TD outlines continued progress on sustainability goals in 2023 Sustainability Reporting Suite

TORONTO, March 14, 2024 /CNW/ - Today, TD Bank Group (TD or the Bank) provided updates on its sustainability strategy and continuing efforts to help its customers, communities and colleagues thrive in a changing world.

"In the last year, people have felt the stress of higher costs of living, alongside the growing effects of climate change," said Janice Farrell Jones, SVP of Sustainability and Corporate Citizenship. "As a financial institution and corporate citizen, TD has a role to play in supporting our customers and communities through these times while contributing to efforts to build a more sustainable and inclusive future. The updates shared in our Sustainability Reporting Suite highlight the ways we're taking action to help drive sustainable value creation for our customers and our communities."

As part of its commitment to helping customers and communities thrive, TD made continued progress under its Climate Action Plan, which serves as the Bank's Transition Plan. TD has expanded and enhanced the calculation of its Scope 3 financed emissions footprint, and enhanced tools for monitoring financed emissions and progress toward targets. In addition, TD shared an update on progress toward its Sustainable & Decarbonization Finance Target, reporting a total of $69.5 billion in eligible business activities in 2023. The Bank also shared that it exceeded its 50% client engagement goal for two initial sectors – energy and power generation, where efforts have been led by TD Securities – in 2023, and disclosed a new, extended goal of 75% for 2024.

In advancing on the Bank's sustainability goals and role as a corporate citizen, TD continued to deepen its contributions to financial and economic inclusion. To guide efforts and support progress toward TD Pathways to Economic Inclusion, TD disclosed five new targets. Under financial access, TD has set US and Canadian small business lending targets and a North American financial education target. Under housing access, the Bank has set a North American affordable housing financing target and a US home lending target. The two US targets come from the recently launched Community Impact Plan. Through the 2023 TD Ready Challenge, TD also awarded $10 million in grants toward innovative solutions that address barriers to affordable housing.

Across the board, TD's commitment to sustainability and inclusion flows from its purpose: to enrich the lives of its customers, communities and colleagues. Over the past 30 years, the Bank's engagement has spanned serving as one of the founders of the First Nations Bank of Canada to being the first major Canadian bank to set a 2050 net-zero goal for emissions from its operations and financing activities. The work done by TD in 2023 continues that engagement.

Additional highlights from the 2023 Sustainability Reporting Suite include:  

• A US$500 million three-year green bond issued in December 2023, led by a syndicate of underwriters including minority-, women- and veteran-owned enterprises. This is the Bank's fourth green bond issuance
• A total contribution in 2023 of $157 million to support non-profit and community organizations, contributing to the Bank's target of $1 billion in philanthropy by 2030

More details can be found in the 2023 Sustainability Report , the 2023 Climate Action Plan Report and the 2023 TD Ready Commitment Report, which form the Bank's 2023 Sustainability Reporting Suite.

About TD Bank Group 

The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Group ("TD" or the "Bank"). TD is the sixth largest bank in North America by assets and serves over 27.5 million customers in four key businesses operating in a number of locations in financial centres around the globe: Canadian Personal and Commercial Banking, including TD Canada Trust and TD Auto Finance Canada; U.S. Retail, including TD Bank, America's Most Convenient Bank®, TD Auto Finance U.S., TD Wealth (U.S.), and an investment in The Charles Schwab Corporation; Wealth Management and Insurance, including TD Wealth (Canada), TD Direct Investing, and TD Insurance; and Wholesale Banking, including TD Securities and TD Cowen. TD also ranks among the world's leading online financial services firms, with more than 17 million active online and mobile customers. TD had $1.91 trillion in assets on January 31, 2024. The Toronto-Dominion Bank trades under the symbol "TD" on the Toronto and New York Stock Exchanges.

Caution Regarding Forward-Looking Statements 

From time to time, The Toronto-Dominion Bank and its subsidiaries, collectively known as TD Bank Group ("TD" or "the Bank"), make written and/or oral forward-looking statements, including in this document, in other filings 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 regarding the Bank's economic and sustainability (environmental, decarbonization and social)-related objectives, vision, commitments, goals, metrics and targets, including the Bank's net-zero and greenhouse gas (GHG) emissions reduction targets, its position on thermal coal, its Sustainable & Decarbonization Finance Target, its goals and targets pursuant to the Bank's social framework TD Pathways to Economic Inclusion, and its other sustainability-related goals. 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 stakeholders in understanding the Bank's vision, objectives, metrics and targets as well as its economic and sustainability-related objectives and impacts and may not be appropriate for other purposes.

Forward-looking statements can be identified by words such as "anticipate", "believe", "could", "estimate", "expect", "forecast", "goal", "intend", "may", "outlook", "plan", "possible", "potential", "predict", "project", "should", "target", "will", and "would" and similar expressions or variations thereof, or the negative thereof, but these terms are not the exclusive means of identifying such statements.

By their very nature, forward-looking statements require the Bank to make assumptions and are subject to inherent risks and uncertainties, general and specific. Especially in light of the uncertainty related to the physical, financial, economic, political, and regulatory environments, such risks and uncertainties – many of which are beyond the Bank's control and the effects of which can be difficult to predict – may cause actual results to differ materially from the expectations expressed in the forward-looking statements. In particular, because of the limitations and uncertainties inherent in climate science, risk analysis and reporting, the Bank has relied upon various market practices, taxonomies, methodologies, criteria and standards, and made reasonable approximations and assumptions, in establishing its sustainability-related goals. However, there are many factors that the Bank may not foresee or be able to accurately predict which may impact the Bank's ability to achieve its sustainability-related goals or otherwise achieve the results anticipated by such forward-looking statements. Those factors include the absence of a standardized taxonomy regarding sustainability-related terms (including in meaning and scope), the absence of standardized methodologies for classifying sustainability-related activities or for evaluating their impact, the availability of comprehensive and high-quality data (including from the Bank's clients on whom the Bank may be required to rely for information), the assumptions underlying third-party decarbonization scenarios, economic trends (including changes in interest rates), fluctuations in the Bank's clients' enterprise values, the applicable domestic and international regulatory regimes, the need for active and continuing participation of stakeholders (including enterprises, financial institutions and governmental and non-governmental organizations), the development and deployment of new technologies and production methods, border measures, and the availability of sector-specific solutions, among other unforeseen events or conditions. Additional information regarding the assumptions, risks and uncertainties underlying the Bank's forward-looking statements can be found in the "Risk Factors and Management" section of the Bank's 2023 Management's Discussion and Analysis, as may be updated in subsequently filed quarterly reports to shareholders, which may be found on http://www.td.com. These and other factors may cause actual results to differ materially from the Bank's expectations and may result in the Bank modifying its forward-looking statements, including its sustainability-related goals.

All such factors, as well as other uncertainties and potential events, and the inherent uncertainty of forward-looking statements, should be considered carefully when making decisions with respect to the Bank. The Bank cautions readers not to place undue reliance on the Bank's forward-looking statements.

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 by law.

Additional Caution Regarding Sustainability-Related Disclosures

The Bank also cautions readers of the following regarding the sustainability-related disclosures included in this document:

• The terms "sustainability", "sustainable investing", "sustainable finance", "ESG", "carbon neutral", "decarbonization", "net-zero" and similar terms, taxonomies, methodologies, criteria and standards are evolving in terms of both meaning and scope. As a result, the Bank's use of such terms may vary over time to reflect such evolution. Any references to such terms in this document are intended as references to the internally defined criteria of the Bank and not to any jurisdiction-specific regulatory definition or voluntary standard that may exist.
• The Bank has assumed continued growth in its clients' investments in and expenditures on sustainability activities (including environmental, decarbonization and social activities) in light of regulatory, policy, economic, technological, climatic and other trends. The Bank has also assumed ordinary rates of growth and development of the Bank's business, including in its lending, financing, underwriting and advisory services, in its own investments, in all sectors, in its ownership and control of subsidiaries and in its geographic footprint (including through relocations, mergers, acquisitions, or dispositions). If any of these assumptions prove incorrect, it could have a material effect on the Bank's sustainability-related goals and the Bank's ability to meet them.
• There could be changes to the market practices, taxonomies, methodologies, criteria and standards that regulators, non-governmental bodies, the financial sector, civil society, the Bank and its clients use to classify, measure, determine the eligibility of, report on and verify financial transactions and environmental, decarbonization and social activities for inclusion toward the Bank's sustainability-related goals, or to evaluate the impact of such activities. And in some cases, these market practices, taxonomies, methodologies, criteria and standards may not yet exist. The Bank may update its sustainability-related goals, its progress toward those goals, and the eligibility of certain transactions and activities, as appropriate, in light of new and evolving market practices, taxonomies, methodologies, criteria and standards.
• In making and implementing its sustainability-related goals, the Bank must rely on data obtained from clients and other third-party sources. The Bank's use of third-party data must not be taken as an endorsement of the third-party or its data or be construed as granting any form of intellectual property. Although the Bank believes these sources are reliable, the Bank has not independently verified any third-party data, or assessed the assumptions underlying such data, and cannot guarantee the accuracy of such third-party data or assumptions. The data used by the Bank in connection with its sustainability-related goals, including to evaluate clients' intended use of capital, may be limited in quality, unavailable, or inconsistent across sectors. Certain third-party data may also change over time as market practices, taxonomies, methodologies, criteria and standards evolve. These factors and related uncertainties could have a material effect on the Bank's sustainability-related goals and the Bank's ability to meet them.
• The Bank and its clients may need to or elect to purchase carbon and clean energy instruments, including carbon offset and removal credits and renewable energy credits, to meet sustainability-related goals. The market for these instruments is still developing and their availability may be limited. Some of these instruments are also subject to the risk of invalidation or reversal, and the Bank provides no assurance of the treatment of any such instruments in the future. There may also be changes to applicable regulations and standards that impact the market for carbon and clean energy instruments. The maturity, liquidity and economics of this market may make it more difficult for the Bank to achieve its sustainability-related goals.
• Except as otherwise noted, the information contained in this document is unaudited. Ernst & Young LLP ("EY") has performed a limited assurance engagement for a select number of the Bank's sustainability performance indicators, as set out in EY's 2023 Assurance Report for Sustainability Metrics, and a reasonable assurance engagement for the Bank's use of net proceeds from its 2021 Green Bond issuance, as set out in EY's 2023 Assurance Report for TD Green Bond (2021) Issuance – Use of Proceeds. The remainder of the information contained in this document was not subject to any assurance engagement. You can read more about the scope of EY's work in the Assurance Reports hyperlinked above.

Additional Disclaimers

This document is intended to provide information from a different perspective and in more detail than is required to be included in mandatory securities filings, and the information contained herein should not be read as necessarily rising to the level of materiality of disclosure required in our securities law filings.

This document should not be used as a basis for trading in securities of the Bank or for any other investment decision. This document is not intended to constitute financial, legal, tax, investment, professional or expert advice. No representation or warranty, express or implied, is or will be made in relation to the accuracy, reliability or completeness of the information contained in this document.

This document may provide addresses of, or contain hyperlinks to, websites that are not owned or controlled by the Bank. Each such address or hyperlink is provided solely for the recipient's convenience, and the content of linked third-party websites is not in any way included or incorporated by reference into this document. The Bank takes no responsibility for such websites or their content, or for any loss or damage that may arise from their use. If you decide to access any of the third-party websites linked to this document, you do so at your own risk and subject to the terms and conditions of such websites.

SOURCE TD Bank Group

Vandana Kattar, Senior Manager, Corporate and Public Affairs, TD Bank Group, [email protected]