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TD Asset Management Inc. (TDAM) Announces Support for the Task Force on Climate-related Financial Disclosures
TD Asset Management Inc. joins more than 2,000 organizations around the world in publicly supporting the TCFD recommendations
TORONTO, June 23, 2021 /CNW/ - On June 1st 2021, TDAM declared its formal1 support for the Task Force on Climate-related Financial Disclosures (TCFD), joining more than 2,000 organizations, including TD Bank Group (TD), in demonstrating a commitment to building a more resilient financial system and safeguarding against climate risk through better disclosures.
The TCFD, chaired by Michael R. Bloomberg, founder of Bloomberg LP and Bloomberg Philanthropies, provides market participants with recommendations to address the financial impact of climate change on their business. By increasing transparency on financially material climate-related risks and opportunities the recommendations promote more informed financial decision-making by investors, lenders and others.
Supporters of the TCFD span the public and private sectors and include national governments, central banks, stock exchanges, credit rating agencies, financial organizations and private sector businesses from a variety of industries.
"TCFD provides a useful framework for companies and investors alike to understand and mitigate climate change related physical and transition risks. At TDAM, we are committed to sustainable investing and climate change is a critical piece to this commitment." – Bruce Cooper, CEO, TD Asset Management
Widespread implementation of the TCFD recommendations will provide investors, lenders and insurance underwriters with consistent and relevant information to understand the economic risks and opportunities resulting from climate change. Increased disclosures in line with the recommendations across sectors and geographies will help global markets make more efficient capital allocation decisions and adjust appropriately to the disruptive effects of global climate change.
Implementing the TCFD recommendations provides companies with:
- Easier or better access to capital by increasing investors' and lenders' confidence that climate-related risks are appropriately assessed and managed,
- Better ability to meet existing disclosure requirements by reporting material information in financial filings,
- Increased awareness and understanding of climate-related risks and opportunities, resulting in better risk management and more informed strategic planning, and
- The ability to proactively address investors' demand for climate-related information in a framework that investors are increasingly asking for.
For more information about the Task Force on Climate-related Financial Disclosures, please visit www.fsb-tcfd.org.
Creating access to sustainable investment solutions for investors is also a priority for TDAM. TDAM recently launched two new ESG-oriented mutual funds that provide unique differentiated solutions to help investors achieve their financial
goals while aligning their investments with their values to make a positive impact. TDAM recently furthered its commitment to sustainable investing through the development of the TDAM Sustainable Investment Approach, and as an institutional investor signatory to the Responsible Investment Association's investor statement on diversity and inclusion.
TD has supported the TCFD since 2018 and has released disclosure on how TD has embedded the assessment and disclosure of climate-related risks and opportunities into our governance, processes and reporting. TD is on a journey to adopt the requirements of TCFD and intends to continue in building our expertise for managing climate risks and opportunities. TD also recently became the first Canadian bank to target net-zero GHG emissions associated with its operating and financing activities by 2050, and has contributed over $56 billion of our $100 billion low-carbon economy target through our low-carbon lending, financing, asset management and internal corporate programs in the last four years.
These initiatives highlight TD's continued efforts to offer sustainable products, services and programs to its customers and clients and its commitment to contributing to a more inclusive society.
1 TDAM has integrated TCFD guidelines into its investment stewardship and engagement activities since 2018. Given continued lack of disclosure amongst companies on climate risks, TDAM deems a formal support as a necessary next step and will be issuing its own TCFD report in the coming years to demonstrate its commitment.
About TD Asset Management
TD Asset Management Inc. (TDAM), a member of TD Bank Group, is a North American investment management firm. Operating through TD Asset Management Inc. in Canada and TDAM USA Inc. in the U.S., TDAM brings new thinking to investors' most important challenges. TDAM offers investment solutions to corporations, pension funds, endowments, foundations and individual investors. Additionally, TDAM manages assets on behalf of almost 2 million retail investors and offers a broadly diversified suite of investment solutions including mutual funds, professionally managed portfolios and corporate class funds. Asset management businesses at TD manage $412 billion in assets as at March 31, 2021. Assets under management include TD Asset Management Inc., TDAM USA Inc. and Epoch Investment Partners Inc. All entities are wholly-owned subsidiaries of The Toronto-Dominion Bank.
About the Task Force on Climate-related Financial Disclosures
On December 4, 2015, the Financial Stability Board (FSB) established the industry-led Task Force on Climate-related Financial Disclosures (TCFD) with Michael R. Bloomberg as Chair. The Task Force currently has four Vice Chairs and 31 members in total. The TCFD was asked to develop voluntary, consistent climate-related financial disclosures for use by companies in providing information to lenders, insurers, investors and other stakeholders, which were published in the TCFD Recommendations Report on June 29, 2017. More information about the TCFD can be found at www.fsb-tcfd.org.
SOURCE TD Asset Management Inc.
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