Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Community Investment
• Customer Satisfaction
• Employee Well-being
• Environmental Initiatives

Environmental Achievements

• Published research to promote discussion and awareness of urban policy issues.
• Donated to various environmental initiatives through the TD Friends of the Environment Foundation.

Social Achievements

• Donated $20 million to support various causes for children, communities, and the environment.
• Sponsored the TD Children’s Hospital Fund, aiding the Children’s Miracle Network.
• Supported numerous scholarship and children’s literacy projects.
• Achieved a new high in customer satisfaction, as measured by the Retail Branch Customer Satisfaction Index.
• Completed 146 branch mergers, increasing average branch hours and realizing expense synergies.
• Integrated Canada Trust franchise with TD Bank Financial Group retail network.

Climate Goals & Targets

Environmental Challenges

• Difficult year for the Bank due to struggling capital markets and losses in major stock market indices.
• Several high-profile cases of corporate malfeasance uncovered, impacting investor confidence.
• Deterioration in credit quality, especially in telecommunications and utilities sectors.
• Weak investor and corporate activity levels.
• Economic slowdown in the U.S.
• Integration execution issues affecting customer satisfaction.
• Impact of branch merger program on volume growth and market share.
• Post-conversion payment collection and processing issues increasing credit losses.

Mitigation Strategies

• Swift and aggressive action to change the risk profile of the Bank and overhaul corporate lending strategy.
• Division of corporate loan book into core and non-core relationships, exiting non-core loans.
• Changes to lending standards, procedures, and practices.
• Reduction of capital available for corporate lending and implementation of an enhanced credit framework.
• New organizational structure to lead and support initiatives.
• Increased resources applied to risk management, splitting the mandate between Group Risk Management and business units.
• Stricter limits around credit exposure and industry concentrations.
• Proactive portfolio management to identify, monitor, and mitigate credit exposures.
• Increased relationship managers’ accountability in extending credit.
• Investment in systems and processes to support customer service model while maintaining tight control on expenses.
• Addressing integration issues and improving customer satisfaction.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Top 20 rating among 200 Canadian companies in the 2002 Corporate Governance Rankings by the Globe and Mail – Report on Business

Environmental Metrics

ESG Focus Areas

• Customers
• Environment
• Employees
• Diversity
• Community
• Economy

Environmental Achievements

• Purchased enough renewable energy to power 2,600 ABMs in Canada and meet electricity needs of operations in several provinces, equivalent to removing more than 25,000 tonnes of GHG emissions.
• Saved more than $2.8 million in operating costs through energy-efficiency projects.
• Achieved targets for recycled content and certified paper one year ahead of schedule.
• Increased green office product offerings by 100%.

Social Achievements

• Launched TD Helps program, providing relief to over 24,000 Canadian customers experiencing financial hardship.
• Maintained or improved customer experience scores in all businesses.
• Invested nearly $6 billion in employee compensation and benefits.
• Introduced a new pension plan in Canada.
• Filled 90% of job opportunities internally in Canada.

Governance Achievements

• Shareholders will be able to vote on executive compensation practices in 2010.
• Completed integration of TD Bank, America’s Most Convenient Bank.

Climate Goals & Targets

Environmental Challenges

• Economic downturn impacting customers and communities.
• Integration activities in the U.S. impacting employee time and capacity for change.
• Difficulty recruiting employees from some diverse communities.
• Increase in customer complaints regarding mortgage prepayment charges.
• Overnight batch processing problem during integration of TD Bank.
• Few existing standards for carbon neutrality.
• Understanding the impact of a carbon-constrained economy.
• Raising awareness of environmental issues with employees.
• Stressful integration experience for U.S. employees.
• High number of senior executives eligible for retirement.

Mitigation Strategies

• Launched TD Helps program for employees and customers.
• Developed standards and procedures for renewable energy and carbon offsets.
• Upgraded environmental and social risk-management procedures.
• Launched an interactive intranet site for employees.
• Extraordinary efforts to support employees through integration.
• Build for the Future program to increase leadership capabilities.
• Increased efforts to educate employees on IRD.
• 24/7 task force to solve technical issues and refunded incurred fees.

Supply Chain Management

Responsible Procurement

• Environmental procurement program

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3

Third-party Assurance: Self-declared GRI Application Level C; externally assured by Canadian Business for Social Responsibility (C+ level)

Sustainable Products & Innovation

• Paperless banking
• Green mortgages
• Green insurance
• Sustainable investments
• TD Global Sustainability Fund

Awards & Recognition

• One of Canada’s Greenest Employers
• One of the 100 Most Sustainable Corporations in the World
• 2009 Climate Disclosure Leader
• One of Jantzi-Maclean’s 50 Most Socially Responsible Corporations
• Gold in Green Company Award for Environmental Leadership
• One of Hewitt Associates’ 50 Best Employers in Canada
• One of Maclean’s magazine’s Top 100 Employers in Canada
• Best in Customer Service Excellence among the top five banks (Synovate)
• Highest in Customer Satisfaction in the North American banking industry (SQM)
• Number one in online discount brokerage services (Surviscor)
• One of the Best Employers for New Canadians
• America’s Best Places to Work for LGBT employees
• Best Investment Advisor Firm and Best Bank (Xtra.ca)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Through the TD Forests program, TD has helped to protect 487 hectares of forest in North America in 2012.
• Initiatives to improve energy efficiency resulting in energy savings (specific figures not provided).

Social Achievements

• No substantiated complaints or incidents alleging discrimination upheld by a human rights tribunal in 2010, 2011, and 2012.
• Initiatives to support employee well-being (details not quantified).

Governance Achievements

• No incidents of environmental fines or non-compliance since TD began reporting to the GRI standard in 2007.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Responsible Procurement Policy implemented Nov 1, 2013 (screening for human rights issues)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: Null

Third-party Assurance: Ernst & Young LLP

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Responsible Banking
• Extraordinary Workplace
• Environmental Leadership
• Strengthening Communities

Environmental Achievements

• 11% decrease in GHG emissions from energy since 2008 while growing 24% in occupied space
• 100% of e-waste diverted from landfills – 90% refurbished and donated to charity
• Stopped printing over 86 million paper statements

Social Achievements

• Launched TD Mobile Deposit and TD Mobile Payment
• Provided Language Line to serve customers in over 200 languages
• Assisted 749 families in the U.S. through TD Bank’s Right Step® mortgage program
• Ranked in the top 10 U.S. banks on Checking Account Transparency
• Named “Highest in Customer Satisfaction Among the Big Five Retail Banks” by J.D. Power for the ninth year in a row
• 86% of employees say they are proud to work for TD
• 90% of employees say TD values diversity in the workplace
• Delivered Mental Health Awareness training to 1,700 employees
• Spent $88.5 million on training and development

Governance Achievements

• 108 suppliers screened against our Responsible Procurement Policy, up from 85 in 2013
• TDAM supported 150 shareholder proposals on environmental and social issues

Climate Goals & Targets

Supply Chain Management

Supplier Audits: 108

Responsible Procurement

• We use our purchasing power to drive strong ethical, social and environmental performance across our supply chain.

Climate-Related Risks & Opportunities

Awards & Recognition

• Named one of the 50 Best Employers in Canada
• Ranked #1 in North America on the Return on Disability Index
• TD Bank voted Best Place to Work for LGBT Equality

Environmental Metrics

ESG Focus Areas

• Customer Satisfaction
• Corporate Governance & Integrity
• Data Security & Privacy
• Risk Management
• Employee Health & Wellbeing
• Diversity & Inclusion
• Responsible Finance
• Financial Education
• Economic Value
• Employee Engagement
• Affordable Housing
• Climate Change
• Product Responsibility
• Eco-Efficiency
• Access to Banking
• Community Investment
• Executive Compensation
• Sourcing
• Tax Policy

Environmental Achievements

• Reduced GHG emissions (details in 2015 Appendix: ESG Data)
• Reduced paper usage (details in 2015 Appendix: ESG Data)
• Reduced water usage (details in 2015 Appendix: ESG Data)
• Improved waste diversion rates (details in 2015 Appendix: ESG Data)

Social Achievements

• Initiatives for employee health and wellbeing (details in CR Report)
• Diversity and inclusion initiatives (details in CR Report)
• Community investment (details in CR Report)
• Financial education programs (details in CR Report)

Governance Achievements

• Improved board diversity (details in CR Report and PC)
• Enhanced risk management processes (details in CR Report)
• Implementation of a whistleblower program (details in CR Report)

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Responsible Procurement Policy (details in CR Report)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4 Core

Certifications: Null

Third-party Assurance: Ernst & Young LLP (limited assurance)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Responsible Banking
• Workplace
• Environment
• Community
• Governance

Environmental Achievements

• Remained carbon-neutral
• Reduced GHG emissions by 24% since 2008 (Scope 1 and 2)
• First Canadian company to join RE100; met the 100% renewable electricity commitment
• Grew low-carbon financing portfolio by $2.6 billion in 2016, bringing the total to $10.8 billion since 2006
• Reduced paper use by 35% since 2010

Social Achievements

• Increased employee engagement index to 81%
• Reduced average global turnover to 20.08%
• Increased women in senior management in Canada to 37%
• Invested over $102 million in community programs
• Reached over 441,000 people through TD-sponsored financial education programs
• 127,888 hours volunteered by TD employees

Governance Achievements

• Maintained strong corporate governance and ethics
• 36% women on the Board of Directors
• 93% independent directors on the Board
• 100% of non-retail lending transactions screened against TD’s E&S Credit Risk Management process

Climate Goals & Targets

Environmental Challenges

• Climate change risks affecting financial services (risk models, mortgage payments, lending volumes, stranded assets, insurance claims)
• Fintech disruption requiring business transformation and digital innovation
• Increased competition in customer experience
• Sales practice concerns raised in media coverage

Mitigation Strategies

• Comprehensive long-term approach to climate change mitigation and adaptation
• Significant investments to enhance customer experience and digital innovation
• Enhanced complaint escalation process
• Review of sales practices with Board and professional services firm involvement

Supply Chain Management

Supplier Audits: 276/year

Responsible Procurement

• Responsible Procurement Policy
• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events
• Flooding

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Growth in low-carbon financing
• Development of green products and services

Reporting Standards

Frameworks Used: GRI G4

Third-party Assurance: Ernst & Young LLP

Sustainable Products & Innovation

• Green bonds
• Green insurance discounts
• Eco car financing discounts
• TD MySpend app

Awards & Recognition

• #1 in Customer Service Excellence (Canada)
• #1 in Canadian Mobile Banking
• One of World’s 50 Safest Banks
• Best Investor Relations by Sector (Financial Services)
• Best Corporate Governance

Environmental Metrics

ESG Focus Areas

• Climate Change
• Responsible Finance
• Responsible Investing
• Eco-Efficiency
• Employee Engagement
• Inclusion and Diversity
• Health and Well-being
• Strategic Philanthropy
• Community Capacity Building
• Economic Value
• Corporate Governance and Integrity
• Risk Management
• Data Security and Privacy
• Customer Experience
• Product and Service Responsibility
• Financial Access and Inclusion
• Financial Education

Environmental Achievements

• Issued US$1 billion TD Green Bond, largest ever issued by a Canadian bank
• Reduced GHG emissions by 4% (scope 1 and 2)
• Met 100% renewable electricity commitment
• Maintained carbon neutrality since 2010
• Expanded involvement in the CDP Supply Chain Program, achieving an A rating

Social Achievements

• Launched The Ready Commitment, a set of initiatives to build an inclusive tomorrow
• Donated $107 million in 2017 to support non-profits
• Invested $81.8 million in employee training
• 82% of employees reported being engaged at work
• Recognized as one of Canada’s Top 100 Employers and listed in DiversityInc’s Top 50 Companies for Diversity in the U.S.

Governance Achievements

• 36% women on the Board of Directors
• Corporate Governance Committee oversees corporate responsibility performance
• Highest-rated Canadian bank among global safest banks per Global Finance magazine

Climate Goals & Targets

Environmental Challenges

• Increased complaints in Canada due to factors including increased consumer willingness to escalate complaints and steps TD took to broaden complaint avenues
• Increased complaints in the U.S. due to expanded complaint tracking
• Managing third-party risks in the supply chain
• Addressing climate-related risks and opportunities

Mitigation Strategies

• Implemented a plan to improve sales processes and internal controls
• Reinforced Leadership messaging around integrity and TD’s Code of Conduct and Ethics
• Assessed 154 suppliers in 2017 focusing on higher-risk areas
• Developed a low-carbon strategy with a $100 billion target by 2030
• Embedded environmental considerations into TD’s Enterprise Risk Management Framework

Supply Chain Management

Supplier Audits: 154/year

Responsible Procurement

• Supplier Code of Conduct
• Enhanced due diligence for higher-risk products and services
• Supplier Diversity Program

Climate-Related Risks & Opportunities

Physical Risks

• Weather-related impacts on operations and communities

Transition Risks

• Changing climate policies
• Shifting energy trends

Opportunities

• Growth in green bonds and electric vehicles

Reporting Standards

Frameworks Used: GRI G4 Core

Certifications: ISO 14001

Third-party Assurance: Ernst & Young LLP (limited assurance)

UN Sustainable Development Goals

• Goal 4 (Quality Education)
• Goal 8 (Decent Work and Economic Growth)
• Goal 10 (Reduced Inequalities)
• Goal 11 (Sustainable Cities and Communities)
• Goal 13 (Climate Action)
• Goal 7 (Affordable and Clean Energy)

TD's initiatives align with these goals through The Ready Commitment and other programs

Sustainable Products & Innovation

• Green banking choices (paperless banking, insurance for hybrid and electric vehicles)
• TD MyAdvantage app for car insurance savings

Awards & Recognition

• IFD-FSI award for best sustainability report (4 years in a row)
• SBA Diamond Award (New Jersey)
• National Business Inclusion Consortium Best of the Best Award
• Named one of World’s 50 Safest Banks
• Best Investor Relations by Sector and Best Corporate Governance by IR Magazine Awards

Environmental Metrics

ESG Focus Areas

• Climate Change
• Social and Economic Inclusion
• Corporate Governance and Integrity

Environmental Achievements

• Maintained carbon neutral operations since 2010
• Reduced scope 1 and 2 GHG emissions by 21% relative to 2015 baselines
• Reduced energy use by 5% relative to 2015 baselines
• Reduced water use by 3% relative to 2015 baselines
• Contributed over $43 billion towards a $100 billion target for low-carbon lending, financing, asset management, and internal corporate programs by 2030 (since 2017)
• Led over $21 billion in sustainable bond underwriting since 2010

Social Achievements

• Invested $85.9 million in employee training and development
• Distributed $11.2 billion in compensation and benefits
• Provided $126 million to support non-profit organizations (up from $116 million in 2018)
• 89% of employees agreed that TD is doing the right things to make a positive impact in communities
• Over one million customers provided feedback to TD in 2019

Governance Achievements

• Continuing education program for directors includes in-depth sessions on various topics including environmental risk
• Directors periodically meet with shareholders and governance stakeholders to discuss ESG matters
• All eligible employees and directors completed Code of Conduct and Ethics training
• Established the TD Fusion Centre for cybersecurity risk management
• Enhanced governance on environmental and social risk, including climate risk, through a new E&S risk function

Climate Goals & Targets

Environmental Challenges

• Climate change identified as a top and emerging risk, including extreme weather events, shifts in climate norms, and risks associated with the transition to a low-carbon economy
• Data security and privacy threats

Mitigation Strategies

• Developing standardized methodologies and approaches for climate scenario analysis
• Embedding the assessment of climate-related risks and opportunities into relevant bank processes
• Formalization of a new E&S risk management function under Operational Risk Management
• Establishment of the TD Fusion Centre for cybersecurity
• Enhanced Employee Phishing Awareness Program and Cyber Immersion Conference for executives
• Implementation of email authentication capabilities to block illegitimate emails

Supply Chain Management

Supplier Audits: 197 suppliers assessed in 2019

Responsible Procurement

• Supplier Code of Conduct updated in 2019 to include human rights expectations and encouragement of diversely owned companies

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products and services, growth of renewable energy sources

Reporting Standards

Frameworks Used: GRI Standards, SASB

Third-party Assurance: Ernst & Young LLP (EY)

Sustainable Products & Innovation

• Green bonds
• ECO financing for hybrid and electric vehicles
• Digital banking options
• Paperless banking

Awards & Recognition

• Listed on the Dow Jones Sustainability World Index
• Included in the Bloomberg Gender-Equality Index
• A- rating on CDP disclosure
• Best ESG Reporting in Canada by IR Magazine
• Numerous other awards listed on page 63

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Financial Inclusion
• Community Development
• Environmental Sustainability

Environmental Achievements

• Planted over 700 trees in Miami as part of the Growing Green Playgrounds program.
• Awarded US$400,000 in TD Green Space Grants to support green infrastructure in twenty communities.
• Launched a North American internal employee engagement challenge focused on environmental actions.
• Strategic relationship with Rocky Mountain Institute's Center for Climate-Aligned Finance to accelerate the transition to a sustainable energy platform.

Social Achievements

• Supported over 90 Black History Month events.
• Awarded US$4.9 million in grants to 32 non-profit organizations for affordable housing.
• Donated $225,000 to Friends of Ruby Home, a transitional housing facility for LGBTQ2+ youth.
• Donated $500,000 to Mount Allison University to establish the TD Entrepreneurial Thinking Incubator program.
• Donated $150,000 to NSCAD University for a financial literacy program for creative entrepreneurs.
• Supported multiple virtual events celebrating Lunar New Year and East Asian communities.
• Supported the TD Incubator for Creative Entrepreneurship and the TD Indigenous Songwriter Award.
• Donated US$80,000 to Mary's Centre to scale up their Centering Pregnancy initiative.
• Donated US$100,000 to Advent Health for a pilot initiative focused on Long Haul COVID-19 survivors.
• Contributed $1 million to the MS Society of Canada to support the development of an AI Intervention for multiple sclerosis.

Governance Achievements

• Released 2020 TD Ready Commitment Report, 2020 ESG Report, and 2020 Managing Climate-Related Risks and Opportunities Report.
• Created an ESG Centre of Expertise and a measurement plan to track ESG targets.
• Mobilized teams to embed responsible business practices.

Climate Goals & Targets

Environmental Challenges

• Ongoing uncertainties from the pandemic and continued social injustice.

Mitigation Strategies

• Leaning on philanthropy, business, and people to drive change.
• Implementing a measurement plan to track ESG targets.
• Embedding responsible business practices.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• A rating for the 2020 CDP Supplier Engagement Rating
• Best Diversity Employer 2021 (14th consecutive year)
• Best ESG Report in Canada (3rd year in a row)
• Top spot in the "Financials & Real Estate category" from IR Magazine
• America’s Best Employers For Diversity 2021 (Forbes)
• Canada's Greenest Employers 2021 (13th consecutive year)
• Canada's Best Workplaces (16th consecutive year)
• #2 on LinkedIn's Top Companies in Canada list

Environmental Metrics

ESG Focus Areas

• Climate Change
• Responsible Resource Use
• Financial Inclusion
• Economic Inclusion
• ESG Business Integration

Environmental Achievements

• Announced an interim target for operational emissions to achieve a 25% absolute reduction in greenhouse gas (GHG) emissions from operations (Scope 1 and 2) by 2025, relative to a 2019 baseline.
• Developed a customized methodology for setting Scope 3 financed emissions targets and set Scope 3 targets for the Energy and Power Generation sectors to be met by 2030.
• Set a target to hold $15 to $20 billion in green, social, sustainability, and pandemic bonds in the Treasury investment portfolio by the end of 2025.
• Achieved over $86 billion of a $100 billion low-carbon economy target through low-carbon lending, financing, asset management, and internal corporate programs in the last four years.
• Deployed a record $30 billion in 2021 to support the low-carbon economy.

Social Achievements

• Announced a US$100 million equity fund in support of minority-owned small businesses in the U.S., with US$25 million earmarked for Black- and Latinx-owned small businesses.
• Invested over $125 million to support non-profit organizations across its footprint, including through the TD Ready Commitment.
• Made a broader and longer-term commitment to increase women in roles titled vice president and above in Canada to 45% by the end of 2025.
• Established an Asian Community Segment Strategy to understand and support the needs of the Asian community in Canada.
• Launched TD Essential Banking, a low-cost deposit account in the U.S. designed to meet the needs of unbanked or underbanked households.

Governance Achievements

• Formally established the ESG Centre of Expertise to coordinate and streamline ESG efforts.
• Introduced regular ESG education sessions with the Board of Directors and Senior Executive Team (SET) and incorporated ESG metrics into the SET compensation plan.
• Developed a climate risk inventory to identify the impacts of climate change on TD, its assets, and clients.
• Developed a heatmapping framework to support physical and transition climate risk identification and assessment.
• Established an ESG Credit Risk team responsible for identifying, assessing, and mitigating the impact of ESG and climate change-related risks on TD’s credit portfolio.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its uneven economic recovery.
• Acts of hate against Indigenous, Asian, and Black communities.
• Climate change and its physical and transition risks.
• Increasing stakeholder focus on thermal coal.
• Growing need for standardized ESG reporting.

Mitigation Strategies

• Provided essential support to customers, colleagues, and communities through various initiatives.
• Condemned racism and invested in initiatives to combat it.
• Developed a Climate Action Plan with interim targets and a Roadmap to achieve net-zero emissions by 2050.
• Developed a customized methodology for setting Scope 3 financed emissions targets.
• Joined the Net-Zero Banking Alliance and other initiatives to collaborate on climate action.

Supply Chain Management

Supplier Audits: In-depth review of branded merchandise suppliers, third-party audits for social issues.

Responsible Procurement

• Supplier Code of Conduct
• Responsible Sourcing Due Diligence Guidelines for TD-Branded Merchandise Vendors
• TD Carbon Supply Chain Program

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products and services, cleantech investments.

Reporting Standards

Frameworks Used: GRI Standards (Core option), GRI Financial Services Sector Disclosure, SASB

Third-party Assurance: Ernst & Young (EY)

Sustainable Products & Innovation

• Green, social, and sustainability bonds; sustainability-linked loans; ESG-oriented investment funds; TD Essential Banking; Environmental Lending Program; ECO program for hybrid and electric vehicles.

Awards & Recognition

• Listed on the Dow Jones Sustainability World Index, Bloomberg Gender-Equality Index, S&P Global Silver Class distinction, Canada’s Greenest Employers, World’s Best Employers, Best Workplaces, Corporation of the Year, Leading Disability Employer, America’s Best Employers for Diversity, Canada’s Top 100 Employers, Best ESG Report in Canada.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity and Inclusion
• Financial Access and Inclusion
• Talent Attraction, Development and Retention
• Sustainable Finance
• Colleague Health and Well-being
• Community Well-being
• Corporate Governance
• Data Privacy
• Data Security
• Environmental and Social Governance and Risk Management
• Ethics and Integrity
• Human Rights

Environmental Achievements

• Expanded the disclosure of our Scope 3 financed emissions footprint to include the automotive, shipping, aviation, industrials and agricultural sectors
• Disclosed our financed emissions footprint for additional asset classes, including consumer auto loans and residential mortgages
• Set two new interim 2030 Scope 3 financed emissions targets for the transportation industry, covering the automotive manufacturing and aviation sectors
• Announced a $10 million investment by TD Securities in the Nature Conservancy of Canada’s work to conserve nearly 1,500 square kilometres of boreal forest in Northern Ontario
• Achieved carbon neutrality across our operations and maintained it throughout 2022
• Reduced Scope 1 and 2 GHG emissions by 24.6% from 2019 baseline

Social Achievements

• Continued to build on our history of working to further financial and economic inclusion by developing TD Pathways to Economic Inclusion
• Delivered on our commitment to double the representation of Black executives (VP and above) at TD in North America by the end of 2022
• Provided financial support for Black entrepreneurs, funded in part by TD’s $10 million, five-year commitment to the Black Opportunity Fund (BOF)
• Reached more than 230,000 participants through TD-funded initiatives in Canada and the U.S. that helped support entrepreneurs and build skills for the jobs of tomorrow
• Leveraged the skills of our people to deliver TD-supported financial literacy initiatives to more than 339,000 people across Canada and the U.S.
• Built or refurbished over 6,200 units of affordable housing through TD community development loans and donations in Canada and the U.S.
• Introduced a new TD Home Access Mortgage, designed to increase home ownership opportunities in Black and Hispanic communities in the U.S.

Governance Achievements

• Continued to educate Board of Directors and Senior Executive Team (SET) on ESG-related topics
• Formalized key sustainability and ESG risk teams with the appointment of new executive leadership for Enterprise Decarbonization and Enterprise Sustainable Finance teams, and aligning ESG risk teams under the leadership of the newly created role of Senior Vice President, ESG Risk Management
• Continued to embed ESG across our organization and integrate ESG considerations into our business strategy, risk management and decision-making
• Participated in industry working groups and pilots to standardize methodologies and approaches for climate risk identification, assessment and measurement
• 100% of eligible employees completed the Code of Conduct and Ethics training

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Evolving phishing tactics
• Climate-related risks, such as extreme weather events
• Managing climate risk in our portfolio and helping customers respond to natural disasters
• Transitioning to a low-carbon economy may have consequences, such as changing the demand for jobs in traditional energy sectors

Mitigation Strategies

• Developed alternative sourcing strategies
• Provided training to help colleagues recognize the signs of social engineering activities, including phishing
• Implemented updates to increase the effectiveness of TD’s training programs
• Introduced an ongoing enterprise-wide communication campaign about phishing best practices
• Provided temporary relief to affected customers by providing mortgage payment deferrals, as well as FlexLine payment deferrals
• Activated the TD Helps program across Atlantic Canada
• Committed $200,000 to support the Canadian Red Cross in its humanitarian efforts
• Enhanced its Real Estate Secured Lending disaster assistance plan to offer customers six months of payment forbearance relief
• Announced a US$500,000 contribution to support local relief efforts aiding people and communities affected by Hurricane Ian
• Through our philanthropy, we support workers and communities affected by the transition to a low-carbon economy

Supply Chain Management

Supplier Audits: 232 suppliers engaged in CDP Supply Chain Program, 67% responded

Responsible Procurement

• Supplier Code of Conduct
• ESG considerations integrated into sourcing process

Climate-Related Risks & Opportunities

Physical Risks

• extreme weather events

Transition Risks

• regulatory changes, market shifts

Opportunities

• development of energy-efficient products
• support for clients in the low-carbon transition

Reporting Standards

Frameworks Used: GRI Standards (2021), SASB

Third-party Assurance: Ernst & Young LLP (EY), London Benchmarking Group (LBG)

Sustainable Products & Innovation

• TD Home Access Mortgage
• TD Emerald Low Carbon Global Equity Index Non-Taxable Investor Pooled Fund Trust

Awards & Recognition

• Dow Jones Sustainability World Index
• Bloomberg Gender-Equality Index
• S&P Global ESG Score distinction
• Canada’s Greenest Employers
• Green Lease Leader
• Canada’s Most Admired™ Corporate Cultures
• Best WorkplacesTM in Financial Services and Insurance
• Best Workplaces in Canada
• Forbes: Canada’s Best Employers for Diversity
• America’s Best Employers for Diversity
• America’s Best Employers for Veterans
• Leading Disability Employer
• Canada’s Top 100 Employers
• Greater Toronto’s Top Employers
• Canada’s Best Diversity Employers
• 100 Best Companies
• Best Companies for Dads
• Top Companies for Executive Women
• Best Company for Multicultural Women
• DiversityInc’s Top 50 Companies for Diversity
• Best Consumer Digital Bank in North America

Environmental Metrics

ESG Focus Areas

• Climate Change
• Nature and Biodiversity
• Sustainable Finance
• Economic Inclusion (Employment Access, Financial Access, Housing Access)
• Governance

Environmental Achievements

• Reduced water use by 15.5% relative to 2015 baseline
• Achieved 28% reduction in absolute reduction in location-based Scope 1 and 2 GHG emissions from our operations relative to a 2019 baseline
• Expanded the calculation of Scope 3 financed emissions footprint and enhanced tools for monitoring financed emissions and progress toward targets
• Advanced climate risk identification and measurement processes and developed an enterprise climate data strategy

Social Achievements

• Disclosed five new targets for TD Pathways to Economic Inclusion (employment access, financial access, housing access)
• Launched Black Entrepreneur Credit Access Program in Canada
• Introduced TD Clear, a no-interest, subscription-based credit card in the U.S.
• TD-funded initiatives helped over 230,000 participants build skills
• Financial literacy initiatives reached over 339,000 people in Canada
• Introduced TD Home Access Mortgage in the U.S. to increase homeownership access

Governance Achievements

• Continued integrating sustainability considerations into business strategy, risk management, and decision-making
• Proactively monitored and consulted on industry, regulatory, and legislative developments to promote harmonization of ESG disclosure requirements
• Women comprise 44% of the Board of Directors
• 94% of Directors are independent
• 56% of Board members self-identified as a visible minority, Indigenous person, 2SLGBTQ+, or person with a disability

Climate Goals & Targets

Environmental Challenges

• Rising inflation and interest rates causing financial and emotional stress
• Evolving phishing tactics
• Customer concerns and rising interest rates impacting mortgage-related complaints
• Devastating wildfires across Canada
• Methodological differences between targets and limited emissions data availability hindering accurate quantification of sustainable finance activities' impact on financed emissions

Mitigation Strategies

• Introduced a $500 billion by 2030 Sustainable & Decarbonization Finance Target
• Announced five new targets for TD Pathways to Economic Inclusion
• Enhanced colleague phishing simulations to mirror evolving threat actor tactics
• Provided financial assistance to wildfire-affected customers through TD Helps program and made donations to support recovery efforts
• Expanded and enhanced calculation of financed emissions footprint, developed monitoring tools, and advanced climate risk identification and measurement processes

Supply Chain Management

Supplier Audits: All new and renewed suppliers attest to operating in accordance with Supplier Code of Conduct since November 2019; participation in CDP Supply Chain Program

Responsible Procurement

• Supplier Code of Conduct
• Supplier diversity program

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding
• Wildfires

Transition Risks

• Regulatory changes
• Market shifts
• Changes in demand for jobs in traditional energy sectors

Opportunities

• Development of energy-efficient products
• Sustainable finance opportunities

Reporting Standards

Frameworks Used: GRI Standards (2021), SASB

Third-party Assurance: Ernst & Young LLP (EY) - limited assurance on select social and environmental indicators; reasonable assurance on use of net proceeds from 2021 Green Bond issuance

Sustainable Products & Innovation

• TD Clear credit card
• TD Home Access Mortgage
• First Home Savings Account
• Credit cards made with 90% recycled plastic

Awards & Recognition

• S&P Global Sustainability Yearbook Member
• Dow Jones Sustainability North America Index
• Euromoney's Best Bank for Corporate Responsibility in North America
• Canada’s Greenest Employers
• Great Place to Work®