||Statement from the most senior decision-maker of the organization.
What does responsibility mean at TD?
Since I took the helm in 2002, TD has gone through some remarkable changes while also weathering the financial crisis. We have doubled the number of employees, customers and retail locations, our market cap has grown from $22 to $88 billion and TD’s brand is now ranked as the most valuable of all companies in Canada, and one of the most valuable in the world.
Throughout all this growth – remaining accountable for our actions has been a key part of staying on course and delivering TD’s business strategy. Our view has always been that if you stand up for your customers and the employees who serve them and stand by your communities – you will fulfil the best interest of shareholders. We’ve done that with programs such as TD Helps that has enabled more than 230,000 Canadians regain control of their finances through the economic challenges of the last seven years. In the U.S., our TD Cares program helped 500 federal employees stay financially afloat during the furlough of last Fall.
We had bumps of our own in 2013, in the immediate aftermath of the Alberta and Ontario floods. The unprecedented severe weather events reminded us yet again how important it is to be there for our customers when they need us most. As always, the key is in the recovery. We listened and we learned from these experiences. Can we get better at what we do and how we do it? In all instances, we can – and we will.
Embedding responsibility is a continual process. We continue to embed corporate responsibility practices across our business to guide who we lend to, invest in and purchase from. In 2013, we implemented a Responsible Procurement Policy that improves our ability to select suppliers who demonstrate sound social and environmental practices.
Responsibility means being inclusive. I am proud of the progress we have made to be more inclusive, from our board of directors, through our leadership teams and at every level of the bank. We are by no means perfect, but diversity is now a clear business imperative. We see the value in building a diverse workforce, one that will keep TD competitive and relevant to the diverse populations we serve.
We have not been shy about this message of inclusion across all of TD’s areas of focus. For example, ten years ago TD sponsored our first Pride festival. Now sponsoring 25 Pride events across North America, including World Pride in 2014, TD continues to demonstrate support to LGBT employees and customers.
Responsibility means strengthening communities. While it’s typically the big numbers that get the attention – the $75 million donated to organizations across North America and the U.K. – let’s not forget the smaller numbers which highlight the true work of strengthening communities. The five TD volunteers who read books to children in London, Ontario, the 20 volunteers who helped at their community food bank in New Jersey, or the 28 volunteers who planted trees in Dartmouth, Nova Scotia. These are the stories, multiplied by the thousands that generate the real social impact that strengthens our local communities.
Responsibility means transparent reporting. TD has been carbon-neutral since 2010 and we are on track to achieve our 2015 goals of reducing emissions by 1 tonne per employee and reducing our paper consumption by 20%. Many of TD’s environmental critics have said that being a green bank is less about the emissions from our own operations – and more about the impact of the companies we lend to and invest in. In this report, we have taken the bold step to disclose TD’s financed emissions so that readers are more informed of the environmental impacts of our value chain. We have also increased transparency around our tax reporting – disclosing tax payments by country or region.
Responsibility means leadership. An organization should be stronger than when its leader first took the helm and we’ve worked hard to build a culture of leadership and develop capable successors who will continue to deliver on TD’s strategy of long-term, sustainable growth. Great transitions involve change with continuity of the things that matter and I am confident we will see a continuity of what makes TD great. My successor, Bharat Masrani, has played a central role in key decisions that defined our bank over the years, and will continue to foster the things that matter at TD.
We are a vastly different organization – operating in a vastly different world – than we were just 10 years ago. It’s hard to predict the social, environmental and economic challenges that the next 10 years will bring. But TD is up for the task. We will continue to play a key role in our communities and Build The Better Bank.
Group President and Chief Executive Officer
||Description of key impacts, risks, and opportunities.
In 2013, we assessed our material topics to be: Corporate Governance, Executive Compensation, Risk Management, Ethics and Integrity, Privacy, Security and Fraud, Customer Service and Convenience, Access to Banking, Financial Education, Employee Engagement, Diversity and Inclusion, Eco-efficiency, Responsible Financing, Changing Climate, Community Investment, Public Policy, Taxes and Sourcing. See page 14 in the CR report for more details of this assessment.
Environmental risk is the possibility of loss of strategic, financial, operational or reputational value resulting from the impact of environmental issues or concerns within the scope of short-term and long-term cycles.
Management of environmental risk is an enterprise-wide priority. Key environmental risks include:
- direct risks associated with the ownership and operation of our business, which includes management and operation of company-owned or managed real estate, fleet, business operations and associated services;
- indirect risks associated with the environmental performance or environmental events such as changing climate patterns that may impact our retail customers and of clients to whom TD provides financing or in which TD invests;
- identification and management of emerging environmental regulatory issues; and
- failure to understand and appropriately leverage environment-related trends to meet customer and consumer demands for products and services.
WHO MANAGES ENVIRONMENTAL RISK
The Executive Vice President Community, Environment and Chief Marketing Officer holds senior executive accountability for environmental management. The Executive Vice President is supported by the Chief Environment Officer who leads the Corporate Environmental Affairs team. The Corporate Environmental Affairs team is responsible for developing environmental strategy, setting environmental performance standards and targets, and reporting on performance. There is also an enterprise-wide Environmental Steering Committee (ESC) composed of senior executives from TD’s main business segments and corporate functions. The ESC is responsible for approving environmental strategy and performance standards, and communicating these throughout the business. TD’s business segments are responsible for implementing the environmental strategy and managing associated risks within their units.
HOW WE MANAGE ENVIRONMENTAL RISK
We manage environmental risks within the Environmental Management System (EMS) which consists of three components: an Environmental Policy, an Environmental Management Framework and Environmental Procedures and Processes. Our EMS is consistent with the ISO 14001 international standard, which represents industry best practice.
- Our Environmental Policy reflects the global scope of TD’s environmental activities. Within our Environmental Management Framework, we have identified a number of priority areas and have made voluntary commitments relating to these.
- Our environmental performance is publicly reported within our annual Corporate Responsibility Report. Performance is reported according to the Global Reporting Initiative (GRI) and is independently assured.
- TD’s global operations maintained carbon neutral status in 2013. We continued to make progress in meeting our voluntary environmental commitments to 1) reduce our carbon emissions by 1 tonne/employee by 2015; and 2) reduce our North American paper usage by 20% by 2015 (relative to a 2010 baseline).
- During 2013, TD applied our Environmental and Social Credit Risk Management Procedures to credit and lending in the wholesale, commercial and retail businesses. These procedures include assessment of our clients’ policies, procedures and performance on material environmental and related social issues, such as climate risk, biodiversity, water risk, stakeholder engagement and free, prior and informed consent of Aboriginal peoples. Within Wholesale Banking, sector specific guidelines have been developed for environmentally-sensitive sectors.
- TD has been a signatory to the Equator Principles since 2007 and reports on Equator Principle projects within our annual Corporate Responsibility Report.
- TDAM is a signatory to the United Nations Principles for Responsible Investment (UNPRI). Under the UNPRI, investors commit to incorporate environmental and social issues into investment analysis and decision making. TDAM applies its Sustainable Investing Policy across its operations. The Policy provides information on how TDAM is implementing the UNPRI.
- We proactively monitor and assess policy and legislative developments, and maintain an ‘open door’ approach with environmental and community organizations, industry associations and responsible investment organizations.