TD Bank Group this week announced a commitment to a global climate action plan, which includes a target to achieve net-zero greenhouse gas (GHG) emissions associated with its operations and financing activities by 2050, aligned to the associated principles of the Paris Agreement.
The Bank has also established dedicated teams to advise and support clients as they work to capture the opportunities of the low-carbon economy.
A key aspect of TD’s climate action plan is a focus on data measurement and analytics. TD intends to use an industry-specific approach to prioritize and advance GHG reduction opportunities in each sector. The Bank has established the ESG Centre of Expertise, drawing on experts across TD to participate in this work, invest in research and support academic progress and technological innovation. TD has also joined the Partnership for Carbon Accounting Financials (PCAF) to support the development of carbon accounting methodologies for financial institutions globally.
While the precise path to achieve the 2050 target remains unclear, TD intends to establish GHG emissions baselines across its business and financing portfolio and will work closely with clients as it sets interim GHG reduction goals on the path towards 2050. TD will continue to engage with governments, non-governmental organizations, businesses and other groups to develop and promote measurement and tracking methodologies for financed emissions, as well as GHG reduction strategies aligned to science-based transition pathways. The Bank will report on its progress starting with 2021.
The Arctic Circle is a unique and fragile environment, home to protected species, and of crucial importance to the local Indigenous populations. From a climate perspective, this area is warming significantly faster than the rest of our planet, which poses the risk of increased GHG releases and further warming.
Given these facts, TD will not provide new project-specific financial services, including advisory services, for activities that are directly related to the exploration, development, or production of oil and gas within the Arctic Circle, including the Arctic National Wildlife Refuge (ANWR).
“I commend TD Bank Group for taking a step forward to increase its ESG performance and recognize the role it can play in building pathways to sustainability and contributing to positive climate action in North America. It won’t be easy, and it will require collective action, however I am confident that TD’s leadership will inspire other North American corporations to tackle environmental and social challenges and to develop meaningful solutions to climate change and global sustainability,” said Bruce Lourie, PhD, President Ivey Foundation.
The actions outlined support the Bank’s Environmental, Social and Governance (ESG) strategy, which leverages TD’s business, people and financial resources to help deliver sustainable economic prosperity.