APPENDIX: ESG Performance Data

Transcription

1 APPENDIX: ESG Performance Data

2 Contents ABOUT DETAILED ENVIRONMENTAL PERFORMANCE ECO-EFFICIENCY Greenhouse Gas Emissions Energy Consumption Greenhouse Gas Emissions by Transportation Mode 4 Waste 4 Water 5 Paper 5 Green Buildings 6 LEED Certified Workspace 6 GREEN PRODUCTS 7 Paperless Banking 7 Lending for Small-Scale Projects 7 Insurance for Hybrid and Electric Vehicles 7 Financing for Hybrid and Electric Vehicles 7 TD Green Bond Use of Proceeds 8 RESPONSIBLE FINANCE 8 Lending Deals Reviewed by Sector 8 Deals Declined 9 Employee Engagement 9 DETAILED SOCIAL PERFORMANCE 0 Legendary Customer Experience 0 Customer Problem Resolution 0 WORKPLACE Profile Employee Engagement Scores Pulse Survey Results Employee Turnover Training and Development Workforce Diversity at TD Work-Related Injuries COMMUNITY 4 Corporate Giving Totals 4 Taxes Borne by TD Bank Group 4 Responsible Procurement 5 GOVERNANCE 5 Governance Key Statistics 5

3 ABOUT This Appendix provides a summary of quantitative Environmental, Social and Governance (ESG) performance data that supports TD s 06 Corporate Responsibility disclosure. It is intended to be a helpful reference for ESG analysts. While numbers tell an important story for corporate responsibility, it is not always the whole story. We encourage you to read the 06 Corporate Responsibility Report for a more complete picture of TD s business, the context in which we operate, and our strategic direction on key ESG material topics. Note: Throughout this report, TD or the bank refers to TD Bank Group. TD Bank refers to TD Bank, America s Most Convenient Bank. All currency is in Canadian dollars unless otherwise noted. All material restatements and significant changes from the previous report are described in the performance data footnotes. This report presents the impacts of our activities during the fiscal year ending October, 06

4 Facts and figures over which Ernst & Young LLP provided limited level assurance Facts and figures over which Ernst & Young LLP provided reasonable level assurance DETAILED ENVIRONMENTAL PERFORMANCE ECO-EFFICIENCY Greenhouse Gas Emissions,, Scope & (location based) Units Scope 4 tonnes CO e 47,50 55,557 57,8 Scope (location based) 5 tonnes CO e,645 50,064 66,68 Total scope & (location based) tonnes CO e 78,796 05,6 4,49 GHG emission intensity (per square foot) kg CO e/sq ft GHG emission intensity (per millions in revenue) tonnes CO e/millions of dollars Scope & (market based) 6 Scope 4 tonnes CO e 47,50 55,557 57,8 Scope (market based) 6,7 tonnes CO e 5,958 8,796 5,85 Total scope & (market based) tonnes CO e 5,08 64,5,664 GHG emission intensity (per square foot) kg CO e/sq ft GHG emission intensity (per millions in revenue) tonnes CO e/millions of dollars Scope 8 Purchased goods and services tonnes CO e 47,86 N/A 8 N/A 8 Capital goods tonnes CO e 87,87 N/A 8 N/A 8 Fuel and energy-related activities tonnes CO e 7,57 4,07 N/A 8 Business travel tonnes CO e 8,94 6,56 0,76 Downstream leased assets tonnes CO e,60,659,6 Scope & by country (location based) Scope 4 tonnes CO e 6,8 9,608,9 Scope (location based) 5 tonnes CO e 4,070 5,484 9,64 Total tonnes CO e 67,5 8,09 9,57 Scope 4 tonnes CO e 0,687 5,550 5,469 Scope (location based) 5 tonnes CO e 89,785 97,064 05,477 Total tonnes CO e 0,47,64 0,946 International Scope 4 tonnes CO e Scope (location based) 5 tonnes CO e 790,56,50 Total International tonnes CO e 97,94,9 Total scope & (location based) tonnes CO e 78,796 05,6 4,49 In 06, Scope,, and emissions were restated for all years to reflect new emission factors and updated assumptions regarding chilled water efficiency, radiative forcing, and scope boundaries. This has resulted in 9% increase in Scope and emissions, and a 5% decrease in Scope emissions from travel and downstream leases. Click here for TD s 06 carbon-neutral schedule. For further details see accompanying notes. 4 Scope emissions include direct emissions from heating and cooling, leased aircraft and corporate fleet. 5 Scope emissions include indirect emissions from electricity, heating and cooling. 6 In accordance with the GHG Protocol s Scope Guidance, TD reports both location-based and market based scope figure. In calculating scope emissions from electricity, location-based scope uses grid emission factors, while market based scope uses the emission factors associated with our renewable energy credit (REC) purchases. Location based scope will be used for the purposes of setting targets and tracking emissions. 7 Emissions in market based scope are attributed to steam and chilled water. 8 In 06, TD expanded scope reporting to include purchased goods and services, capital goods, and energy and fuel-related activities. Data is not available for prior years.

5 Energy Consumption Energy consumption by location Units Electricity GJ,94,47,5,968,45,6 Natural gas GJ 98,974 44,77 494,04 Other (steam, heating oil, propane, diesel, chilled water) GJ 70,896 8,87 96,6 Total GJ,764,4,858,6,96,567 Electricity GJ 856,99 894,874 88,688 Natural gas GJ 4,0 85,4 6,68 Other (steam, heating oil, propane, diesel, chilled water) GJ 5,566 64,60 6,075 Total GJ,,606,44,898,07,9 International Electricity GJ 7,54,97,9 Natural gas GJ,884 4,457 4,457 Other (steam, heating oil, propane, diesel, chilled water) GJ 454,009,009 Total International GJ 9,879 9,48 9,98 Total energy consumption GJ,896,87,,968,6,895 Energy intensity (per square foot) GJ/sq ft Energy intensity (per millions in revenue) GJ/millions of dollars

6 Greenhouse Gas Emissions by Transportation Mode Detailed emissions breakdown Units Air travel tonnes CO e 7,95 6,67 8,095 Automobile travel tonnes CO e,90,97 4,558 Rail travel tonnes CO e Total tonnes CO e 0,865 0,67, Air travel tonnes CO e 4,466 4,95 4,66 Automobile travel tonnes CO e 0,864 0,84,679 Rail travel tonnes CO e Total tonnes CO e 5,7 5,5 7,40 Total North America tonnes CO e 6,6 5,77 0,55 Distance travelled (kms) Air travel km 56,555,06 50,06,44 58,979,79 Automobile travel km 4,80,8 6,46,50 7,74,09 Rail travel km,06,4,5,56,00,8 Total km 7,46,6 67,877,490 78,554,8 Air travel km 4,779,7,57,7,9,44 Automobile travel km 40,808,450 4,847,488 49,49,066 Rail travel km 476,0 45, ,799 Total km 8,06,646 75,87,060 8,06,009 Total North America km 56,56,88 4,748,550 6,760,45 In 06, travel emissions were restated to reflect updated emission factors, as well as updated assumptions on the radiative forcing factor. Air travel includes commercial air, chartered aircraft and leased aircraft. Automobile travel includes corporate fleet, car rental and personal vehicles used for employee business travel. Waste Waste North America Units Waste to landfill (trash) tonnes 0,66 0,79 9,5 Waste diverted from landfill Recycled paper (paper shred), tonnes,799 0,69,6 Other recycled waste 4 tonnes,87,84,0 E-waste tonnes Total waste generated (landfill & recycled) tonnes 7,8 5,8,65 Waste diversion metrics % waste diverted from landfill 5 % 44% 46% 9% % e-waste diverted from landfill % 00% 00% 00% Represents approximately 5% of our facilities in 06, 5% in 05, and 49% in 04. Represents approximately 87% of our facilities in 06, 86% in 05, and 8% in 04. In 06, the 05 recycled paper figure was restated due to availability of improved data. 4 Represents approximately 75% of our facilities for 06, 7% in 05, and 7% in % waste diversion is calculated using the total waste generated across sites with all three of the following waste streams reported: Waste to landfill, recycled paper, and other recycled waste. E-waste is not included in this diversion metric. This represents 9% of our facilities in 06, 0% in 05, and 4% in 04. 4

7 Water Water consumption Units m 64,6 5,609 4,79 m 964,95 975,65 966,006 Total m,9,06,,44,07,798 Represents approximately 45% of our facilities in 06, 44% in 05, and 45% in 04. Represents approximately 79% of our facilities in 06, 74% in 05, and 59% in 04. Represents approximately 57% of our facilities in 06, 59 % in 05, and 5% in 04. Paper Paper by type Units Statements and envelopes tonnes,48,68,8 5,064 Commercial print tonnes,757 4,86 5,59 4,974 Office paper tonnes,46,660,57,0 Forms tonnes,458,5,75,99 Total paper tonnes 9,800,689,78 5,59 Recycled content Total % post-consumer recycled content % % % % Certified sustainable Total % certified (FSC/SFI) % 84% 85% 84% The paper data that was known and available to management was used in determining the paper use figures; however, the bank was not able to substantiate all paper that may have been purchased through alternative suppliers or printers. 00 data excludes TD Auto Finance, which was acquired by TD Bank Group in April 0, as the data is not available and cannot be reasonably estimated for these years. DEFINITIONS OF PAPER Paper TD s paper purchases include statements and envelopes, commercial print, office paper and forms that are purchased through formal material contracts and/or vendors. Office paper copy paper that goes into multi-functional devices for printing and copying purposes. Commercial print paper used for external mass communications and marketing (e.g. annual reports, prospectuses, brochures, posters, start kit/information folders). Statements and envelopes paper used for bank reports, customer statements and all envelopes. Forms mass-produced standard paper instruments used on an enterprise-wide basis for information transfer by clients, suppliers and bank employees (e.g., passbooks, letterheads, cheques, applications, customer or transactional change forms, signature cards, receipts, business cards and other general banking forms). 5

8 Green Buildings Details on TD LEED projects by building type and country. Retail Corporate Canadian Retail Canadian Corporate Locations Sq ft Locations Sq ft Locations Sq ft Locations Sq ft Platinum 6,098 58,74 80,000 Gold 86,8 7,88 Silver 8 8,697 Certified 4,9,56 6, Platinum Gold 7, ,598 0,60 Silver 4 7,78 5,60 Certified 05 Platinum 5,487,89 Gold 76,9 0,67 Silver 8,60 Certified 6, Platinum Gold 6 5,49 Silver 7,6 Certified 6,6 Total (007-06) Platinum 6,098 58,74 5,487 8,89 Gold 46 54, ,46,75 Silver 8 6,07 5,60 Certified 4,556,56 4,8 In 06, TD LEED project data for prior years were restated due to improved tracking and reporting capabilities. LEED Certified Workspace Unit TD LEED certified workspace % 5.% 4.8% 4.4% Total LEED certified workspace % 8.0% 7.4% N/A TD owned LEED certifications only. TD owned & landlord owned LEED certifications. In 04, the 0 percentage of TD LEED certified workspace was restated to reflect refined sq ft estimates. 6

9 GREEN PRODUCTS Paperless Banking Units % accounts opting for paperless statements (TDCT ) % 64% 4% 9% Number of online statement accounts (TDCT ) millions of accounts Paper statements stopped (TDCT ) millions of statements Paper documents stopped (TD Wealth) millions of statements % accounts opting for paperless statements % 56% 55% 5% Number of online statement accounts millions of accounts.8..8 Paper statements stopped millions of statements TDCT: TD Trust. Lending for Small-Scale Projects Lending for small-scale renewable projects Units Number of loans number of loans 87 9 Dollar value of loans millions of dollars $. $.4 $6.8 Estimated kwh generated from the program kwh 995,657,057,886,09,600 Estimated GHG reduction tonnes CO e Lending for small-scale energy efficiency projects Number of loans number of loans 96,084,05 Dollar value of loans millions of dollars $.4 $.8 $8. In 05, estimated kwh generated and estimated GHG reductions were restated to reflect an updated conversion factor representing the dollar investment per kw of capacity. Insurance for Hybrid and Electric Vehicles Units Number of active hybrid and electric vehicle discounts number of discounts 7,777 6,605 5,57 GHG reduction by TD Auto Insurance customers tonnes CO e 7,68 7,60 6,45 Estimated reduction in GHG emissions by TD Auto Insurance customers through the use of hybrid and electric vehicles. Financing for Hybrid and Electric Vehicles Eco Program (financing at a preferred rate) Units Dollars financed millions of dollars..7 Number of deals number of deals 0 4 GHG reduction by TD Auto Finance customers tonnes CO e 54 HEV Financing (full program) Dollars financed millions of dollars $4. $7.5 Number of deals # deals,5,8 GHG reduction by TD Auto Finance customers Tonnes CO e,49,875 Estimated reduction in GHG emissions by TD Auto Finance customers through the use of Hybrid and Electric vehicles. 7

10 TD Green Bond Use of Proceeds as at October, 06 Category TD Green Bond criteria Allocated amount,,4 (millions of dollars) Annual energy reduced/ avoided (MWh Annual GHG emissions reduced/avoided (tonnes CO e) Natural capital value ($) Hydroelectric Solar power Wind energy Building efficiency Transportation efficiency Sustainable waste management Construction and operation of hydro (run-ofriver hydro <5 MW) Development, construction and operation of solar energy facilities Development, construction and operation of wind energy facilities Green buildings (new buildings and retrofits to existing building) to achieve LEED Platinum certification Retrofit or replace fleets and invest in public transportation, clean fuel technology, electric vehicles, etc. Improvements in minimization, collection, recycling, storage and disposal, and composting $7. 5, N/A $7.5 4, $9,0 $58.9 8,000 9 $4,967 $4. 8,66,79 $46,664 $0. N/A 5,64 $,67,95 $40.9 N/A 6 N/A 5 N/A 5 Total $ ,78 6,95 $,4,756 Examples of projects funded by the TD Green Bond, visit TD Green Bond Use of Proceeds. Includes financing or refinancing of existing and/or future projects including the committed amount of loans financed or refinanced. For more information on the basis of allocating the use of proceeds, visit the TD Green Bond Term Sheet for Investors. 4 Visit the 06 Assurance Report from Ernst &Young LLP. 5 Impact metrics cannot be quantified at this time due to data limitations. 6 Metric not applicable. 7 TD received cash proceeds of $498.8 million net of agency fees. RESPONSIBLE FINANCE Lending Deals Reviewed by Sector Environmental & social risk reviews by sector 06 Sector Number of reviews Percentage Forest products 6% Mining 0 9% Oil and gas, pipelines 84 56% Power and utilities 58 8% Real estate 0 6% Other 5 5% Total reviews 8 00% Sectors included: chemicals, industrial and trade contractors, metals, sundry manufacturing and wholesale, and transportation. 8

11 Of the 8 deals reviewed, 87 transactions were subjected to enhanced sector-specific due diligence. E&S risk enhanced due diligence reviews by sector 06 Sector Number of reviews Percentage Forestry 7% Mining 0 % Oil and gas, pipelines 84 64% Thermal power 5 8% Total enhanced due diligence 87 00% Project finance transactions assessed under the Equator Principles Number of Transactions Sector Region EP Category Mining Infrastructure Americas A 0 0 Oil and gas Power Others Total 0 0 In 06, TD's only equator principles project was the Dakota Access Pipeline. See TD's 06 Equator Principles Reporting for further details TD did not have any qualifying Equator Projects in 05. Deals Declined Unit Number of deals declined under the Environmental and Social Credit Risk Management Process # deals Employee Engagement Unit Green Nation number of users,6 0,780,56 Carbon savings from acts pledged tonnes CO e 9,94 7,649 8,775 Number of Green Teams number Percentage of employees agree that TD is a leader on the environment % 87% 87% 87% Cumulative figures. 9

12 DETAILED SOCIAL PERFORMANCE Legendary Customer Experience Objective 05 Results 06 Results (target in brackets) Progress 07 Target Deliver legendary customer service Legendary Experience Index TD Composite Score 46.4% 45.% (46.5%) 4.8 Met On track Did not meet In 07 the calculation for the TD Bank Group composite score was modified to account for the TD Trust Branch Banking weight change and TD Trust Business Banking inclusion. Results in 07 will not be comparable and the target reflects this adjustment. Customer Problem Resolution Number of problems referred to Branch Banking Customer Care 7,7 6,447 6,80 Number of customers who contacted the TD Office of the Ombudsman 4,,9,086 Number of complaints requiring investigation by TD Office of the Ombudsman Percentage of problems resolved by TD Ombudsman within 90 days (target 90%) 95% 98% 99% Problems investigated by the OBSI and ADR Chambers Banking Ombuds Office Total number of problems referred to the Chairman s Service Center 8,6 8,596 7,900 Percentage of escalated customer problems resolved by the Chairman s Service Center within designated service level agreements (target 98%) 98% 98% 98% As of 05, general insurance complaints are now included in this number. 0

13 WORKPLACE PROFILE Number of Employees Employee Age Profile Employees by Region,057 International 04 87,06 % > 50 Years 0% < 0 Years 59, , ,950 49% 0 50 Years 7,494 Employee Engagement Scores Employee Engagement TD Objective 05 Results 06 Results (target in brackets) Progress 07 Target Provide a great place to work Increase Employee Engagement Index 8% 8% (increase year over year) 8% Reduce average global turnover.4% 0.08% (reduce year over year) Reduce year over year EEI is our measure of overall engagement and is calculated using the average response (on a scale of one to five) to three questions. See table on next page. Met On track Did not meet Pulse Survey Results Selected questions (% positive) EEI Composite: My work gives me a personal feeling of accomplishment. 8% 80% 8% I plan to be with TD one year from now. 84% 84% 85% I am proud to say I work for TD. 85% 85% 86% Percentage of respondents who agreed or strongly agreed with the statement

14 Employee Turnover (%) Average global turnover rate 0.08%.4% 8.40% Voluntary.84% 0.95% 9.6% Involuntary % 4.95%.65% Retirement.%.48%.4% Total 7.56% 7.8% 4.% 5 Voluntary 8.4%.6% 0.% Involuntary 4 6.4% 7.% 7.0% Retirement 0.57% 0.68% 0.59% Total.5% 0.4% 7.7% According to a comparison of the Big 5 Banks in, conducted by PWC in 05, the average voluntary turnover rate was.5%. Source is a syndicated survey where all banks are measured using common criteria. McLagen Report: Retail Banking Pay Practices 0, p. Syndicated survey comparing turnover at banks. A voluntary exit from TD occurs when the employee chooses to leave TD. 4 An involuntary exit from TD occurs when employment is terminated. 5 Data includes TD employees who reside in the, a broader employee pool than TD Bank America s Most Convenient Bank; excludes TD Wholesale Bank. Training & Development (Global) Investment in training (millions of dollars) $8.8 $8.4 $88.5 Investment in training (dollars) per employee $85 $877 $969 Amount employees received through TD s Tuition Assistance for external learning (millions of dollars) $6.4 $0.5 $.7 Average number of days of training..7. Average hours of training per: Executive People manager 4 0 Employee (non-manager) Includes the courses available through TD s Learning Management System as well as external courses, certificates and accreditations. An average day is considered eight hours for employees and 7.5 for all other employees. Excludes training hours tracked outside of TD s Learning Management System (LMS) because the data is not available and cannot be reasonably estimated. 4 Executive includes TD job levels Assistant Vice President and above. People Manager includes an employee who has one or more direct reports. Employee (non-manager) includes an employee who does not have any direct reports. 5 The increase in training figures can be attributed to a number of new elearning modules distributed to Executives to support leadership practices and organizational changes.

15 Workforce Diversity at TD () Labour Market Availability Women Overall 5.6% 58.0% 59.6% 60.% Senior management 7.% 5.7%.7% Middle and other management 4 44.% 45.0% 46.5% Visible Minorities 5 Overall 4.7% 9.% 7.9% 9.5% Senior management 4.7%.7%.% Middle and other management 4.6% 9.7% 6.% Indigenous Peoples 5 Overall.%.%.%.% Senior management.7% 0.9%.4% Middle and other management 4 0.9% 0.9% 0.9% People With Disabilities 5 Overall 5.7% 5.9% 5.9% 6.% Senior management 5.0% 5.8% 6.4% Middle and other management 4 5.6% 5.% 6.% Includes all Canadian businesses and full-time and part-time employees. Data from 05 and 06 are based on internal reporting and definitions. Previous years represent the amounts reported to the Canadian federal government. Labour Market Availability based on 0 Census of. Senior Management includes TD job levels Vice President and above who have signing authority. 4 The category of middle and other management as determined by the Canadian federal government for employment equity reporting: middle and other managers receive instructions from senior managers and administer the organization s policy and operations through subordinate managers or supervisors. Refer to the Human Resources and Skills Development (HRSDC) website for more information. 5 Data is voluntarily disclosed by employees. Work-Related Injuries Minor injuries 55 (0.4%) 9 (0.%) (0.9%) Disabling injuries 48 (0.5%) 07 (0.9%) 0 (0.%) Employee days absent beyond day of injury 4,667,569,6 Fatalities due to work-related accidents Medical/report only claims filed through workers compensation Indemnity claims filed through workers compensation Employee days absent beyond day of injury,4,8,85 Fatalities due to work-related accidents Figures in parentheses indicate accident statistics as a percentage of our workforce in the country noted, as at the end of the calendar year. Injuries that are treatable in the workplace, with no time lost beyond the day of injury. Injuries that result in lost time in the workplace on any day following the injury for each of the years shown. 4 Number and severity of disabling accidents increased in 06 due to an increase in time lost in the categories of slips/trips/falls, robberies and medically related incidents. Some other accident categories decreased in number of days absent compared to Workers compensation claims below $,500 or any claim that requires no payment or activity other than generating a report.

16 COMMUNITY Corporate Giving Totals: Performance Trends: Corporate Giving (millions of Canadian dollars) (millions of dollars) Total (millions of Canadian dollars) Breakdown of Our Giving by Focus Area 4.9% Financial Education 0.% Financial Education 4.% Other.6% Environment 4.9% Other 8.% Creating Opportunities for Young People.% Environment 5.6% Affordable Housing All amounts converted into Canadian dollars using Bank of exchange rates. Beyond the countries listed in the table, TD does not make donations in other countries where we operate due to TD having a very small market presence in those regions. The total giving amounts reported do not include in-kind donations, program management costs (i.e., salaries of the community relations team), marketing sponsorships, employee donations or the value of hours volunteered by employees. For the total value of our contributions, please refer to the summary provided by London Benchmarking Group, which performs an annual independent audit of our community investment. Includes $5.8 million (US$9.) from the TD Charitable Foundation. Taxes Borne by TD Bank Group (in millions of dollars) Income taxes,4,5,5 Payroll taxes for over 84,000 employees across 6 countries Transaction and sales taxes Capital and insurance premium taxes Property and business taxes Total,478,75,70 Effective income tax rate reported 0.% 6.6% 6.7% Effective income tax rate adjusted for tax credits.9% 9.8% 9.5% Effective total tax rate 9.0% 6.5% 6.% Effective total tax rate adjusted for tax credits.4% 9.% 8.8% The Net Income Before Tax is adjusted for expenses (amortization, impairment, gain on sale) booked to pre-tax relating to the investment in Low Income Housing Tax Credit and New Markets Tax Credit. The calculation of effective total tax rate is revised to increase Net Income Before Tax by the payroll taxes, transaction and sales taxes, capital and insurance premium taxes, property and business taxes because those taxes are deducted in the calculation of Net Income Before Tax. 4

17 Responsible Procurement Number of suppliers who improved their own policies and procedures in response to our review Health and safety 5 Ethical Environmental 8 Human rights and labour code Number of contracts withdrawn as a result of non-compliance with the Responsible Procurement Policy 0 Percentage of invited suppliers who agreed to participate in our responsible procurement survey (76 in total) 00% GOVERNANCE Governance Key Statistics TD s Board of Directors: (Information as of 07 Proxy Circular Dated February, 07) Number of independent Board members Chair and CEO are separate Board oversight of corporate responsibility Yes Yes Number of meetings (for the -month period ending October, 06) Full Board 0 Corporate Governance Committee 4 Risk Committee 9 Audit Committee 8 Human Resources Committee 6 Average annual Board attendance in 06 97% Board diversity % female independent directors 8% % female of all directors 6% % visible minority directors 4% % independent directors 9% Shareholders who voted in favour of the bank s approach to compensation 95% 5