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TD Aims to Cut Emissions Intensity From Loans in Net-Zero Plan

  • Targets will allow bank to increase lending in industries
  • Lender was first major Canadian bank to set net-zero goal
Toronto-Dominion is targeting a 29% reduction in “financed emissions lending intensity” to oil, gas and coal producers.

Toronto-Dominion is targeting a 29% reduction in “financed emissions lending intensity” to oil, gas and coal producers.

Photographer: Cole Burston/Bloomberg

Toronto-Dominion Bank set targets for reducing the emissions intensity of lending to certain energy industries, charting a clearer path for a plan to reach net-zero emissions by 2050 while still boosting its loan book in those sectors.

For lending to oil, gas and coal producers, Toronto-Dominion is targeting a 29% reduction in a metric called “financed emissions lending intensity” from 2019 levels by 2030. The measure incorporates the lender’s total financing to a company and its sector, as well as the borrower’s enterprise value and emissions. For its lending to power generators, Toronto-Dominion is planning for a 58% decline in physical emissions intensity from 2019 levels by 2030.