Boston, March 11, 2025 – TD Bank Group, the second-largest Canadian banking company, has agreed to evaluate its net-zero climate emissions goal in governance reviews and clarify the climate expertise on its board. TD committed to these measures in exchange for Green Century°, Investors for Paris Compliance, and Vancity Investment Management withdrawing a recently filed proposal.
The proposal requested an independent review of TD’s board governance policies and director selection criteria with the aim of improving climate risk management and advancing progress toward the bank’s net-zero goal.
“Banks have a key role to play in the transition to an economy powered by clean energy,” said Green Century Funds President Leslie Samuelrich. “We applaud TD’s moves to better address climate risk and show investors that the company is taking its net-zero goals seriously.”
The Significance of Board-Level Climate Expertise and Oversight
TD’s actions align with calls from investors for companies to show how they plan to meet their net-zero commitments. Because getting to net-zero climate emissions requires businesses to navigate new challenges, incorporating climate expertise at the highest level of corporate decision-making is one critical way companies can show investors they’re up to the task.
In 2024, Green Century co-filed a resolution pressing TD for more information on how it would meet its climate emissions reduction goals. That proposal earned 28.8% of the shareholder vote, indicating strong interest from investors in the topic and laying the groundwork for this year’s dialogue with the company.
“TD setting a net-zero target was an important initial step toward addressing its contribution to climate change,” said Giovanna Eichner, a shareholder advocate at Green Century. “We commend the company for now making sure the board is equipped to implement that net-zero goal and more effectively manage climate risk in the years to come.”
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°Green Century Capital Management, Inc. (Green Century) is the investment advisor to the Green Century Funds (the Funds).
The Green Century Funds are a family of fossil fuel-free, environmentally responsible mutual funds. Green Century Capital Management hosts an award-winning and in-house shareholder advocacy program and is the only mutual fund company in the U.S. wholly owned by environmental and public health nonprofit organizations.
*As of December 31, 2024, Toronto Dominion Bank comprised 0.00%, 0.00%, and 2.17% of Green Century Balanced Fund, the Green Century Equity Fund, and the Green Century International Index Fund respectively. As of the same date, other securities mentioned were not held in the portfolios of any of the Green Century Funds. References to specific securities, which will change due to ongoing management of the Funds, should not be construed as a recommendation by the Funds, their administrator, or their distributor.
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