Over $500 billion AUM presses bank on transition policy
(February 5, 2024; Toronto, ON) A group of investors representing more than $500 billion in assets under management have filed a shareholder proposal requesting that TD provide more specifics regarding its climate transition plan following a year where the bank significantly lagged on environmental performance.
The proposal has been filed by Investors for Paris Compliance, Nomura Asset Management UK, AP Pension, Vancity Asset Management, and Green Century Capital, and largely reprises a proposal filed last year that received 23.5% support with a further 5.4% abstaining for a total of 28.9% of votes breaking with management.
“Unfortunately, we’ve seen little progress by TD changing its day to day practices to reduce its financed emissions, and evidence that it’s actually going in the wrong direction,” said Kyra Bell-Pasht, Director of Research and Policy with Investors for Paris Compliance.
TD has not scored well on the most recent independent assessments of global banks. For example:
- According to BloombergNEF, TD ranked #100 out of 100 global banks assessed for its low-carbon financing ratio.
- According to the last Banking on Climate Chaos report, TD had the largest jump in fossil fuel financing of any bank in the world in 2022, adding US$7.31 billion, up 33.7%.
- According to the investor-led Transition Plan Initiative, TD’s scored just 4% on its decarbonization measures.
“It is significant that Nomura Asset Management UK has joined as a co-filer as this is our first ever climate-related resolution filing,” said Alex Rowe, Portfolio Manager Nomura Asset Management UK. “We decided to join because we believe this issue is material to the ongoing value of TD Bank and that shareholders have a right to understand how banks will be changing their business model to meet their important net zero targets.”
Should the proposal go to a vote, results will be known at TD’s annual general meeting on April 18.
