Toronto-Dominion (TD) Bank has set targets for reducing the emissions intensity of lending to two high-emitting sectors, energy and power generation.
It is targeting a 29% reduction in “financed emissions lending intensity” in the energy sector and a 58% reduction in power generation by 2030, both relative to its 2019 baseline.
The financed emissions are those of the companies to which the bank provides and facilitates capital.
The latest interim targets support the bank’s journey towards cutting emissions from its operations by 25% by 2025 and achieving net zero emissions by 2050.
TD intends to use a “client-engagement centred approach” to support its clients in their low carbon transition, recognising that a significant upscaling of renewable energy in these sectors and in downstream sectors, such as industry and transport, is necessary for the decarbonisation of the broader economy.
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 organisation 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.”