But critics say the bank, and others, have far more to do to protect the environment and achieve their ambitious net-zero targets
TD Bank Group has committed to a global climate action plan including setting a target to slash its greenhouse gas emissions.
The group says that it aims to achieve net-zero greenhouse gas (GHG) emissions associated with its operations and financing activities by 2050, aligned to the principles of the Paris Agreement.
TD recently launched its first Sustainability Bond as part of its ESG aims.
"Climate change is a critical environmental and business challenge and will require significant effort over the long term to help economies transition successfully to the low-carbon future," said Bharat Masrani, Group President and CEO, TD Bank Group. "TD's climate action plan builds on a long history of environmental leadership and positions the Bank as a central player in the work needed to enable sustainable growth for our customers and clients, the communities we serve and the economies we support."
The banking group says that it will not provide new project-specific financial services, including advisory services, for activities that are directly related to the exploration, development, or production of oil and gas within the Arctic Circle, including the Arctic National Wildlife Refuge (ANWR). This area is seeing significant warming compared to other regions.
TD Securities sustainability group
As part of the commitment, TD Securities has established a Sustainable Finance and Corporate Transitions Group.
Led by Amy West, global head of sustainable finance and corporate transactions, the new group will provide clients worldwide with advisory services to support their sustainability-focused financing goals.
"Across all industries, leadership teams are seeking trusted advice to navigate the challenges and realize the opportunities of the climate-driven changes taking place in our economy," said Bob Dorrance, Chairman, CEO and President, TD Securities. "The newly established Sustainable Finance and Corporate Transitions Group will be central to our efforts as we work together with clients to support their transition plans through ESG-related advice, financing and affiliated products."
More to be done
TD’s announcement has been met with criticism from Adam Scott, director of Shift Action for Pension Wealth & Planet Health.
He says that it’s “encouraging” to see TD, along with BMO and RBC, recognizing how limiting access for fossil fuel financing can benefit the climate crisis, the commitment does not go far enough.
Scott questions why limiting access to fossil fuel financing only covers one region and says that TD – along with its peers – will have to strengthen policies to achieve the net-zero target announced.
“Canadian financial institutions like banks, pension funds, insurers and asset managers will all need to stop financing all fossil fuel projects if they intend to achieve their stated net-zero goals,” he said.
