty institutional investors to join a pilot project conducted by the United Nations Environment Programme - Finance Initiative (UNEP FI) to assess how climate change could impact investor portfolios worldwide. Learn more
- Institutional Investor signatory to RIA Canada's Canadian Investor Statement on Diversity & Inclusion. As statement that acknowledges the existence of systemic racism and its impacts on Black and Indigenous communities and People of Colour in Canada and globally.
- TDAM is a member of International Corporate Governance Network (ICGN) to help promote corporate governance standards and best practices in global markets.
* TD Greystone Asset Management (TD Greystone) legally amalgamated with TD Asset Management Inc. (TDAM) on November 1, 2019.
TDAM's Sustainable Investing Approach
At TDAM, sustainability is a long-term investment. This firm-wide approach helps our investment teams tackle ESG integration and adopt processes for their mandates. Our ESG Engagement Committee, comprised of diverse and seasoned professionals, oversees our ESG strategy and efforts.
View TDAM's Sustainable Investing Approach
View TD Asset Management Inc. & TDAM USA Inc. - Proxy Voting Policy & Procedures
TDAM Climate Change Statement/Principles
TDAM considers climate change a systemic risk affecting economies, companies and investors. Our approach to climate change is aligned with our overall philosophy of integrating all sources of risk and return in our investment processes.
As an investment manager of diversified asset classes, TDAM considers climate change as an important area of research to fulfill our fiduciary responsibility on behalf of our clients and the funds that we manage. We actively engage with companies and leverage our asset ownership positions to encourage improvements in company disclosures on climate-related risks and opportunities. In addition, we participate in numerous industry collaborations including Climate Action 100+, CDP, and the UNEP FI TCFD investor pilots, with the first two furthering our company engagement efforts and the latter developing a better understanding of climate related investment risks.
Our approach continues to evolve to help position our portfolios to capitalize on investment opportunities arising from an accelerated transition to a low carbon economy and manage undue climate-related physical and transition risks.
Integration of sustainability factors
ESG integration aligns with our philosophy of seeking investments in sustainable, long-term assets through a risk-managed process. We strive for a fully integrated ESG engagement process in our investment products.
Our dedicated ESG Research and Engagement Team supports our investment teams with ESG research, ESG integration, and ownership efforts.
How we integrate ESG factors into our investment process
We proactively evolve as ESG data matures, materiality comes into focus, and regulatory frameworks expand market awareness. Under this approach, financially material ESG factors are reviewed alongside traditional investment criteria. Implications arise if an ESG matter changes the intended risk or return profile of an investment.
TDAM's Sustainable Investing Approach details ESG integration across investment teams, including:
Systematic reviews of issuer ESG risks; Thematic ESG research; Active ownership
Quantitative equitiesQuantitative ESG signals; ESG data dialogue; Proxy voting
Fixed incomeESG credit review & exposure scores; Issuer engagement; ESG Credit Committee
Alternative assetsEnvironmental impact; Health & welfare; Integrity & accountability
TD Ready Commitment
We engage in all corporate responsibility matters relating to our parent company, TD. TD is targeting C$1 billion by 2030 in community giving in areas that support change, nurture progress, and contribute to making the world a better place: Financial Security, Vibrant Planet, Connected Communities, Better Health.
Learn more about how TD is helping create a more vibrant planet
See the latest ESG reports on TD performance data, as well as disclosures and position statements on important ESG topics. Learn more
Related Content
A commonsense approach to ESG contributes to investment excellence
In 2021, we believe greater attention to four key areas in ESG will add significant value in seeking long-term sustainable-growing assets.
TD Morningstar ESG Canada Equity Index ETF
Seek to track the performance of a Canadian equity market index which measures the investment return of Canadian large- and mid-capitalization issuers that exhibit higher ESG ratings relative to their peers.
TD Morningstar ESG U.S. Equity Index ETF
Seeks to track the performance of a U.S. equity market index which measures the investment return of U.S. large- and mid- capitalization issuers that exhibit higher ESG ratings relative to their peers.
TD Morningstar ESG International Equity Index ETF
Seeks to track the performance of an international equity market index which measures the investment return of large- and mid-capitalization issuers in Developed Markets located outside of North America, that exhibit higher ESG ratings relative to their peers.
ESG Investing at TDAM
The desire to be sustainably and responsibly invested doesn’t have to be at odds with seeking positive returns in your investment portfolio.
TD North American Sustainability Equity Fund
The fundamental investment objective is to seek to achieve long-term capital appreciation while following a socially responsible approach to investing. The Fund may invest primarily in, or gain exposure to, North American equity securities.
TD North American Sustainability Balanced Fund
The fundamental investment objective is to seek to earn income with the potential for capital appreciation while following a socially responsible approach to investing. The Fund may invest primarily in, or gain exposure to, North American equity and fixed income securities.
Can your investment goals really align with your social values
ESG was once seen as detrimental to a portfolio's return and using this strategy was uncommon. Today, it has almost become the norm.