Financial Services

Financial Services

Sector Supplement

FS 1 Policies with specific environmental and social components applied to business lines. F

TDAM Sustainable Investing Policy

TD’s Environmental Policy

TD’s Anti-Bribery, Anti-Corruption Policy Summary

TD’s Anti-Money Laundering, Anti-Terrorist Financing Policy Summary

TD’s Responsible Procurement Policy Summary

TD’s Whistleblower Policy

A comprehensive policy framework supports our diversity programs:

  • the fundamental values of diversity and inclusion are ingrained and promoted through our Strategic Framework, Leadership Profile and Guiding Principles;
  • Employee Relations policies;
  • Diversity and Employment Equity Policy;
  • Code of Conduct and Ethics;
  • TD’s Harassment, Discrimination and Violence in the Workplace Policy; and
  • Our Workplace Accommodation Policy outlines TD’s commitment to support employee diversity, such as time for observance of religious practices, flexible work options and accommodation of disabilities in the workplace.

FS 2 Procedures for assessing and screening environmental and social risks in business lines. F

TD’s Environmental and Social Credit Risk Process

FS 3 Processes for monitoring clients' implementation of and compliance with environmental and social requirements included in agreements or transactions. F

We manage E&S risk based on a ‘life-cycle’ approach that begins during the due diligence process before our engagement with a client and continues throughout our relationship. Key elements of our risk management approach include:

  • Engaging with multiple stakeholders to gain an understanding of key current and emerging E&S issues by sector;
  • A continuous improvement approach to training our credit managers on E&S issues and policy;
  • Ongoing support to the credit management team by TD Environment subject matter experts; and,
  • Active engagement with our clients on current and emerging issues.

2013 Target Rating Progress 2014 Goals
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. Met 100% of transactions were reviewed against TD’s E&S Credit Risk Management Process. 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 are reviewed under the Equator Principles. Met 100% of project finance transactions were reviewed under the Equator Principles. Update our Environmental Management Systems for the recent revisions to the Equator Principles III.
FS 4 Process(es) for improving staff competency to implement the environmental and social policies and procedures as applied to business lines. F

2013 Performance

  • All credit risk managers were trained on environmental and social risk
  • 286 corporate lending transactions were reviewed under the ESR process.
  • Of these transactions, 88% were subject to sector-specific due diligence involving a review of environmental policies, processes and performance.
  • As a result of TD’s proactive approach to managing E&S risk, transactions that are not expected to meet TD's stringent risk requirements are not advanced for financing consideration. For this reason, we have not declined a deal under the Environmental and Social Credit Risk Management Process during the last three years.

FS 5 Interactions with clients/investees/business partners regarding environmental and social risks and opportunities. F

Green Product Options

Paperless Banking
  • In 2013 we continued to develop our e-banking and mobile product options, to meet growing market demand.
  • We stopped printing over 67 million paper statements saving almost 1,000 metric tonnes of paper and 23,000 trees.
  • In the past year, the number of paperless accounts has risen by 37% from 3.5 to 4.8 million accounts.
Lending for Small-Scale Renewables and Energy Efficiency Projects
  • In 2010 TD launched an innovative financing program for the development of small-scale renewables projects focused on ground-mounted and rooftop solar energy. This initiative was largely linked to the Ontario Green Energy Act, which includes a feed-in tariff program.
  • In 2013 we also began reporting on the value of home improvement loans for energy efficiency.
Insurance for Hybrid and Electric Vehicles
  • TD has offered financing and insurance of hybrid vehicles in Canada since 2008. In 2011 the program was extended to electric vehicles.
  • With a 15% growth in 2013 alone, our business reflects a steady increase in consumer purchases of these fuel-efficient vehicles.
Advice to Our Small Business Customers

We see a great opportunity to share what we have learned about the environment with our customers. We took our first step this year by supporting the Network for Business Sustainability in their development of an online guide, How to Make Money by Going Green. Using the recommended actions, a business can cut costs, enhance their reputation and sales, motivate employees – all while helping the environment. The guide provides information on the payback period for various sustainability actions, recommended actions and examples from other businesses.

Environmental Stakeholder Engagement

Organization Topic Area Notes on Engagement
Alliance for Community Trees Urban Forestry ACTrees is one of the organizations that helps to administer TD Tree Days in the U.S. TD also recently funded a Tree Care grant program for ACTrees members to support structural pruning and maintenance programs.
Arbor Day Foundation Urban Forestry Arbor Day administers TD Green Streets in the U.S. This grant program supports innovation in municipal forestry and funds tree planting and urban greening projects in low-to moderate-income neighbourhoods.
Boreal Leadership Council Sustainable development in the Boreal region Aboriginal engagement As a member of the Boreal Leadership Council, TD participates in bi-annual meetings and supports working group activities on an ongoing basis.
Centre for Mining Innovation Mining A TD executive participates at the board level of this industry association, which links mining and academia to promote industry innovation in technology and sustainability.
Equator Principles Financial Institutions Environmental and social risk in the financial sector TD is a member of this industry association and participates in working committees and annual meetings.
Forest Stewardship Council Free, Prior and Informed Consent (FPIC) TD is the lead sponsor and participant in a project that will operationalize the concepts and practices of FPIC into natural resource management in Canada.
Green Futures Clean energy TD supports a series of 80 videos that showcase clean energy success stories.
Greening Greater Toronto/Civic Action Sustainable cities TD executives are members of a Steering Committee and working committees that support a range of programs with an environmental focus.
International Institute for Sustainable Development Carbon offsets TD provides funding for the research and benchmarking for how First Nations in Canada can be active participants in the voluntary carbon offset market.
Nature Conservancy of Canada/The Nature Conservancy Forest Conservation TD works with both of these organizations to protect critical forest habitat in Canada and the United States through the TD Forests program.
Network for Business Sustainability Sustainable development TD is a member of the Advisory Committee for this multi-stakeholder organization that links business and academia to support research on a wide range of topics relating to sustainable development.
New York Restoration Project Urban Forestry NYRP is one of the organizations that helps to administer TD Tree Days in the U.S. NYRP is also the lead partner with the New York City Department of Parks & Recreation in MillionTreesNYC, an initiative to plant and care for one million new trees in New York City by 2015. TD is a lead sponsor of MillionTreesNYC.
Pembina Institute Responsible energy TD supports a range of research activities aimed at promoting multi-stakeholder dialogue and research on topics relating to energy.
Pollution Probe Responsible Energy TD served on the editorial board for Energy Exchange magazine, which was spearheaded by Pollution Probe to increase understanding of energy (production and use) and related issues.
SHARE Responsible investing TD engaged with SHARE on issues relating to financed emissions.
World Resources Institute Responsible investing TD is a member of a pilot study to develop protocols for financed emissions.
UNEP Financial Initiative (North America) Environmental issues in the financial sector TD is a member of this industry association, which identifies and supports research in areas relating to environmental risk and opportunity in the sector.
U.S. Green Building Council/Canadian Green Building Council Green Buildings TD is a member of this industry organization aimed at advancing green building initiatives.
FS 6 Percentage of the portfolio for business lines by specific region, size (e.g. micro/SME/large) and by sector. NR
FS 7 Monetary value of products and services designed to deliver a specific social benefit for each business line broken down by purpose. NR
FS 8 Monetary value of products and services designed to deliver a specific environmental benefit for each business line broken down by purpose. P
Green Product Option Performance
Paperless Banking 2013 2012 2011
% Accounts opting for paperless statements – TD Canada Trust 34 % 23 % 4 %
% Accounts opting for paperless statements – TD Bank AMCB 39 % 35 % 28 %
Lending for Small-Scale Renewable Projects1      
Number of loans from our residential renewable program2 281 469 638
Dollar value of loans ($ millions)2 $7.8 $15.5 $20.2
Electricity generated from the program (kWh) 1,134,100 5,437,432 2,228,675
Estimated GHG reduction (CO2e)3 178 384  
Lending for Small-Scale Energy Efficiency Projects      
Number of loans 1,556 1,881 2,080
Dollar value of loans ($ millions) $10.6 $14.3 $13.8
Insurance for Hybrid and Electric Vehicles      
Number of active hybrid and electric vehicle discounts 12,700 11,053 9,213
Estimated reduction in GHG emissions by TD Auto Insurance customers through the use of hybrid and electric vehicles (tonnes CO2e)4 6,465 5,850 -
FS 9 Coverage and frequency of audits to assess implementation of environmental and social policies and risk assessment procedures. F

Monitoring and Control
TD Corporate Environment Affairs will oversee and assist TD businesses and corporate areas globally, in complying with the policy. Compliance will be assessed against regulations, operating policies, standards and procedures, as specified in the Environmental Management System. This Policy will be reviewed annually to assess alignment to business strategic objectives, market practices, and regulatory requirements.

Roles & Responsibilities
Policy Owner: EVP, Community, Environment and Marketing

Policy Recommended by: the Group Head, Marketing, Corporate and People Strategies and the Environmental Steering Committee (ESC) approves the Policy. (The ESC represents key business stakeholders from across TD, and is responsible for setting strategy and for oversight of environmental performance.)

Policy Approval – The Risk Committee of the Board
In addition, the roles and responsibilities of the Risk Committee of the Board include:

  • Annually reviewing and approving this policy including any substantial amendments as required.
  • Maintaining a general understanding of the scope of the policy and where required making inquiries of a responsible senior officer with respect to this policy.
  • Reviewing reports, as and when presented to the Committee by executive management of the Bank, with respect to the outcome of a major internal environmental incident, or infraction, and the resulting action plans for mitigating recurrence.

Monitoring – Chief Environment Officer, TD’s business units as specified in the Environmental Management System.
Policy Contact – Chief Environment Officer

TDAM Sustainable Investment Policy (PDF)

FS 10 Percentage and number of companies held in the institution's portfolio with which the reporting organization has interacted on environmental or social issues. NR
FS 11 Percentage of assets subject to positive and negative environmental or social screening. F

Water-Related Risk
We define water-related risk based on the potential economic and environmental impacts of changing patterns of precipitation and of exposure to flooding, drought or extreme storm events caused by climate change. We track our exposure to sectors that are water-sensitive.

Chart for Water-Related Risk

Carbon-Related Risk
We define carbon risk as risk driven by changes in carbon-related regulation, resource constraints and the changing climate within our financing activities to carbon-intensive industries.

Carbon-Related Risk

FS 12 Voting polic(ies) applied to environmental or social issues for shares over which the reporting organization holds the right to vote shares or advises on voting. NR
FS 13 Access points in low-populated or economically disadvantaged areas by type. F
Access to Banking
Low-Cost Banking Options
Canada: All customers can select the Minimum Chequing Account, a low-fee, basic banking option.
U.S.: TD Bank provides accounts and services to lower-income families, those on government assistance and students:
  • TD’s Convenience Checking Account offers free chequing if a customer maintains a $100 minimum daily balance. This is one of the lowest minimum balance accounts in the industry.
  • Our Simple Checking Account has a $5.99 monthly maintenance fee ($4.99 with paperless statements) and does not require a monthly minimum balance.
  • In November 2012, TD Bank began offering its Right Step Program which provides low- and moderate-income families with the opportunity to obtain mortgage financing by offering more flexible down payment terms and accessing down payment assistance programs and gifts through local, county, state and government entities. The program has already helped 239 families.
Seniors
In addition to low-cost account options, we offer a broad range of convenient cross-border banking services for Canadians who winter in the U.S.
  • For individuals who are 60 years of age or older, TD Canada Trust provides a 25% monthly plan fee rebate for selected accounts
  • In the U.S., our 60 Plus Account has a low minimum balance requirement and comes with free standard checks, money orders/ cashier’s checks and discounts on safe deposit boxes.
Students
  • For students (full-time post-secondary), TD Canada Trust offers the no monthly-fee Every Day Chequing Account with Student Discount that includes 25 monthly transactions. We also give students a "Back to School Survival Guide" which includes advice on budgeting, saving and managing student debt.
  • In the U.S., our Student Checking Account has no fee and no minimum balance requirement for students who are under age 24. Student Checking Account customers can also open a maintenance-fee-free Simple Savings Account.
Youths
  • For young people, we offer a Youth Account, providing free unlimited transactions for those under 19 years of age.

TD and Aboriginal Communities in Canada

FS 14 Initiatives to improve access to financial services for disadvantaged people. F

Promoting Social Inclusion

Social barriers to accessing financial products and services can include not having a fixed address or a poor credit rating that prevents traditional bank loans. Here are some examples of how TD is working with community organizations to create access to underserved groups:

  • Named one of CNN’s top 10 microlenders in America, Accion East and Online provides necessary lending and education to “micro entrepreneurs” – owners of the smallest businesses, typically those with fewer than five employees and capital needs ranging from $500 to $35,000. Many of the owners are minorities and women. TD Bank, through the TD Charitable Foundation, committed $500,000 over three years to accelerate Accion’s microlending work from Maine to Florida.
  • TD is the founding sponsor of the Financial Literacy Strategy with United Way. TD employees contribute as part of a multi-pronged approach that includes workshops, tax clinics & one-on-one counseling for low-income Torontonians.

These innovative programs explore ways to remove social barriers and increase access to financing. Our main effort to increase access to banking is through TD's financial education initiatives. By equipping people with the tools and knowledge to manage their accounts, we can help improve their financial stability and personal well-being.

In Focus: Serving Aboriginal Communities

Aboriginal business in Canada is growing rapidly: TD Economics has predicted that the size of the Aboriginal market will reach $32 billion by 2016. TD is committed to being the bank of choice for Aboriginal people and their communities. We currently have branches in four Aboriginal communities and provide online banking translation services in the Aboriginal languages of Cree and Inuktitut.

As long-time supporters, TD was an important partner in helping establish First Nations Bank of Canada 17 years ago. Today, First Nations Bank is over 80% Aboriginal-owned, providing a range of banking products and services to its Aboriginal customer base. TD remains a minority shareholder with 19.2% ownership.

In 2013, we established an Aboriginal Banking Team, with Clint Davis (former President and CEO of the Canadian Council for Aboriginal Business) in the newly created position of Vice-President, Aboriginal Banking, and launched an Aboriginal commercial banking strategy.

Case Study: Renewable-Energy Project Creates Long-Term Economic Opportunities for First Nations
The Project:
McLean’s Mountain Wind Farm in Northern Ontario
TD Financing:
$20.1 million term loan.
The Reason:
To be the bank of choice for Aboriginal communities by supporting their economic development efforts McLean’s Mountain is a 2,000-hectare wind farm project, located on Ontario’s Manitoulin Island in Lake Huron. The development is now in its final phase: once completed in 2014, the 24-turbine wind farm will provide 60 megawatts (MW) of power to the Ontario grid.
The project is jointly owned by Mnidoo Mnising Power - a company formed by the United Chiefs and Councils of Mnidoo Mnising First Nations (UCCMM), a tribal council based on and around Manitoulin Island - and Northland Power Inc., an independent power producer. While delivering renewable energy, the project will generate considerable economic opportunities for local First Nations communities, including jobs and revenues for the next 20 years or more.
In 2013, TD was approached to help finance the project after another bank backed out at the last minute, and we seized the opportunity. A partnership with UCCMM was a natural fit: TD has experience in Aboriginal business banking and significant expertise in renewables financing, which was further solidified by our investment in this project.
“We’re very grateful for TD coming on board to quickly arrange and close the financing, on a project that benefits our people and promotes responsible development of our natural resources,” said Art Jacko, project manager, UCCMM. “McLean’s Mountain will generate significant revenues for the six First Nations tribes involved, help address shortfalls our communities are experiencing and ensure a better future for our youth.”

TD and Aboriginal Communities in Canada

FS 15 Policies for the fair design and sale of financial products and services. F

Responsible Sales and Marketing
Our reputation and relationships with customers depend on helping to ensure that what we sell, how we sell and how we advise customers are transparent, right for them and offer value. By doing what's right for our customers, we also help limit the bank's financial risk.

Product Information
We want to help our customers understand the financial products and services they purchase.

  • Our employees are trained to take sufficient time to explain issues and answer questions.
  • We make product and fee information readily available in our branches, stores, investment centres and websites, and we present it in clear, easy-to-understand language.
  • TD follows many industry-level Codes of Conduct and Public Commitments that are designed to protect consumers and ensure they are provided with information to assist them with their financial decisions.

Our products and services are designed to meet genuine customer needs. In both our retail and wealth management businesses we have checks and balances in place to ensure adherence to our corporate values and selling practices.

All employees receive training on product features, Know Your Customer policies and suitability. Branch and phone-based sales representatives are trained to use online discussion tools in their conversations with customers. These tools prompt employees to consistently put the customer first, ask the right questions and suggest appropriate solutions. An example is Account Advisor which helps ensure customers are not paying for products or services they don’t need. In the case of credit products, our credit underwriting team checks that customers are not being over-extended and offers alternative solutions if necessary.

TD employees who provide investment advice are also guided by Know Your Customer policies and suitability rules. Through discussion and analysis, the advisor establishes a client’s financial objectives, goals and aspirations. The advisor asks a set of questions designed to clearly understand the client’s investment objectives, tolerance for risk, and the time period over which he or she plans to invest. The advisor is then able to make investment recommendations based upon the client’s needs. We encourage clients to meet with an advisor on a regular basis to ensure any changes in their personal circumstances are reflected in their overall investment strategy.

Voluntary and Public Codes of Commitment

FS 16 Initiatives to enhance financial literacy by type of beneficiary. F

Financial Education for Customers:
We have developed a variety of resources, tools and services to help customers of all ages and income levels better navigate the financial marketplace.

Social Media

  • TD Helps is an online community that encourages Canadians, customer or not, to submit a question and receive information to help make a good financial decision.
  • Topics range from buying a home, dealing with debt and budgeting, to saving, investing and planning for retirement. Unlike other sites that simply offer FAQs, TD Helps’ answers are specific to the questions asked and are provided in a matter of hours.
  • 620,000 - Number of visitors to TD Helps Online
  • 14,000 - Number of questions responded to
  • We expanded the program in 2013: Assistance TD, brings the TD Helps social media community to French speakers across Canada.
  • TD Helps Online will be offered in the US in 2014.

Financial Literacy Month

  • Every November, we launch an ad campaign throughout our Canadian network to raise awareness of the need to improve financial literacy and draw attention to the tools and resources available. View the website.

Resources and Tools

  • In 2013, we launched Advice on Everyday Finances - a new website dedicated to helping Canadians with money management. The site provides many tips, tools and resources to help users manage their debt and begin a savings program.
  • Cash flow calculator
  • Savings tool
  • We are also working to make our product materials and website information easier to understand. In the U.S. we offer a simple, easy-to-read, one-page description of checking fees, based on a recommendation by the Pew Charitable Trusts.
  • TD also developed a series of infographics to connect financial tips with key life events and issues, such as planning for parental leave and keeping holiday spending in check.

Systematic Savings Tools

  • We encourage customers to build their savings through the use of free automated savings plans. Customers pick the dollar amount and frequency of the payment plan; they also have the option to cancel at any time without penalty.
  • Our automated savings plans include options that are designed to help customers reach their savings goals faster. For instance, Simply Save helps customers save money every time they use their debit card. We have solutions to help customers transfer funds between their banking accounts, as well as a solution to allow them to transfer their funds to a TD Mutual Fund account.
  • By the end of 2013, more than two million TD Canada Trust customers had set up an automated savings plan, helping them save more than $3 billion. We will continue our efforts to help customers build a disciplined approach to saving.

TD Get Saving website

In-Branch Seminars

  • Across our footprint, TD offers hundreds of free seminars each year on topics such as buying a home and making investments. In 2013, we delivered 386 small business workshops in the U.S., with 8,085 small business owners gaining knowledge about cash flow analysis, business planning and more.

Advice For Students

  • A dedicated Spending Smart at School website provides financial tips and advice for students on navigating the unique challenges of college and university.

Saving for Tuition

  • The Canada Learning Bond (CLB) is a government grant that encourages customers to save for a child’s future education costs. In 2013, we recognized a need to do more to increase the number of savings accounts with an associated CLB payment. We worked with the government (HRSDC) so that 17,000 TD customers received a personal letter encouraging them to apply for the CLB grant. We also took steps to increase internal awareness of the CLB among employees. Since the mailing in July, we have facilitated $1.6 million in CLB payments. We recognize there is more work to be done and we will look for ways to improve customer uptake of CLBs and increase the range of investment products that allow for a CLB option.

Financial Education in the Community:
At TD, we work with community organizations to raise financial literacy levels, with a focus on underserved communities. We also promote access to post-secondary education.

Here are some examples of our 2013 initiatives:

  • In London, Ontario, TD volunteers delivered a two-hour financial literacy program to more than 50 students at Western University in Canada. We are exploring ways to expand this pilot program to more university students.
  • For the 18th year, 20 exceptional young Canadians were selected as TD Scholars for Community Leadership, each receiving an award valued at $70,000 which covers both tuition and living expenses and includes summer employment for four years.
  • We contributed $15,000 to Rutgers Business School's Center for Urban Entrepreneurship & Economic Development in New Jersey. The funding is for the Entrepreneurship Pioneers Initiative, which provides participants with intensive training, business and financial counselling, and mentoring to help them grow and improve their businesses.
  • TD WOW!Zone is our signature financial education program in the U.S. Approximately 1,800 trained TD Bank instructors volunteer an average of 320 hours each month to teach students the importance of building good financial habits early in life. More than 1.2 million American students have learned valuable money skills since the program was launched in 1990.
  • TD has an ongoing relationship with SEDI and the Canadian Centre for Financial Literacy (CCFL). To date, The TD Financial Literacy Grant Fund has awarded approximately $8 million to 105 diverse community organizations across Canada. Grants are awarded for innovation, research and development, and strategic program development in the area of community-based financial literacy. A few examples of grant recipients include:
    • Credit Counselling Service of Sault Ste. Marie;
    • The Immigrant and Refugee Community Organization of Manitoba;
    • Prince George Aboriginal Business Development Association;

More information: