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TD Bank Group
2018
Environmental,
Social and
Governance (ESG)
Report
Table of Contents
Introduction
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
21
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
INTRODUCTION
SOCIALENVIRONMENT GOVERNANCE
TD BANK GROUP 2018 ANNUAL REPORT
19504
® 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.
FSC Logo
Own the future
2018 Annual Report
2018 SDG
Report
TD Bank Group
The Sustainable
Development Goals:
TD’s contribution through
The Ready Commitment
2018
The Ready
Commitment
Report
TD Bank Group
TD’s TCFD Report
2018
Managing
Climate-Related
Risks and
Opportunities
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TD Bank Group 2018 ESG Report
INTRODUCTION
SOCIALENVIRONMENT GOVERNANCE
Introduction
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.
Sustainability
Awards
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.
Environment
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.
Social
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
customers.
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.
Governance
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
INTRODUCTION
SOCIALENVIRONMENT GOVERNANCE
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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:
www.td.com/responsibility.
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
footnotes.
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:
Customers: customer.service@td.com
Shareholders: tdshinfo@td.com
Investors: tdir@td.com
Suppliers: tdsource@td.com
The Ready Commitment: thereadycommitment@td.com
Feedback on this report: crreport@td.com
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.
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1.1
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
philanthropy.
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.
Sincerely,
Bharat Masrani
Group President and Chief Executive Oicer
Page 1
INTRODUCTION
SOCIALENVIRONMENT GOVERNANCE
TD Bank Group 2018 ESG Report
Page 2
INTRODUCTION
SOCIALENVIRONMENT GOVERNANCE
1.2
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)
85,000+
TD colleagues
25m+
customers
served around
the globe
2,300+
retail locations
across North
America
6,000+
ATMs
12.5m+
active digital
customers
2018 Financial Performance
1
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.
$0.9t
total deposits
$11.3b
reported earnings
4.6b
cash dividends to shareholders
$1.3t
total assets
12.8%
shareholder
return
2
2
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)
$10.4b
in salaries
and beneits
$6.3b
spent in
procurement
$4.6b
3
corporate and
property taxes
$116m
community
giving
173,000+
4
volunteer
hours
3
Includes payroll taxes, sales taxes, municipal and property taxes, insurance premium taxes, business taxes and capital taxes.
4
As logged on the TD Volunteer Network platform.
TD Bank Group 2018 ESG Report
Page 3
INTRODUCTION
SOCIALENVIRONMENT GOVERNANCE
1.3
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
Purpose-driven
Centre everything we do on
our vision, purpose, and
shared commitments
Forward-focused
Shape the future on
banking in the digital age
Governance
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
performance
• 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
direction
• 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
INTRODUCTION
SOCIALENVIRONMENT GOVERNANCE
1.4.1
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.
Financial
Security
Improve access to tools and programs to
help people live their lives with greater
inancial conidence
Vibrant
Planet
Elevate the quality of the
environment so that people
and economies can thrive
Connected
Communities
Create the opportunities people need
to connect with their community and
have a sense of belonging
Better
Health
Support more equitable health
outcomes for all
TD Bank Group 2018 ESG Report
Page 5
INTRODUCTION
SOCIALENVIRONMENT GOVERNANCE
TD’s contribution
to the SD Gs
1.4.2
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.
1
http://www.undp.org/content/undp/en/home/sustainable-development-goals.html
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
V
i
b
r
a
n
t
P
l
a
n
e
t
Supporting the transition to
a low-carbon economy while
being responsible with our
own energy use.
SDG TARGETS
7.2, 7.3
Promoting resilient and
sustainable city-building.
SDG TARGETS
11.1, 11.3, 11.6, 11.7
Managing the risks
and opportunities of
climate change.
SDG TARGETS
13.1, 13.3
B
e
t
t
e
r
H
e
a
l
t
h
Supporting more equitable
health outcomes for all.
SDG TARGET
3.8
C
o
n
n
e
c
t
e
d
C
o
m
m
u
n
i
t
i
e
s
Encouraging the
leadership of women
at TD and advancing
women’s equality.
SDG TARGETS
5.1, 5.5
Building inclusion through
focused giving while ensuring
our employees relect the
communities we serve.
SDG TARGET
10.2
F
i
n
a
n
c
i
a
l
S
e
c
u
r
i
t
y
Promoting inancial
education and oering
aordable products and
services for customers who
struggle to make ends meet.
SDG TARGET
1.4
Supporting the growth of
critical literacies in children
and building a skilled
workforce that is ready for
the jobs of tomorrow.
SDG TARGET
4.1, 4.4
Contributing to the economic
well-being of our colleagues,
customers and communities.
SDG TARGETS
8.1, 8.2, 8.3, 8.10
Read TD’s
SDG Report
TD Bank Group 2018 ESG Report
Page 6
INTRODUCTION
SOCIALENVIRONMENT GOVERNANCE
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1.5
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
Customers
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
Colleagues
Employee surveys, focus groups and HR meetings
Executive leadership visits
Intranet comment engine and online communities
(Connections)
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
Shareholders
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
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
Suppliers
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
Associations
Industry association memberships
Memberships in various
multi-stakeholder groups
Participation in inancial centre bodies
Meeting needs of customers and evolving customer
expectations
Coordination among authorities for more eective regulation
Oversight of unregulated and under-regulated market
participants
Communities
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
Non-Governmental
Organizations
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
1.6
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
• BankTrack
• Centre for Corporate Governance and Sustainability
• Deloitte LLP
• United Nations Environment Programme – Finance Initiative
(UNEP FI)
• Building Bridges Across the River
• AVANA Capital Corporation
• CivicAction
• Mission Measurement
• Citibank
• Microsoft Corporation
The matrix below relects our understanding of the importance of each topic to our stakeholders and to our business. The top
mate
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
INTRODUCTION
SOCIALENVIRONMENT GOVERNANCE
Increasing Importance to External Stakeholders
Increasing Importance to TD Bank Group
Climate
Change
Product and Service Responsibility
Customer Experience
Data Security
Responsible Financing
Inclusion and Diversity
Talent Attraction,
Engagement and Retention
Human Capital Development
Sourcing
Volunteerism
Health and Well-Being
Eco-Eiciency
Human Rights
Responsible Investing
Social and Economic Inclusion
Environmental and
Socially Beneicial
Products
Important Topics Material Topics
Social
Governance
Environment
Tier 1
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TD Bank Group 2018 ESG Report
Page 8
INTRODUCTION
SOCIALENVIRONMENT GOVERNANCE
>
>
>
>
1.7
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.
01
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
02
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
03
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
04
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.”
Investor
See Social and Economic Inclusion on p22
TD Bank Group 2018 ESG Report
Page 9
INTRODUCTION
SOCIALENVIRONMENT GOVERNANCE
1.8
ESG Scorecard and Goals
Objective 2017 Results
2018 Results
(Target in
brackets if
applicable) 2019 Target
Environment
Support the transition to a
low-carbon economy
TD’s contribution to supporting the low-carbon economy (in billions)
$30.3
(2017 & 2018)
$100 by 2030
Embed the environment into
our inancing decisions
Applicable transactions reviewed according to TD’s Environmental
& Social Credit Risk Management process, which includes the
Equator Principles
100% (100%)
100% (100%)
100%
Reduce our environmental
footprint
Be carbon neutral Yes (Be carbon
neutral)
Yes (Be carbon
neutral)
Be carbon
neutral
Reduce paper use (relative to 2010 baseline) 45% reduction
(40% by 2020)
43% reduction
(40% by 2020)
40% reduction
by 2020 vs.
2010 baseline
Reduce scope 1 and scope 2 GHG emissions (relative to 2015 baseline)
1
12% reduction
14% reduction
Social
Social and Economic Inclusion
Increase inancial literacy Number of participants in a TD-sponsored inancial education program 683,000
(500,000)
530,400
(500,000)
500,000
Number of customers with TD MySpend app (in millions) 1.00
1.65
Give inancial support to
create change
Total donations (%) 1%
1.12%
2
At or
above 1%
3
Total donations ($ in millions) $107
$116
Provide aordable housing
4
Provide 25 grants totaling US$2.5 million to organizations working to
develop or rehabilitate aordable housing units (in millions)
US$3.13
(US$2.5)
US$3.13
(US$2.5)
US$2.5
Create value in the real
economy
Distributed economic value (in billions)
5
$22.7
$24.7
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)
$1.4
$1.4
Encourage suppliers to use
responsible practices
Number of suppliers assessed for responsible practices 154
89
6
Customer Experience
Deliver legendary customer
service
Legendary Experience Index – TD Composite Score
7
63.8
8
(61.93)
64.23
9
Digital innovation Digitally active customers (in millions) 11.5
Over 12.5
1
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.
2
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%).
3
The 1% giving target tracks to the North American scope of TD’s new citizenship strategy.
4
U.S. only.
5
Economic value distributed as deined by the Global Reporting Initiative disclosure GRI 2011. Please see page 28 for more details.
6
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.
7
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.
8
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.
9
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
INTRODUCTION
SOCIALENVIRONMENT GOVERNANCE
1.8
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)
1
37.3% 36.1%
Visible Minorities in senior management (% in Canada)
1
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
2
94,913
Talent Attraction, Engagement and Retention
Attract and retain a diverse
and inclusive workforce
% women promoted 56.8%
53.3%
3
% positions illed within TD 61.7%
55.8%
Provide a great place
to work
Increase Employee Engagement Index
82% (82%) 84% (82%)
82%
Average global turnover
20.04% 20.00%
Encourage volunteerism
in our communities
Hours volunteered by TD employees 172,250 (increase
year over year)
173,000
(increase year
over year)
Increase year
over year
Human Capital Development
Support employees in their
career journeys
Investment in training (in millions) 81.8
$91.7
4
Average number of days of training
5
4.8
5.7
Governance
Be diverse and inclusive Women on Board 36%
(at least 30%
of independent
Directors)
36%
(at least 30%
of independent
Directors)
At least 30% of
independent
Directors
Senior Management includes board-titled oicers of the bank, Vice President level and above.
2
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.
3
53.3% of all promotions in 2018 were given to women.
4
Overall increase in training spend was due to investment in new training technology platform (TD Thrive) and support for business transformation projects.
5
An average day is considered eight hours for U.S. employees and 7.5 for all other employees.
Environment
Interview with Nicole Vadori 12
Climate Change 13
Responsible Financing 16
Responsible Investing 19
TD Bank Group 2018 ESG Report
Page 12
INTRODUCTION
SOCIALENVIRONMENT
GOVERNANCE
2.1
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.
1
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.
https://hub.globalccsinstitute.com/publications/fossil-fuels-will-continue-dominate-
energy-consumption-patterns/fossil-fuels-will-continue-dominate-energy-
consumption-patterns.
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.
2
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.
2
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
INTRODUCTION
SOCIALENVIRONMENT
GOVERNANCE
2.2
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
o
C”
released by the IPCC in 2018
1
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.
https://www.ipcc.ch/sr/
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.
2
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.
2
New Climate Economy, 2016, “The Sustainable Infrastructure Imperative,”
https://newclimateeconomy.report/2016/wp-content/uploads/sites/4/2014/08/
NCE_2016Report.pdf
Analyst
Corner
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
insurance
• Working with companies, ventures and projects that are driving
innovation to advance the clean technology market in North
America
• 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).
3,4
From an
economic perspective, our inancing activities have supported
more than 76,000 jobs and contributed approximately
$15.2 billion to the GDP.
5
3
PwC Analysis
4
https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator
5
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
INTRODUCTION
SOCIALENVIRONMENT
GOVERNANCE
2.2
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;
1
and
• An increase in the value of low-carbon companies held
byour TD Asset Management business since iscal year
2017.
https://emc-mec.ca/ev-/ev-incentives/
TD’s inancial support of the low-carbon economy
by market sector
2
2
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
3
3
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.
4
Clean
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.
4
https://www.nrcan.gc.ca/plans-performance-reports/sustainable-
development/201720/19965
Case Study: TD Sustainable Future Lab –
CleantechAccelerator
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
INTRODUCTION
SOCIALENVIRONMENT
GOVERNANCE
2.2
Climate Change
Climate Risk: Addressing Impacts on Business
In 2017, the Financial Stability Board’s Task Force on Climate-
rel
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
Pro
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.
1
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
towa
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 FI–supported
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
INTRODUCTION
SOCIALENVIRONMENT
GOVERNANCE
2.3
Eco-Eiciency
Analyst
Corner
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.
1
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 : https://www.worldgbc.org/sites/default/
iles/UNEP_GABC_enweb.pdf
TD is committed to continually improving eco-eiciency and
resilience as part of our environmental leadership. We collect and
review our data annually.
2
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.
2
Some of the data is also assured annually. For more information please see our
assurancestatement.
2.4
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.
Analyst
Corner
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
INTRODUCTION
SOCIALENVIRONMENT
GOVERNANCE
2.4
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
thermalpower
• 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
companies.
• 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
1
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.
Total
2
$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.
Sector
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
INTRODUCTION
SOCIALENVIRONMENT
GOVERNANCE
Responsible Financing
2.4
Balancing Economic and Environmental
Considerations
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
1
work
in traditional energy industries, and in Canada
more than 900,000 jobs
2
are supported by the
energy sector. With fossil fuels still accounting for
more than 80% of global energy use
3
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.
2
https://www.nrcan.gc.ca/energy/facts/energy-economy/20062
3
https://hub.globalccsinstitute.com/publications/fossil-fuels-will-continue-dominate-
energy-consumption-patterns/fossil-fuels-will-continue-dominate-energy-
consumption-patterns.
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.
4
4
See TD’s 2018 Equator Principles reporting for further details.
Sector Category A Category B Category C
Mining
Infrastructure 2
Oil & Gas
Power
Others 1
Region
Americas 2 1
Europe, Middle East & Africa
Asia-Paciic
Country Designation
Designated 2 1
Non-Designated
Independent Review
Yes 2
No 1
Total 2 1
TD Bank Group 2018 ESG Report
Page 19
INTRODUCTION
SOCIALENVIRONMENT
GOVERNANCE
2.5
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.
1
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,
2
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
ofindustries.
3
• 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).
4
2
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.
3
In accordance with TD Asset Management’s Sustainable Investment Policy.
4
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.
Analyst
Corner
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
leveldecisions
TD Bank Group 2018 ESG Report
Page 20
INTRODUCTION
SOCIALENVIRONMENT
GOVERNANCE
2.5
Responsible Investing
Moving the Dial on Green Bonds
We issue, underwrite and invest in green bonds and educate others about their beneits.
Issuing
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.
Underwriting
$15 billion TD’s participation
in green bond underwriting
since 2010
1
1
Notional value of TD green bond underwriting, inclusive of TD’s green bond issuances
Example:
$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.
Investing
$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
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
INTRODUCTION
SOCIAL
ENVIRONMENT GOVERNANCE
3.1
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.
Analyst
Corner
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
t
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
g
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
g
oals of a more inclusive and sustainable tomorrow.”
Andrea Barrack, Global Head, Sustainability and Corporate Citizenship
For further details
see The Ready
Commitment Report
+
2018
The Ready
Commitment
Report
TD Bank Group
TD Bank Group 2018 ESG Report
Page 23
INTRODUCTION
SOCIAL
ENVIRONMENT GOVERNANCE
3.1
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.
Canada
• 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.
U.S.
• 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.
1
Our
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.
2
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. .
2
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
customers.
• TD has a dedicated research lab focused on research,
development and testing new technologies designed to
improve accessibility.
Newcomers
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.
• L
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
INTRODUCTION
SOCIAL
ENVIRONMENT GOVERNANCE
3.1
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
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.
Analyst
Corner
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
INTRODUCTION
SOCIAL
ENVIRONMENT GOVERNANCE
3.1
Social and Economic Inclusion
Met On track Did not meet
2018 Target Rating 2018 Result
2019
Target
Help 500,000 participants
improve inancial literacy
through a TD-sponsored
program
530,400 500,000
Canada
• 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,
1
our
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 .
U.S.
• 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.
Analyst
Corner
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
Owners
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
INTRODUCTION
SOCIAL
ENVIRONMENT GOVERNANCE
3.1
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 https://www.td.com/us/en/personal-banking/
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.
Analyst
Corner
London Benchmarking Group
CanadaSummary
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
2018
Result
2019
Target
Maintain our North American charitable
giving at or above the 1% target set by
Imagine Canada and the Giving U.S.A
Foundation
1
1.12%
2
1%
1
The 1% giving target tracks to the North American scope of TD’s new citizenship
strategy.
2
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
INTRODUCTION
SOCIAL
ENVIRONMENT GOVERNANCE
3.1
Social and Economic Inclusion
Met On track Did not meet
Performance Trends:
Corporate Giving
1
2018 2017 2016
Canada (millions of Canadian dollars)
80
74 68
U.S. (millions of U.S. dollars)
2
26
26 26
Total (millions of Canadian dollars)
116
107 103
1
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.
2
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.
3
TDCDC’s allocation will also allow Phoenix
Packaging to participate further in environmentally sustainable
initiatives and practices.
https://www.prnewswire.com/news-releases/td-community-development-
corporation-supports-expansion-of-phoenix-packaging-with--million-in-new-
markets-tax-credits-.html
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.
In2018:
• 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
INTRODUCTION
SOCIAL
ENVIRONMENT GOVERNANCE
3.2
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
Canada
• 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
Revenue
1
$38.9b
Economic Value
distributed
2
by TD
$24.7b
Salaries &
beneits
$10.4b
Operating
expenses
3
$5.0b
Cash dividends
$4.6b
Taxes
4
$4.6b
Community
giving
5
$116m
Economic
value retained
$14.2b
1
Amounts based on International Financial Reporting Standards. See the bank’s 2019 Q1 Supplementary Financial Information package for more information.
2
Economic value distributed as deined by GRI (GRI 201: Economic Performance 2016).
3
Operating expenses include occupancy, equipment, marketing and business development, professional and advisory services and communications.
4
Includes payroll taxes, sales taxes, municipal and property taxes, insurance premium taxes, business taxes and capital taxes.
5
Includes cash donations in North America and the U.K.
TD Bank Group 2018 ESG Report
Page 29
INTRODUCTION
SOCIAL
ENVIRONMENT GOVERNANCE
3.2
Economic Value
U.S.
• We provided 42,130 small business loans, new and existing,
totali
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,
sma
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
Entrepreneurs
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
Grameen’s 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
INTRODUCTION
SOCIAL
ENVIRONMENT GOVERNANCE
3.3
Responsible Sourcing
Analyst
Corner
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.
•
We
received an A- ranking from the
CDP
S
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
e
x
a
m
i
n
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
inR
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)
1
100
1
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
INTRODUCTION
SOCIAL
ENVIRONMENT GOVERNANCE
3.4
Tax
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
jurisdictions
• 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.
Analyst
Corner
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
3,182
2,253 2,143
Payroll taxes for over 85,000 employees across 16 countries
538
517 502
Transaction and sales taxes
487
462 461
Capital and insurance premium taxes
148
136 169
Property and business taxes
237
202 203
TOTAL 4,592
3,570 3,478
TD Bank Group 2018 ESG Report
Page 32
INTRODUCTION
SOCIAL
ENVIRONMENT GOVERNANCE
Met On track Did not meet
3.5
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.
1
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
compensation.
Analyst
Corner
To Our Customers
Problem Resolution Process
Codes of Conduct and Political
Commitments
Oice of the Ombudsman
TD Ombudsman Annual Report
Empowering Our Employees to Provide an Enhanced
CustomerExperience
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
2
63.8
3
(61.93)
64.23
4
2
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.
3
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.
4
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
INTRODUCTION
SOCIAL
ENVIRONMENT GOVERNANCE
3.5
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
a
dditi
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
INTRODUCTION
SOCIAL
ENVIRONMENT GOVERNANCE
3.5
Customer Experience
Customer Problem Resolution
Canada 2018 2017 2016
Number of problems referred to Personal Banking Customer Care
13,103
1
9,630 7,723
Number of customers who contacted TD Oice of the Ombudsman
3,846
4,245 4,331
Number of complaints requiring investigation by TD Oice of the Ombudsman
774
779 749
Percentage of problems resolved by TD Ombudsman within 90 days (target 90%)
100%
97% 95%
Problems investigated by the OBSI
2
and ADR Chambers Banking Ombuds Oice
177
187 176
U.S.
Total number of problems referred to the Chairman’s Service Center
22,818
1
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% 98%
1
This year, we experienced an increase in recorded complaints due to our growing customers / transactions, as well as enhanced customer and resolution processes.
2
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.
Challenge:
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
INTRODUCTION
SOCIAL
ENVIRONMENT GOVERNANCE
3.5
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
1
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.
2
• 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
brokerageaccount.
• 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
INTRODUCTION
SOCIAL
ENVIRONMENT GOVERNANCE
3.6
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
progress.
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
andCommunication
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.
Analyst
Corner
To Our Customers
Codes of Conduct and Political
Commitments
Understanding Tied Selling
Our Responsible Sales Practices
Our products and services are designed to meet our
customers’needs.
• 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
INTRODUCTION
SOCIAL
ENVIRONMENT GOVERNANCE
3.6
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.
1
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.
org/en/research-and-analysis/issue-briefs///how-income-volatility-interacts-
with-american-families-inancial-security.
• 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.
Analyst
Corner
Green Banking
2018 Green Products
Providing Green and Social Banking Choices
Consumers believe that protecting the environment contributes
to rather than hinders economic growth
2
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.
2
Environics Research, 2018. Canadian Environment Barometer.
2018 2017 2016Paperless Banking
Number of online statement accounts, in millions
12.1
11.5 10.4
Paper statements stopped, in millions
136.0
112.3 97.8
Paper documents stopped (TD Wealth), in millions
3
45.9
33.1 31.5
Insurance for hybrid and electric vehicles
Number of active hybrid and electric vehicle discounts
25,068
20,620 17,777
GHG reduction by TD Auto Insurance customers (in tonnes of CO
2
e)
4
18,569
10,819 7,268
3
Fiscal year 2017 and 2016 data was restated due to corrected information
4
The estimated calculations were completed by WSP.
TD Bank Group 2018 ESG Report
Page 38
INTRODUCTION
SOCIAL
ENVIRONMENT GOVERNANCE
3.7
Diversity and Inclusion
Why It Matters to TD
For TD, diversity and inclusion is and has
been a strategic priority for over a decade.
Organizations that have embedded diversity and
inclusion foster innovation and creativity, widen
the talent pool, increase employee satisfaction,
and outperform their peers inancially.
1
https://www.mckinsey.com/business-functions/organization/our-insights/why-diversity-matters;
https://www.catalyst.org/knowledge/why-diversity-and-inclusion-matter.
Our Approach
We have embedded diversity and inclusion into every aspect of
our business – from workplace practices to customer relationships
and community involvement – to help create an inclusive bank that
relects the diverse communities we serve.
We formed the Inclusion and Diversity Leadership Council (IDLC)
in 2005 to set the bank’s diversity and inclusion strategy and
oversee its progress. The Council, which reviews plans and goals
every three years, completed its 201820 goal setting and planning
cycle in 2017 and has highlighted inclusion and leadership
amongst its priorities. It is committed to inding new and creative
ways to promote diversity and embed inclusion in the company’s
culture and infrastructure by providing our employees with work
that matters, opportunities beyond expectation and inspiring
leadership.
Building a Diverse and Inclusive Organization
We developed an inclusive leadership strategy to reinforce the
value of inclusion and teach our managers actionable strategies
to engage and leverage the full potential of diverse teams and
minimize negative consequences resulting from unintentional
bias. We launched an ‘Inclusive Leadership’ curriculum to help
our people managers identify biases and other non-inclusive
behaviours. Since 2017, more than 1,900 people managers
in North America have completed the program. We have also
created an inclusive leadership resource guide to support
learning and development specialists in their eorts to build
diversity and inclusion messaging into business-speciic training
and to complement our centrally driven training. TD branch
managers are trained through the ‘Own My Branch’ program
targeted towards Canadian Branch Banking that includes
inclusive leadership principles.
Analyst
Corner
Code of Conduct and Ethics
Our Commitment to Diversity
Diversity Governance
Employment Equity Report – Canada only
TD and Indigenous Communities in Canada
Participation in employee-related events and networks continues to
grow. Over 1,000 employees participated in events and activities
during National Indigenous History Month. TD sponsored 95Pride
festivals, and over 190 LGBTQ2+ community initiatives across
North America, and engaged over 3000 employees supporting
LGBTQ2+ inclusion, as members of TD’s LGBTQ2+ Employee
Resource groups.
Our 50+ employee networks include:
Minorities in Leadership Network
Latinos in Leadership
TD Korean Community
EmployeeNetwork
Parents of Children with
DisabilitiesNetwork
African-American &
CaribbeanLeadership
Black Employees Network
Women in Leadership Mentorship
Working Moms and Dads Network
Forever Proud: A Community for
LGBTQ2+ Colleagues and Allies
Veteran Employee U.S. Network
Indigenous Employee Circle
AccessAbility: a network for colleagues
with disabilities and their allies
TD Bank Group 2018 ESG Report
Page 39
INTRODUCTION
SOCIAL
ENVIRONMENT GOVERNANCE
3.7
Diversity and Inclusion
•
Supporting the LGBTQ2+ Community
• In 2018, we evolved our scope from LGBT to LGBTQ2+ to
recognize and be inclusive of the gender and sexual diversity
of our community and to relect the evolution of how our many
community members identify themselves today.
• To equip our employees to authentically deliver legendary
service to all our customers and employees, including the
transgender and gender non-binary community, we delivered
Gender Language and Concepts training to approximately
800employees across Canada in 2018.
• We oer a variety of development programs and initiatives
such as LGBTQ2+ executive speaker panels, external thought
leader presentations, mentoring events and targeted in-house
and external development programs for emerging LGBTQ2+
leaders and executives.
• TD Life Insurance oers insurance coverage for HIV-positive
applicants. In 2018, we approved the irst life insurance policy
for an HIV-positive applicant.
Moving towards Gender Equality
Diversity and inclusion are core values and strategic business
priorities. Our goal is to sustain a working environment where
every employee has the opportunity to realize their potential
to the fullest. In keeping with our core values of diversity
and inclusion, we are committed to providing equitable
compensation and professional opportunities for all employees,
while continuously working to address the key factors that can
contribute to a gender wage gap.
• With respect to compensation, we have comprehensive and
well-established programs and structures that are gender
neutral and designed so that employees performing the same
job have the same opportunity, resulting in internal equity and
fairness. During 2018, we worked with a third-party provider
to complete a detailed statistical analysis of compensation to
assess potential dierences in outcomes based on gender. The
review found that women earned more than 99 cents for every
dollar earned by men in base salary and total compensation,
adjusting for factors such as level, geography and role. We are
continuing to monitor our programs to conirm they are being
delivered in a gender-neutral manner.
• We refreshed our Women in Leadership (WIL) strategy to
sustainably increase the representation of women from all
communities and backgrounds, call upon both men and
women to help create inclusive workplaces that work to close
gender inequalities, and lead eorts to close the gap. Our WIL
Connections Community in our internal social media platform
has grown to 16,000 members with 20 chapters across North
America. In Canada, we set a target of 40% women in senior
leadership positions by 2020.
Mentoring Our Employees
TD’s mutual mentoring program pairs executives with
employees from all dierent backgrounds and levels to share
insights, experience and knowledge. The program has over
1,600 participants and will help enable stronger leadership
atevery level.
Supporting Indigenous Communities across Canada
In 2018, we launched our internal Indigenous Resource Centre as
part of our overall strategy to promote an inclusive environment
and create awareness of Indigenous history and culture to
support our business and talent strategies. This newly created
digital platform is a destination to learn about and celebrate
Indigenous culture and Peoples, to enable important connections
and to promote active engagement with Indigenous communities.
It is also home to the “I Am Indigenous” employee video series,
where Indigenous employees share their stories and speak about
what reconciliation means to them.
Building a Minority Leadership Pipeline
Last year, we launched the Each One Teach One (EOTO)
mentoring pilot program aimed at supporting TD’s minority
employee talent as they pursue their career development goals
and expand their networks. The initial pilot was a success,
engaging over 150 employees. In 2018, the new cohort grew to
over 250 employees and the program has been expanded more
broadly across the TD organization in North America. Regional
and business line EOTO cohorts now reach more than 500
minority employees across TD.
Building a Supportive and Inclusive Organization
In 2017, we piloted a hiring program with Specialisterne Canada,
an organization that partners with employers and identiies
talented individuals with neurodiversities for key roles. The
program provides onboarding support for new employees and
people managers and their teams. In 2018, we expanded this
pilot across several additional businesses. We have now hired
30 talented employees, most of whom work in complex market,
credit and risk-related areas. We are looking to further expand
this program across North America.
TD Bank Group 2018 ESG Report
Page 40
INTRODUCTION
SOCIAL
ENVIRONMENT GOVERNANCE
3.7
Diversity and Inclusion
Workforce Diversity at TD (%)
Global
1
2018 2017 2016
Women
Women on board (% female of all directors)
36%
36% 36%
Overall
57.9% 58.6%
Senior Management
2
36.1% 37.3%
Canada
3
Labour Market Availability
4
2018 2017 2016
Visible Minorities
5
Overall 25.1%
30.7% 28.2% 29.1%
Senior Management
2
16.3% 14.5% 14.7%
Indigenous Peoples
5
Overall 2.0%
1.3% 1.2% 1.3%
Senior Management
2
1.1%
1.4% 1.7%
People with Disabilities
5
Overall 5.6%
6.6% 5.7% 5.9%
Senior Management
2
5.9%
4.9% 5.0%
U.S.
6
Labor Market Availability
7
2018 2017
Minorities
Overall 27.2%
40.4%
39.0%
Minority Executives
8
15.3%
15.1%
1
Includes all full-time and part-time employees, excluding those on LTD. A new global
methodology was implemented for 2017 and 2018 reporting. 2016 data is not
available.
2
Senior Management includes board-titled oicers of the bank, Vice President level and
above.
3
Includes all Canadian businesses and full-time and part-time employees, excluding
those on LTD.
4
Labour Market Availability is based on 2016 census Canada data calculated in
accordance with Employment Equity regulations.
5
Data is voluntarily disclosed by employees.
6
Includes TD, America’s Most Convenient Bank employees, excluding those on LTD. The
irst year that TD publicly disclosed diversity representation data in the U.S. was 2017.
7
Labor Market Availability is based on 2010 U.S. Census Data as calculated based
onAirmative Action regulations.
8
EEO1 Category, A B or 2.
Additional categories of reporting on workforce diversity can be found in the ESG Appendix page 1314
TD Bank Group 2018 ESG Report
Page 41
INTRODUCTION
SOCIAL
ENVIRONMENT GOVERNANCE
3.8
Human Rights
Respecting Human Rights
In every country in which TD operates, we support and respect
the protection of human rights. We also share the values relected
in international proclamations about human rights, such as the
Universal Declaration of Human Rights. TD’s primary businesses
are conducted in countries that are governed by strong legal
and human rights regulations. We abide by the expectations and
requirements of such human rights related laws of the countries
where we operate. In 2018, TD furthered its commitment to
human rights by joining the Business for Social Responsibility’s
(BSR) Human Rights Working Group, which supports companies in
implementing the United Nations Guiding Principles on Business
and Human Rights (UNGP).
We adhere to, and in many cases exceed, all applicable labour
laws and standards addressing issues such as equal pay, hours
of work and child labour. TD’s Respectful Workplace Policy
and our Health and Safety Policy articulate our commitment to
providing a work environment free from any form of harassment
and unlawful discrimination, where every employee, customer,
client and independent contractor is treated with dignity and
respect. TD’s employees are at the heart of everything we do,
and we encourage a diverse and inclusive working environment.
TD’s model is one of employee engagement, and we encourage
open dialogue to help us create a positive working environment
where all employees can thrive.
Under the TD Code of Conduct and Ethics, every employee and
director of TD is expected and required to assess every business
decision and every action on behalf of the organization in light
of whether it is right, legal and fair. Speciic internal investigation
and escalation processes are followed when concerns are raised
regarding harassment, unlawful discrimination or other conduct
that would contravene these policies. Employees and directors
attest to compliance with these policies on an annual basis. We
promote Indigenous rights and support the principle of free, prior
and informed consent (FPIC), with our commitment relected
in TD’s Environmental Policy and Environmental Management
System. Our Human Rights Working Committee meets regularly
to understand relevant issues and is responsible for updating
the TDBank Group Slavery and Human Traicking Statement.
There are many ways in which TD incorporates human rights
considerations into our business lines. For instance, we provide
opportunities to underrepresented groups as a part of our
Supplier Diversity Program.
In 2018 we became the irst corporate sponsor and contributing
partner to the Mandela: Struggle for Freedom exhibition at the
Canadian Museum of Human Rights.
In order to align with the UNGP, we recognize our responsibility as
a corporate citizen to respect human rights, and by undertaking
a review of current practices and procedures, we will be working
toward integrating the UNGP across our bank-wide operations
and practices.
Analyst
Corner
Code of Conduct and Ethics
Supplier Code of Conduct
TD Bank Group Slavery and
Human Traicking Statement
TD Bank Statement on Anti-Money
Laundering, Anti-Terrorist Financing
and Sanctions
Statement on Anti-Corruption
94,913
Total number of employee training
hours related to human rights
1
1
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 covering 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.
TD Bank Group 2018 ESG Report
Page 42
INTRODUCTION
SOCIAL
ENVIRONMENT GOVERNANCE
3.9
Talent Attraction, Engagement and Retention
Why It Matters to TD
At TD, we believe our people are our greatest
assets. Our future success depends on our
ability to attract, develop, deploy and retain
the best talent. As individuals look to work for
organizations that align with their values, we at
TD believe it is critical to provide employees with
work that matters, opportunities beyond their
expectations and leadership that inspires.
Our Approach
At TD, we are committed to providing our people with an inclusive
environment within which they can engage in meaningful and
fulilling work. We provide our employees with opportunities to
grow their careers by oering career advancement throughout
their tenure. Our internal development programs allow our
employees to develop and retool their skill set to forge their
unique paths in TD while keeping pace with a changing world.
OurDiversity Sourcing team focuses solely on attracting top
talent from diverse communities in alignment with an enterprise-
wide talent acquisition strategy. We oer enterprise-wide
colleague experience initiatives and programs that enrich the
lives of our people and inspire them to work towards providing
our customers with legendary service. We also provide an ethical
culture, competitive beneits, and meaningful work standards
and policies and strive to be a workplace that is responsive to the
needs of our employees.
Analyst
Corner
2018 Workforce Proile
Our Commitment to Diversity
Appendix: ESG Performance
Campus Recruitment
Attracting a Diverse and Inclusive Workforce
We have a team dedicated to sourcing and attracting diverse
talent. We value diversity and are committed to recruiting visible
minorities, LGBTQ2+ people, people with disabilities, women and
Indigenous people. We also leverage applications like Textio, an
augmented writing platform used to create highly eective and
gender-neutral job listings. Textio scans for key phrases in job
postings and oers suggestions for improvement to minimize bias
and attract qualiied and diverse candidates. In 2018, some of our
initiatives to attract a diverse workforce include:
• To help develop the LGBTQ2+ leaders of tomorrow and to
attract talent, we worked with community organizations
such as Start Proud and Venture Out in Canada to support
career development and networking opportunities through
conferences and regional events.
• We are a key sponsor of the Women in Capital Markets’ Return
to Bay Street Program, which provides opportunities for
professional women to return to their industry careers after
extended periods of leave, usually due to family commitments.
We also invest signiicantly to attract and develop talent to create
the workforce for the future. We recruit using employee referrals,
search irms and social media. We also work to attract and
develop “generation next” talent by oering rotational programs,
paid internships and management association programs.
Employee age proile
 under 25 Years
 2554 Years
 55+ Years
Employees by region
1
1
Data relects headcount rather than full-time equivalent
 Canada
 U.S.
 International
TD Bank Group 2018 ESG Report
Page 43
INTRODUCTION
SOCIAL
ENVIRONMENT GOVERNANCE
3.9
Talent Attraction, Engagement and Retention
Met Did not meetOn track
Employee Engagement
At TD, we strive to create an environment with opportunities for our
employees to participate in causes that matter to them, such as
social and environmental initiatives. With the launch of The Ready
Commitment, there was increased awareness about community
involvement and we were pleased to see increases in our employee
engagement scores related to community and environment.
In 2018, there was a high rate of participation (87%) in our annual
global engagement survey, with 84% of our employees reporting
as being engaged. Our actual engagement score on a ive-point
rating scale increased to 4.26 from 4.22 in 2017. TD employees
consistently reported they are proud to work for TD and felt
supported in their ambitions to work on corporate responsibility
initiatives. They also felt that TD shows genuine commitment to
the communities in which we operate and is taking the right steps
to positively impact the environment.
In 2018, TD became the irst Canadian founding member of
IMPACT2030 and hosted a leadership forum bringing together
over 50 attendees from over 40 corporations and community
organizations, including IMPACT2030 partners and stakeholders.
IMPACT2030 is a global private-sector-led collaboration that
harnesses the power of employees to bring about positive social
and environmental change to help advance the Sustainable
Development Goals.
TD’s employee engagement is overseen by the Colleague
Experience Council, which acts in a strategic advisory capacity
on employee programs and initiatives. The council deines
priorities and drives coordinated change on enterprise-
wide colleague experience initiatives that address barriers
to employeeengagement. These initiatives are informed by
feedback and ideation from our employees, again emphasizing
TD’s inclusive culture.
Investing in Talent
898,532
applicants in North
America
112,790
recruiter interviews
70,121
hiring manager
interviews
55.8%
positions illed
within TD
47,204
hires
5,912
employees that
have worked at TD
for more than 25 years
53.3%
1
Percentage of
promotions were
for women, in Canada
 of all promotions in  were given to women.
Fostering Opportunities for Women in
Technology
TD is working to achieve gender parity in
the technology ield by using the Women in
Technology (WIT) group to recruit, support and
mentor women. In 2018, WIT sponsored ive
industry events through which it exceeded its
objectives of recruiting women into technology
positions. TD also initiated an arrangement
with #movethedial, an organization focused
on increasing the participation and leadership
of all women in technology. Through this
arrangement, we strive to position TD as a
leader and technology company of choice
for women and create new opportunities
to improve STEM participation for girls and
women. In 2019, the arrangement will expand
nationally and into the U.S. footprint.
Objective 2017 Result 2018 Result Progress 2019 Target
Provide a great place to work
Increase Employee Engagement Index
82% 84%
82%
Average global turnover
20.04% 20.00%
TD Bank Group 2018 ESG Report
Page 44
INTRODUCTION
SOCIAL
ENVIRONMENT GOVERNANCE
3.9
Talent Attraction, Engagement and Retention
Listening to Employees – Global survey results
1
1
Percentage of respondents who agreed or strongly agreed with the statement.
Employee Engagement Index (EEI) Composite: 2018 2017 2016
2
My work gives me a personal feeling of accomplishment.
80%
79% 78%
I plan to be with TD one year from now.
84%
83% 81%
I am proud to say I work for TD.
87%
85% 85%
TD is doing the right things to make a positive impact on the communities in which it does business.
89%
87% 87%
TD is doing the right things to make a positive impact on the environment.
88%
86% 87%
TD supports employees’ ambitions to get involved in corporate responsibility initiatives
(e.g. community or environmental initiatives).
89%
87% 87%
2
2016 data has been restated due to corrected information.
Employee Turnover (%) 2018 2017 2016
Average global
turnover rate
20.00% 20.04% 20.08%
Canada
Voluntary
3
14.3% 13.8% 11.8%
Involuntary
4
2.7% 2.2% 4.5%
Retirement
1.5% 1.3% 1.2%
Total
18.5% 17.2% 17.6%
U.S.
Voluntary
3
17.8% 18.9% 18.3%
Involuntary
4
4.6% 4.8% 6.4%
Retirement
0.6% 0.6% 0.6%
Total
23.0% 24.3% 25.4%
3
A voluntary exit from TD occurs when the employee chooses to leave TD.
4
An involuntary exit from TD occurs when employment is terminated.
Retention
One of the ways in which we assess employee engagement and
satisfaction is by looking at how well we retain our top talent. TD’s
average global turnover was 20% in 2018. TD’s voluntary turnover
in Canada remains within the normal range
1
of our peer group,
taking into account our high complement of part-time employees
and relects TD’s longer-hours business model, which requires a
higher complement of part-time employees. Retention continues
to be a top priority in the U.S., where the voluntary turnover rates
tend to be higher. But we are making progress, as our voluntary
retention rates have been improving from year to year.
According to a comparison of the Big  Banks in Canada, conducted by PwC in ,
the average voluntary turnover rate was . The source is a syndicated survey
where all banks are measured using common criteria.
TD Bank Group 2018 ESG Report
Page 45
INTRODUCTION
SOCIAL
ENVIRONMENT GOVERNANCE
3.10
Health and Well-Being
Analyst
Corner
Summary of Beneits Programs
TD’s Approach to Compensation
TD’s Approach to Job Transition
Code of Conduct and Ethics
Whistleblower Hotline
TD’s business depends on the contribution of our over
85,000 employees, and as such, the health and wellness
ofourworkforce are fundamental to our success. TD oers
extensive programs to help our employees assess, manage
andimprove their physical, inancial and mental well-being.
In2018, we reinforced this commitment with the appointment
of Dr. Vipan Nikore, whose mandate as our new Chief Medical
Director is to keep our employees healthy.
As TD’s Chief Medical Director, I have a mandate to
improve employee health while decreasing stress and
sickness.Iwill not only help TD manage health-care risks,
butalso help from a health-care strategy perspective by
focusing on innovative ways to keep our 85,000+
employees healthy and by exploring how TD can further
contribute toahealthy community.
Dr. Vipan Nikore, TD’s Chief Medical Oicer
Physical Well-Being
TD’s Health and Safety (H&S) policy spans North America and has
a dedicated H&S management system that delivers regular training
and communication to keep managers and employees informed.
InCanada, the H&S team, a National Policy H&S Committee, people
managers and H&S representatives in each location across the
country work with employees to ensure H&S programs support
applicable regulations and are eective across our operations.
The H&S-programs in the U.S. are overseen by a Safety team
with support from Safety Committees, Human Resources, people
managers and employees across the enterprise.
We have designed our beneits plan to provide employees with
e
ssential beneits to protect them from unanticipated inancial
hardship. We oer a wide range of optional coverage since we
understand that the needs of our employees vary by person and
over time. TD provides resources to support employees as they
choose the beneits plan that best meets their needs. Employees
receive assistance for coverage from TD through beneit credits
(
Canada) or subsidies (U.S.).
Work-Related Injuries
1
1
Figures in parentheses indicate accident statistics as a percentage of our workforce
in the country noted, as at the end of the calendar year.
2018 2017 2016Canada
Minor injuries
2
359 (0.57%)
290 (0.49%) 255 (0.43%)
Disabling injuries
3
290 (0.46%)
188 (0.32%) 148(0.25%)
Employee days absent
be
yond day of injury
4
3,485
2,409 2,667
Fatalities due to work-
r
elated accidents
0
0 0
U.S.
Medical/report-only claims
iled thr
ough workers’
compensation
5
420
389 454
Indemnity claims
iled thr
ough workers’
compensation
33
35 38
Employee days absent
be
yond day of injury
1,912
1,315 2,334
Fatalities due to work-
r
elated accidents
0
0 0
2
Injuries that are treatable in the workplace with no time lost beyond the day of injury.
3
Injuries that result in lost time in the workplace on any day following the injury for each
of the years shown.
4
Number of disabling accidents have increased, resulting in more days absent.
5
Workers’ compensation claims below $2,500 or any claim that requires no payment or
activity other than generating a report.
TD Bank Group 2018 ESG Report
Page 46
INTRODUCTION
SOCIAL
ENVIRONMENT GOVERNANCE
3.10
Health and Well-Being
8.0
8.4
8.8
9.2
9.6
10.0
10.4
TD’s Approach to Well-Being
Examples of beneits:
Physical Well-Being
• Beneit plans
• Wellness account
• Seasonal lu coverage
• Insurance coverage
• Workplace accommodations
• WELL building standard
• Health and safety
Financial Well-Being
• Compensation
• Employee savings plans
• Share ownership plan*
• Pension/401(k)
• Scholarship programs
• Incentive plans
• Discounts and
banking beneits
• Tuition reimbursement
*Beneits available to Canadian employees
Mental Well-Being
• Vacation/PTO ( paid time o)
• Reward and recognition
• Leave policies
• Flexible work options
• Volunteer grants
• Emergency child care*
• Employee ombudsman
• Critical incident response
Total spend on Compensation
andBeneits ($ billions)
$10.4b
Spent in 2018
2016
$9.3
2017
$10
2018
$10.4
Financial Well-Being
In the context of rising income volatility, TD is committed to
providing our employees with a competitive total rewards
package with the lexibility to meet their needs and the changing
needs of their families. We oer a comprehensive beneits
plan that includes medical, dental and insurance options. We
also oer a competitive compensation package, an employee
share ownership plan (Canada), a deined beneit pension plan
(Canada) and 401(k) (U.S.) and group savings plans to help
employees meet their inancial goals. In 2019, TD introduced
a new deined contribution (DC) pension plan for newly hired
employees in Canada.
We oer an online retirement and inancial planning too for our
employees to assist them with personalized projections for their
short-term and long-term plans. We also include information
and advice on employee pension arrangements. Our employees
can also access legal and inancial support services for several
issues, including debt management, legal bankruptcy, contracts
and housing.
Mental Well-Being
TD oers a variety of resources to support employees and people
managers with their mental well-being, including online tools,
educational training and access to a comprehensive employee
and family assistance program. In 2018, TD launched new online
mental health training for all Canadian employees to support a
mentally healthy workplace, with an additional support module
for people managers. The training helps employees build mental
health awareness and develop stress management and resiliency
skills, supports their mental well-being and enables them to
access support, when needed. Over 7,000 employees and people
managers have completed the training as of December 2018.
M
e
n
t
a
l
P
h
y
s
i
c
a
l
F
i
n
a
n
c
i
a
l
E
m
p
l
o
y
e
e
a
n
d
F
a
m
i
l
y
A
s
s
i
s
t
a
n
c
e
P
r
o
g
r
a
m
T
o
t
a
l
H
e
a
l
t
h
I
n
d
e
x
A
s
s
e
s
s
m
e
n
t
*
TD Bank Group 2018 ESG Report
Page 47
INTRODUCTION
SOCIAL
ENVIRONMENT GOVERNANCE
3.10
Health and Well-Being
Challenge: New technologies create the
opportunity for many employees to be
connected to work at all hours; however,
the need for balance remains as important
as ever for ahealthy life.
Response: TD recognizes the importance of
helping employees balance their work/life
demands. TD oers lexible working options
to attract and retain talent and create
an inclusive and supportive culture by
recognizing each employee’s unique needs.
To empower our employees to do their
best work and provide legendary customer
service, TD oers a supportive and lexible
work environment. We understand that
employees need to balance personal and
professional commitments and that they
may sometimes feel forced to choose
between the two. To help our employees
live balanced lives, we oer several lexible
work options. This approach helps TD
retain great people and keep them feeling
engaged and supported. Many TD business
and functional groups have Flexible Work
Options Business Committees to assist
employees in maintaining a healthy
balance between personal and professional
commitments. Flexible work options can
include, where possible, a compressed or
reduced workweek, job shares, transition
to or from regular hours when returning
from a leave of absence or preparing
for retirement, and opportunities to work
remotely. Employees can mix and match
lex work options to meet their needs.
Program Enhancements
At TD, we regularly benchmark our beneits program against those
of other leading employers to determine how we are positioned in
the support provided to meet the diverse needs of employees. In
Canada, we completed a market review to benchmark TD’s beneit
plan support for the ive diversity and inclusion pillars and, as a
result, we implemented a number of diversity-inspired coverage
enhancements for 2019, which include:
• An increase from six to 12 weeks in childcare leave salary top-
up for the person who gives birth
• Mental health practitioner annual limits, which have increased
from $1,000-$2,000 to $1,500-$2,500
• Expanded services to support social and medical gender
transition, up to a lifetime maximum of $25,000
• Expanded coverage to include fertility drugs, breast pumps,
traditional medicines and natural remedies, and coverage for
midwives and doulas
• Up to 16 weeks paid leave to all eligible parents welcoming a
new child through the Paid Parental leave program in the U.S.
Employee Relations
Our employees have several channels through which they can
comfortably and safely raise their concerns directly within the
organization.
• The Employee Complaint Resolution Process provides our
employees with various channels to report their concerns.
The process facilitates the reporting of their concerns to
the right point of contact so that they are resolved quickly,
objectively
and without any fear of retaliation. TD is committed
to protecting individuals from reprisal in any form, no matter
what channel an employee chooses to raise their concerns.
• Between Us, the Employee Ombudsman Oice, oers
conidential, impartial and informal guidance, which is
available for all employees to discuss work-related concerns
and review possible options for resolution. In 2018, 1,240
employees used this program.
• Our Whistleblower Hotline is a conidential and anonymous
communication channel for both our internal and external
stakeholders to submit their concerns regarding TD. Through
the hotline, anyone can submit ethical, legal or accounting
concerns without fear of repercussions. They can also submit
allegations of retaliation for having reported matters in good
faith. Our hotline is hosted by a third party and managed
independently within TD.
TD has a Global Employee Relations group that maintains
meaningful work standards, policies and practices consistent
with TD’s commitment to the overall employee experience and
the bank’s business objectives, as well as legal and regulatory
requirements. The group provides guidance to human resource
practitioners and management on complex employment matters
to promote the consistent application of TD’s policies and
practices across the organization and the fair and transparent
resolution of matters raised.
TD Bank Group 2018 ESG Report
Page 48
INTRODUCTION
SOCIAL
ENVIRONMENT GOVERNANCE
Met On track Did not meet
3.11
Volunteerism
TD recognizes the importance of volunteerism as a community
and employee engagement tool and as a way for our employees
to contribute to The Ready Commitment.
• TD had 800 volunteer ambassadors across North America who
helped to manage fundraising events and community programs.
For our annual employee-giving campaign administered by
United Way, TD employees raised $19.77million for registered
charities across North America last year, up from $19 million the
previous year.
• TD is a proud sponsor of the Junior Achievement (JA) Company
Program. The program brings high school students into TD
and helps them build a company with TD employees serving
as volunteer advisors. The 18-week program is an opportunity
for students to develop business skills and boost their
employment potential while teaching them inancial literacy
and entrepreneurship. In 2018, 30 teams participated in the
program with 61 employee volunteers.
• Our annual TD Tree Days campaign drew 10,600 volunteers
across North America and enhanced 162 green spaces, adding
over 48,000 trees and shrubs to local tree canopies. More
than 390,000 native trees and shrubs have been planted in
communities across North America through TD Tree Days since
2010. An estimated 890.1 tons of CO
2
emissions have been
sequestered as a result of these activities, comparable to the
emissions released annually from 189passenger vehicles.
• TD understands the diiculties new immigrants to Canada
face in seeking employment. Accordingly, we are a founding
member of the Toronto Region Immigrant Employment Council
(TRIEC) Mentoring Partnership program, which was initiated in
2005. Through the program, TD employees provided over 1,800
mentoring relationships, with approximately 25% of TD mentees
gaining positions within the bank. TD was also recognized for
passing the 1,000th mentoring match mark through the TRIEC
Mentoring Partnership Awards.
• We launched the TD Mindpower: Analytics for Social Good
initiative to give our employees an opportunity to leverage
their data and analytic skills in helping non-proit entities and
play a role in creating inclusive and sustainable communities.
Through this program, TD employees work on projects to
answer questions, solve problems or explore ideas through
the application of data analysis using the non-proit’s own
information sources. Six non-proits have been identiied for
the pilot, and more than 300 TD volunteers have already signed
up to participate in the program.
2018 Target Rating 2018 Result 2019 Target
Increase number of employees across North America registered on the TD Volunteer Network
by the end of the calendar year
36,427 Incr
ease
volunteer
registrations
Financial Education
In 2018, we invested over $4.5 million across North America
to support community inancial education programs that
beneited 530,400 people. We strive to focus on underserved or
disadvantaged communities – including the low-income, youth,
Indigenous and newcomer communities. In 2018:
• We supported 2,738 potential homebuyers in the U.S. at
211educational events where our employee volunteers
discussed key topics in the home buying process.
• In Canada, we continued our relationship with Money Matters–
a free program for adult learners that teaches topics such
as banking, saving and building credit. In 2018, we had
12,166participants in the program. Newcomers, Indigenous
Peoples and post-secondary students have all used dierent
versions of Money Matters to increase their inancial literacy.
36,427
registered North
American users in the
TD volunteer Network
173,000+
volunteer hours logged
777
volunteer grants worth
over $450,000 made by
TD to 635charities where
TD employees volunteered
more than40 hours
TD Bank Group 2018 ESG Report
Page 49
INTRODUCTION
SOCIAL
ENVIRONMENT GOVERNANCE
3.12
Human Capital Development
Why It Matters to TD
TD’s ability to attract and retain the best and
the brightest, while sustaining and deepening
the relationship with its current employees, is
critical to maintaining its legendary customer
experience. Employees will choose to stay at TD
only if there are opportunities for personal and
professional development and advancement
and if they believe that TD is committed to
supporting, mentoring andpreparing them for
the economy of the future.
Our Approach
We invest in professional training and development, identify
opportunities for employees to take on challenging and
interesting work across TD and help our employees create
personal development plans to help achieve their career goals.
We are building programs and platforms to reskill and upskill our
workforce and assist employees as they transition into new roles
as the banking industry evolves. The commitment to creating
new development opportunities extends across the organization,
with leaders at every level supporting and challenging employees
to bring their whole selves to work and deliver their best to
customers and each other.
Analyst
Corner
Developing Leaders
Training and Development
Performance in 2018
We provide wide-ranging opportunities and resources to support
our employees in every stage of their career journeys, including
regular career coaching, mentoring and training. In 2018, we
invested $91.7 million
1
globally in training and developing our
employees. The average number of days of training invested per
person increased from 4.8 to 5.7 days. Employees also receive
individual performance reviews every six months.
Overall increase in training spend due to investment in new training technology platform
TDThrive and support of business transformation projects
Investing in Employee Development (global) 2018 2017 2016
Investment in training (millions)
2
$91.7
1
$81.8 $83.3
Investment in training per employee
2
$971
$933 $835
Average number of days of training
3
5.7
4.8 3.3
Average hours of training
4
per:
Executive
5
56
31 35
People manager
5
41
44 30
Employee (non-manager)
5
46
39 24
2
Includes the courses available through TD’s MyLearning System, as well as external
courses, certiicates and accreditations.
3
An average day is considered eight hours for U.S. employees and 7.5 for all
otheremployees.
4
Excludes training hours tracked outside of TD’s MyLearning System because the data
is not available and cannot be reasonably estimated.
5
Executive includes TD job levels Associate Vice-President and above. People manager
includes an employee who has one or more direct reports. Employee (non-manager)
includes an employee who does not have any direct reports.
TD Bank Group 2018 ESG Report
Page 50
INTRODUCTION
SOCIAL
ENVIRONMENT GOVERNANCE
3.12
Human Capital Development
Reskilling Our Human Capital
In 2018, we launched TD Thrive – a new d
evelopment platform
that empowers our employees to build the skills they need to
learn and grow today and well into the future. Our vision is to
have a single platform for all learning needs, with rich content
and mobile and social functionality for real-time learning. With
TD Thrive, we fulill our shared commitment to develop employees
in a new way, letting them learn on their own terms, whether it is
building new digital skills or deepening their inancial expertise.
TD Thrive allows employees to acquire capabilities and skills
of their choosing and at their own pace that will serve them
personally and professionally over their lifetimes. The content
within TD Thrive, which is powered by the education technology
company Degreed, is curated into Pathways, Skill Plans and
Career Paths so that our employees can access development
content in a way that is relevant and personal to them and their
career aspirations.
As personal banking in Canada evolves, TD is adapting through
aprogram called Future Ready, which will help us continue to
meet the expectations of our customers. It is designed to help
us better understand their needs, simplify their lives and deliver
timely advice they need to make appropriate and informed
decisions. Evolving for our customers also means helping our
employees learn and contribute in new ways. For example, to
improve our advice in branches, we are equipping employees
with the tools and training they need to help our customers feel
more inancially conident. We have also begun to create more
specialization in branch roles, while concurrently establishing
more career paths for branch employees.
Developing Our Leaders
At TD, we know that stronger leaders create more engaged
employees, which drives better results and performance. As
such, we invest in creating unique and strategic development
opportunities for leaders at all levels of the organization.
In 2018, we designed and delivered leadership programs for
hundreds of leaders across the organization. Among these
important programs are the following:
Activate is a leadership development program for new people
managers. Our goal is for all new leaders to have the tools
and knowledge they need to make the transition as quickly
and as smoothly as possible by oering targeted development
within their irst six months. Activate oers two days of
instructor-led training focusing on core leadership skills such
as team dynamics, coaching capability, critical thinking and
organizational awareness. The program empowers newly hired
orrecently promoted managers to lead with conidence while
atthe same time being aligned with TD’s values.
Elevate – our signature executive development program – is
focused on inclusive leadership behaviours that are proven
business accelerators. In this highly immersive and interactive
two-day workshop, our
leaders grapple with the real-life trade-os
and tensions needed to balance employee engagement, client
experience and proitability.
Each session, co-facilitated by senior
TD leaders, demonstrates eective leadership behaviours rooted
in our culture, values and real-life business context. By June 2019,
it is expected that all of our executives will have completed this
comprehensive and challenging development program.
Thriving in the future means ongoing investment in our leaders
today. This year, we partnered with industry experts to deliver an
advanced coaching program, ideation workshops and a data and
analytics program for senior leaders. In 2019, we will continue to
broaden our slate of strategic leadership development programs
underscored by Leadership Ready – our online platform of over
300 self-directed learning assets that reinforce what eective
leadership looks like at TD.
Building Our Leadership Pipeline
In addition to developing all leaders, TD also makes additional
targeted investments in an annually identiied pool of diverse talent
who are expected to be the successors to senior leadership roles.
Since 2015, we have oered programs each year to invest in our
future leaders, including Leading with Impact, pod coaching
and 6in6 Mentoring. The largest of the three, Leading with
Impact (LWI), is an experience-based program that challenges
participants through a combination of critical experiences and
classroom learning, with a focus on driving real business impact
and developing leadership capabilities through a strategic team
assignment. The program, which consists of seven days in class
over the course of ive months, builds business acumen and
cross-enterprise, cross-border learning. A key component of the
program is the opportunity to work in cross-functional, cross-
border teams to work with a community organization. Each team
helps address a business problem the organization is facing,
culminating with a presentation of recommended solutions to
a board of directors panel. By leveraging the business acumen
of our emerging leaders to strengthen our community partners,
TD has established a unique approach to helping them achieve
sustainability while also developing our people. In 2017, we
developed a unique LGBTQ2+ leadership program that positions
our emerging LGBTQ2+ talent as visible role models and leaders.
Governance
Risk Management 52
Corporate Governance and Integrity 53
Data Security and Privacy 56
TD Bank Group 2018 ESG Report
Page 52
INTRODUCTION
SOCIALENVIRONMENT GOVERNANCE
4.1
Risk Management
Why It Matters to TD
Everyone at TD has a role to play in risk
management. It’s essential that we each play
our part to protect our business, our customers
and our employees from a variety of risks in
the inancial services sector. These include
traditional inancial risks inherent to banking,
such as credit and interest rate risk, as well as
modern-day risks such as climate change and
cybersecurity threats.
Our Approach
In the TD Framework, one of our shared commitments is to “Execute
with speed and impact; only take risks we can understand and
manage.” TD executives, Directors and employees look to both
our Enterprise Risk Framework and our Risk Appetite Statement
for a common understanding of how TD views risk and determines
the type and amount of risk that TD is willing to take to deliver the
bank’s strategy and enhance shareholder value.
TD employs a “three-lines-of-defence” model that describes the
roles and responsibilities of our business segments; governance,
risk and oversight groups; and internal audit in managing risks
across TD. We regularly monitor and report on risk levels and
compliance within TD’s Risk Appetite to senior management,
the Board and its committees. Awareness and communication
of the bank’s Risk Appetite Statement and the Enterprise Risk
Framework take place across the organization through enterprise
risk communication programs, employee orientation and training,
and participation in internal risk management conferences.
TD’s Risk Appetite Statement
We take risks required to build our business,
but only if those risks:
1. Fit our business strategy and can be
understood and managed
2. Do not expose the enterprise to any
signiicant single-loss events; TD does not
“bet the bank” on any single acquisition,
business or product
3. Do not risk harming the TD brand
Analyst
Corner
Managing Risk (p6972)
Update From the Risk Committee (p84)
Board-Level Oversight
• This year, the Board approved enhancements to the broader
conduct risk framework, including the consolidation of
oversight of conduct risk as the primary responsibility of the
Corporate Governance Committee. The Corporate Governance
Committee oversees the status and eectiveness of the bank’s
conduct risk management program, including receiving reports
o
n a
n
y p
o
t
e
n
ti
al conduct risk trends.
• T
h
e Board, directly and through the Risk Committee, reviewed
the bank’s cybersecurity program, including threat readiness
a
nd resilience and regulatory oversight, and received
educational updates from expert speakers.
• The Risk Committee and the Board also received updates on
environmental risks and the bank’s support for the transition to
a low-carbon economy.
Managing Environmental Risk
The bank manages environmental risks within the Environmental
Management System (EMS), which is consistent with ISO 14001.
TD also has an enterprise-wide Corporate Citizenship Council
(CCC) composed of senior executives from TD’s main business
segments and corporate functions. The CCC is responsible
for approving the environmental strategy and performance
standards and communicating these throughout the business.
TD’s business segments are responsible for implementing the
environmental strategy and managing associated risks within
their units. TD’s Corporate Environmental Aairs team is engaged
by risk management functions and relevant business lines to
provide subject matter expertise in identifying and understanding
the implications of environmental and related social risk for our
business. When required, the team also consults with clients to
better understand management practices and potential E&S risks.
Environmental risk is the possibility of loss of strategic, inancial,
operational or reputational value resulting from the impact of
environmental issues or concerns and related social risk, either
short-term or long-term. Management of environmental risk is an
enterprise-wide priority.
Key environmental risks include:
• D
irect risks: Risks associated with the ownership and operation
of the bank’s business, which include management and
operation of company-owned or -managed real estate, leet,
b
usiness operations and associated services.
• I
ndirect risks: Risks associated with environmental
performance or environmental events, such as changing
climate patterns that may have an impact on the bank’s retail
customers and clients to whom TD provides inancing or in
w
hich TD invests.
• R
isk arising from the changing regulatory environment:
Including identiication and management of new or emerging
environmental regulatory issues.
• Risk of opportunity loss: Failure to understand and
appropriately leverage environment-related trends to meet
customer and consumer demands for products and services.
For information on TD’s approach to climate-risk, see the
TCFD report.
TD Bank Group 2018 ESG Report
Page 53
INTRODUCTION
SOCIALENVIRONMENT GOVERNANCE
4.2
Corporate Governance and Integrity
Why It Matters to TD
TD’s Board of Directors is elected by TD’s
shareholders to oversee the management
of the company and to assure that the long-
term interests of shareholders are advanced
responsibly, while addressing the concerns of
other relevant stakeholders, including the bank’s
employees, customers, regulators, communities
and the public.
Our Approach
The Board of Directors and the management of TD are committed
to leadership in corporate governance. We have designed our
corporate governance policies, principles and practices to be
sure we are focused on our responsibilities to shareholders
and other relevant stakeholders and on creating long-term
shareholder value. We have an independent Chairman with a
clear corporate governance leadership mandate and a Board
that is responsible for fulilling a number of duties. These include:
• Setting the tone for risk, integrity and compliance culture
throughout TD
• Approving the strategy and business objectives of the bank
andoverseeing their execution
• Overseeing the identiication and monitoring of the principal
risks aecting the bank’s businesses
Analyst
Corner
The Board of Directors and Its Committees
Disclosure of Corporate Governance
Policies and Practices
Code of Conduct and Ethics for
Employees and Directors
Whistleblower Hotline
Proxy Access Policy
AML/ATF/Sanctions Policy Summary
To help TD keep pace with evolving regulatory and market
expectations, the Board regularly reviews and updates our
governance practices and continues to represent the best
interests of shareholders through a strong focus on transparency
and accountability.
Among other duties, the Corporate Governance Committee of
the Board is responsible for reviewing and assessing the bank’s
corporate responsibility strategy for environmental and social
matters and related reporting. In 2018, TD’s Chairman, Brian
Levitt (among others), participated in ESG-related engagements
including management’s presentation on ESG trends, including
climate-related disclosures and a meeting with representatives
of institutional investors in Canada to discuss Board oversight of
environmental and social risks.
Case Study: Canadian Coalition for Good Governance
The Canadian Coalition for Good Governance (CCGG) was formed to promote good governance practices
in Canadian companies. The organization works to improve the way that Canadian public companies
govern themselves, and the regulatory framework in which they operate, to ensure that the interests of their
shareholders are key considerations in business decisions and the use of corporate assets.
In May of 2018, the CCGG issued the Directors’ E&S Handbook – practical insights and recommendations
for eective board oversight and company disclosure of environmental and social (E&S) matters.
As part of the research for this publication, the CCGG interviewed members of boards, including TD’s
Board members Brian Levitt and Bill Bennett in 2017.
The report includes 29 recommendations that cover many aspects of E&S considerations for directors,
including corporate culture, risk management, corporate strategy, board composition, board structure,
board practices, performance evaluation and incentives, and disclosure to shareholders.
Recognizing the emerging nature of E&S matters, TD’s Corporate Governance Committee took the
opportunity to review the bank’s current practices and discussed potential areas for increased alignment
with the CCGG recommendations.
TD Bank Group 2018 ESG Report
Page 54
INTRODUCTION
SOCIALENVIRONMENT GOVERNANCE
4.2
Corporate Governance and Integrity
Key facts about TD’s approach to governance
See 2019
Proxy Circular
CEO Compensation
In assessing the CEO’s performance, the committee considered the results of a comprehensive 360-degree
assessment process that incorporated f
eedback from all Board and SET members. The assessment included
consideration of performance against the goals and short- and medium-term objectives that were agreed to
by Mr. Masrani and the Board at the beginning of the year, as well as performance on a range of key indicators
including inancial, operational, customer experience, risk, colleague, and environmental, social, and governance
(ESG) measures.
Page 21
Diversity
The Board’s goal is that women and men each comprise at least 30% of the Board’s independent Directors. Page 74
Competencies and Skills/
Experience Matrix
The Corporate Governance Committee uses a matrix to assess the collective skills and experience proile of the
Director nominees it recommends to the Board. Corporate responsibility for environmental and social matters, is
one of 14 competencies in the skills matrix. Directors annually self-assess their skills and experiences against the
competencies. On the skills matrix, six out of 13 board members are identiied as having corporate responsibility
for environmental and social matters as a key area of expertise and experience.
Page 16 and
Page 74
Other Directorships
andBoard Interlocks
Other than as members of the Board of the bank or as designees of the bank on the Board of Directors of
TDAmeritrade Holding Corporation, no more than two Board members may sit on the same public company
Board without the consent of the Corporate Governance Committee. In addition, no member of the Audit
Committee may serve on more than three public company audit committees without the consent of the
CorporateGovernance Committee and the Board.
Page 67
Share Ownership
Under the Bank’s director share ownership requirement, non-employee directors are expected to acquire common
shares with a value equivalent to at least six times their annual cash retainer. DSUs are considered the equivalent
of common shares for the purposes of the directors’ share ownership requirement. Directors have ive years from
their irst election date to meet the share ownership requirements.
Page 18
Open Communication
with Stakeholders
The bank is committed to proactive, open and responsive communications with shareholders, other interested
parties and the public. The bank recognizes the importance of engagement of Directors with shareholders on
areas core to the Board’s mandate and adheres to an internal guideline to support such engagement. As part of
that commitment to shareholder engagement, the bank’s directors periodically extend invitations to, and respond
to invitations from, certain shareholders and governance stakeholders to meet to discuss the bank’s approach
to executive compensation, corporate governance, environmental and social matters, long-term strategic
positioning and other areas of interest to shareholders core to the Board’s mandate.
Page 70
Strategy Session
Each year, the Board participates in a two-day strategy meeting on dierent business, economic, enterprise and
regulatory topics.
Page 71
Highlights of the initiatives undertaken by the Board and its committees in iscal 2018 are available in our 2019 Proxy Circular. TD also has
extensive information about corporate governance practices available on our website.
TD Bank Group 2018 ESG Report
Page 55
INTRODUCTION
SOCIALENVIRONMENT GOVERNANCE
4.2
Corporate Governance and Integrity
Performance in 2018
TD’s Board of Directors
(Information From 2019 Proxy Circular)
Independence
Independent 93%
Non-Independent 7%
Number of independent Board members
1
13
Chair and CEO are separate Yes
Meetings and Attendance
Number of meetings (for the 12-month period ending October 31, 2018)
Full Board 13
Corporate Governance Committee 5
Risk Committee 11
Audit Committee 9
Human Resources Committee 6
Average annual Board attendance 99%
Tenure
Average Board tenure 7 years
Board Diversity
% female independent Directors 38%
% female of all Directors 36%
% visible minority Directors 14%
Shareholders who voted in favour of the
bank’s approach to compensation
93.5%
Board oversight of ESG Yes
1
TD’s Board of Directors includes 14 members in total; BharatMasrani is not
independent because of his role as GroupPresident and Chief Executive Oicer
of the bank.
Promoting Responsible Conduct
While reaching our business goals is critical to TD’s success, how
we achieve them is equally important. That’s why the actions of our
employees are subject to a number of internal policies, standards
and guidelines. All employees are required to complete compliance
training related to customer protection and responsible business
conduct in order to mitigate the risk of misconduct that could
lead to customer harm, reputational damage or legal liability.
T
oh
e
l
p o
u
r e
m
p
l
o
y
ees understand current and evolving risks,
wealso provide awareness and training programs on anti-money
laundering (AML), anti-terrorist inancing (ATF), sanctions and anti-
bribery/anti-corruption (ABAC).
All eligible TD employees and Directors are required to complete
TD’s Code of Conduct and Ethics training.
The scenario-based course promotes awareness of TD’s Code of
C
onduct and Eth
ics and reinforces expectations to consider what
is right, legal and fair in our business decisions and actions.
Code of Conduct
and Ethics
• A framework for how we interact.
• Clearly states that irregular business conduct
willnot be tolerated.
• Applies to employees and Directors.
• Requires annual training and attestation.
• The Audit Committee of the Board receives
areportto conirm 100% of eligible employees
havecompleted attestation.
Whistleblower Hotline • Provides a conidential and anonymous
communication channel for anyone, both external
or internal to TD, to submit concerns regarding
ethical, legal or accounting matters without fear of
repercussions; or to submit allegations of retaliation
for having reported matters in good faith
• Hosted by a third party and independently managed
within TD.
• Includes the ability to report anonymously through
acall centre or online.
Anti-Money
Laundering and Anti-
Terrorist Financing
(AML/ATF)
Sanctions and
Anti-Bribery/
Anti-Corruption
(ABAC)
A framework of policies and procedures designed to:
• Detect and deter the use of TD products and
services for money-laundering and terrorist-
inancing activities and comply with AML/ATF laws
and regulations.
• Comply with economic and trade sanctions laws
andregulations.
• Provide principles of conduct to deter and detect
bribery and corruption activities.
All newly hired employees are required to complete
mandatory AML/ATF, Sanctions and ABAC training. All
existing employees are required to complete refresher
training each year.
The training is customized to the risks and controls
relevant to dierent employee groups, based on role,
business and location of work.
TD Bank Group 2018 ESG Report
Page 56
INTRODUCTION
SOCIALENVIRONMENT GOVERNANCE
4.3
Data Security and Privacy
Why It Matters to TD
The trust of our customers lies at the core of our
business. In the digital era, data security and
privacy threats continue to evolve and escalate,
making data security and privacy a material
issue for both TD and our customers. Although
TD has not experienced any material inancial
losses relating to technology failure, cyber
attacks or security breaches, we remain vigilant.
Any attack, breach, disruption or compromise
may lead TD to experience, among other things,
inancial loss, a loss of customers or business
opportunities, increased costs to maintain and
update operational and security systems, and
infrastructure and reputational damage.
Our Approach
At TD, awareness regarding data security and privacy is
integrated into the fundamentals of our business. Protecting
our customers and our bank remains our top priority. To do so,
we actively monitor and manage security and privacy risks and
enhance our ability to mitigate them through enterprise-wide
programs, industry best practices and threat and vulnerability
assessments and responses. We believe that our recent
investments and acquisitions will help us continue to combat
the increased sophistication of attacks against data security
and privacy. This year, we have invested in skilled talent and
cybersecurity research. We are leveraging our investment in
digital technology toward security and privacy and expect to use
the AI prediction engine developed by Layer 6 to enhance the
customer experience in multiple ways, including the detection
and prevention of fraud. Finally, we are educating our employees
to be a critical line of defense against threats to data security
andprivacy.
TD’s Information Security and Risk Management policies
outline the organizational controls we have in place to protect
information. Our security measures include:
• Secure irewalls to help prevent unauthorized external access
to TD internal systems
• Data encryption to help ensure that customer information
can be decoded and read only within TD’s online and mobile
environment
• Around-the-clock monitoring to maintain the quality
of TD’s systems and proactively identify unusual customer
account activity
Analyst
Corner
How We Protect You (Security Measures)
Our Privacy Commitment
How You Can Protect Yourself
Our commitment to data security and privacy is demonstrated in
the bank’s overall approach to governance and accountability:
• Cybersecurity is a formal component of TD’s overall risk
management framework. Glenn Foster, our Chief Information
Security Oicer oversees, our cybersecurity issues through the
Enterprise Risk Management Committee.
• TD has a cybersecurity strategy that is regularly reviewed
and updated. Our strategy prioritizes initiatives required to
provide cybersecurity and technology risk controls in support
of the achievement of TD’s goals and objectives. The Board of
Directors is engaged in this strategy and review process.
• TD has cyber-threat intelligence teams dedicated to monitoring,
understanding and analyzing cyber threats and their eect on
business operations, infrastructure and personnel.
• A Global Chief Privacy Oicer leads TD’s Privacy Program and
reports to the Global Chief Compliance Oicer. Local privacy
oicers are responsible in the jurisdictions where the bank
operates outside of Canada.
• TD has programs in place to assess and monitor our most
critical third-party providers as it relates to the maturity of their
cybersecurity, data security and privacy capabilities.
TD leads and participates in forums to enhance cyber
preparedness. For example, TD has taken an active role in an
industry group to coordinate security functions within member
banks. The responsibilities include critical infrastructure
assurance coordination and support for the detection, prevention
and response to fraud, money laundering, terrorist inancing,
robbery and technology-based crime.
A cybersecurity policy is internally available to all employees.
Alleligible employees complete mandatory privacy and
information-security training courses, which are refreshed
annually. Key employees in high-risk job functions and executives
are also oered enhanced information security training.
Employees are also informed of clear risk management and
escalation processes. TD regularly tests the eectiveness of
its Cybersecurity Awareness Program and continually works
to promote a culture that understands the critical importance
of data security and privacy, areas of vulnerability and how to
remain vigilant when handling data.
TD Bank Group 2018 ESG Report
Page 57
INTRODUCTION
SOCIALENVIRONMENT GOVERNANCE
4.3
Data Security and Privacy
TD’s Cybersecurity Framework (CSF) model is being managed and
measured according to the National Institute of Standards and
Technology (NIST) CSF functions and categories. The assessment
of cyber capabilities occurs on a regular basis. TD also complies
with many industry-level codes of conduct designed to protect
consumers. Many TD systems have been externally audited by
third parties.
To address reputational or legal issues, TD maintains incident
management protocols that deine the process and steps for
responding to major incidents such as signiicant cyber risk events.
This includes the activation of incident management teams with
representation from across the enterprise. In addition to these
protocols, business and corporate areas maintain their own
Incident Management Protocols that are subject to annual review.
The bank actively monitors, manages and continues to enhance
its ability to mitigate these technology and cybersecurity risks
through enterprise-wide programs, using industry-leading
practices, and robust threat and vulnerability assessments
and responses. TD took the step of securing a dedicated cyber
insurance policy to mitigate inancial risk of cyber-related events
within our insurance portfolio, although we recognize that it may
not be suicient to materially cover against all inancial losses.
Performance in 2018
Data Security
With more transactions taking place digitally, we continue to
focus on preventing modern threats posed by cybercrime.
This work has included developing and applying strategies
and tools to respond to the most critical tasks, prioritizing the
enhancement of controls in place for our most critical technology
assets, monitoring our IT systems around the clock and actively
collaborating with other banks and governments to exchange
best practices and share threat intelligence information. Our
active participation in Public Safety with Canada’s Cyber Incident
Response Centre is an important forum for such eorts.
TD became a founding corporate member – and the irst
Canadian bank – to join the Canadian Institute for Cybersecurity
(CIC), a hub for cyber technology research and collaboration
based at the University of New Brunswick. This agreement with
the CIC underscores our commitment to investing in technology
talent and will include the co-development of new cyber risk
management technologies. The CIC will work directly with
members of TD’s technology cyber threat team to develop
and operationalize new threat assessment methodologies and
algorithms that focus on operational, tactical and geopolitical
issues. We also continue to invest in our cybersecurity oice
in TelAviv, Israel, a worldwide epicentre for cyber defense
technology, processes and systems. We believe our local and
global talent will help us power and protect the next generation
ofdigital innovation and the bank of the future.
Privacy
TD’
s Global Privacy Program (“Program”) proactively advocates
for the protection of personal information and mitigates privacy
risk through established bank-wide policies, procedures,
standards and guidelines. The Global and Jurisdictional Privacy
Oices provide oversight of compliance with the Program
and with the privacy laws and regulations applicable to the
jurisdictions in which TD operates. Further details regarding TD’s
policies and practices regarding the management of personal
information areavailable through our external websites.
TD’s business activities are overseen by many regulators across
our geographies. In 2018, the Oice of the Privacy Commissioner
of Canada did not rule against the bank on any privacy
complaints. In the U.S., Europe and Asia Paciic, there were no
regulatory privacy indings against the bank.
TD proactively evaluates the impact of new and amended
regulatory obligations and adapts our Program as required.
Recent key regulatory changes included the European General
Data Protection Regulation (GDPR) and enacting amendments
toCanada’s federal privacy law, the Personal Information
Protection and Electronic Documents Act (PIPEDA), along with
upcoming changes stemming from the California Consumer
Protection Act of 2018.
Our Canadian Privacy Oice actively participated in the Canadian
Bankers Association’s (CBA) advocacy eorts in connection with
guidance from the Oice of the Privacy Commissioner of Canada
on meaningful consent and inappropriate data practices. We
strive to have clear and easily accessible policies and practices
so customers can ind answers about how we manage their
information. For example, our mobile and online privacy codes
advise users on how the information collected when using the
TD app and other websites is handled. We also continue to
oer products and services to help customers manage and
improve their security and privacy. These include tipsheets
on preventing
inancial fraud and smart online usage, as well
as links to information on anti-virus and anti-malware software.
TD Bank Group 2018 ESG Report
Page 58
INTRODUCTION
SOCIALENVIRONMENT GOVERNANCE
2018 Awards and Recognition
ESG Indices:
Dow Jones Sustainability World Index (5th year in a row)
Dow Jones Sustainability North American Index
TD achieved Silver Class in the RobecoSAM Yearbook,
which relects the top 5% of sustainability performers
in banking
FTSE4Good Index
ISS
Oekom Prime
Euronext Vigeo Index: World 120
Ethibel Sustainability Index (ESI) Excellence Global
Stoxx Global ESG Leaders Index
Envir
onment:
Received a rating of A- on its CDP disclosure
Received an A- rating on the CDP Supply
Cha
in assessment
One of Canada’s Greenest Employers for the
10th consecutive year by Mediacorp Canada
TD won the Green Legacy Award presented by
Forests Ontario
TD Bank named on the National Top 100 list of the largest
green power users within the Green Power Partnership
Soci
al:
Named one of the Best Workplaces in Canada by Great
Place to Work Institute, for the 13th consecutive year
TD Bank recognized by Forbes as a Best Employer for
New Graduates
TD ranked irst on LinkedIn Top Companies 2018:
Where Canada wants to work now list
Indeed Top 10 Rated Workplaces: Best in Canada
Indeed Top 15 Rated Workplaces: Banking and Finance (U.S.)
TD Bank recognized as one of the Best Workplaces in
Financial Services & Insurance for the second consecutive
year by Great Place to Work Institute
TD was included in the Bloomberg Gender Equality Index
for the third year in a row (2019 index)
Mediacorp:
• One of Canada’s Top 100 Employers for the 11th year
in a row
• One of GTA Top Employers for the 2nd year in a row
• One of Canada’s Top Diversity Employers for the 7th year
in a row
• One of Canada’s Top Employers for Canadians over 40
Named in DiversityInc’s Top Companies for LGBT Employees
TD Bank and TD Securities (U.S.) named Best Places to
Work for LGBTQ Equality by the Human Rights Campaign
Foundation for the 9th consecutive year
For the 4th consecutive year TD Bank achieved the top score
of 100% on the Disability Equality Index (DEI), which rates U.S.
companies on their disability inclusion policies and practices
TD Bank named Best Bank for Seniors by Money Magazine
TD named one of the top teams in banking by American
Banker in their annual Most Powerful Women in Banking issue
Governance and Reputation
TD tied for top spot in Global Finance World’s 50 Safest
Commercial Banks ranking
TD Auto Finance ranked “Highest in Dealer Satisfaction
among Non-Captive Lenders with Retail Credit” in J.D. Power’s
2018 Canadian Dealer Financing Satisfaction Study
TD Bank ranked #1 in its peer group from Maine to Florida
according to J.D. Power’s 2018 U.S. Retail Banking
Satisfaction Study
TD Bank Group 2018 ESG Report
Page 59
INTRODUCTION
SOCIALENVIRONMENT GOVERNANCE
Caution Regarding Forward-Looking Statements
From time-to-time, The Toronto-Dominion Bank (the “bank”) makes written and/or oral forward-looking statements, including in this
document, in ilings with Canadian regulators or the United States (U.S.) Securities and Exchange Commission (SEC), and in other
communications. In addition, representatives of the bank may make forward looking statements orally to analysts, investors, the
media, and others. All such statements are made pursuant to the “safe harbour” provisions of, and are intended to be forward-looking
statements under, applicable Canadian and U.S. securities legislation, including the U.S. Private Securities Litigation Reform Act of
1995. Forward-looking statements include, but are not limited to, statements made in this document, the Management’s Discussion
and Analysis (“2018 MD&A”) in the bank’s 2018 Annual Report under the heading “Economic Summary and Outlook”, for the Canadian
Retail, U.S. Retail, and Wholesale banking segments under headings “Business Outlook and Focus for 2019”, and for the Corporate
segment, “Focus for 2019”, and in other statements regarding the bank’s objectives and priorities for 2019 and beyond and strategies
to achieve them, the regulatory environment in which the bank operates, and the bank’s anticipated inancial performance. Forward-
looking statements are typically identiied by words such as “will”, “would”, “should”, “believe”, “expect”, “anticipate”, “intend”,
“estimate”, “plan”, “goal”, “target”, “may”, and “could”.
By their very nature, these forward-looking statements require the bank to make assumptions and are subject to inherent risks and
unc
ertainties, general and speciic. Especially in light of the uncertainty related to the physical, inancial, economic, political, and
regulatory environments, such risks and uncertainties – many of which are beyond the bank’s control and the eects of which can be
diicult to predict – may cause actual results to dier materially from the expectations expressed in the forward-looking statements.
Risk factors that could cause, individually or in the aggregate, such dierences include: credit, market (including equity, commodity,
foreign exchange, interest rate, and credit spreads), liquidity, operational (including technology and infrastructure), reputational,
insurance, strategic, regulatory, legal, environmental, capital adequacy, and other risks. Examples of such risk factors include the
general business and economic conditions in the regions in which the bank operates; the ability of the bank to execute on long-term
and shorter-term strategic priorities, including the successful completion of acquisitions and strategic plans; the ability of the bank to
attract, develop, and retain key executives; disruptions in or attacks (including cyber-attacks) on the bank’s information technology,
internet, network access, or other voice or data communications systems or services; the evolution of various types of fraud or other
criminal behaviour to which the bank is exposed; the failure of third parties to comply with their obligations to the bank or its ailiates,
including relating to the care and control of information; the impact of new and changes to, or application of, current laws and
regulations, including without limitation tax laws, capital guidelines and liquidity regulatory guidance, and the bank recapitalization
“bail-in” regime; exposure related to signiicant litigation and regulatory matters; increased competition from incumbents and
non-traditional competitors, including Fintech and big technology competitors; changes to the bank’s credit ratings; changes in
currency and interest rates (including the possibility of negative interest rates); increased funding costs and market volatility due
to market illiquidity and competition for funding; critical accounting estimates and changes to accounting standards, policies, and
methods used by the bank; existing and potential international debt crises; and the occurrence of natural and unnatural catastrophic
events and claims resulting from such events. The bank cautions that the preceding list is not exhaustive of all possible risk factors
and other factors could also adversely aect the bank’s results. For more detailed information, please refer to the “Risk Factors
and Management” section of the 2018 MD&A, as may be updated in subsequently iled quarterly reports to shareholders and news
releases (as applicable) related to any events or transactions or events discussed under the heading “Signiicant and Subsequent
Events, and Pending Acquisitions” in the relevant MD&A, which applicable releases may be found on www
.td.com. All such factors
should be considered carefully, as well as other uncertainties and potential events, and the inherent uncertainty of forward-looking
statements, when making decisions with respect to the bank and the bank cautions readers not to place undue reliance on the bank’s
forward-looking statements.
Mate
rial economic assumptions underlying the forward-looking statements contained in this document are set out in the 2018 MD&A
under the headings “Economic Summary and Outlook”, for the Canadian Retail, U. S. Retail, and Wholesale Banking segments,
“Business Outlook and Focus for 2019”, and for the Corporate Segment, “Focus for 2019”, each as may be updated in subsequently
iled quarterly reports to shareholders.
Any forward-looking statements contained in this document represent the views of management only as of the date hereof and are
presented for the purpose of assisting the bank’s shareholders and analysts in understanding the bank’s inancial position, objectives
and priorities, and anticipated inancial performance as at and for the periods ended on the dates presented, and may not be
appropriate for other purposes. The bank does not undertake to update any forward-looking statements, whether written or oral, that
may be made from time-to-time by or on its behalf, except as required under applicable securities legislation.
®/ The TD logo and other trade-marks are the property of The Toronto-Dominion Bank or
a wholly-owned subsidiary, in Canada and/or other countries.
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2018 Environmental, Social And Governance (ESG) Report

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Completed 7 January 2021

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