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Society

Social Performance

DMA

We strive to make a positive impact where we do business and where our customers and employees live and work. For us, that means contributing to the social and economic development of our communities in meaningful, long-lasting and innovative ways.

Our success as a company depends on the well-being of the communities we serve, and we believe in playing an active role in their development, whether it be volunteering or providing community investment. While there are many worthy causes to support, focusing our efforts on our key priorities allows TD to maximize our contribution and impact.

TD’s giving priorities were chosen based on research that included customer and employee feedback, as well as insight on where TD could be most effective in creating positive change within our local communities. For the last decade we have used strategic philanthropy to guide TD’s giving to focus on four priority areas:

Financial literacy and education;
The environment;
Creating opportunities for young people in Canada;
Affordable housing in the U.S.

Public Policy
In all jurisdictions where TD operates, we take an interest in major public policy issues that may have an impact on our business, communities and society. These include issues identified in our annual materiality analysis, such as tax reform, access to banking, affordable housing and adapting to a changing climate. Operating in a highly regulated industry, TD is especially affected by changes in financial services regulations and policies, and we are naturally concerned about building a healthy, sustainable financial marketplace.

We are committed to being transparent about our public policy interactions and political contributions, with all of our activities guided by TD’s Code of Conduct and Ethics and Anti-Bribery and Anti-Corruption Policy.

More Information:

TD’s Community Strategy
Ethics and Integrity (CR Report page 109)
Public Policy (CR Report page 96)

SO 1

Nature, scope, and effectiveness of any programs and practices that assess and manage the impacts of operations on communities, including entering, operating, and exiting.

SO 2

Percentage and total number of business units analyzed for risks related to corruption.

SO 3

Percentage of employees trained in organization's anti-corruption policies and procedures.

SO 4

Actions taken in response to incidents of corruption.

SO 5

Public policy positions and participation in public policy development and lobbying.

Public Policy
TD engages in public policy matters in a variety of ways:

We monitor government activity, upcoming legislation and regulatory developments to keep abreast of relevant issues.
We dialogue with elected officials, public servants, regulators and advocacy organizations to educate them on TD’s viewpoints.
We participate in relevant policy development processes (e.g., public/industry consultations) by offering constructive ideas and expertise, with the aim of shaping sound policy solutions.

Government Relations in Canada
In Canada, TD’s Government Relations group coordinates the bank’s dialogue with politicians and public servants, as well as many of the bank’s relationships with industry associations and other advocacy organizations; for example, TD works with the Canadian Bankers Association on banking-specific issues and the Toronto Financial Services Alliance on broader economic and financial sector matters. TD’s Regulatory Relations group coordinates the bank’s contact with both Canadian regulators and regulators in foreign jurisdictions other than the U.S.

The majority of TD’s interactions take place with the federal government, which has jurisdiction over all banking activities and many other financial services. TD complies with all federal lobbyist-reporting requirements and reports all of its activities to the Office of the Commissioner of Lobbying, as required. Our activities at the provincial and municipal levels follow all of the rules and/or reporting requirements that exist for these jurisdictions.

TD played an important and constructive role in the Basel III discussions with both the Basel Committee on Banking Supervision and OSFI. The Bank maintained a continuous dialogue throughout the consultative period with regulators, both on a bilateral basis and through the Canadian Banker’s Association. The dialogue contained important feedback on Basel III’s potential impact on the Canadian banking industry as well on the overall macro economy. TD’s participation in the Basel III discussions helped lead to the implementation of more balanced capital rules than those that were originally proposed.

Government Relations in the U.S.
In the U.S., the Regulatory and Government Affairs team manages the bank’s contact with regulators, elected officials and other government employees at the federal, state and local levels. In addition, the team coordinates the bank’s relationships with trade associations, such as the American Bankers Association and the Financial Services Roundtable.

TD Bank complies with all reporting requirements related to its interactions with government officials and with all other laws, rules and regulations that govern such interactions. We have a comprehensive Gifts and Entertainment Policy that prohibits gifts of any kind from bank employees and directors to U.S. government officials, and we provide in-depth ethics training to employees who interact with government officials.

More information:

Key Public Policy Positions in 2013 (PDF)

SO 6

Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country.

Political Contributions

Canada and U.K.
In 2013, TD‘s political contributions were minimal in Canada and nil in the U.K. In Canada, TD donated to both ruling and official opposition parties in the provinces that allow corporate donations. Currently, five provinces do not allow political donations; nor are they permitted at the federal level. Our contributions have no political bias, are all on public record and can be accessed at the websites of provincial election offices.

2013 Political Contributions in Canada
	2013	2012	2011
Provincial	$174,450	$173,620	$204,150
There were no contributions at the Federal or Municipal levels.

U.S.
Federal law in the U.S. prohibits national banks from making political contributions to candidates for federal, state or local office. Contributions are allowed, however, from separate segregated funds established by national banks and other corporations. Such funds are known as political action committees or PACs. There are more than 4,600 active PACs in the U.S.

TD Bank has a federal political action committee, established in August 2011,that allows eligible, interested employees to make voluntary personal donations to candidates for federal office who support a strong financial services sector and sound economic policies. TD PAC is non-partisan and funded solely by voluntary contributions from eligible TD employees, facilitated through a voluntary payroll deduction system established by TD Bank.

All contributions from the PAC to federal candidates are reported to the Federal Election Commission and are a matter of public record. Employee contributions to TD PAC that aggregate to $200 or more each year are reported as part of the public record. More information about TD PAC may be found on the FEC database. A board of directors operating according to its articles of association governs TD PAC. This ensures accountability for proper administration and operation of the PAC and reflects the importance of and TD’s commitment to strong governance.

During 2013, TD PAC contributed $46,760 to 32 House and Senate candidates of both major political parties and two financial services industry federal PACs. TD PAC makes political contributions that are allowed by federal law and that are consistent with the bank’s strict guidelines for public policy activities and advocacy. No contributions are made to gain an unfair or inappropriate advantage. TD Bank does not independently advocate the election or defeat of specific candidates for federal office.

SO 7

Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes.

Compliance Incident Reporting	2013	2012	2011
Total number of legal actions for anti-competitive behaviour, anti-trust and monopoly practices. ¹	1 ²	0	0

¹ Actions that potentially exceed $25 million in damages and/or legal costs.
² A single family of matters consisting of several related actions.

SO 8

Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations.

Compliance Incident Reporting	2013	2012	2011
Monetary value of significant fines ¹	0²	0	0
Total number of non-monetary sanctions for non-compliance with laws and regulations (in millions).	0	0	0

¹ We determine a significant fine to be $1 million or over and related to incidents that are of a regulatory nature. Penalties of an administrative nature are not considered material.
² Although not fines or sanctions, TD Bank N.A. paid civil monetary penalties in the aggregate amount of US$52.5 million to the Securities and Exchange Commission, the Office of the Comptroller of the Currency, and the Financial Crimes Enforcement Network to settle investigations relating to the Rothstein fraud.

SO 9

Operations with significant potential or actual negative impacts on local communities.

SO 10

Prevention and mitigation measures implemented in operations with significant potential or actual negative impacts on local communities.

Society

Social Performance

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