TD Bank Group
Social and
Governance (ESG)
Table of Contents
Performance Summary for Investors
About This Report
A Message From Our CEO 1
About TD 2
Our Strategy and Purpose 3
The Ready Commitment 4
TD’s Contribution to the SDGs 5
How We Listen to Stakeholders 6
Our ESG Material Topics 7
What We Heard 8
ESG Scorecard and Goals 9
Environment 11
Interview with Nicole Vadori,
Head of Environment, TD Bank Group 12
Climate Change 13
Responsible Financing 16
Responsible Investing 19
Social and Economic Inclusion 22
Customer Experience 32
Product and Service Responsibility 36
Diversity and Inclusion 38
Talent Attraction, Engagement and Retention 42
Human Capital Development 49
Governance 51
Risk Management 52
Corporate Governance and Integrity 53
Data Security and Privacy 56
Awards and Recognition 58
Forward-Looking Statements
This publication is part of our reporting suite. For more
information about TD and our activities, please read
our other reports:
Annual Report
The Ready Commitment Report
Appendix: ESG Performance Data
SDG Report
TCFD Report
Policies and References
TD Bank Group 2018 ESG Report
® The TD logo and othe r trade-marks are t he property of
The Toronto-Dominion B ank or a wholly-o wned subsidiar y,
inCanada and/or other countries.
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Own the future
2018 Annual Report
2018 SDG
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The Sustainable
Development Goals:
TD’s contribution through
The Ready Commitment
The Ready
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TD’s TCFD Report
Risks and
TD Bank Group 2018 ESG Report
Performance Summary for Investors
Sustainability reports tend to be too long. We agree! If you only have time to read one page, here is
asummary of TD’s ESG performance.
TD was listed on the Dow Jones Sustainability World Index for the ifth consecutive year.
TD placed within the top 5% of banks, reaching Silver Class, in the Dow Jones Sustainability Index Yearbook.
For the third year in a row, TD has been included in the Bloomberg Gender-Equality Index.
TD received a rating of A– on its CDP disclosure.
Target $100 billion, in total, towards initiatives in low-carbon lending, inancing, asset management and
internal corporate programs by 2030. Our contribution is $30.3 billion in 2017 and 2018.
Green bonds: Issued $1.7 billion, participated in underwriting $15 billion and invested
$940 million through TD’s treasury group to date.
34% of funds managed by TD Asset Management were rated high or above average interms of sustainability
by Morningstar.
Supported the creation of the TD Sustainable Future Lab – the irst cleantech accelerator in Ontario.
TD is the only inancial institution globally to participate in all three of the United Nations Environment
Programme Finance Initiative (UNEP FI) Task Force on Climate-related Financial Disclosures (TCFD) pilots on
lending, investment and insurance.
Launched the TD Ready Challenge – a North American initiative – and selected 10 recipients for
$1 million grants each for solutions intended to provide people with skills for the future economy.
TD Bank, N.A. was rated Outstanding in a Community Reinvestment Act performance evaluation by the Oice
of the Comptroller of the Currency dated April, 2018.
Recognized as the Best Bank for Seniors U.S. by Money magazine for initiatives in place to protect senior
Educated 3,000 small business owners in the irst year of the $3 million three year partnership with the
National Foundation for Credit Counseling (NFCC).
89% of employees agreed that TD is doing the right things to make a positive impact onthecommunities in
which it does business.
Employees across North America logged 173,000 volunteer hours in the TD Volunteer Network website.
TD invested $91.7 million in employee training and development.
Tied for top spot in Global Finance World’s 50 Safest Commercial Banks 2018 ranking.
A founding corporate member of the Canadian Institute for Cybersecurity (CIC), a hub for cyber technology
research and collaboration based at the University of New Brunswick.
TD Bank Group 2018 ESG Report
Symbol Key
Table of contents
Supporting content (external links)
Navigate to a dierent section
Facts and igures for which Ernst & Young LLP
provided limitedlevel of assurance
Analyst Corner: Links to additional policies
and references.
About This Report
Reporting Scope and Boundary
This report presents the material issues and impacts of our
activities during the iscal year ending October 31, 2018. Reports
from previous years are available online:
This report encompasses all of TD’s wholly owned operations
and activities, which are organized under the following
operating business segments: Canadian Retail, U.S. Retail
and Wholesale Banking.
Throughout this report, “TD” or “the bank” refers to
TD Bank Group. “TD Bank” refers to TD Bank, America’s Most
Convenient Bank®. All currency is in Canadian dollars unless
otherwise noted. All restatements and signiicant changes from
the previous report are described in the performance data
Reporting Frameworks
TD has used the Global Reporting Initiative (GRI) framework
for sustainability reporting since 2007. TD’s 2018 ESG Report
is written in accordance with the GRI Standards and fulills the
requirements for a Core report. In addition to GRI, this year
we have chosen to link existing disclosures to Sustainability
Accounting Standards Board (SASB). Linkages can be found in
our GRI Content Index.
GRI Boundary Table
Online GRI Content Index
External Assurance Reports
Selected performance indicators were independently assured by
Ernst & Young LLP. Ernst & Young performed a limited assurance
engagement for a selection of TD’s social and environmental
performance indicators, including TD’s greenhouse gas emissions
(GHG) and Carbon Neutral Schedule.
Assurance statement for the 2018 ESG Metrics,
Greenhouse Gas Emissions and Carbon Neutral Schedule
Assurance statement for the 2018 Green Bond Schedule
Ways to Reach Us
With teams across TD dedicated to maintaining relationships,
we interact with several stakeholder groups on a regular basis,
responding to the issues and concerns brought to our attention.
If you would like to contact TD with feedback, here are a few ways
to reach us:
The Ready Commitment:
Feedback on this report:
On Twitter: @TD_Canada or @TDBank_US
By text: TDHELP (834357)
TD was named as the 2019 Best ESG Reporting in Canada by
IR Magazine
TD’s 2017 Corporate Responsibility Report won the
IFDFSI award for best sustainability report in the Canadian
inancial sector for the ifth year in a row.
A Message
From Our CEO
A purpose-driven business
The size and scale of TD provide us with
many advantages, including our ability
to make a meaningful and long-lasting
impact in the communities where we
work and live. Our purpose is to enrich
the lives of our customers, colleagues
and communities. We do this through
our businesses, our people and our
It’s a responsibility we take very seriously
as a purpose-driven organization,
especially in light of the complex
challenges confronting society today.
Transformative forces such as globalization and technology
continue to change every facet of our lives. Many changes are for
the better. More people are living healthier and more prosperous
lives as a result. But we must be mindful of those vulnerable to
disruption. Without the opportunities to grow, develop and make
a living, people can feel excluded, isolated and left behind.
The consequences can be far-reaching. We cannot build a
more prosperous world when some segments of the population
are excluded from the changes driven by globalization and
technology. That is also because economies do not grow when
people stop participating in them.
TD aims to help our customers thrive in a changing world and feel
more conident about themselves and their future. That’s why we
launched The Ready Commitment in 2018 – our new corporate
citizenship platform that activates the power of our business,
our human capital and TD’s philanthropy toward a more inclusive
and sustainable tomorrow. We are targeting $1 billion, in total,
in community giving by 2030 in four areas: inancial security,
vibrant planet, connected communities and better health across
our North American footprint. In October 2018, we announced the
grant recipients of our irst annual TD Ready Challenge. A total
of $10 million in funding was provided to 10 organizations with
innovative solutions intended to provide people with skills for the
future economy.
TD also recognizes that the transition to a low-carbon economy
must be balanced, taking into consideration the energy needs
and economic realities of today while building for the future.
As part of The Ready Commitment, TD has targeted $100 billion,
in total, toward initiatives in low-carbon lending, inancing,
asset management and internal corporate programs by 2030.
And we have made important progress in meeting that goal with
more than $30 billion funded so far.
Finally, TD understands that we are part of something larger than
ourselves. Our size and scale enable us to be a positive change
agent across our footprint. Through our citizenship and business
activities, TD is aligned with nine United Nations (UN) Sustainable
Development Goals (SDGs) and is a founding partner of
IMPACT2030, a global private-sector-led collaboration dedicated
to using employee volunteer programs to contribute to the
achievement of the SDGs. In all of this, collaboration is critical. If
the public and the private sectors work together on key issues, we
can create greater impact and eect positive social change.
While our core business is to provide inancial products and
services, our purpose is to enrich lives, supporting the long-term
success of both the communities we serve and the bank we run.
Bharat Masrani
Group President and Chief Executive Oicer
Page 1
TD Bank Group 2018 ESG Report
Page 2
About TD
Every day, TD touches the lives of millions of people throughout our value chain who rely on us to perform
seamless and accurate transactions on their behalf.
Our Business (as at October 31, 2018)
TD colleagues
served around
the globe
retail locations
across North
active digital
2018 Financial Performance
Financial performance indicators are based on TD’s full-year reported results for the year ended October , . Unless otherwise indicated, all amounts are expressed in Canadian
dollars and have been primarily derived from the bank’s annual Consolidated Financial Statements prepared in accordance with International Financial Reporting Standards IFRS as
issued by the International Accounting Standards Board IASB. Results prepared in accordance with IFRS are referred to as the “reported” results.
total deposits
reported earnings
cash dividends to shareholders
total assets
Total Shareholder Return (TSR) is calculated based on share price movement and dividends reinvested over a trailing ive-year period (from 2013 to 2018).
Economic Value Distributed (during year ended October 31, 2018)
in salaries
and beneits
spent in
corporate and
property taxes
Includes payroll taxes, sales taxes, municipal and property taxes, insurance premium taxes, business taxes and capital taxes.
As logged on the TD Volunteer Network platform.
TD Bank Group 2018 ESG Report
Page 3
Our Strategy and Purpose
As a top 10 North American bank, TD aims to stand out from its peers by having a dierentiated brand –
anchored in our proven business model and rooted in a desire to give our customers, communities and
colleagues the conidence to thrive in a changing world.
Proven Business Model
Deliver consistent earnings
growth, underpinned by a
strong risk culture
Centre everything we do on
our vision, purpose, and
shared commitments
Shape the future on
banking in the digital age
Corporate Responsibility is a key part of TD’s strategy and is managed within a governance structure that balances broad
engagement across the organization while also providing line-of-sight accountability.
Corporate Governance Committee of the Board
• Oversees TD’s corporate responsibility strategy and
• Stays informed about international trends and best practices
in corporate disclosure of non-inancial performance
• Includes board-level competency on corporate responsibility
on environmental and social matters
Executive Leadership
• Bharat Masrani, our CEO, has ultimate responsibility for
ensuring TD acts as a leading corporate citizen
• Norie Campbell, a member of TD’s Senior Executive Team
reporting to the CEO, has oversight of TD’s global corporate
citizenship strategy
Corporate Citizenship Council
• Is chaired by Norie Campbell, Group Head, Customer &
Colleague Experience
• Discusses corporate responsibility topics and provides
guidance on TD’s strategy, current performance and future
• Stays informed on emerging environmental and social issues
and the impact on stakeholders
At TD, we recognize that our success is not
only measured by our inancial performance
– it’s also measured by the extent to which we
do what’s right, today and in the long term.
For a business to endure, strong corporate
governance is at the core. As the complex
ESG landscape raises new and emerging
challenges, we are continually working to
embed responsible business practices across
TD to build long-term value for our customers,
colleagues and the communities we serve.
Norie Campbell
Group Head, Customer & Colleague Experience
TD Bank Group 2018 ESG Report
Page 4
The Ready Commitment
The Ready Commitment is our corporate citizenship platform designed to help open doors for a more
inclusive and sustainable tomorrow. Based on internal and external research, we identiied four areas
that we call the Four Interconnected Drivers of Change, because when they are addressed, together they
can help people feel more conident about the future. While in some way our eorts touch on all 17 of the
United Nations Sustainable Development Goals (SDGs), we have identiied the nine that we feel we can
make the greatest contribution to and will track our progress towards.
Improve access to tools and programs to
help people live their lives with greater
inancial conidence
Elevate the quality of the
environment so that people
and economies can thrive
Create the opportunities people need
to connect with their community and
have a sense of belonging
Support more equitable health
outcomes for all
TD Bank Group 2018 ESG Report
Page 5
TD’s contribution
to the SD Gs
TD’s Contribution to the SDGs
The United Nations’ (UN) Sustainable Development Goals (SDGs) provide a plan of action to achieve shared prosperity for the world at
large. The SDG framework, through 17 goals, 169 targets and 230 related indicators, aims to help align international eorts to leave a
better planet for future generations.
While TD contributes directly and indirectly to each of the 17 SDGs, a detailed consideration of the indicators and metrics that comprise
the UN’s SDG blueprint has helped us to identify nine SDGs that are most material to our business and aligned with the goals of The
Ready Commitment. As we track the impact of The Ready Commitment, we will also measure our contribution to these goals and targets.
Read TD’s Leadership Forum on SDG 11, a dialogue on building resilient cities, hosted by GlobeScan.
Read TD’s
SDG Report
Supporting the transition to
a low-carbon economy while
being responsible with our
own energy use.
7.2, 7.3
Promoting resilient and
sustainable city-building.
11.1, 11.3, 11.6, 11.7
Managing the risks
and opportunities of
climate change.
13.1, 13.3
Supporting more equitable
health outcomes for all.
Encouraging the
leadership of women
at TD and advancing
women’s equality.
5.1, 5.5
Building inclusion through
focused giving while ensuring
our employees relect the
communities we serve.
Promoting inancial
education and oering
aordable products and
services for customers who
struggle to make ends meet.
Supporting the growth of
critical literacies in children
and building a skilled
workforce that is ready for
the jobs of tomorrow.
4.1, 4.4
Contributing to the economic
well-being of our colleagues,
customers and communities.
8.1, 8.2, 8.3, 8.10
Read TD’s
SDG Report
TD Bank Group 2018 ESG Report
Page 6
How We Listen to Stakeholders
There are many environmental, social and governance issues that demand our attention. We give more
importance to those risks or opportunities that directly relate to TD’s core business, are stated priorities
forour stakeholders and are areas where we can eect change.
Stakeholder Group Ways We Interact Key Topics in 2018
Soliciting feedback by phone and online
Formal process for handling complaints (see page 33)
Consumer associations
Social media team
Customer service
Fee changes
Processing delays
Credit decisions
Access to banking
Financial education
Employee surveys, focus groups and HR meetings
Executive leadership visits
Intranet comment engine and online communities
Employee Ombudsman (Between Us)
Employee Assistance Program
Whistleblower Hotline
Improving work enablement (tools and processes)
People management
Career development
Diversity and inclusion in the workplace
Increased emphasis on employee wellness
and Investors
Annual meeting and quarterly earnings calls
Shareholder proposals
Shareholder Relations team
Regular meetings with investors
Investor Relations website
Industry conferences
Climate change and the Task Force on Climate-related
Financial Disclosures (TCFD)
Pipeline expansion projects
Digital evolution in the banking sector
Housing aordability and household debt levels
Cybersecurity and data privacy
Government Relations teams for Canada and the U.S.
Ongoing dialogue with regulators and policy-makers
Progress on implementing regulations
Evolving credit card and payments landscape
Working to create greater inancial literacy
Participating in government consultation on open banking
Bank Act review
Website for prospective suppliers
Email responses to supplier questions
Third-party risk management
Education for small and diversely-owned suppliers on doing
business with large companies
Industry association memberships
Memberships in various
multi-stakeholder groups
Participation in inancial centre bodies
Meeting needs of customers and evolving customer
Coordination among authorities for more eective regulation
Oversight of unregulated and under-regulated market
Citizenship team
Diversity team
Ongoing dialogue with community organizations
Volunteer Network
TD Friends of the Environment
Growing income inequality
Financial education
Indigenous communities
Disaster support
Priorities under The Ready Commitment
Impact measurement and evaluation
Meetings, phone calls, face-to-face consultation
Funding research projects
Conferences and forums
Over 250 engagements on
environmental topics
Environment and climate change
Low-carbon economy
Financing of fossil fuel energy developments
Sustainable investing
List of Stakeholder Engagements on Environmental and Social Topics
Our ESG Material Topics
Our materiality process is informed by the Global Reporting
Initiative (GRI). From that guidance, we have chosen to deine
materiality as those environmental, social and governance topics
that have the greatest importance to our stakeholders as well as
to the bank. We conduct an ESG materiality analysis every two
years because we found that for our industry, the issues remain
fairly consistent over this time frame. With a two-year assessment
cycle, we’re able to track trends on issues and it also provides
time for TD to demonstrate progress based on indings from the
last stakeholder panel. In 2018, we refreshed our materiality
assessment to update and prioritize the topics that shape TD’s
ESG reporting, and this report is structured around the nine
topics identiied.
Our process involved four stages: research and benchmarking,
impact mapping, stakeholder interviews and a validation
workshop to discuss the assessment indings.
An independent third party, BrownFlynn, facilitated interviews
with senior leaders from businesses across TD and external
interviews with representatives from the following organizations
to capture arange of stakeholder views:
NEI Investments
Ontario Teachers’ Pension Plan
Centre for Corporate Governance and Sustainability
Deloitte LLP
United Nations Environment Programme – Finance Initiative
Building Bridges Across the River
AVANA Capital Corporation
Mission Measurement
Microsoft Corporation
The matrix below relects our understanding of the importance of each topic to our stakeholders and to our business. The top
rial topics have been grouped into three key themes that drive the content, structure and scope of our reporting: environment,
social and governance.
Relative Priority of Sustainability Topics
Details of TD’s Materiality Assessment Process and Approach to Stakeholder Engagement
TD Bank Group 2018 ESG Report
Page 7
Increasing Importance to External Stakeholders
Increasing Importance to TD Bank Group
Product and Service Responsibility
Customer Experience
Data Security
Responsible Financing
Inclusion and Diversity
Talent Attraction,
Engagement and Retention
Human Capital Development
Health and Well-Being
Human Rights
Responsible Investing
Social and Economic Inclusion
Environmental and
Socially Beneicial
Important Topics Material Topics
Tier 1
TD Bank Group 2018 ESG Report
Page 8
What We Heard
In the interviews, stakeholders were asked to rank the importance of various ESG topics by the level of risk,
opportunity and impact for TD.
Climate change will alter the
inancial services industry
Some stakeholders tell us that they consider that the
increasingly pronounced impact of climate change
and international resolutions will compel inancial
institutions to adapt. These stakeholders approve of
TD’s involvement in the TCFD and expect TD to support
international climate change agreements and initiatives.
“Banks have responsibility as providers of
capital to think about how they shape the
transformation of the economy.
Inluencer / Think Tank
See Climate Change on p13
Data privacy and security are
increasingly important
Banking is a trust industry. Stakeholders are increasingly
concerned about cybersecurity and data protection.
They felt that TD had an important role to play in raising
consumer awareness and training employees and
customers to better protect their data.
“The most important topic for us is data
security and privacy. Everyone banks
online. If this topic is not managed, it will
have signiicant impacts.
Inluencer / Think Tank
See Data Security and Privacy on p57
The emerging low-carbon economy
is driving a deeper appetite for
responsible inancing and investing
Stakeholders prioritized responsible inancing due to
TD’s ability to make a signiicant impact. Responsible inancing
positions could attract employees, particularly millennials,
seeking to work for irms that do good. Responsible investing
allows customers to align their investments with their values.
Responsible investing really is, putting
your money where your mouth is.
TD Corporate Leader
See Responsible Investing on p19
Leverage TD’s business resources to
support local communities and the
greater economy
Stakeholders expect TD to create a positive indirect
economic value by being in business. Investing in
local communities and supporting economies through
sourcing can create shared value.
As a bank, their impact is broad and
far-reaching. Their operations have far-
reaching socio-economic impact. Their
size and number of employees amplify
their impact.
See Social and Economic Inclusion on p22
TD Bank Group 2018 ESG Report
Page 9
ESG Scorecard and Goals
Objective 2017 Results
2018 Results
(Target in
brackets if
applicable) 2019 Target
Support the transition to a
low-carbon economy
TD’s contribution to supporting the low-carbon economy (in billions)
(2017 & 2018)
$100 by 2030
Embed the environment into
our inancing decisions
Applicable transactions reviewed according to TD’s Environmental
& Social Credit Risk Management process, which includes the
Equator Principles
100% (100%)
100% (100%)
Reduce our environmental
Be carbon neutral Yes (Be carbon
Yes (Be carbon
Be carbon
Reduce paper use (relative to 2010 baseline) 45% reduction
(40% by 2020)
43% reduction
(40% by 2020)
40% reduction
by 2020 vs.
2010 baseline
Reduce scope 1 and scope 2 GHG emissions (relative to 2015 baseline)
12% reduction
14% reduction
Social and Economic Inclusion
Increase inancial literacy Number of participants in a TD-sponsored inancial education program 683,000
Number of customers with TD MySpend app (in millions) 1.00
Give inancial support to
create change
Total donations (%) 1%
At or
above 1%
Total donations ($ in millions) $107
Provide aordable housing
Provide 25 grants totaling US$2.5 million to organizations working to
develop or rehabilitate aordable housing units (in millions)
Create value in the real
Distributed economic value (in billions)
Drive local economies Total value of small business loans and other credit facilities
in Canada (in billions)
Over $2
Over $2.2
Total value of small business loans and other credit facilities
in U.S. (in US billions)
Encourage suppliers to use
responsible practices
Number of suppliers assessed for responsible practices 154
Customer Experience
Deliver legendary customer
Legendary Experience Index – TD Composite Score
Digital innovation Digitally active customers (in millions) 11.5
Over 12.5
Scope 1 GHG emissions include direct emissions from heating and cooling, leased aircraft and corporate leet. Scope 2 GHG emissions include indirect emissions from electricity,
heating and cooling.
Calculated as an average of Canadian net income before tax giving on a ive-year rolling average ending 2018 (breakdown includes Canada: 1.23%, U.S.: 1%).
The 1% giving target tracks to the North American scope of TD’s new citizenship strategy.
U.S. only.
Economic value distributed as deined by the Global Reporting Initiative disclosure GRI 2011. Please see page 28 for more details.
The number of suppliers assessed decreased from 2017 due to changes in our processes that resulted in a renewed focus on suppliers who have not been previously examined.
Result in 2017 was 44.4. The calculations for the TD Bank Group composite score were modiied to account for TD Canada Trust Branch Banking weight change and TD Business
Banking inclusion. This does not allow for comparisons to other years.
The 2018 TD Bank Group composite score relects February 1 to October 31, 2018, LEI survey results because the enhanced LEI was oicially launched on February 1, 2018, for
TD Wealth, TD Insurance and Business Banking.
Signiicant methodology changes during 20182019 do not allow comparisons to previous years’ performance. Key changes include transition from phone to email survey, program
weighting changes for TDCT Branch, TDCT Phone, Digital, TD Wealth Digital, and Business Bank.
TD Bank Group 2018 ESG Report
Page 10
ESG Scorecard and Goals (continued)
2017 Results
2018 Results
(Target in
brackets if
applicable) 2019 Target
Diversity and Inclusion
Be diverse and inclusive
to relect the communities
we serve
Overall women (global)
58.6% 57.9%
Women in senior management (global)
37.3% 36.1%
Visible Minorities in senior management (% in Canada)
14.5% 16.3%
People with disabilities (% in Canada)
5.7% 6.6%
Indigenous Peoples (% in Canada)
1.2% 1.3%
Promote human rights Total number of employee training hours related to human rights
Talent Attraction, Engagement and Retention
Attract and retain a diverse
and inclusive workforce
% women promoted 56.8%
% positions illed within TD 61.7%
Provide a great place
to work
Increase Employee Engagement Index
82% (82%) 84% (82%)
Average global turnover
20.04% 20.00%
Encourage volunteerism
in our communities
Hours volunteered by TD employees 172,250 (increase
year over year)
(increase year
over year)
Increase year
over year
Human Capital Development
Support employees in their
career journeys
Investment in training (in millions) 81.8
Average number of days of training
Be diverse and inclusive Women on Board 36%
(at least 30%
of independent
(at least 30%
of independent
At least 30% of
Senior Management includes board-titled oicers of the bank, Vice President level and above.
The total number of hours related to human rights training was calculated using a 100 percent allocation applied to the total hours spent on human-rights related courses in iscal 2018.
Courses covered topics such as TD’s Code of Conduct, diversity and inclusion, fair banking and serving customers with disabilities. 2018 is the irst year this data was collected.
53.3% of all promotions in 2018 were given to women.
Overall increase in training spend was due to investment in new training technology platform (TD Thrive) and support for business transformation projects.
An average day is considered eight hours for U.S. employees and 7.5 for all other employees.
Interview with Nicole Vadori 12
Climate Change 13
Responsible Financing 16
Responsible Investing 19
TD Bank Group 2018 ESG Report
Page 12
Interview With
Nicole Vadori,
Head of Environment,
TD Bank Group
With the increasing impacts of climate change, what is
TD’s role in a sustainable future?
A top-performing bank requires a strong economy, and a strong
economy requires a healthy environment. At TD, we recognized
these linkages early on and made the decision to lead on climate
change. For the last decade we have set our own ambitious
strategy and executed against it. But we believe more can be
done. The United Nations Intergovernmental Panel on Climate
Change (IPCC) report this year was a wake-up call for many
people regarding the impacts of climate change and the amount
of work that needs to be done to prevent irreversible damage. It
is important for us to move fast enough to limit future impacts of
climate change, while being careful that our actions do not leave
people behind.
We believe that responsible development of our natural
resources must balance environmental, social and economic
considerations. As such, we believe that immediately stopping
or starting projects in environmentally sensitive sectors is not in
the best interests of the bank or the communities in which the
bank operates. The reality is that the transition to the low-carbon
economy will take several decades, and fossil fuels still account
for more than 80% of global energy consumption.
As a North
American bank, we know we need to balance the economic
considerations of transitioning to a low-carbon economy with the
growing urgency brought forth by climate change. Accordingly,
our approach includes supporting conventional energy sources
that fuel North America’s current economic vitality, while
investing in low-carbon innovation aimed at supporting a more
inclusive and sustainable tomorrow.
Although the transition will take time, there are areas of the
economy and regions in our footprint where we can move quickly.
The demand for clean energy is increasing and will drive tens of
trillions of dollars of economic opportunity around the world over
the next several decades.
At TD, we are helping to identify these
opportunities and support the advancement and adoption of low-
carbon solutions through our inancial capabilities, geographic
reach, and employee and client networks.
Government of Canada. 2018. Interim Report of the Expert Panel on Sustainable
Finance. Government of Canada: Gatineau, QC.
How has TD’s environmental strategy evolved over the
past few years, and where is it heading?
Our strategy has evolved from operational to transformational.
Ten years ago, our focus was on verifying that our own operations
met high environmental standards. This was expressed through
projects such as carbon neutrality, paper and energy reduction,
and responsible sourcing. These initiatives were foundational
and set the stage for TD to venture into areas where we could
inluence environmental change on a larger scale. While
operations will continue to be a key part of our strategy, our
focus has grown to supporting our lines of business – from our
teams of lenders and investors and our insurance partners to
our front-line banking specialists – in integrating environmental
risks and opportunities into their strategic planning. In addition
to actively identifying and assessing climate change risks within
our exposed business segments, we are also pursuing climate-
related opportunities to grow and diversify our business. As
part of The Ready Commitment, we have targeted $100 billion,
in total, to initiatives in low-carbon lending, inancing, asset
management and internal corporate programs by 2030 that will
support the transition to a low-carbon economy. This commitment
strengthens our ability to inluence change in our role as a
inancial institution, and we are optimistic about the opportunities
to support the expansion of innovative solutions to make existing
fossil-fuel-based energy production cleaner, support the growth
of renewable energy and encourage the responsible use of all our
energy sources.
TD Bank Group 2018 ESG Report
Page 13
Climate Change
Why It Matters to TD
We believe that managing risks and opportunities
related to climate change will be increasingly
important to our sustainability as a business.
The special report “Global Warming of 1.5
released by the IPCC in 2018
is clear about
the consequences for the environment and the
economy if climate change is unchecked, but
it also demonstrates that there are pathways
to limit the worst of these impacts if decisive
action is taken in the near future. A changing
climate can lead to increased credit risk,
insurance risk, market risk, and other risks across
TD’s businesses, as well as operational risk to
our physical footprint. We believe inancial
institutions have an important role to play in
addressing climate-related impacts on their
businesses and their clients and in supporting the
transition to a low-carbon economy./
Our Approach
TD was one of the irst North American banks to identify climate
change as an environmental issue with economic impacts. We
have embedded environmental considerations into key business
segments and operations and established an enterprise-wide
environmental strategy aimed at developing a comprehensive
and long-term view of the physical and transition risks of climate
change, as well as the opportunities that will come from the
transition to a low-carbon economy. As we operate primarily
in North American economies that have abundant oil and gas
resources supplied by a wide range of service industries, we
recognize that environmental, social and economic considerations
must balance responsible development of natural resources.
Performance in 2018
Climate Opportunities: TD’s Low-Carbon Strategy
At TD we have followed this simple working deinition: A low-
carbon economy minimizes greenhouse gas (GHG) emissions
while supporting sustainable economic growth. The transition
to a low-carbon economy will require major capital investments
across all areas of the economy. Estimates of the global capital
needed to meet commitments under the Paris Agreement range
up to US$90 trillion over the next 15 years.
As a top 10 North
American bank, we believe that TD has an important role to
play in helping the transition to a low-carbon economy in
North America. This is why we have committed to a target of
$100 billion, in total, in low-carbon lending, inancing, asset
management and internal corporate programs by 2030.
New Climate Economy, 2016, “The Sustainable Infrastructure Imperative,”
TD’s Environmental Policy
2018 Carbon Neutral Schedule
2018 Natural Capital Valuation
2018 Principles of Sustainable Insurance –
Annual Disclosure
TD’s TCFD Report
Low-Carbon Economy Progress Report
2018 CDP Climate Change Questionnaire
Initiatives that are part of the $100 billion target include:
Supporting the growth of renewable and low-carbon energy
sources, energy-eiciency practices, sustainable land use, and
green infrastructure through TD’s business activities, including
lending, investment, asset management, advisory services and
Working with companies, ventures and projects that are driving
innovation to advance the clean technology market in North
Expanding the impact of TD’s green bond strategy (issuing,
underwriting and investing) to increase support for projects
that provide both economic growth and environmental beneit
Developing programs, products and services that provide
tangible actions for our customers and communities to help
transition to the low-carbon economy
Fostering understanding and dialogue on climate change
andthe low-carbon economy through research and supporting
opportunities for conversations to help society and the
economy make a successful transition
Building on our eight-year record of carbon neutrality to further
reduce TD’s carbon footprint
Targeting one million new trees in communities across
NorthAmerica, more than doubling the number we have
helpedplant since 1990
Over the last two years since our commitment, TD’s contribution
to the low-carbon economy totalled $30.3 billion, representing
approximately 30% of our $100 billion target, through our
low-carbon lending, inancing, asset management and
internal corporate programs. The environmental impact of this
contribution is estimated at approximately 787,700 tonnes of
GHG emissions avoided (equivalent to the annual energy use
of approximately 94,400 North American homes).
From an
economic perspective, our inancing activities have supported
more than 76,000 jobs and contributed approximately
$15.2 billion to the GDP.
PwC Analysis
PwC Analysis. The Low Carbon Economy total impact values (GHG, GDP, Jobs) are
inclusive of Green Bond inance impact values. Number of jobs is measured in full time
equivalents (FTE).
TD Bank Group 2018 ESG Report
Page 14
Climate Change
For more information on the methodology used to calculate
TD’s contribution and impact assessment, please see the
Low-Carbon Economy Progress Report.
Interestingly, our 2018 low-carbon contribution results
revealed a few notable insights:
An increase in the number of our electric and hybrid
insured vehicles, which may be due to government
incentive programs encouraging Canadians to purchase
greener vehicles;
An increase in the value of low-carbon companies held
byour TD Asset Management business since iscal year
TD’s inancial support of the low-carbon economy
by market sector
Figure shows market sector breakdown of the $30 billion (CAD) total. Relects
cumulative total of 2017 and 2018.
% Auto & Transportation
 Energy
Real Estate
 Recycling
 Sustainable Land Use
19% Multi Sector
Breakdown of jobs supported by market sector
Represents 2017 and 2018 excluding the impact of multi sector transactions as these
could not be accurately estimated using the current methodology.
% Real Estate
 Energy
 Recycling
 Auto & Transportation
 Sustainable Land Use
Cleantech: Pathway to the Low-Carbon Economy
The transition to a low-carbon economy will take time and
require capital to build the necessary infrastructure. But clean
technology can accelerate the time-to-transition.
technology refers to innovations and technology that help the
transition to the low-carbon economy by improving the eiciency
of older processes or creating new cleaner solutions. TD has
sought to minimize risk while encouraging low-carbon technology
development by supporting cleantech startups. TDsupports the
incubation of ideas through the creation of the TD Sustainable
Future Lab.
Case Study: TD Sustainable Future Lab –
Through The Ready Commitment,
TD has contributed $1 million to the
Accelerator Centre to support the
development of the TD Sustainable Future
Lab within EvolvGREEN, a collaborative
workspace for entrepreneurs, researchers
and clean economy supporters in Waterloo,
Ontario. The lab, which is the irst cleantech
accelerator in Ontario, is designed to support
and mentor startups working on developing
innovative and sustainable cleantech
solutions to transition us to a low-carbon
economy. Supporting cleantech companies
reairms The Ready Commitment pledge
for a more sustainable future and presents
a new market opportunity in an emerging
and important sector.
TD Bank Group 2018 ESG Report
Page 15
Climate Change
Climate Risk: Addressing Impacts on Business
In 2017, the Financial Stability Board’s Task Force on Climate-
ated Financial Disclosures (TCFD) published recommendations
that provided important guidance on a more consistent approach
to assessment and reporting of climate-related risks and
opportunities. TCFD recommendations are structured around
four core elements: governance, strategy, risk management,
and metrics and targets. In 2018, TD became the only inancial
institution to be engaged in all three of the Unit
ed Nations
Environment Programme – Finance Initiative (UNEP FI) TCFD Pilot
jects for banks, investors and insurers. TD is participating
in these pilots to better understand the resilience of our credit,
investment and insurance portfolios to climate-related impacts.
In support of the UNEP FI initiative, we have convened an internal
cross-functional team to test the methodologies being developed
to assess climate risk at the enterprise level and to provide
feedback on the methodology to assist in its reinement.
In December 2018, we released disclosure on how TD has
embedded assessment and disclosure of climate-related risks
and opportunities into our governance, processes and reporting.
TD is in the early stages of conducting climate scenario analysis
and, like most of our peers, we view this as a multi-year journey;
with reinements to scenario analysis methods, data and tools
over time, we intend to continue building expertise for managing
climate risks and opportunities. TD uses four principal processes
to identify and manage climate-related risks and opportunities:
identiication & assessment, measurement, control, and monitoring
& reporting. Once identiied, climate-related risks are raised to
relevant business segments to determine whether to accept,
transfer or mitigate risks; develop mitigation plans as needed,
and carry out regular monitoring and reporting. Opportunities are
also evaluated by the relevant business segments and managed
through TD’s internal business processes. TD’s climate change
risk and opportunity identiication process is integrated into the
relevant risk management and governance policies.
TD uses several metrics to manage climate-related risks and
opportunities related to our lending, inancing and investing
activities, our business operations, and our employee and
community activities. TD sets targets for GHG emissions and
energy use from our business operations and discloses its GHG
emissions annually.
For a comprehensive set of our climate-
related and other targets and current performance, consult the
TD Environmental Scorecard.
GHG emissions are disclosed in TD’s ESG Appendix.
Moving forward, TD intends to work closely with our sustainability
and risk management professionals to continue embedding
climate risk assessment practices in relevant business segments
and reining climate risk disclosures in our reporting where
appropriate. TD will also explore opportunities to further embed
climate competencies in relevant senior leadership functions,
anticipating that climate change risks and impacts will become
increasingly important in long-term strategic planning.
Carbon Trading
Since 2016, TD has participated in carbon
credit markets, trading nearly 105 million
credits to date with a market value of
$1.1 billion in the Regional Greenhouse Gas
Initiative (RGGI) and the California Carbon
Allowance (CCA) markets. In 2018, TD traded
85 million credits in RGGI and CCA markets,
with a market value of $900 million.
Addressing the Physical Risks of Climate Change. Extreme
weather events continue to have an impact across our footprint,
directly aecting our operations and the communities we serve.
We continue to research and assess ways in which we can help
our customers adapt to climate change and improve our disaster
recovery eorts.
As a signatory to the UNEP FI Principles for Sustainable
Insurance (PSI), TD Insurance (TDI) reports on its progress
rd embedding the principles into all aspects of its
operations. In 2018, TDI joined a group of 16 PSI signatories
that have committed to participating in the UNEP FIsupported
pilot project to implement the recommendations of the TCFD
in theinsurance industry.
TDI’s industry-leading Mobile Response Units provide quality
and timely disaster relief support to our customers across
the country. In 2018, this included quick responses to severe-
weather-related damage from a hailstorm in Calgary to
tornadoes in Ottawa.
We continue to participate in cross-sector collaborations
and research initiatives to understand how the industry can
increase resilience in the face of increasing extreme weather
events. A few examples include the Institute for Catastrophic
Loss Reduction (ICLR), Atmospheric Environmental Research
(AER) and the Alberta Severe Weather Management Society.
We are also active participants in industry associations
suchasthe Insurance Bureau of Canada (IBC) and the
Canadian Association of Direct Relationship Insurers (CADRI)
and subject-speciic working groups such as the National
Roundtable on Flood Risk and the National Roundtable for
Disaster Risk Reduction.
TD Bank Group 2018 ESG Report
Page 16
TD’s Environment Policy
Appendix: ESG Performance Data
Notes to GHG Emissions
2018 GHG Emissions Assurance Statement
2018 Carbon Neutral Schedule
2018 TD’s Ongoing Energy, GHG and
Water Reduction Initiatives
Environmental goals and scorecard
Changing weather patterns and evolving climate policies are
relevant to how we manage our operations and workplace
environment. Commercial buildings represent about 35%
ofgreenhouse gas (GHG) emissions across North America.
As a inancial institution with a signiicant physical presence,
we believe it is important to manage and oset the emissions
from our buildings and operations. Insights gained from the
sustainable operation of our business also enable TD to better
assist customers on their journey to sustainability.
UN Environment: Global Status Report :
TD is committed to continually improving eco-eiciency and
resilience as part of our environmental leadership. We collect and
review our data annually.
We have been carbon-neutral since
2010 and we have developed multi-year metrics and targets to
be achieved by 2020 in connection with GHG emissions, energy
consumption, and water use and water diversion. In 2018, we
maintained our carbon neutrality, reduced our scope 1 and 2 GHG
emissions by 14%, reduced energy use by 1% and reduced water
use by 5% all relative to our 2015 baselines. Our key business units
work in an integrated manner to reduce our operational footprint,
and we review our strategy and report on our performance at
least annually to TD’s Corporate Citizenship Council.
Some of the data is also assured annually. For more information please see our
Responsible Financing
Why It Matters to TD
Financial institutions such as TD, through
their resources and expertise, have a unique
opportunity to have an impact on businesses
and inluence the economy. Many of our
stakeholders expect us to ensure that our own
business activities, and those of the clients we
support, follow sound environmental policies
and practices. By continuing to improve how we
assess environmental risks and opportunities in
our lending portfolio, we have an opportunity
to help our clients move toward a low-carbon
economy and eectively manage risk.
TD’s Environment Policy
TD’s Environmental and
Social Credit RiskProcess
2018 Equator Principles Reporting
List of Stakeholder Engagements on
Environmental and Social Topics
Our Approach
TD’s enterprise-wide business strategy is designed to provide
better returns to our investors while remaining within our risk
appetite. Environmental and social (E&S) issues are embedded
within our Enterprise Risk Management Framework. We support
responsible energy development backed by federal and
provincial/state energy policy, regulation and our own rigorous
due diligence. Through our participation in the UNEP FI TCFD
lending pilot (discussed further in Section 2.2) we are working
toward a better understanding of the physical, transition and
climate risks in our current portfolio, which we expect to integrate
into relevant future strategic discussions.
Environmental and Social Due Diligence
We manage environmental and social risk based on a life-cycle
approach that begins before our formal engagement with a client
and continues throughout our relationship. TD’s E&S Risk Policy
for Non-Retail Credit Business Lines governs our processes for
assessing risk and contains a set of due diligence tools that are
applied to applicable non-retail lending activities, which include
general corporate-purpose, project and ixed-asset inancing.
TD Bank Group 2018 ESG Report
Page 17
Responsible Financing
Important components of these processes include:
A list of transaction types and activities that are prohibited
based on environmental and social risk
Enhanced due diligence for environmentally sensitive sectors:
forestry, mining, oil & gas and pipelines, oil sands and
A formalized escalation process for higher-risk deals to
environmental experts and senior executives within credit
risk management and, in some cases, TD’s Reputational Risk
Committee comprising senior executives across the bank
Where our assessment indicates that there is potential for high
residual risk, we insert additional conditions, engage with the
client on solutions to reduce environmental and social risk, and
are prepared to not pursue the relationship further
Since 2007 we have embedded the Equator Principles into our
E&S Risk processes
Our E&S Risk Policy and due diligence procedures are updated on
a regular basis to maintain alignment with current industry good
practices. We are currently working on updates that will include
a refreshed training program for applicable members of TD’s
Wholesale and Commercial Banking teams.
Performance in 2018
TD participated in the Equator Principles (EP) Association’s
process to update the current EPIII to EP4, with the EP4 draft
expected to be published in the second half of 2019.
We continue to work to strengthen international risk standards;
our Head of Environment joined representatives from 50 other
global banks at the Equator Principles Annual General Meeting
to discuss how to strengthen environmental and social risk
practices outlined in the Equator Principles.
We participated in a working group convened by the American
Petroleum Institute to develop a midstream E&S due diligence
framework to provide best practices for banks and midstream
In 2018, our lending portfolio was focused primarily on North
American-based personal and residential lending, accounting
for 69% of our lending. Due to the nature of those lending
activities, 88% of our total lending portfolio went to economic
sectors that have low or medium carbon and water risk, and
approximately 12% was directed to sectors that we have
identiied as environmentally sensitive.
Our environmental and social credit risk process conducted
enhanced due diligence on 308 deals.
E&S Risk-Enhanced Due Diligence Reviews by Sector 2018
Sector Number of Reviews Percentage
Forestry 22 7%
Mining 36 12%
Oil and gas, pipelines 198 64%
Thermal power 52 17%
Total enhanced due diligence 308 100%
We participated in the UNEP FI TCFD lending pilot and
published a case study on the approach.
TD’s Total Lending by Sector
See Table  in TD’s  Annual Report, pg. . In the  Corporate Responsibility
Report, we erroneously reported TD’s total lending by sector as  billion. The actual
lending in  was  billion.
$667 billion
Corrected on December th, . In the irst publication of the  ESG report, we
erroneously reported TD’s total lending by sector as  billion. The actual lending in
 was  billion.
Personal and Residential 69%
Commercial Real Estate 5%
Natural Resources 4%
Manufacturing and Transport 7%
Retail and Service 13%
Government 2%
Lending to Environmentally Sensitive Industries
Forestry 2%
Mining 5%
Power and Utilities 7%
Pipelines, Oil and Gas 8%
Agriculture 10%
Food and Beverage 7%
Automotive 16%
Non-residential Real Estate 45%
TD Bank Group 2018 ESG Report
Page 18
Responsible Financing
Balancing Economic and Environmental
Challenge: TD and other banks have received
some criticism for their involvement in the
development and expansion of traditional
energy sources and associated infrastructure,
including pipelines.
Response: We operate primarily in Canada and
the U.S., in economies that are heavily resource-
based and commodity-driven. North America’s
abundant energy supply means that these sectors
contribute jobs and economic beneits for many
communities. Over 3.6 million Americans
in traditional energy industries, and in Canada
more than 900,000 jobs
are supported by the
energy sector. With fossil fuels still accounting for
more than 80% of global energy use
and demand
expected to grow due to population growth and
urban development, conventional energy and
associated infrastructure continue to be important
components for the global economy.
 U.S. Energy and Employment Report.
We believe that responsible development of our
natural resources must balance environmental,
social and economic considerations. To that
end, we have embedded strong due diligence
processes in our inancing activities and continue
to work with industry, environmental stakeholders
and Indigenous communities to actively
encourage dialogue and develop guidance for
good practices in managing issues related to
resource development. While we are focused on
reducing the impacts of conventional energy use,
we are also strong supporters of the emerging
low-carbon economy and have targeted
$100 billion, in total, to support the transition.
This transition will take time. Even as renewable
energy is becoming cheaper and more viable,
global demand for energy from natural gas and
oil will continue to be an important part of the
energy mix. To help accelerate the transition, TD
is supporting innovation in cleantech through the
TD Sustainable Future Lab. Support of cleantech
presents a signiicant opportunity for TD to play
a key role in the transition by helping to advance
innovation and technology that reduce greenhouse
gas emissions that contribute to climate change
and the associated impacts.
TD’s Energy and Environment Position
TD’s participation in the low-carbon economy is growing as
market demand accelerates – through retail products, inance and
investing. We were the irst commercial bank in Canada to issue a
green bond, with proceeds dedicated to supporting projects that
reduce GHG emissions. At the same time, we operate primarily in a
North American economy that has abundant oil and gas resources
supplied by a wide range of service industries. We believe that it
is important to balance these economic realities with the need
to build a lower-carbon economy, supported by federal and
provincial carbon pricing and related policy initiatives. Our goal
is to take a balanced approach wherein we support responsible
growth and solutions that will generate positive economic, social
and environmental impacts for the communities we serve.
Equator Principles
In 2018, TD also provided project inance advisory services for
three qualifying Equator Principle Projects.
See TD’s 2018 Equator Principles reporting for further details.
Sector Category A Category B Category C
Infrastructure 2
Oil & Gas
Others 1
Americas 2 1
Europe, Middle East & Africa
Country Designation
Designated 2 1
Independent Review
Yes 2
No 1
Total 2 1
TD Bank Group 2018 ESG Report
Page 19
Responsible Investing
Increasingly, ESG risk is being considered part of investment
decision-making. TD Asset Management (TDAM), Canada’s
largest asset manager, directs more than $303 billion in assets
on behalf of retail and institutional investors. TDAM believes that
ESG risks are important factors in their investment decisions as
highlighted in their Sustainable Investment Policy.
In 2009, TDAM became a signatory to the UN Principles for
Responsible Investment (UN PRI) and was the irst investment
business of a major Canadian inancial institution to elevate
itscommitment to ESG assessment. Today, the UN PRI have
1,449signatories representing over US$89.6 trillion of assets
under management.
Our commitment to ESG integration extends
beyond the UN PRI. We also participate in CDP and the Canadian
Coalition for Good Governance (CCGG).
Principles for Responsible Investing. Annual Report .
TDAM employs a three-pronged approach to assessing company
risk that includes:
Investment analysis: We integrate ESG factors into our equity
and credit research and maintain a proprietary ESG risk
management matrix on which we score every company in
which we invest.
Engagement: We engage directly and collaboratively with
companies across a broad range of industries, meeting
with company leaders to understand the potential impacts
of ESG risks on their business and the processes in place to
manage those risks. Our discussions cover the management
of environmentally and socially sensitive issues such as fuel
eiciency, safety, water treatment and carbon emissions,
aswell as corporate governance.
Proxy voting: Exercising our voting rights as shareholders is
one of the key ways we can positively inluence environmental
and social practices for the companies in which we invest.
Performance in 2018
Through the UN PRI assessment, we have created a clear road
map that we believe enables us to continually strengthen our
investing approach and enhance our ESG integration. In 2018,
TDAM continued to improve its annual assessment.
TD acquired Greystone,
a signatory to the UN PRI, to
becomethe largest money manager in Canada. Work is
underway to harmonize the ESG approaches of both asset
management teams.
As part of TD’s low-carbon strategy, TDAM is contributing to
the bank’s 2030 $100 billion target by considering ESG-related
information in our investment allocations (in accordance with
TDAM’s sustainable investing approach). Greystone also has
$152 million in infrastructure assets, which includes green
infrastructure and renewable energy.
TDAM continued to support ESG-related shareholder proposals,
and we are engaged with companies across a broad range
As at October 31, 2018, 34% of funds managed by TDAM
wererated high or above average in terms of sustainability
byMorningstar (a leading investment research irm).
On November 1, 2018, the bank acquired 100% of the outstanding equity of Greystone
Capital Management Inc., the parent company of Greystone Managed Investments
Inc. (Greystone). For more information please see page 18 of the 2018 Annual Report.
In accordance with TD Asset Management’s Sustainable Investment Policy.
Morningstar Research Inc. All rights reserved. The information contained herein:
(1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not
warranted to be accurate, complete or timely. Neither Morningstar nor its content
providers are responsible for any damages or losses arising from any use of this
information. Past performance is no guarantee of future results.
TD’s Environment Policy
2018 Principles for Responsible Investment
and Engagement Report
Sustainable Investing Approach
TDAM Disclosure on Proxy Practices
2018 Green Bond Assurance Statement
2018 TD Green Bond (2017) Issuance - Use of
Proceeds as at October 31, 2018
TD Green Bond Framework
Appendix: ESG Performance Data
TDAM Funds Rated High in Sustainability By Morningstar
Name Category
Epoch European Equity Fund Canada Fund European Equity
TD Canadian Blue Chip
Dividend Fund
Canada Fund Canadian Dividend &
Income Equity
TD International Growth Fund Canada Fund International Equity
TD U.S. Dividend Growth Fund Canada Fund U.S. Equity
North American Socially Responsible Investing (SRI) Portfolio
TDAM manages a North American Socially Responsible Investing
Portfolio for TD Private Investment Counsel. The portfolio consists
of best-in-class sustainability leaders (80100% of portfolio) and
emerging environmental specialists (up to 20% of portfolio).
The best-in-class segment seeks to invest in companies that
are leaders relative to their peers in the areas of environmental
impact, corporate governance and social responsibility.
The environmental specialist segment identiies global leaders
in the areas of structural environmental growth: water, resource
eiciency and alternative energy.
The Road Ahead
TDAM is committed to continued improvement of our responsible
investing practices. Two areas of focus going forward include:
Establishing a process to prioritize proxy engagement
Completing sector-level reviews of ESG risks and opportunities
for consideration at portfolio and individual investment
TD Bank Group 2018 ESG Report
Page 20
Responsible Investing
Moving the Dial on Green Bonds
We issue, underwrite and invest in green bonds and educate others about their beneits.
US$1 billion
TD Bank has issued two green bonds, a
$500 million bond that matured in 2017
and a US$1 billion bond. With its second
green bond issuance, TD continues to
help drive growth in the green bond
market, bringing the total amount of
green bonds issued to $1.7 billion since
2014. The TD Green Bond issued in 2017
was upsized from US$500 million to
US$1 billion when irst launched (the
only U.S. dollar green bond issued by a
Canadian bank). It was oversubscribed
and attracted 70% green investors and
10 new investors to the bank in 2017.
Some of the projects funded by the 2017
TD Green Bond Issue
Freedom Plaza: Oice building in
Washington, D.C., that is projected to
earn LEED Gold certiication
LAX Integrated Express Solutions
LLC: Automated People Mover, part of
the Landside Access Modernization
Program at Los Angeles International
Airport (LAX)
New Market West LLC: LEED-certiied
oice tower in West Philadelphia
For detailed information on these
projects, see the 2018 Green Bond Use
of Proceeds.
Member of the Green Bond Principles
TD continues to enhance its Green
Bond Framework, with the most recent
issuance aligned with 2017 Green Bond
Principles, the most up to date at time
of issuance. TD Bank is a proud member
of the Green Bond Principles and
participated in the ICMA Social Bonds
and Green Projects Eligibility working
groups in 2018.
$15 billion TD’s participation
in green bond underwriting
since 2010
Notional value of TD green bond underwriting, inclusive of TD’s green bond issuances
$450 million issue – TD Securities was
an active bookrunner and advisor
for Ontario Power Generation Inc.’s
(OPG) inaugural green bond, the
irst syndicated green oering from
a Canadian company. The bond’s
proceeds will support OPG’s renewable
energy projects.
TD is playing an integral role in the
development of the green bond market,
which is helping to direct capital toward
the transition to a low-carbon economy.
$940 million
Since 2014, TD’s Treasury Group has
purchased approximately $940 million
in green bonds as part of managing
the bank’s investment portfolio, which
includes $68 million purchased
in 2018.
TD Bank Group Green Bond
Investment Statement
We believe that incorporating
environmental considerations
as one of the many facets
of our investment decision-
making contributes to the
overall economy and long-term
sustainability of the environment.
As such, we intend to allocate a
portion of new bond purchases in
our Treasury investment portfolio
to green investments that align
with our investment strategy.
Social and Economic Inclusion 22
Customer Experience 32
Product and Service Responsibility 36
Diversity and Inclusion 38
Talent Attraction, Engagement
and Retention 42
Human Capital Development 49
TD Bank Group 2018 ESG Report
Page 22
Social and Economic Inclusion
Why It Matters to TD
An era of unprecedented change driven by
technological acceleration and automation
has presented new dynamics – inconsistent
work hours, multiple sources of income, self-
employment and the gig economy – into the
workforce. Many people are concerned that they
– or their children – will be left behind, excluded
from social and economic opportunities. Within
this changing environment, inding new ways to
serve unbanked and underbanked consumers,
educating our customers to make better-
informed inancial decisions to drive conidence,
and breaking barriers for minority- and women-
led small businesses, are all achievements
we hope to help our customers reach. We are
acutely aware that TD’s long-term success as
a business depends upon the prosperity and
growth of all the communities we serve.
Our Approach
In 2018, TD launched The Ready Commitment – an enterprise-
wide platform that is focused on helping TD meet its purpose to
enrich the lives of our customers, communities and employees.
Our new corporate citizenship strategy outlines the four key drivers
of this platform that will help support building a more inclusive
and sustainable tomorrow in a dierentiated, meaningful,
authentic and measurable way. The goal is to provide inancial
support to areas where we believe the greatest impact can be
made toward changes to help make the world around us abetter
place to live. While each driver can stand on its own, the issues
within each are still interconnected and, if they can be addressed
together, can further maximize impact. These distinct and
interconnected drivers are:
Financial Security
Vibrant Planet
Connected Communities
Better Health
And as part of The Ready Commitment, we will also refocus our
community giving, targeting a total of $1 billion in giving by 2030.
Diversity Governance
Serving Diverse Needs
Low-Cost Banking Options
TD and Indigenous Communities in Canada
Codes of Conduct and Public Commitments
In June 2018, we announced the TD Ready Challenge, an annual
North American initiative that makes ten $1 million grants available
o be awarded to help catalyze innovative solutions seeking to
help change the world for the better. In its inaugural year, the TD
Ready Challenge focused on inancial security, seeking innovative
solutions to help increase income stability and prepare people for
the skills they need for the economy of the future.
This year’s ten recipients will apply their grants to solutions that
they designed to help workers transform their existing skills and
build new ones, help reduce barriers to science, technology,
engineering and mathematics (STEM) training for under-
represented groups, and help harness the power of AI, all with the
oal of opening doors for individuals who may have the greatest
risk of falling behind due to rapid technological advancement.
We don’t see The Ready Commitment as just a $1 billion
target for philanthropy, but as a platform that connects
our business, philanthropy and human capital to reach our
oals of a more inclusive and sustainable tomorrow.
Andrea Barrack, Global Head, Sustainability and Corporate Citizenship
For further details
see The Ready
Commitment Report
The Ready
TD Bank Group
TD Bank Group 2018 ESG Report
Page 23
Social and Economic Inclusion
Performance in 2018
Encouraging Inclusion by Serving Diverse Customers
Low-Income Customers
TD continues to provide and expand aordable access to
essential banking services for lower-income individuals.
TD oers a wide range of products and services from low-
fee chequing accounts to ATMs in low-income areas. We
open personal accounts regardless of whether a person is
unemployed, is or has been bankrupt or is unable to make
an initial deposit, subject to required conditions.
We oer a low-fee, basic banking account, which is
free for seniors collecting government income security
beneits and for beneiciaries of registered disability
savings plans (RDSPs).
We provide unlimited transactions with a free student
account for our customers enrolled in full-time post-
secondary studies and unlimited transactions for all
ouryouth accounts.
We have a low monthly maintenance fee account
(TDSimple Checking) that does not require a minimum
deposit balance and we also have another account
(TDConvenience Checking) with a low US$100 balance
requirement to avoid monthly maintenance fees.
Students under 24 years of age can get a free checking
account (TD Student Checking) that also includes a free
savings account.
We partnered with Rite Aid and Walgreens to install
95 full-service ATMs with no surcharge fees in low-to-
moderate income (LMI) areas in Pennsylvania and New
Jersey to drive inancial inclusion in these areas.
analysis found that most users perform a full range of
banking transactions, including deposits, at these ATMs,
which is a sign of the utility of ATMs in these regions.
We oer several home mortgage programs tailored to
low-to-moderate income and irst-time homebuyers
who do not have funds for a large down payment.
Our Right Step Mortgage® program features a low 3%
down payment option and no borrower-paid mortgage
insurance. In 2018 through this program, we helped 447
families borrow US$86 million to purchase or reinance
their homes. We also oer the HomeReady Loan program,
which allows homebuyers to use gift funds for their 3%
down payment.
In 2018, we originated 904 such loans
for US$148 million. In total, there was a 4.6% increase
in the total number of mortgages issued through the
Right Step and HomeReady programs in 2018, which
demonstrates the value of the programs targeted toward
low-to-moderate income and irst-time homebuyers.
The Role of the ATM in Driving Financial Inclusion Worldwide. NCR White Paper. .
For one-unit properties.
People With Disabilities
Our goal is to be a leader in accessibility, supporting equal
access to meet the unique and diverse needs of our customers
and employees. ATMs are now fully audio-accessible with
headphones for people with visual disabilities. And accessibility
services are an integral part of our customer-facing employees
customer service training.
A branch in Toronto (Yonge/St. Clair) participated in the
CNIB’s ShopTalk: BlindSquare Enabled pilot program. Using
the app BlindSquare together with electronic beacons within
the branch, individuals who are blind or visually impaired can
safely and conidently navigate the branch on their own. When
a participant enters the branch, a verbal navigation message
from the beacons is relayed to the user’s phone via Bluetooth.
In May 2018, TD rolled out an app for interpretation services on
its branch tablets. The app provides customers with audio or
video translation services with access to over 200 languages.
Members of TD’s People with Disability network are actively
engaged in testing new products, services and solutions for
TD has a dedicated research lab focused on research,
development and testing new technologies designed to
improve accessibility.
Access to banking is a critical part of helping newcomers feel
welcome and included.
We have over 6,000 ATMs across North America, with over
2,800 in Canada that are multiingual. Our New to Canada
website, which provides newcomers, including immigrants, with
information and resources to help build a inancial foundation
in Canada, is available in four dierent languages and has fact
sheets in 13 dierent languages.
ast year we upgraded our New to Canada banking package
to provide a chequing account with no monthly fee for the
irst six months and the ability to apply for a TD credit card
with no Canadian credit history required. This package helps
immigrants start their new life journey in Canada with easy
access to inancial services, building their inancial conidence
as they start their lives in Canada.
Our new-to-bank customers now also can open a chequing
account digitally without having to visit a branch.
TD’s mobile banking app is available in simpliied and
traditional Chinese to improve ease of access for the more
thanone million Canadians who read primarily Chinese.
TD Bank Group 2018 ESG Report
Page 24
Social and Economic Inclusion
Indigenous Peoples
TD has a long history of working with Indigenous communities.
We work hard to deliver projects and services that are tailored
toward the speciic needs of each Indigenous community. The
inancial needs of TD’s Indigenous customers and businesses
are growing in both volume and complexity. From personal
banking to supporting governments and businesses with complex
commercial and wealth management advice, TD is committed to
helping bring the bank to Indigenous communities and supporting
prosperity today and for generations to come.
We have a dedicated Indigenous Banking team that works
closely with all our internal business partners to help provide
a comprehensive approach to serving Indigenous clients.
Additionally, supporting education, increasing employment in
the banking industry, celebrating and preserving Indigenous arts
and culture and supporting environmental activities remain a
focus for TD. For more information, please read our report,
TD and Indigenous Communities in Canada.
LGBTQ2+ Customers
TD has been a resolute and long-time supporter of the LGBTQ2+
community and has worked hard over the years to meet their
evolving banking needs. To support the unique needs of
our LGBTQ2+ customers, we continue to grow our business
development team. Our team – unique among our Canadian
peers – has added LGBTQ2+-focused business development
managers across Canada, while also adding a new team
memberin New York City. We also help support inancial
education for our LGBTQ2+ customers by sponsoring and
providing inancial advice through magazine columns and
radiosegments at LGBTQ2+ media outlets.
Women entrepreneurs face a multitude of challenges in sustaining
and growing their businesses. TD has sought to mitigate some
of these challenges by hiring a business development manager
focused solely on women entrepreneurs. Through this position,
we are helping address female entrepreneurs’ unique needs
and challenges and increase our presence in the marketplace.
Furthermore, we have continued to fund the women’s category
of Ignite Capital’s program to give aspiring Canadian women
entrepreneurs with limited access to capital an opportunity
to compete for this startup award and support program.
Women entrepreneurs are a growing segment who are powering
economies in communities in which we do business. We want
to be the bank of choice for these entrepreneurs and oer
products and services that will contribute to the success of
their businesses and communities.
How We Protect You (Security Measures)
Our Privacy Commitment
Protecting Our Customers
TD prides itself in not only making banking accessible to diverse
customers, but also equipping its customers, through multiple
channels, with the tools and services needed to protect their
inances. With TD Fraud Alerts, we will send our customers text
messages notifying them if we detect suspicious activity made
with their TD Access Card for their personal banking accounts.
TD’s website promotes smart online usage by oering
information and tips to customers to recognize and prevent
fraud. TD also sends consumers text messages notifying them
if we detect suspicious activity made with a TD Access Card
for personal banking accounts through the TD Fraud Alerts
program. For more information, visit TD’s website.
In the U.S., TD allows trusted family members or friends with
power of attorney to have “read only” access to monitor
seniors’ account activity. Employees receive inancial fraud
prevention training to detect potential abuse of seniors’
accounts. These eorts have resulted in TD being named the
2018 Best Bank for Seniors by Money magazine in the U.S.
In Canada, TD proactively worked to make sure seniors
receive all the beneits they are due after it noticed that many
customers over 60 were not claiming eligible beneits. By
automatically applying the senior discount program in 2018,
TD has reimbursed 450,000 eligible customers for discounts
available to them.
While TD has made signiicant investments into technology
to build a digital bank, our core focus remains on delivering
legendary customer service for all our customers. In line with
this commitment, in 2018, TD worked together with the City
ofToronto to provide digital literacy classes for seniors as part
of the city’s irst ever Digital Literacy Day.
TD Bank was named the best bank for
seniors in the U.S. by Money magazine.
Financial Education
As the sixth largest bank in North America, TD has an important
role to play in helping people from all walks of life improve their
conidence in their inancial future by building their inancial
knowledge. Our inancial education activities are overseen by the
Financial Education Council in Canada and by the Community
Development Services team in the U.S.
TD Bank Group 2018 ESG Report
Page 25
Social and Economic Inclusion
Met On track Did not meet
2018 Target Rating 2018 Result
Help 500,000 participants
improve inancial literacy
through a TD-sponsored
530,400 500,000
Launched in 2016, the TD MySpend app has been downloaded
by 1.65 million customers. The app helps customers
understand theirspending patterns on their TD deposit
accounts andTDcredit cards so that they can make more
informed decisions for the future.
TD has been a supporter of Prosper Canada and co-founder
of its Centre for Financial Literacy since 2010. Prosper
Canada works to inancially empower Canadians living in
poverty through inancial information, education and one-
on-one support and by mobilizing new knowledge for greater
innovation and impact. TD and Prosper Canada aim to reach
one million vulnerable Canadians by 2022. In 2018,
contribution helped support over 92,850 people improve their
inancial literacy skills. 34,350 of these clients participated
in inancial literacy education and training classes and
over 51,000 received inancial coaching and one-on-one
support. The improved inancial literacy allowed clients
to access over $142 million in beneits.
Reporting period: January – August .
Financial Education: TD’s inancial education classes have
enhanced inancial literacy skills across the U.S. footprint,
with classes tailored to adults, youth and LMI communities.
In2018, more than 19,000 people attended over 1,700 inancial
education classes, with more than 7,000 youth attendees. In
addition, we held more than 1,200 classes in LMI communities,
and they were attended by over 14,500 participants.
TD Bank Learning Center: TD customers and consumers in
the U.S. can access interactive inancial education content
24/7 from any mobile device or computer. The center oers
a variety of modules including mortgages, credit scores and
credit reports, and identity theft. In the aftermath of recent
high-proile data breaches, the most accessed module was the
identity theft lesson, which explains the concepts of consumer
fraud and identity theft and provides tips on prevention,
protection and responses to identity theft.
TD Helps
TD Ready for You Website
TD Bank Learning Center
The Financial Clinic
Case Study: Moving the Needle on
Financial Education for Small Business
In 2017, TD partnered with the National
Foundation for Credit Counseling (NFCC)
to fund inancial capability and credit
counseling for small business owners
across the U.S. TD’s US$3 million investment
over three years in NFCC’sSharpen Your
Financial Focus program for small business
owners gives participants access to
specialized inancial education coaching,
educational resources, and inancial
products and services.
With TD’s support, the NFCC will help
educate a minimum of 10,000 small
business owners over the next three years.
In the irst year of this arrangement, the
NFCC exceeded its target of serving 3,000
small business owners by 13%. TD provided
direct support to over 3,300 small business
owners through 3,000 inancial reviews and
over 2,500 targeted education sessions.
TD’s capacity-building grant to the NFCC
is creating opportunity for thousands of
small business owners and is helping have
an impact on theeconomic health of
communities across the U.S.
TD Bank Group 2018 ESG Report
Page 26
Social and Economic Inclusion
Met On track Did not meet
Financial Clinic: The TD Charitable Foundation’s US$250,000
grant to the Financial Clinic is helping to further inancial
education for unbanked and underbanked families. TD’s
investment delivers workforce development, inancial
education and coaching to families in LMI communities,
with a focus on building long-term inancial security through
arrangements with local social service agencies. The clinic
has already identiied four target locations within TD’s footprint
in New Jersey, Florida and Massachusetts where these clinics
will have the most impact.
People With Disabilities
TD recognizes that people with intellectual and developmental
disabilities may have unique needs for inancial education
tailored to how they learn best and to their practical needs when
managing their money. To address this, in April 2018, TD launched
its new Adaptive Financial Education curriculum in the U.S., one
of the irst of its kind to be oered in the country. Designed with
input from individuals with diverse abilities and their caregivers to
help improve inancial independence and quality of life, this new
resource is increasing participants’ involvement in the economy
at every level from employment to accessing inancial services.
Organizations can also request TDvolunteer instructors, while all
individuals, caregivers, teachers and organizations can download
these resources at
inance/adaptive-learning/. As a result of the great success with
this program, we have now piloted the program in Canada.
We also participated in Project Search – an on-the-job-training
and inancial education project for students 18 and older
withintellectual or developmental diverse abilities – for the
second consecutive year. The one-year transition program
provides students with a 10-week rotation through three
dierent departments.
London Benchmarking Group
Apply for Funding Canada
Apply for Funding U.S.
Strategic Philanthropy
We believe that helping communities thrive is a business
imperative for TD. To help individuals and communities prosper in
a changing world, we launched The Ready Commitment through
which we will target $1 billion in total philanthropic spending by
2030 to open doors for a more inclusive and sustainable future.
We aim to link our business, products, services and community
investments for greater focus, intent and impact and help people
feel more conident, not just about their inances, but about
their future and their ability to achieve their personal goal in a
changing world. A corporate citizenship council governs our
giving policy and strategy, including our approach to community
investment. Grant application requests are approved by the
Community Investment Committee in Canada and the TD
Charitable Foundation in the U.S. In 2018:
We provided $116 million to support non-proits across
NorthAmerica and the U.K., up from $107 million in 2017.
In Canada, the TD Friends of the Environment Foundation
(TDFEF) – a national charity that supports grassroots
environmental initiatives – distributed $5.1 million to 642projects.
In the U.S., the TD Charitable Foundation donated US$21.6million
in philanthropic grants while providing US$4.4million in
community sponsorships. One of the programs supported is the
Non-Proit Training Resource Fund, which provides donations
to eligible organizations for employee job training, education
and professional development. Since its inception in 2007, the
program has distributed US$1.5 million in funding, representing
1,638 grants, including US$189,308 for 211grants in 2018.
2018 Target Rating
Maintain our North American charitable
giving at or above the 1% target set by
Imagine Canada and the Giving U.S.A
The 1% giving target tracks to the North American scope of TD’s new citizenship
Calculated as an average of Canadian net income before tax giving on a ive-year
rolling average ending 2018 (breakdown includes Canada: 1.23%, U.S.: 1%).
TD Bank Group 2018 ESG Report
Page 27
Social and Economic Inclusion
Met On track Did not meet
Performance Trends:
Corporate Giving
2018 2017 2016
Canada (millions of Canadian dollars)
74 68
U.S. (millions of U.S. dollars)
26 26
Total (millions of Canadian dollars)
107 103
All amounts converted into Canadian dollars using Bank of Canada exchange rates.
Forthe total value of our contributions, please refer to the summary provided by
London Benchmarking Group Canada, w
hich performs an annual independent audit
ofour community investment.
Includes US$21.6 million from the TD Charitable Foundation.
Supporting Underserved U.S. Communities
TD continues to focus on increasing the economic capacity of
underserved U.S. communities in areas such as aordable housing
(see next section), community services, revitalization and small
business economic development. In 2018, TD Bank in the U.S.
provided close to US$2 billion for community development loans
and investments in underserved locations. We increased the
support to tax credit programs and other investments supporting
local initiatives for LMI individuals and families to US$361 million
from US$325 million in 2017. One of the tax credit programs
we support is the New Markets Tax Credits (NMTC), which is
operated through our wholly owned subsidiary TD Community
Development Corporation (TDCDC). Since 2007, TDCDC has
deployed US$340million in NMTC allocation and leveraged over
US$500 million in project inancing for 37 projects to support the
revitalization of low-income, urban and rural neighborhoods across
TD’s footprint. In 2018, TDCDC provided US$15 million in NMTC
allocation to expand Phoenix Packaging Operations, LLC, a family-
and minority-owned packaging company in Dublin, Va. – a once
booming location that now suers from high unemployment and
economic distress. The expansion will result in 145 new jobs and
the retention of approximately 400 local positions that pay double
the area’s living wage.
TDCDC’s allocation will also allow Phoenix
Packaging to participate further in environmentally sustainable
initiatives and practices.
TD Bank, N.A. was rated Outstanding
in a Community Reinvestment Act
performance evaluation by the Oice
of the Comptroller of the Currency
dated April, 2018.
Aordable Housing
TD is committed to addressing the enduring problem of aordable
housing in the U.S. by mobilizing investment and collaboration.
The TD Charitable Foundation donated US$5.81 million to
organizations working to increase access to aordable housing
in low-to-moderate income U.S. communities. One of the grants
was made to support the Local Initiatives Support Corporation
(LISC), an organization that works in aordable housing by
providing technical assistance and training and funding critical
gaps in capital access to local partners. TD’s grant will be used
to launch LISC’s presence in Delaware, while continuing to
bolster the aordable housing work done in Boston, Hartford,
Jacksonville, New York City, Newark, Philadelphia, Rhode
Island and Washington, D.C. Through the grant, local partners
were able to invest US$138.5 million, leverage US$805 million
and develop and preserve 5,800 aordable housing units
in our nine shared markets. The foundation also donated
US$3.13million in 2018 to organizations working to rehabilitate
aordable housing units.
We provided community development loans and services to
companies developing or preserving aordable housing in
low-to-moderate income areas. We provided nearly
US$793million in loans – a signiicant increase from
US$537 million the previous year – to support the development
or preservation of over 9,000units of aordable housing in
the U.S. communities we serve.
We make investments through Low-Income Housing Tax Credits
(LIHTC) that beneit underserved communities. We signiicantly
increased our commitment from US$275 million in 2017 to
US$327 million in LIHTC to support new construction and
rehabilitation of aordable housing for families, individuals and
elderly residents.
Aordable Housing in the U.S.
2018 Target Rating 2018 Result 2019 Target
Provide 25 grants
totaling US$2.5 million
to organizations
working to develop or
rehabilitate aordable
housing units
US$3.13 million US$2.5 million
TD Bank Group 2018 ESG Report
Page 28
Economic Value
Maintaining a strong business with solid revenues will allow
us to pay our employees fair wages and beneits, compensate
our suppliers, support local small businesses, contribute to
government revenues through taxes and pay dividends to our
shareholders. Our business strategy is to produce long-term
proitable growth by building strong franchises and delivering
value to customers, shareholders and the broader community.
Supporting Small Business
We support small businesses because they are critical drivers of
localeconomies and an integral part of our customer base. In
addition to facilitating loans, we support inancial literacy and
education seminars for small businesses and microinancing
initiatives such as Grameen America and Accion while constantly
exploring creative ways in which we can help small businesses
grow and prosper.
Performance in 2018
TD provided small business customers with more than 33,000
loans and other credit facilities, totalling over $2.2 billion in
new and increased credit authorizations, up from $2 billion
in 2017.
We made improvements to our internal policy and procedures
governing the participation of small businesses in Canada’s
Small Business Financing Program, which have resulted in a
25.8% increase in the total number of loans year over year.
Since 2009, there has been over $1.31 billion in small business
loans disbursed through this important program.
TD has been the Oicial Partner of Big Dreams for small
businesses since 2015. Our current program provides
advertising space to small businesses on TD’s media platforms
(print, social media and digital), enabling these companies
to promote their brands and products and demonstrating
our commitment to small business. In 2018, nine companies
participated in the program. We also unveiled a Together with
TD campaign through which we brought together diverse
groups of small business owners to take part in roundtable
discussions across Canada.
During Small Business Month in Canada, we collaborated
with the Financial Post to bring our small business banking
customers the Big Dreams Advice Series. The networking event
oered customers the opportunity to learn from Canada’s
successful entrepreneurs and connect with like-minded
business owners.
In recognition of the diering needs of small businesses,
we have dedicated business development oicers for women,
Indigenous Peoples and the LGBTQ2+ communities. We
disbursed $35 million in loans to LGBTQ2+ businesses in 2018.
Economic Value Distributed
Economic Value
by TD
Salaries &
Cash dividends
value retained
Amounts based on International Financial Reporting Standards. See the bank’s 2019 Q1 Supplementary Financial Information package for more information.
Economic value distributed as deined by GRI (GRI 201: Economic Performance 2016).
Operating expenses include occupancy, equipment, marketing and business development, professional and advisory services and communications.
Includes payroll taxes, sales taxes, municipal and property taxes, insurance premium taxes, business taxes and capital taxes.
Includes cash donations in North America and the U.K.
TD Bank Group 2018 ESG Report
Page 29
Economic Value
We provided 42,130 small business loans, new and existing,
ng US$1.4 billion. To bolster the capacity of our small
business owners to successfully manage and grow their
businesses, we held 484 inancial education seminars, which
were attended by 5,762 small business owners. The seminars
covered topics such as business plan development, accessing
capital and analyzing competition.
We launched the Digital Application for Small Business
borrowing requests of up to US$100,000 in the U.S. Now,
ll business owners can apply for loans any time, from any
computer, tablet or mobile device. The digitization process has
allowed TD to continue to oer competitive interest rates and
quick turnaround times for a loan decision. This program has
also supported our eorts to engage with LMI communities more
eectively. For instance, applications from small businesses
in LMI communities submitted digitally are 2% higher than
applications submitted in person. Digital engagement is another
way to reach underserved communities and underscores our
commitment to bringing inancial access and inclusion to all
segments of society. Since inception, we have received 2,164
applications with US$82 million in requests with an average
request of US$38,000. Our decision process overall is faster by
one day; 17% of decisions are made on the same day and 56%
within twodays. In line with TD’s commitment to accessibility,
the loan application is ADA-accessible.
We have supported Accion since 2002 through the
TDCharitable Foundation. Accion is a non-proit network that
provides microinance loans to the owners of the smallest
businesses (micro-entrepreneurs) throughout the U.S. These
micro-entrepreneurs tend to be minorities and women with
typically fewer than ive employees and capital needs between
US$500 and US$25,000. In 2018, TD contributed US$300,000
to Accion’s Maine to Miami Lending and Financial Education
program, which will provide over 5,000 small business owners
across 13 states with critical counseling, business development
tools and US$10 million in loan capital. In 2017, 44 small
business owners received over US$572,000 in capital with 48%
of the loans disbursed to minorities, 53% to immigrants and
23% to women-supported businesses. 75% of Accion’s clients
are part of LMI communities. The program combines capital
loans with inancial education and one-on-one counseling to
allow clients to start, grow and stabilize their businesses.
Case Study: Microinance for Women
Access to capital remains one of the greatest
challenges for small businesses, particularly
when they are owned by women and/or
minorities. TD Bank, through the TD Charitable
Foundation, has provided vital inancial
support to Grameen America, a non-proit
microinance organization that provides
loans to women in poverty. Ninety percent of
Grameens clientele are minority women from
low-to-moderate income households.
TD’s initial US$100,000 grant to Grameen
in 2017 was renewed in 2018. With these
funds, Grameen and TD are helping women
address the challenges of poverty by building
businesses, developing inancial identities
and achieving higher family incomes, while
transforming their communities in the process.
Since 2017, Grameen has provided morethan
US$200 million in microloans to 36,728
members in Boston, New York, Newark,
Charlotte and Miami. Grameen’s New York
City branch alone distributed more than
US$165million in microloans to more than
28,000 women entrepreneurs.
Grameen America clients saw their
annualincomes increase by more than
US$1,500, a 23% increase since 2016. Members
also boosted their credit scores and annual
savings. With a consistent loan repayment rate
of more than 99%, Grameen’s model has a
proven track record of long-term sustainability.
Grameen client Luz in her tailor shop.
TD Bank Group 2018 ESG Report
Page 30
Responsible Sourcing
Supplier Code of Conduct
Prospective Supplier Website
TD is committed to inluencing strong ethical, social and
environmental performance across our supply chain. We
diligently screen our suppliers for ethical and sustainable
practices. Global supply chain management is an increasingly
complex challenge with a high degree of regulatory and
societalscrutiny. We continue to focus on managing third-party
risks that could result from our procurement activities.
We strive to not only have a responsible supplier network, but
also a diverse one, with suppliers who share our values and
demonstrate responsible practices while delivering high-quality
goods and services.
For example, we expect our third parties to have policies and
practices that include:
Corporate responsibility performance
Health and safety policies and performance
Human rights and labour practices, including prohibitions
onchild or forced labor
Diversity and inclusion; and
Code of conduct, ethics, anti-bribery, anti-corruption
Performance in 2018
We spent over $6.3 billion on the procurement of goods and
services from third-party suppliers, of which the vast majority
are based in North America.
We underscored our commitment to responsible sourcing and
the environment by holding TD Strategic Sourcing Group’s
(SSGs) irst carbon neutral event. The event was a two-day
town hall attended by almost 200 people. We worked with a
third-party provider to oset the carbon emissions generated
from participants’ travel, hotel accommodations and use of
event spaces.
received an A- ranking from the
upply Chain Program.
We assessed 89 suppliers in 2018 against our Supplier Code
of Conduct. The number of suppliers assessed decreased
from 2017 due to changes in our processes that resulted in
a renewed focus on suppliers who have not been previously
ed. The Responsible Procurement Policy was retired as
a stand-alone policy, and instead these practices have been
integrated into our new Procurement Policy and Third-Party Risk
Management Policy. We will continue to require our products
and services to be responsibly sourced with an improved
approach that is now fully integrated into the strategic sourcing
process. We expect our suppliers to adhere to our Supplier
Code of Conduct and we monitor this compliance through
various processes and audits.
2018 Spend on TD’s Sourcing
% Real Estate
 IT and Communications
 HR, Travel and Marketing
 Professional Services
 Business Operations
Number of Suppliers Who Revised Their Own Policies and Procedures
esponse to Our Review
Health and safety 5
Ethical 3
Environmental 4
Human rights and labour code 7
Percentage of invited suppliers who agreed to participate
in our responsible procurement survey (89 in total)
The number of suppliers assessed decreased from 2017 due to changes in our
processes and a focus on suppliers who have not been previously assessed.
Supplier Diversity
We have designed our North American Supplier Diversity Program
to promote a level playing ield and encourage inclusion of
women, visible minorities, Indigenous Peoples, the LGBTQ2+
community, people with disabilities, veterans and other minority
groups in our procurement selection process.
TD is a member of eight diverse supplier organizations in
NorthAmerica that certify a supplier’s diversity credentials.
We also educate our own employees to raise awareness of
ourSupplier Diversity Program.
In 2018:
TD was once again named a top 50 diversity organization by
DiversityInc. We also received a National Business Inclusion
Consortium Best of the Best Award based on our supplier
diversity practices.
To encourage diversity within our supplier networks, for the
past several years we have surveyed some of our key primary
suppliers on diversity spending within their supplier networks.
This Tier 2 reporting contributes signiicantly to our overall
spending and sends a signal to our primary suppliers that
supplier diversity is important to us. We plan to survey and
engage more prime suppliers within the next two years in order
to expand our Tier 2 reporting and encourage more primary
suppliers toparticipate.
TD Bank Group 2018 ESG Report
Page 31
Tax Governance
The Audit Committee of the Board oversees TD’s inancial
reporting, including the review of tax and tax planning matters
that are material to the inancial statements. TD’s approach to
taxgovernance includes these key elements:
Complying with all applicable tax laws, rules and regulations
Maintaining tax compliance as a fundamental part of our
business practice
Paying all taxes due in the jurisdictions where we operate,
based on underlying economic activity
Complying with arm’s-length principles for TD Bank Group’s
intra-group transactions between dierent countries and
Managing tax risk to avoid unnecessary disputes
Working transparently and co-operatively with the appropriate
tax authorities
Consulting with leading law and accounting irms to obtain
expert, objective advice and opinions on tax matters
Proactively working with policy-makers and revenue authorities
TD applies the tax transfer pricing principles and documentation
requirements under the local country laws for each jurisdiction
where we operate and follows the Organisation for Economic
Co-operation and Development (OECD) guidelines. TD has
transparent working relationships with the Canada Revenue
Agency and other tax authorities and often obtains advance tax
rulings where legal uncertainty exists.
Taxes We Pay
TD pays corporate income taxes on earn, as well as various taxes
incurred in our business operations. TD’s business strategy is
focused on our core markets of Canada and the U.S. In 2018,
99% of our taxes were paid in these jurisdictions. TD is one of the
largest corporate income tax payers in Canada.
Taxes We Collect
TD collects taxes on behalf of governments in the countries and
regions where we operate. We assume the administrative costs
associated with this activity, understanding and supporting the
beneits to the broader economy. The taxes we collect include:
The employee portion of payroll taxes
Income tax on behalf of employees
Property tax on behalf of customers who are mortgage holders
Transaction tax on customer activities to which sales taxes apply
Withholding taxes on behalf of investors
Looking Forward
As TD’s primary operations are in only two countries, we do
not currently make our country-by-country reporting publicly
available. The irst such country-by-country report was iled by
TD with the Canada Revenue Agency before October 31, 2018.
Given that the collection and methodology behind country-by-
country reporting is relatively new, the OECD plans to revisit the
guidelines and the prescribed information in 2020. We plan to
review our public disclosure once the OECD guidelines have been
revisited, with a focus on consistency and clarity among all the
reporting entities.
Taxes Paid in Canada – TD’s 2018
Public Accountability Statement
Appendix: ESG Performance Data
Types of Taxes Borne by TD in 2018
69 Income taxes
12% Payroll taxes
11% Transaction and
sales taxes
5% Property and
business taxes
3% Capital and insurance
premium taxes
Amount of taxes borne by TD Bank Group (in millions of dollars) 2018 2017 2016
Income taxes
2,253 2,143
Payroll taxes for over 85,000 employees across 16 countries
517 502
Transaction and sales taxes
462 461
Capital and insurance premium taxes
136 169
Property and business taxes
202 203
TOTAL 4,592
3,570 3,478
TD Bank Group 2018 ESG Report
Page 32
Met On track Did not meet
Customer Experience
Why It Matters to TD
Our customer experience strategy has long
been a competitive dierentiator for TD. But
technology and innovation, coupled with
widespread banking options, are increasingly
shifting traditional customer service
expectations. In this evolving landscape, banks
who continue to lead in customer service will
often economically outperform their peers,
making it vital for TD to maintain and constantly
improve our legendary customer service.
Banks that provide leading customer service experiences outperform their peers
according to The US Banking Customer Experience Index, 2018 – How US Banks Earn
Loyalty With The Quality Of Their Experience report.
Our Approach
TD uses its Legendary Experience Index (LEI) to measure our
customer experience and drive insights to improve the experience
in the moments that matter most to our customers. TD is making
signiicant investments in research, digital tools and platforms,
artiicial intelligence (AI) and other new technologies and
solutions to anticipate market and customer needs. Innovation
in digital technology and AI will play a key role in helping us
create and deliver new personalized banking experiences for our
customers across all channels – from branch banking to mobile
and digital channels.
Performance in 2018
Legendary Customer Experience
In 2018, we exceeded our LEI target (see chart). LEI is how we
measure our customers’ experiences. Leveraging a best-in-class
platform, we contact customers in near real time to seek feedback
regarding their most recent interaction with TD. In 2018 nearly
1.2 million customers across North America provided feedback
through this survey measurement program. LEI results are
shared in real time with TD to improve our performance, and our
customers’ feedback has a direct tie to bank employee variable
To Our Customers
Problem Resolution Process
Codes of Conduct and Political
Oice of the Ombudsman
TD Ombudsman Annual Report
Empowering Our Employees to Provide an Enhanced
TD’s front-line employees are crucial to our ability to deliver
legendary customer experience and build customer inancial
conidence. We continue to leverage technology to provide them
with the right tools and training.
In 2018, we enhanced the TD Discovery tool in Canada. The
tool enables advisors to gather information and understand
our customers’ inancial goals to consistently deliver more
personalized, proactive and relevant advice that helps
customers feel more conident about their inancial decisions.
We continue to see great momentum in the adoption of the TD
Digital Academy – a library of short visual tours demonstrating
TD’s online and mobile capabilities. TD front-line employees
now have an improved understanding of our digital capabilities
across all channels and can oer improved support on channel
choice to our customers. The Academy has already surpassed
2.7 million views.
In 2018, we further developed our Value for Money framework
in Canada to help customers better understand the value of
TD’s products and services. The framework helps TD’s product
leaders design and evaluate product innovation by focusing on
features and beneits customers value most.
Objective 2017 Results
2018 Results
(target in brackets) Progress 2019 Target
Deliver legendary
customer service
Legendary Experience Index –
TD Composite Score
Result in 2017 was 44.4. The calculations for the TD Bank Group composite score
were modiied to account for TD Canada Trust Branch Banking weight change and TD
Business Banking inclusion. This does not allow for comparisons to other years.
The 2018 TD Bank Group composite score relects February 1 to October 31, 2018,
LEIsurvey results because the enhanced LEI was oicially launched on February 1,
2018, for TDWealth, TDInsurance and Business Banking.
Signiicant methodology changes during 20182019 do not allow comparisons to
previous years’ performance. Key changes include transition from phone to email
survey and program weighting changes for TDCT Branch, TDCT Phone, Digital,
TD Wealth Digital and Business Bank.
TD Bank Group 2018 ESG Report
Page 33
Customer Experience
Resolving Problems
TD’s goal in customer service is to be proactive and prevent
problems before they occur. This is why we review customer
feedback and look for opportunities to invest in improvements
leading to a seamless customer experience. However, when
problems do arise, customers are supported through our
complaints resolution process, which is designed to help front-
line employees to resolve problems. TD has introduced additional
training and resources this year to better equip front-line
employees to resolve concerns with empathy and eiciency.
Customers may choose to use the Closed Loop Feedback program
(introduced as part of the LEI process last year) to connect with
managers quickly. Closed Loop Feedback allows any customer
who has had a poor experience to request a follow-up call while
completing an LEI survey. Front-line managers and/or Closed Loop
Feedback teams are then notiied of the issue, whereupon they will
reach out to customers to discuss their feedback. In 2018, close to
18,000 Closed Loop Feedback requests were generated. Closing
the loop with our customers gives us unique and dierentiating
opportunities to resolve their concerns and understand how we can
improve. When closing the loop, our employees capture important
details such as root causes and the actions they took, which are
then shared with TD’sprocess improvement experts.
If an issue is complex or the customer does not feel the matter
is resolved, the concern may be escalated to the experienced
resolution experts of TD’s Customer Care team in Canada. This
year, we experienced an increase in recorded complaints due
to our growing customers/transactions, as well as enhanced
customer and resolution processes.
In the event a customer’s concern remains unresolved, they may
choose to contact the TD Oice of the Ombudsman (Canada)
or the Chairman’s Service Center (U.S.). The TD Oice of the
Ombudsman is the third step in the complaint resolution process in
Canada. Customers may escalate to the Oice of the Ombudsman
in writing after they voice their complaint as part of Step 1
and escalate their complaint as part of Step 2. In the U.S., the
Chairman Service Center receives customer complaints directly.
In Canada, there was a 1% decrease in the complaints received
by the TD Oice of the Ombudsman over the prior year. The
decrease conirms that we continue to resolve problems earlier
in the escalation process. The Oice of the Ombudsman is in the
unique position of being able to access a tremendous amount
of data that allows us to mitigate risk and improve processes for
customers across the various businesses. The Oice also plays
a critical role in reacting and responding to individual customer
complaints. In 2018, the top three complaints received were
errors, service levels or delays and decisions.
In 2018, there was a 156% increase in the complaints referred to
our Chairman’s Service Center. As noted above, the Chairman’s
Service Center is a direct line to the customer unlike in
Canada, where the TD Oice of the Ombudsman receives only
escalated complaints. This means the Chairman’s Service
Center generally handles a greater volume of complaints
and relects a conscious decision on our part to understand
customer pain points. We wanted to hear the challenges our
customers face directly, and we opened multiple doors through
which we could receive, respond to and resolve complaints.
We made signiicant enhancements to the U.S. complaints
procedure in 2018 by expanding our social media complaint
intake process to capture feedback from our customers from
onal lines of business and media sources. We also began
conducting LEI surveys via email to give our customers the
opportunity to express their dissatisfaction. Customers send
these surveys directly to the Chairman’s Service team where
they are tracked, triaged and addressed. Primary drivers of
complaints regarding our retail store and phone interactions
were customer service, product knowledge, and fees.
TD Bank Group 2018 ESG Report
Page 34
Customer Experience
Customer Problem Resolution
Canada 2018 2017 2016
Number of problems referred to Personal Banking Customer Care
9,630 7,723
Number of customers who contacted TD Oice of the Ombudsman
4,245 4,331
Number of complaints requiring investigation by TD Oice of the Ombudsman
779 749
Percentage of problems resolved by TD Ombudsman within 90 days (target 90%)
97% 95%
Problems investigated by the OBSI
and ADR Chambers Banking Ombuds Oice
187 176
Total number of problems referred to the Chairmans Service Center
8,927 8,622
Percentage of escalated customer problems resolved by the Chairman’s Service Center within designated
service level agreements (target 98%)
98% 98%
This year, we experienced an increase in recorded complaints due to our growing customers / transactions, as well as enhanced customer and resolution processes.
Ombudsman for Banking Services and Investments.
Enhancing Our Legendary Customer Service With Signiicant
Investments in Technology
TD’s strategy is omni-channel as we deliver legendary customer
service through our branch, phone and digital channels. Our
customer interactions are, however, becoming increasingly
digital, making our technology an important aspect of the
customer experience. TD’s success in delivering legendary
customer service relies on the technology underlining the digital
interface. Customers expect to be able to digitally access their
accounts safely, whenever and wherever they want.
TD’s investments in any sphere, be it technology or human
capital, are centred around constantly improving the customer
experience. Our investments are geared toward understanding
the true impact of technology challenges on the customer, while
enabling the experiences that customers expect. Our technology
needs to keep pace with the demands of the increasing volume
of digital transactions, the increasing pace of functional changes
and enhancements, and the necessity to do our part in keeping
customers safe and secure from evolving cyber threats.
To support these goals, we continue to make investments in
technology to better monitor our applications so that we can
identify and remedy or mitigate issues as quickly as possible. Our
technology investments over the past year have already resulted
in marked improvements in performance across platforms. We
have also invested in our system architecture and resiliency
features that allow for increased real-time monitoring and
capacity, which helps us deliver greater resiliency and eiciency.
Technology challenges are part of the world we live in today.
AtTD, we are committed to doing our best – through investments
in capital, people and systems – to uphold the integrity of the
technology that our customers depend on.
Companies that use technology
in their operations are bound to experience
technical challenges that may interrupt
customer access to products and services.
As a large inancial institution that is
increasingly adding digital experiences, TD
needs its technology platforms to handle
the increased demands.
Response: TD has systems in place to
monitor and govern its technology systems
to support stability and resiliency. We
continue to make signiicant investments
to enhance these systems based on
innovations in technology, industry best
practices and takeaways from challenges
faced by companies (including TD) with
technology infrastructure.
TD Bank Group 2018 ESG Report
Page 35
Customer Experience
Digital Innovation: Building the Bank of the Future
TD is a leading digital bank in North America with over
12.5million digitally active customers, and we recently
surpassed 7.5 million mobile active customers.
TD’s is the number one ranked retail banking app
in Canada,
with over four million active users, and is considered a leader
in mobile banking, with the highest number of mobile unique
visitors accessing the banking category.
In 2018, we continued to invest in digital platforms to help deliver
exceptional customer experiences and drive high levels of
engagement with our customers through the following initiatives:
We announced the initial participants in TD’s Patents for
Startups program; TD is the irst bank in North America to
oer anon-equity-based program speciically supporting the
rigorous patent application process in Canada, the U.S. and
elsewhere. This program, which is part of TD’s $4 million Patent
Program, helps promising new companies get patents that
protect their innovative ideas. The program can help spark
innovation in Canada and abroad by securing the creation
of domestic tech startups for future generations; patents are
linked to jobs, innovation and access to capital.
We joined forces with Hydrogen, a recognized leader in
the design of inancial technology platforms. We now oer
clients the ability to independently create inancial plans
and investment portfolios through our TD Direct Investing
GoalAssist™, all seamlessly integrated via an online
We launched TD’s irst authenticated AI-powered chatbot, Clari.
Clari can quickly deliver answers to many commonly asked
banking questions and provide information on a customer’s
accounts and transaction history 24/7, 365 days a year, to
provide improved customer experience.
In 2018, we expanded TD Voiceprint, launched last year in the
U.S., to the Canadian market. TD Voiceprint allows customers
to authenticate their identity by the sound of their voice.
TDVoiceprint has been well received in both countries, with
over 2.4 million users in North America.
We deepened our current banking technology relationship
with Flybits. In Canada, Flybits powers several of TD’s most
popular digital customer experience enhancements within
the TD mobile app, including the TD for Me mobile concierge
app. Under the new agreement, Flybits will help TD deliver
contextual customer engagement – including oers, tips and
relevant, proximity-based information while on the go, in
Canada and in the future in the U.S.
We expanded our collaboration with the University of Toronto’s
Rotman School of Management to fund exploration of real-
world data and analytics applications with the opening of
theTD Management Data and Analytics Lab. The funding
will help Canada build a diverse ecosystem of data and
analytics talent and will continue TD’s tradition of building
bridges between the inancial technology sector and leading
educational institutions.
TD ranked irst according to  App Annie report, which measured smartphone
monthly active users, downloads, average sessions per user, open rate, average review
score, and average time spent for August  among top retail banking apps by time
spent on Android phone.
Hinton et al, . Issues in Bringing Canadian Fintech to the International Stage.
PolicyBrief No. June.
Case Study: Acquisition of Layer 6 Positions
TD as a Leader in AI
TD acquired Layer 6 Inc., a world-renowned
artiicial intelligence (AI) company based in
Toronto. Layer 6 has already emerged as
a global thought leader and pioneer in the
delivery of responsive, personalized, real-time
experiences for the inancial services industry
and was the irst ever back-to-back winner of
the RecSys Challenge in 2017 and 2018. Layer 6
enables TD to deploy advanced deep learning
and machine learning solutions through its
AI prediction engine. Layer 6 connects AI
capabilities to our digital, data and technology
ecosystem, accelerating our transformation
and enabling us to further drive personalized
and timely customer interactions.
TD anticipates Layer 6 will primarily have an
impact on our ability to know our customers
through data and provide them with truly
personalized services and experiences.
In the future, it is anticipated that Layer 6
will have far-reaching implications in many
areas, including fraud detection and capital
market applications. As part of The Ready
Commitment, Layer 6 is using its advanced
machine learning techniques to assist
organizations in a wide range of health
applications, including early diabetes detection,
using Canadian health data.
TD Bank Group 2018 ESG Report
Page 36
Product and Service Responsibility
Why It Matters to TD
As a bank, we provide our customers with a wide
range of options while maintaining responsible
sales practices, so our customers can have
conidence in their choices and long-term
inancial security. Increasingly, stakeholders
expect TD to consider the environmental, social
and economic impacts of our products and
services and will choose to invest in us, work
for us or bank with us, based on our eorts and
Our Approach
TD has an enterprise-wide New Business and Product Approval
(NBPA) policy that is approved by the Chief Risk Oicer (CRO).
The policy establishes standard practices to support consistent
processes for approving new businesses, products and
servicesacross the bank. The policy is supported by business
segments processes that consider signiicant aspects and risks
of a new product, including Conduct Risk and Reputational
(e.g.,Customer Satisfaction) Risk. TD designs its products and
services in consultation with customers and stakeholders so
that they meet our customers’ inancial needs. Furthermore,
TD considers product and service responsibility to be a shared
accountability across our Compliance, Marketing, Product Group,
Distribution, and Citizenship departments.
Performance in 2018
Educating Our Customers with Clear Language
Using clear language is a cornerstone of delivering a legendary
customer experience. We want our customers to properly
understand how our
products and services work as well as
their inancial rights and obligations so they can make informed
inancial decisions. In Canada, TD has Clear Language Principles
to guide our employees and a Clear Language Basics course to
train our employees who write customer documentation.
In Canada we continued our clear language journey in 2018 by
enhancing our core real estate lending documents using TD’s
Clear Language Principles. In addition, we started working on
enhancements to our personal deposit account documents for
delivery by 2020 and will be testing the redesigned documents
togain customer and colleague insights to further reine our
Clear Language approach.
To Our Customers
Codes of Conduct and Political
Understanding Tied Selling
Our Responsible Sales Practices
Our products and services are designed to meet our
Across our businesses, we have checks and balances in place to
support adherence to our corporate values and selling practices.
Employees who interact with customers receive training
on product features, Know Your Customer policies, and
compliance with regulatory requirements.
Branch and phone-based sales representatives are trained
to use online discussion tools in their conversations with
customers. These tools prompt employees to ask the customers
the right questions to determine their inancial needs and
suggest appropriate solutions to meet them.
We are constantly striving to live up to the trust that our customers
have placed in us. And we are proud of the more than 85,000
TD employees who come to work each day to serve our customers
with excellence and integrity. Following the media stories about
our sales practices in 2017, we undertook a review of our own and
did not ind a widespread problem with people acting unethically
to achieve business results. We have nonetheless continued to
improve our processes and strengthen our internal controls
and policies.
We continue to enhance our sales monitoring capacity, controls
and techniques, and continue to take action to investigate and
address any issues with employees and customers. In 2018, we
established a dedicated Conduct Risk and Sales Practice Centre
of Excellence to help our employees in achieving their business
results with integrity and further reinforce and develop checks
and balances that adhere to TD’s corporate values and practice.
In 2018, the Corporate Governance Committee (CGC) which
has oversight of the bank’s conduct risk program, provided
regular reporting to the Board. And the CGC received updates
from the bank’s chief compliance oicer on the status and
eectiveness of the conduct risk program.
We also continue to reinforce our Leadership messaging about
integrity and TD’s Code of Conduct and Ethics, which emphasizes
our imperative to act ethically and with integrity. And we continue
to review and enhance our Performance Management Framework
so that our employees are recognized and rewarded for doing
the right thing for our customers. Finally, we take any issues or
concerns raised by or about our employees very seriously. We
promptly deal with any related concerns brought forward to us
through communication channels in place.
TD Bank Group 2018 ESG Report
Page 37
Product and Service Responsibility
2018 2017 2016
Incentivizing our Customers to Save
TD oers many resources to allow customers to build savings.
Werecognize the importance of saving to long-term well-being
and provide multiple options through products and arrangements
to incentivize saving.
We oer dierent options designed to help customers reach
their goals faster. For instance, Simply Save helps customers
save money every time they use their debit cards. During 2018,
TD Canada Trust customers saved $4.5 billion through various
automated savings plans, up from $4.3 billion the previous year.
We are also encouraging our customers to save for their
children’s education in the face of rising tuition through products
and arrangements. The Canada Learning Bond (CLB) is a
government grant that encourages customers to save for their
children’s future education. In 2018, we facilitated $17.7million
in CLB payments, up from $15.8 million the previous year. Since
2015, we have been working with SmartSAVER, a non-proit
organization that helps eligible Canadian low-income families
access education funding through government savings plans.
Helping Our Customers Facing Financial Hardship
Financial challenges can strike our customers at any time;
they can be the result of economic turbulence, illness or an
unanticipated life event. There is also growing income volatility
in North America which adversely aects inancial planning,
saving and overall inancial health.
We believe in delivering
legendary customer experience to all our customers, including
those experiencing inancial challenges. To help our customers
cope with uncertainty and inancial hardship, we encourage them
to talk to us as soon as they can, so that we can be responsive
and sensitive to their inancial challenges. We oer credit and
repayment solutions that help our personal and small business
customers avoid alternative inancing means that are often more
expensive. Such endeavours allow us to assist our customers in
need while retaining their business and avoiding potential losses.
In 2018, we assisted customers with payment issues and troubled
real estate:
TD Economics Report Canada; Pew Charitable Trusts U.S.: https://www.pewtrusts.
In Canada, we restructured $78 million in loans, which helped
ease payments for 17,639 customers.
In the U.S., we restructured US$169.5 million in troubled real
estate assets, which helped 1,213 customers.
Green Banking
2018 Green Products
Providing Green and Social Banking Choices
Consumers believe that protecting the environment contributes
to rather than hinders economic growth
and are increasingly
interested in green banking products. To meet this demand,
wehave created a range of green inancial products and services
as part of our retail and small business oerings. These products,
available across our business lines, include paperless banking
and insurance discounts for hybrid and electric vehicles. We are
exploring options within social products to meet SDG goals and
expanding our socially conscious product oerings. More details
are provided in the Environment section of this report.
Environics Research, 2018. Canadian Environment Barometer.
2018 2017 2016Paperless Banking
Number of online statement accounts, in millions
11.5 10.4
Paper statements stopped, in millions
112.3 97.8
Paper documents stopped (TD Wealth), in millions
33.1 31.5
Insurance for hybrid and electric vehicles
Number of active hybrid and electric vehicle discounts
20,620 17,777
GHG reduction by TD Auto Insurance customers (in tonnes of CO
10,819 7,268
Fiscal year 2017 and 2016 data was restated due to corrected information
The estimated calculations were completed by WSP.
TD Bank Group 2018 ESG Report
Page 38