TD Bank Group announced today its first set of sector-specific interim financed emissions reduction targets, unveiling 2030 goals for the energy and power generation sectors. The new commitments were released with the publication of a new paper detailing the bank’s climate action plan methodology, along with its ESG reporting suite.
Financing activities typically make up the vast majority of financial institutions’ climate impact, with financed emissions often hundreds of times greater than operational emissions. TD stated that it chose to prioritize the Energy and Power Generation sectors as they are significant greenhouse gas (GHG) emitters, and also are positioned to be contributors to the transformation of the global energy supply towards low carbon sources.
Norie Campbell, Group Head and General Counsel, TD, and Chair of the Bank’s ESG Senior Executive Forum, said:
“As one of the largest banks in North America, we can play a critical role in helping to create a more inclusive and sustainable future. This is core to our purpose as an organization and while not new to us, as we confront the pressing challenges presented by climate change, the importance of this work is amplified. Our interim Scope 3 targets represent a significant step forward, turning our commitments into action to support the ambitious climate goals we have set.”
TD’s new goals include a reduction in 2030 emissions from its Energy portfolio, which includes clients involved in the exploration, transportation, and refining of oil and gas, as well as clients involved in thermal coal mining, and low carbon fuels and technologies, and a 58% reduction in financed emissions from client in the Power Generation sector.
The new interim goals form part of TD’s strategy to achieve net zero emissions across its operations and finance activities by 2050. TD launched its global climate action plan, including its net zero commitments in 2020, and the bank has joined several organizations focused on measuring and reducing financed emissions including the Partnership for Carbon Accounting Financials (PCAF), the Net Zero Banking Alliance (NZBA), and RMI’s Center for Climate-Aligned Finance.
Janice Farrell Jones, SVP, Sustainability and Corporate Citizenship, TD, said:
“We will make an impact and drive progress toward net zero, both in our own operations and by supporting our clients as they work to reduce their emissions. Contributing to a more sustainable future isn’t just the right thing to do, it’s the right foundation for future growth, for TD and for the broader economy—and tackling climate change is central to this. Our interim Scope 3 targets represent our next phase of progress in our Climate Action Plan.”
In its paper detailing its climate action plan, TD said that it intends to set targets for additional sectors, and that it expects to expand its target setting methodologies beyond its lending and capital markets financing activities, to cover additional business activities over time.
Riaz Ahmed, President and CEO, TD Securities, said:
“Across our businesses, TD is a trusted partner and advisor to our clients as they advance their transition plans. We’re focused on engaging with our clients to develop and implement holistic ideas and solutions that help them capture the opportunities of the low-carbon economy to help ensure they are well-positioned for the future.”
Click here to access TD’s paper “Advancing Our Climate Action Plan.”