November 22, 2024, Toronto, Ontario – Today, in light of governance concerns at TD Bank, including its money laundering scandal and stalled progress on its net zero commitment, Investors for Paris Compliance, along with Green Century Capital Management, Nomura Asset Management UK, and Vancity Investment Management, have filed a shareholder resolution requesting an independent review of TD’s governance processes, including its board nomination policies.
“In light of the bank’s recently exposed governance failures, we are looking for board accountability and renewal, including that new board members are properly qualified to manage major risks and opportunities.” said Kyra Bell-Pasht, of Investors for Paris Compliance.
On money laundering, while TD has said “we take full responsibility,” there has not been an explanation about how the board’s Audit Committee failed to prevent the scandal when it had oversight of relevant systems. While the current CEO will be replaced at the next AGM, to date no board members have indicated they will be resigning to take responsibility.
On Net Zero, TD Fares Poorly
On net zero, TD fares poorly in a series of independent assessments, and the board is yet to respond to two years of about a quarter of its shareholders expressing concern about its net zero plans. TD currently has three directors – Claude Mongeau, S. Jane Rowe, and Nancy Tower – who also serve as directors of fossil fuel companies. A fourth, Brian Ferguson, is an ex-CEO of a fossil fuel company. No TD director has experience with climate solutions.
Alex Rowe, of Nomura Asset Management UK, with over €500 billion in AUM, explained their decision to co-file again, this time with an escalated focus on governance:
“In Europe, there is increasing pressure for us to fulfill our own net zero commitments, which means escalating engagements with companies in our portfolio that are failing to progress on their net zero commitments, like TD.”
Giovanna Eichner of Green Century Capital Management, explained:
“As one of the longest-standing sustainable asset managers in North America, we have long understood the value proposition of considering externalities. This is why we want to ensure TD Bank has leadership in place to foresee and manage key existing and emerging risks.”
Morrigan Simpson-Marran/ Kelly Hirsch, of Vancity Investment Management explained that:
“Our members have made it clear that short-term profits are less important than long-term economic stability and the health of our planet. That is why we encourage companies in our investment portfolio to progress on their net zero commitments. We are now looking for assurance that TD leadership is up to the task.”
Investors for Paris Compliance works with investors to hold Canadian publicly traded companies accountable to their net zero promises.