Economic Performance
Performance Indicators
| DMA | Economic |
TD’s strategy is to produce long-term, profitable growth by building great franchises and delivering value to our Customers, Shareholders and Communities. We aim to build a company that will deliver shareholder value over the long term and leave a sustainable organization for the future. We are mindful that TD can only be as successful as the communities in which we operate, and that brings a particular responsibility to help strengthen those communities.
As a major employer, purchaser, taxpayer and financial services provider, TD’s role in the economy is extensive. The most direct contribution comes through maintaining a strong business with solid earnings, which allows us to pay employees and suppliers, contribute taxes to government revenues and provide dividends to our shareholders.
More information:
- Economic performance: Financial Results Overview, AR pages 12-13
- Market presence: AR pages 22-24
- Indirect economic impacts: TD's economic contribution, CR page 94
| EC 1 | Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments. | F |
The global numbers above help tell the story of TD Bank Group’s direct value, but we wanted to explore TD’s indirect contribution to the economy. As our methodology is based on modeling from Statistics Canada, the analysis below refers only to Canada.
Analysis from TD Economics:
TD helps support the Canadian economy and job market through direct and indirect channels. The direct channels reflect TD’s actual hiring and spending. TD pumped $5.7 billion into the economy via its purchases of goods and services. If part-time positions are combined into their full-time equivalent, TD employed a total of 57,000 Canadians and paid $7.6 billion in salaries and benefits. TD also provided shareholders with $2.6 billion in cash dividends.
TD also positively contributes to the Canadian economy through indirect channels. First, part of the salaries and dividends gets spent within Canada, generating demand for Canadian businesses. TD’s spending also generated knock-on effects, which would have led to increased economic activity and hiring among other industries.
Over all, it is estimated that in 2013 TD helped support a total of 109,587 full-time equivalent jobs and generated $12.3 billion in economic activity within Canada, both directly and indirectly.
Sources: TD Bank Group 2013 Annual Report and Statistics Canada.
| EC 2 | Financial implications and other risks and opportunities for the organization's activities due to climate change. | F |
Business Continuity
TD’s Business Continuity Management (BCM) Group manages operational risk at TD and routinely undertakes scenario testing and simulations to assess the potential impact of a range of natural events such as hurricanes, earthquakes, tornadoes, flooding and severe weather. We assess the impact on TD assets, clients, employees and our overall ability to continue conducting business. In 2013, our BCM Group began broadening and deepening its understanding of natural events directly affected by climate change and their potential impact on our business.
Understanding the Impacts of a Changing Climate
Weather-related impacts vary in nature and potential significance across North America by region. TD Insurance is involved in a number of industry initiatives aimed at helping us understand the potential impacts on our customers and on our own facilities. Examples of specific activities include:
- The Insurance Bureau of Canada Adaptation to Climate Change Committee;
- Membership and participation in the Advisory Committee of the Institute for Catastrophic Loss Reduction;
- Sponsorship of and membership on of the board of the Alberta Severe Weather Management Society (Alberta hail seeding); and
- Our sponsorship of the Atmospheric and Environmental Research (AER) Emerging Risk research program.
Assessment of Carbon and Water Risk
As a carbon-neutral bank, we understand and manage our impacts and activities relating to climate change. We track the exposure of our financing activities by assessing the carbon and water sensitivity of our lending portfolio and undertaking management planning to protect the continuity of our business operations from climate-related crises.
| Environmental Sensitivity Risk by Sector | ||
|---|---|---|
| Carbon-related risk | Water-related risk | |
| Low Risk | Residential & personal, residential real estate, financial, government & public sector, professional services, health & social services, media, entertainment, retail, telecommunications | |
| Moderate Risk | Non-residential real estate, agriculture, automotive, food & beverage, industrial construction, manufacturing, transportation | Non-residential real estate, automotive, chemical, industrial construction, manufacturing |
| High Risk | Chemical, forestry, mining, oil & gas, pipelines, power & utilities | Agriculture, food & beverage, forestry, metals & mining, pipelines, oil & gas, power & utilities |
Carbon-Related Risk
We define carbon risk as risk driven by changes in carbon-related regulation, resource constraints and the changing climate within our financing activities to carbon-intensive industries.
Water-Related Risk
We define water-related risk based on the potential economic and environmental impacts of changing patterns of precipitation and of exposure to flooding, drought or extreme storm events caused by climate change. We track our exposure to sectors that are water-sensitive.
| EC 3 | Coverage of the organization's defined benefit plan obligations. | F |
TD’s benefit programs aim to ensure that our employees have a comprehensive safety net of essential protection in the event of death, disability or a serious illness and to help them provide for their retirement. Employees can choose from a broad range of benefits, savings and wellness programs, which vary by country, to meet their needs and those of their immediate dependents. TD’s retirement programs ensure every employee will have a retirement income.
Overview of TD’s Benefit Programs (PDF)
| EC 4 | Significant financial assistance received from government. | F |
Our ongoing objective is to make sure that TD businesses are taking on only risks they understand and can manage. And because of our disciplined approach to risk management, TD is one of the few global financial institutions that has not required significant financial government assistance.
| EC 5 | Range of ratios of standard entry level wage by gender compared to local minimum wage at significant locations of operation. | NR |
| EC 6 | Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation. | F |
In November 2012, we implemented a new Responsible Procurement Policy that embeds a wide range of sustainability criteria into TD’s sourcing practices and decisions. The new policy describes the human rights, ethical and environmental criteria and performance standards that our suppliers must meet. Prospective suppliers, involved in a sourcing initiative, are required to complete a questionnaire that encompasses their:
- Corporate responsibility performance;
- Health and safety record;
- Human rights and labour practices, including child or forced labour;
- Diversity and inclusion efforts;
- Code of conduct, ethics and anti-bribery/anti-corruption practices; and
- Environmental sustainability efforts.
+ Responsible Procurement Policy Summary (PDF)
In 2013, TD procured $5.7 billion on goods and services. Over 99% of our expenditure is with suppliers based in North America.
More information
Sourcing, CR Report pages 99-101.
| EC 7 | Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation. | P |
The large majority of TD’s employees are hired from the local population. When the opportunity or need arises, relocation of employees from other geographies typically occurs at the executive level. While we don't have specific policies about local hiring of employees or management, we do strive to make our branches and workforce reflect the communities we serve.
| EC 8 | Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement. | NR |
| EC 9 | Understanding and describing significant indirect economic impacts, including the extent of impacts. | NR |
