Regan Brown
TD Bank is one of Canada's five major banks that have increased their support for fossil fuels. In 2021, these banks increased their financing of fossil fuels by a combined USD 54 billion, with TD Bank's increase in fossil fuel funding amounting to $4 billion. Despite this, the bank has pledged to achieve net-zero greenhouse gas emissions from its operations and financing activities by 2050, and has vowed not to finance oil and gas activities in the Arctic Circle.
| Characteristics | Values |
|---|---|
| Fossil fuel funding increase in 2021 | $4 billion |
| Fossil fuel funding increase since Paris Agreement | $939.67 billion |
| Fossil fuel funding since Paris Agreement | $5.998 trillion |
| Fossil fuel funding 2016-2021 | CA $911 billion |
| Tar sands funding increase in 2021 | 51% ($23.3 billion) |
| Oil and gas loans as % of business lending | <4% |
| Oil and gas loans as % of total loans | >1% |
| Net-zero emissions goal | 2050 |
| Arctic Circle oil and gas activities funding | No |
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What You'll Learn
- TD Bank's funding of fossil fuels increased by $4 billion in 2021
- TD Bank's fossil fuel financing since the Paris Agreement totals $939.67 billion
- TD Bank's funding of tar sands, Canada's fastest-growing carbon pollution source
- TD Bank's refusal to finance oil and gas activities in the Arctic
- TD Bank's pledge to achieve net-zero emissions by 2050
TD Bank's funding of fossil fuels increased by $4 billion in 2021
Despite recognizing the need for emissions to fall, Canada's major banks' support for the fossil fuel sector grew by 70% in 2021, according to a Greenpeace Canada report. RBC, Scotiabank, CIBC, TD, and Bank of Montreal all increased their financing of fossil fuels by a combined USD 54 billion (CA $61 billion with exchange rate shifts). Notably, TD Bank's funding of fossil fuels increased by $4 billion during this period.
The report reveals that TD Bank's increase in fossil fuel funding contributed to a broader trend among Canada's Big Five banks, which collectively funnelled CA$911 billion into coal, oil, gas, and tar sands between 2016 and 2021. Tar sands, Canada's fastest-growing source of carbon pollution, saw a significant 51% increase in financing from these banks, with TD and RBC being the largest contributors to this rise.
The findings highlight a concerning contradiction, as all of Canada's banks pledged to become 'net-zero' by 2050 in 2021, committing to reducing financed emissions to zero. Yet, their actions in the same year indicate a continued reliance on lending to the fossil fuel industry. This over-dependence exposes shareholders and the public to unacceptable risk, as Adam Scott, Director of Shift Action for Pension Wealth Planet Health, pointed out.
While TD Bank's increase in fossil fuel funding is substantial, it is important to note that RBC remains Canada's worst offender in fossil fuel funding, more than doubling its funding from the previous year. Nevertheless, TD Bank's $4 billion increase in funding contributes to the overall trend of Canadian banks being over-represented in the top global fossil fuel bankers. This trend persists even after the signing of the Paris Agreement, which aimed to reduce emissions and combat climate change.
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TD Bank's fossil fuel financing since the Paris Agreement totals $939.67 billion
TD Bank, along with other major Canadian banks, has been criticised for its financing of fossil fuels. In 2021, TD Bank increased its financing of fossil fuels by $4 billion, bringing the total amount provided by Canadian banks to $61 billion (CAD) or $54 billion. This represents a 70% increase over 2020. Between 2016 and 2021, Canadian banks funnelled $911 billion into coal, oil, gas, and tar sands, with TD Bank contributing $4 billion to this total.
In response to these concerns, TD Bank has taken some steps towards reducing its support for fossil fuels. In 2020, the bank pledged to achieve net-zero greenhouse gas emissions from its operations and financing activities by 2050, joining other major financial institutions in this commitment. As part of this plan, TD Bank stated that it would not provide project-specific financial services for oil and gas-related activities in the Arctic Circle, recognising the region's increased vulnerability to climate change. This decision aligns with the bank's goal of supporting clients in capitalising on the "opportunities of the low-carbon economy".
Despite these pledges, TD Bank's actions have been met with scepticism by environmental organisations such as Greenpeace and the Sierra Club. They argue that TD Bank's financing of fossil fuels has contributed to the delay in transitioning away from this industry, posing risks to the environment and Indigenous communities. To align with the Paris Agreement and truly phase out fossil fuels, these organisations believe that TD Bank must take more immediate and comprehensive action, including phasing out funding for tar sands projects.
The total financing of fossil fuels by TD Bank since the Paris Agreement was signed in 2015 amounts to $939.67 billion. This figure represents the cumulative funding provided by the bank to major fossil fuel companies and projects, contributing to the overall amount of $5.998 trillion from the top 60 global banks over the same period. TD Bank's funding has placed it among the top twelve fossil fuel bankers, with three other Canadian banks also in the top twenty.
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TD Bank's funding of tar sands, Canada's fastest-growing carbon pollution source
Despite recognizing the need for emissions to fall, Canada's major banks' support for the fossil fuel sector grew by 70% in 2021. RBC, Scotiabank, CIBC, TD, and the Bank of Montreal all increased their financing of fossil fuels by a combined USD 54 billion (CA $61 billion with exchange rate shifts). This increase in funding for fossil fuels by Canadian banks is particularly alarming given that Canada's oil and gas sector is the largest and fastest-growing source of greenhouse gas emissions in the country, accounting for 26% of the total. Tar sands are a key contributor to this, with a 456% increase in production between 1990 and 2018. Tar sands have also been linked to the contamination of the environment and higher rates of cancer in Indigenous communities.
TD Bank's funding of tar sands, Canada's fastest-growing source of carbon pollution, is particularly concerning. Tar sands financing saw a 51% increase from the previous year to $23.3 billion CAD, with the biggest jump coming from RBC and TD. This increase in financing for tar sands, a particularly dirty form of fossil fuel, is contributing to the expansion of a significant source of carbon pollution and climate change.
TD Bank's increase in funding for tar sands comes at a time when there is a growing recognition of the need to transition away from fossil fuels to address the climate crisis. In 2021, all of Canada's banks vowed to become 'net-zero' by 2050, pledging to reduce financed emissions to zero. However, TD Bank's actions do not align with this commitment, as they continue to funnel money into the fossil fuel industry.
TD Bank's funding of tar sands has also contributed to the encroachment on Indigenous Peoples' traditional lands. The expansion of tar sands operations has contaminated the environment and wildlife that these communities depend on, impacting their culture and way of life. Furthermore, tar sands chemicals have been linked to higher rates of cancer in Indigenous communities and dangerous air pollution.
In conclusion, TD Bank's funding of tar sands, Canada's fastest-growing source of carbon pollution, is a significant concern. Despite pledges to reduce emissions and transition to 'net-zero', TD Bank has increased its financing of tar sands, contributing to climate change and the encroachment on Indigenous lands. TD Bank's actions do not align with the urgent need to address the climate crisis and protect the wellbeing of communities impacted by the expansion of the tar sands industry.
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TD Bank's refusal to finance oil and gas activities in the Arctic
TD Bank has pledged to stop financing oil and gas activities in the Arctic Circle. This includes a refusal to provide project-specific financial services for oil and gas-related activities in the region. The bank's decision is in line with its plan to achieve net-zero emissions by 2050 and contributes to its broader climate action strategy.
The Arctic is particularly vulnerable to the impacts of climate change, warming at a significantly faster rate than the rest of the planet. This accelerated warming in the Arctic poses the risk of increased greenhouse gas releases and further warming, exacerbating the global climate crisis. By refusing to finance oil and gas projects in this region, TD Bank is recognising the importance of protecting the Arctic's fragile environment and the need to transition to a low-carbon economy.
Despite this positive step, TD Bank has faced criticism for its broader support for the fossil fuel industry. According to Greenpeace Canada, TD Bank increased its financing of fossil fuels by $4 billion in 2021, contributing to a combined total of USD 54 billion among Canada's Big Five banks. This trend runs counter to the urgent need to reduce emissions and transition away from fossil fuels.
However, TD Bank's refusal to finance oil and gas activities in the Arctic sets a significant precedent for Canadian lenders. As Canada's second-largest bank, TD Bank's decision marks a shift in the country's lending landscape, encouraging other financial institutions to follow suit. This move aligns with the growing global movement towards sustainable and responsible investing, sending a strong signal to the market and stakeholders.
TD Bank's pledge demonstrates a commitment to environmental and social responsibility, particularly regarding the human rights of Indigenous communities in Alaska and Canada, whose livelihoods are threatened by Arctic drilling. By supporting the low-carbon economy and reporting progress toward its net-zero goal, TD Bank is taking steps to create a more sustainable future.
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TD Bank's pledge to achieve net-zero emissions by 2050
Despite being one of the top global funders of fossil fuels, TD Bank Group has pledged to achieve net-zero greenhouse gas (GHG) emissions by 2050. This target aligns with the Paris Agreement's principles, and the bank has committed to a global climate action plan to help deliver sustainable economic prosperity.
TD Bank has established dedicated teams to advise and support clients in capturing the opportunities of the low-carbon economy. The bank has also set up the ESG Centre of Expertise, drawing on experts across TD to participate, invest in research, and support academic progress and technological innovation. Furthermore, TD has joined the Partnership for Carbon Accounting Financials (PCAF) to help develop carbon accounting methodologies for financial institutions worldwide.
The bank recognizes that the precise path to achieving the 2050 target is unclear, and it will require the active participation of various stakeholders, including enterprises, financial institutions, and governmental and non-governmental organizations. TD intends to establish GHG emissions baselines across its business and financing portfolio and will collaborate closely with clients to set interim GHG reduction goals.
TD Bank's commitment to net-zero emissions includes a financial target of $75 billion by 2030 to support clean economic growth. The bank is also taking a more literal approach to "going green" by activating and enhancing green spaces to strengthen communities. This includes initiatives such as planting one million trees across North America by 2030 and restoring neighborhood gardens in Boston through the Community Grown program.
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Frequently asked questions
Yes, TD Bank is one of Canada's top five banks that increased its financing of fossil fuels by $4 billion in 2021. However, it has pledged to achieve net-zero greenhouse gas emissions by 2050 and has committed to not directly funding destructive drilling in the Arctic.
TD Bank increased its funding of fossil fuels by $4 billion in 2021, making it one of the top twelve global fossil bankers.
TD Bank has stated that it will not provide project-specific financial services for oil and gas-related activities in the Arctic Circle and will support clients in capitalizing on opportunities in the low-carbon economy.
