TD Bank Group’s sustainable energy efficient design (SEED) branch in Mississauga is 38 per cent more energy efficient than a traditional branch.
Change often creates anxiety, and the global journey toward a low-carbon economy is no exception. "People often assume that you can either be 'green' or have a robust economy, but not both," says Karen Clarke-Whistler, chief environment officer at TD Bank Group. "But that's not true. Our research indicates that a strong economy and a healthy environment go hand in hand. In fact, the environment is creating tremendous opportunities in every segment of the economy."
The bank has become so confident in those opportunities that last year it released a $500-million, three-year institutional bond whose proceeds are being used to support the green economy in three specific areas: renewable energy, green buildings, and green infrastructure and sustainable land use. A first for a Canadian commercial bank, the green bond was an instant success, selling out almost immediately and attracting 12 new institutional investors to the bank. "This was a clear sign to us that there is a real appetite for these kinds of offerings," says Ms. Clarke-Whistler, who adds that the bank developed the understanding and expertise to put the bond together through its own internal transformational journey: since 2008, TD has reduced its GHG emissions by 11 per cent despite occupying 24 per cent more space. In addition to other initiatives, TD has 116 facilities with energy-generating solar panels.
TD Bank Group has solar panels at 116 branches and other facilities and has reduced its GHG emissions by 11 per cent since 2008 SUPPLIED
At the same time as the bank embarked on its own journey, it was "peeling away the layers of the onion," working to build understanding not just of the risks but of the opportunities inherent in the move toward a low-carbon economy, says Ms. Clarke-Whistler, adding that the opportunities are found in abundance. "As reported by TD Economics in its 'Greening of the Canadian Economy' paper issued in 2014, it's not just renewable energy; every segment of the economy is undertaking some form of green initiative, including the mining and auto industries." She lists the commercial building space as one of the unsung heroes of the green-economy revolution. "There are more LEED-certified buildings in Toronto than in any other city in Canada. Developers now realize that it's an important factor in attracting prime tenants, and tenants such as TD are demanding 'green leases.' The net impact of all this is that we are creating facilities that are dramatically more energy efficient and fostering innovation in new building materials."
The issuance of a green bond and the reduction in the size of its own carbon footprint are only part of TD's strategy for embracing and championing the new economy. Recognizing that the opportunities for economic transformation have been under-represented in public discourse, which tends to focus on climate science and pricing mechanisms, the bank is also using its research to help inform public debate as governments sketch out a future economic vision.
"The more Canadians understand the economic benefits and opportunities inherent in the greening of our economy, the more they'll support and embrace the transition to one," says Ms. Clarke-Whistler. "We need sound, transparent conversation about what a green economy can mean, and those of us who are proponents of a green economy need to put our money where our mouth is – which is what TD did when we issued a green bond."
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