How we are building The Better

2014 Corporate Responsibility Report Designed to be viewed online

This report is designed to be viewed Note: Throughout this report, “TD” refers to TD Bank Symbol key Group. “TD Bank” refers to TD Bank, America’s Most online. The links provide access to more Convenient Bank®. All currency is in Canadian dollars Table of Contents details, additional resources, supporting unless otherwise noted. All material restatements + Supporting content (external links) and significant changes from the previous report are videos and case studies. described in the performance data footnotes. Navigate to a different section GRI: TD has used the Global Reporting Initiative (GRI)  Facts and figures over which Ernst & Young LLP framework for corporate responsibility reporting since provided limited level of assurance 2007. TD’s 2014 Corporate Responsibility Report is  Facts and figures over which Ernst & Young LLP On the cover written in accordance with the G4 framework and provided reasonable level of assurance fulfils the requirements for a Core report. EN7  Indicates a GRI disclosure. Click to view the full GRI Index online. + Online GRI Index Ways to reach us Materiality Disclosure Service: TD’s 2014 Corporate Responsibility Report has successfully We interact with several stakeholder groups on a daily and/or completed the Materiality Disclosure Service. weekly basis, responding to the issues and concerns brought to our attention. If you would like to contact TD with feedback, here are a few ways to reach us: How we are building External Assurance Reports: Selected The Better Bank performance indicators were independently assured by Customers: [email protected] Ernst & Young LLP. Ernst & Young performed a limited Shareholders: [email protected] assurance engagement for a selected number of TD’s Investors: [email protected] 2014 Corporate Responsibility Report performance indicators including TD’s greenhouse Suppliers: [email protected] gas emissions and Carbon Neutral Schedule, and TD’s Community groups: [email protected] paper usage figures. The results of Ernst & Young’s Feedback on this report: [email protected] ▲ Lisa Nguyen, a Customer Service Representative at assurance engagements are documented in its the TD Trust Woodward in Downtown On Twitter: @TD_Canada or @TDBank_US Eastside Vancouver. Watch the video to learn more assurance statement. By text: TDHELP (834357) about this remarkable branch. + Assurance Statement for the 2014 Greenhouse Gas Emissions + Assurance Statement for the 2014 Carbon Neutral Schedule + Green Bond Assurance Report

Appendix: All of TD’s 2014 detailed social and environmental data, including three-year performance trends can be found in a separate online PDF. + Appendix: Performance Data

TD 2014 Corporate Responsibility Report Table of Contents

How We Are Building How We Are Building An The Better Bank 1 Extraordinary Workplace 27 A Message from Our CEO 1 Employee Engagement 28 2014 Snapshot 2 Diversity and Inclusion 32 About TD 3 Health and Well-Being 34 Corporate Responsibility at TD 4 Scorecard and Goals 5 How We Demonstrate Environmental Leadership 35 How We Identify Adapting to a Changing Climate 37 Our Material Issues 6 Our Low Carbon Journey 38 Stakeholder Panel 7 Eco-Efficiency 39 2014 Matrix and Trends 9 Responsible Finance and Investing 42 Contextual Trends 10 Green Product Options 45

How We Operate How We Are Governance, Ethics and Integrity 11 Strengthening Communities 47 Corporate Governance and Integrity 12 Community Investment 48 Executive Compensation 14 Financial Education 51 Managing Risk 15 Affordable Housing 53 Sourcing 55 How We Deliver Tax Policy 57 Responsible Banking 16 Economic Value 17 How We Approach Reporting 58 Customer Service 18 Privacy and Data Security 20 Access to Banking 22 Products and Services 24

TD 2014 Corporate Responsibility Report Table of Contents The Better Bank A Message from Our CEO G4-1

Building The Better Bank

▲ A Message from Our CEO 2014 Snapshot Building a better bank is a journey of continuous improvement. It’s a About TD process that begins with a commitment to being a responsible bank Corporate Responsibility at TD and is reinforced with feedback from our stakeholders to ensure that Scorecard and Goals we’re on the right track. Material Issues How We Operate At TD, we are profoundly aware of our role in society and continue to Responsible Banking embed corporate responsibility principles and practices to ensure that Extraordinary Workplace each transaction is well-managed and remains within our risk appetite. Environmental Leadership Strengthening Communities Reporting Progress In 2014 The View Ahead We delivered strong financial results in TD’s sustainability performance also received It is a privilege to lead more than 85,000 extraordi- a challenging operating environment while significant global recognition. We were named one nary TD colleagues who live our commitment making meaningful progress in our Corporate of the Global 100 Most Sustainable Corporations, to our communities. With our strong team and Responsibility performance. I want to and were included in the Dow Jones Sustainability our better-business model we are well-positioned highlight some of our governance and World Index, which recognizes the top 10% to continue delivering long-term value to our sustainability milestones. of sustainable worldwide. TD was the customers, shareholders and communities. only Canadian bank listed on the global climate We were the first Thank you for your support. performance leadership index produced by CDP to to issue a green bond, demonstrating that recognize actions to reduce climate change. market instruments can deliver a return and drive an environmental mandate. We continued to Building Better Communities champion diversity and inclusion through many Many of the social and environmental challenges initiatives, including our platinum sponsorship facing the world today require forward thinking Bharat Masrani of WorldPride, hosted in . In the U.S., and investment. We are helping improve our ® Group President and Chief Executive Officer TD Bank, America’s Most Convenient Bank was communities through affordable housing, green recognized by DiversityInc as a Top 50 Company spaces and financial education. We are supporting for Diversity. our neighbours, community leaders, women and For our customers and colleagues, a highlight minorities. We are making investments in which of 2014 was our #TDThanksYou campaign. the return on investment, while perhaps not TD ATMs were transformed into Automated immediately apparent, will deliver value over Thanking Machines to create special experiences the long term. for customers. #TDThanksYou captured our commitment to legendary customer service.

TD 2014 Corporate Responsibility Report Page 1 The Better Bank 2014 Snapshot

Building The Better Bank

A Message from Our CEO TD Named to the Diverse and Inclusive #TDTHANKSYOU CEO Transition Global 100 Most TD Bank, America’s Most November 1, 2014 marked ▲ 2014 Snapshot Sustainable Companies Convenient Bank® was Bharat Masrani’s first day as About TD TD was one of only five recognized as a 2014 Group President and CEO of TD companies from Canada to DiversityInc Top 50 Company Bank Group – an exciting new Corporate Responsibility at TD make the international list. for Diversity. chapter for the organization. Scorecard and Goals Continued Recognition in Sustainability Material Issues TD Says Thanks In a Big Way TD was the only Canadian bank We turned ATMs into recognized on the 2014 A List: How We Operate “Automated Thanking Machines” The CDP Climate Performance to surprise loyal customers with Leadership Index for our efforts Responsible Banking trips, cash and more, with the to combat climate change and moments captured in a YouTube reduce carbon emissions. Extraordinary Workplace video that received 18+ million views. Over 30,000 customers Environmental Leadership using branches, phone and received a thank-you gift. Strengthening Communities Reporting

January April July September November

March June August October

TD Continues To Be a Leader in Customer Satisfaction with Retail and Business TD Canada Trust was named “Highest in Customer Satisfaction Among the TD Issues Green Bond Retail Banks” for the ninth year TD became the first commercial in a row by J.D. Power in the bank in Canada to issue a Canadian Retail Banking Study.1 green bond. The $500 million TD Forests - Art For Trees three-year bond supports the TD Bank and the New York low-carbon economy. Restoration Project turned Loud and Proud 115 of our NYC stores TD was the Platinum Sponsor into a city-wide art gallery, of WorldPride 2014 in Toronto. displaying tree-inspired works TD is a longtime sponsor of of art by 10 New York based Pride celebrations across much artists, with proceeds given to of North America. local conservation groups.

1 TD Canada Trust received the highest numerical score among the big five retail banks in the proprietary J.D. Power 2006-2014 Canadian Retail Banking Customer Satisfaction StudySM. Study based on 17,183 total responses and measures opinions of consumers with their primary banking institution. Proprietary study results are based on experiences and perceptions of consumers surveyed May-June 2014. Your experiences may vary. Visit jdpower.com

TD 2014 Corporate Responsibility Report Page 2 The Better Bank About TD G4-8

Building The Better Bank KEY FACTS A Message from Our CEO 2014 Snapshot ▲ About TD 85,000+ 23M+ 2,483 4,833 Corporate Responsibility at TD Women Minorities People with disabilities Scorecard and Goals employees customers globally retail locations across ATMs Material Issues North America How We Operate Responsible Banking Extraordinary Workplace Environmental Leadership Strengthening Communities Aboriginal peoples Lesbian, gay, bisexual, Veteran in the U.S. (a new Reporting 2014in FINANCIAL Canada PERFORMANCE transgender and allies (LGBTA) focus area starting in 2014)

1 Total Adjusted Revenues Record TD Adjusted Strong TD TD Market $29,681M Earnings of Shareholder Capitalization $8.1 billion in 20141 Returns2 Reaches Milestone TD announced record TD shareholders benefited from a TD’s market capitalization exceeded adjusted earnings for the sixth 20% Total Shareholder Return (TSR) the $100-billion milestone for the consecutive year. in fiscal 2014 and a 14% year-over- first time in fiscal 2014. Total Assets year increase in dividends paid. $944.7B 2014 NON-FINANCIAL PERFORMANCE

$18.8 billion3 60,000 52% economic value distributed questions answered through increase in women in VP and Total Deposits TD Helps online platform above roles from 2005 to 2014 $5+ billion saved 294,000 $82 million $600.7B by TD Canada Trust customers participants in a TD-sponsored donated to communities across through automated savings financial literacy program North America and the U.K. plans in 2014

1, 2, 3 Footnotes (PDF)

TD 2014 Corporate Responsibility Report Page 3 The Better Bank Corporate Responsibility at TD

Building The Better Bank These are the values that apply Our Corporate Responsibility Strategy is built on four themes A Message from Our CEO 2014 Snapshot to all employees and directors for that contribute to TD’s overall vision. About TD all bank activities, all of the time. ▲ Corporate Responsibility at TD OUR VISION: Scorecard and Goals Responsible Banking To Be The Better Bank Material Issues Deliver legendary customer experiences How We Operate OUR MISSION: Provide responsible products and services Responsible Banking We will be the Best Run, Customer-focused, Improve access to banking Integrated Financial Institution with a Unique Extraordinary Workplace Be the bank of choice for and Inclusive Employee Culture diverse communities Environmental Leadership Resolve complaints fairly and quickly OUR STRATEGY: Strengthening Communities Increase financial literacy To produce long-term, profitable growth by Reporting building great franchises and delivering value to AND SE INC Build an Extraordinary Strengthen Our ER LU IV S our Customers, Shareholders and Communities I D V Communities E E Workplace B – – B Be a Best Employer OUR GUIDING PRINCIPLES: Create value in the economy E E

V D I Be The Foster a diverse and

Give financial support to I S

V

n U inclusive workplace create change E

Deliver Legendary Customer Experiences L

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C

Better S Employ a highly engaged workforce

Encourage employees to N E

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Be an Extraordinary Place to Work volunteer A Attract and retain great talent D

N

N

Bank D

A Create opportunities for Collaborate with community

n  I E

N

Operate with Excellence S

C development partners R

L

E

U

V

S

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B – n Understand Our Business Influence suppliers to use Build future leaders responsible practices n Take Only Risks We Understand and Can Manage Be an Environmental Leader n Enhance Our Brand Continuously improve our n Increase Shareholder Value environmental footprint Embed the environment into our financing decisions Provide green product and service options for customers Engage stakeholders

HOW WE OPERATE GO DEEPER CORPORATE RESPONSIBILITY Guiding Principles / Leadership Profile / Code of Conduct / Ethics and Integrity / TD’s Risk Appetite GOVERNANCE STRUCTURE +

TD 2014 Corporate Responsibility Report Page 4 The Better Bank Scorecard and Goals G4-2

Building The Better Bank This table summarizes the key performance indicators that help us track our progress against our corporate responsibility objectives. A Message from Our CEO Objective Measure (2014 2014 Actual 2015 Target target if applicable) 2014 Snapshot RESPONSIBLE BANKING About TD Corporate Responsibility at TD 1. Deliver legendary customer service Customer Experience Index - TD Canada Trust CEI score (36.1) 35.4 54.1* ▲ Scorecard and Goals Customer WOW! Index - TD Bank CWI score (37.4) 37.8 56.8*

Material Issues 2. Create value in the real economy Distributed economic value1 $ millions $18,812 (increase of 12% from 2013) How We Operate 3. Increase financial literacy Questions answered through TD Helps # 60,000 Responsible Banking Number of participants in a TD-sponsored program # (150,000) Over 294,000 300,000 Extraordinary Workplace BUILD AN EXTRAORDINARY WORKPLACE

Environmental Leadership 4. Provide a great place to work Increase Employee Engagement Index # 4.20 (up from 4.17 in 2013) Increase year-over-year Strengthening Communities Reduce voluntary turnover in the U.S. % 20.20 (down from 22.24% in 2013) Reduce year-over-year Reporting 5. Be diverse and inclusive to Women on Board % 31.0% reflect the communities we serve Women in Leadership2 % in Canada 33.7% Minorities in Leadership2 % in Canada 11.2% People with Disabilities % in Canada 4.4% Aboriginal Peoples % in Canada 1.4% BE AN ENVIRONMENTAL LEADER

6. Embed the environment into our 100% of transactions reviewed against TD’s financing decisions Environmental & Social Credit Risk Management process, which includes the Equator Principles % (100) 100% 100% 7. Reduce our environmental footprint Maintain carbon neutrality as TD continues to grow carbon-neutral Y Y 20% reduction in paper use by 2015 % relative to 9% reduction 2010 baseline

Migrate entire real-estate portfolio to Achieved Energy Star Portfolio Manager® STRENGTHEN OUR COMMUNITIES

8. Give financial support to create change Total donations $ millions $82 (up from $74.7 in 2013) 9. Encourage volunteerism in our communities Number of hours volunteered by TD employees hours 96,323 (up from 65,000 in 2013) Increase year over year 10. Influence suppliers to use Number of suppliers assessed for responsible practices responsible practices # 108 (up from 85 in 2013)

All data represents the fiscal year ending October 31, 2014. *TD Canada Trust and TD Bank will be moving to a new Experience metric in 2015. 2014 results are not comparable to 2015 targets. 1 Economic Value Distributed as defined by the Global Reporting Initiative. Please see page 17 for more details. 2 Leadership defined as executive and senior management roles.

TD 2014 Corporate Responsibility Report Page 5 Economic Customer Value Satisfaction This is how we Created

Employee Health & Privacy Identify Our Material Issues & Data Well-Being Security Corporate Governance & Integrity

Affordable Housing Employee Financial Diversity Engagemen t Education & Inclusion In the highly competitive landscape of financial Responsible services, we know that understanding what Finance matters to our stakeholders is vital to TD’s Changing continued success. Products Climate & Services Eco- Efficiency We conduct a formal materiality analysis each year to identify, prioritize and validate the Access to Community Banking Investment evolving environmental, social and governance issues for TD. This process involves research, Sourcing media scans, stakeholder consultations and internal discussion which lead to the refining of our material topics. We use this annual Tax Policy process to track stakeholder concerns and identify new issues as they emerge.

MATERIAL ISSUES

There are many environmental, Important for multiple Important for a smaller group Other Issues social and governance issues stakeholder groups of stakeholders ■ Employee Health that demand our attention. ■ Customer Satisfaction ■ Employee Engagement and Well-Being We give more importance to ■ Managing Risk ■ Eco-Efficiency ■ Sourcing those risks or opportunities ■ Privacy and Data Security ■ Products and Services ■ Executive Compensation that directly relate to TD’s core ■ Corporate Governance and Integrity ■ Community Investment ■ Tax Policy business, are stated priorities for ■ Diversity and Inclusion ■ Affordable Housing our stakeholders, and are areas where we can affect change. ■ Financial Education ■ Changing Climate ■ Responsible Finance ■ Access to Banking ■ Economic Value Created

TD 2014 Corporate Responsibility Report Page 6 Material Stakeholder Issues Panel G4-18 G4-25 G4-26 G4-27

Building The Better Bank TD’s Materiality Assessment process includes the convening of an external Material Issues stakeholder panel. Our 2014 panel included 17 individuals representing various The stakeholder panel used an ▲ Stakeholder Panel stakeholder groups, such as community organizations, institutional investors, online platform to engage in a highly 2014 Matrix and Trends consumer advocacy groups, peer reporters and sustainability experts. The panel interactive web dialogue. Participants Contextual Trends was facilitated by an independent sustainability consultant. were able to post comments, provide constructive feedback on a variety of How We Operate The role of the panel is to help TD take stock of our corporate responsibility topics and cast votes for high priority Responsible Banking performance, acknowledging where we have done well and identifying areas items. See the example below. Extraordinary Workplace where more needs to be done. Environmental Leadership Strengthening Communities STAKEHOLDER PANEL Reporting The panel included representatives from: The panel was encouraged by TD’s willingness to learn and openness in conducting the ■ Sustainability Accounting ■ PwC Canada stakeholder review and offered their comments Standards Board (SASB) ■  Credit Counselling Society in the spirit of continuous improvement. ■ Trucost ■ Sustainability Context We find great value in this dialogue as it ■ Wells Fargo Group provides an opportunity to assess how TD is ■  Haas School of Business, ■  International Institute for performing compared to external stakeholder Berkeley Sustainable Development expectations.

■  University of British ■ Simon Fraser University Columbia ■ Export Development ■  Alan Willis and Associates Canada

■ SHARE ■ Tim Hortons

■ Addenda Capital ■ SVN Marketing

GO DEEPER 2014 PUBLIC POLICY AND POLITICAL CONTRIBUTIONS +

LIST OF ENVIRONMENTAL STAKEHOLDER GROUPS AND DISCUSSION TOPICS +

LIST OF EXTERNAL VOLUNTARY COMMITMENTS +

LIST OF MEMBERSHIPS AND AFFILIATIONS +

WAYS WE LISTEN TO STAKEHOLDERS +

TD 2014 Corporate Responsibility Report Page 7 Material Stakeholder Issues Panel Feedback G4-27

Building The Better Bank The table below provides a summary of the key recommendations from our Stakeholder Panel and TD’s response: Material Issues

▲ Stakeholder Panel Comments on TD’s CR Performance TD’s Response Comments on TD’s CR Reporting TD’s Response 2014 Matrix and Trends Contextual Trends Develop a long-term vision and the We are in the process of developing a Provide context for your performance. While TD’s direct and indirect GHG emissions roadmap to get there. corporate responsibility roadmap with longer- • Compare TD’s Greenhouse Gas Emissions to represent only a very small fraction of global How We Operate “[build] longer term goals anchored in a vision term goals and objectives. The key deliverable its share of the global emissions associated GHG emissions, we are committed to leading of what kind of bank TD thinks it would like for 2014 was to transition to the G4 standard. with the IPCC’s 2 degree threshold. by example in enabling the low-carbon Responsible Banking to become.” • Compare TD’s turnover in the U.S. to sector economy and, where possible, quantifying benchmarks and analysis. the benefits. Extraordinary Workplace Continue to play a leadership role by These are all areas where we strive to make a • Provide more commentary on your diversity Commentary on our U.S. turnover can be building on TD’s strengths in: difference. A discussion of TD’s future plans in Environmental Leadership performance, in addition to labour-market found on page 29. • Eco-efficiency each of these areas is included in this report. availability. Additional commentary and analysis of TD’s • Responsible financing Strengthening Communities Diversity performance is available online: • Financial education Employee Equity Annual Report. Reporting • Diversity and inclusion • Access to banking Develop the ability to report on impacts We agree that impact metrics often provide a of TD’s activities. more meaningful story. We have made some Use TD’s influence with customers, We seek to lead by example. Engaging progress in our community investment stories suppliers and other decision-makers to: with our many stakeholders in constructive • Go beyond input and output metrics and by measuring, in addition to dollars donated, two-way dialogue is foundational to our develop the ability to assess the wider • Tackle climate change with customers the number of people benefiting from TD environmental leadership goal. While there impact of TD’s actions • Educate customers and the public about programs. environmental issues is certainly more to do, we are pleased with • Support green suppliers the progress made so far. Strive for greater integration. We continue to find ways to make our • Advocate as an investor • The panel would like to see more examples reporting more integrated. For example, by See the case study on page 37. of integration – Workplace linked to showing diversity targets for community Provide thought leadership on new Both TD Environment and TD Economics Strengthening Communities etc. giving and volunteering goals for employee economic models for sustainability. actively provide thought leadership on engagement. • Deal with the sustainability implications many relevant topics. TD was the first North Be transparent about controversial topics. We strive for transparent corporate American bank to appoint an environmental of economic growth • The panel did not point to any specific responsibility reporting. economist. Our publications include: • Draw a tighter connection between natural under-reported controversy, but cautioned TD’s Reputational Risk committee is tasked capital and the business of the bank • Greening the Economy TD that “financing of even one controversial with the responsibility of evaluating every • Natural Capital transaction can negate all your good work.” transaction that could potentially be • Impacts of Income Inequality controversial. We also have an Environmental and Social Credit Risk Assessment process to identify the implications of pending transactions. TD has strong governance practices to uphold ethical practices throughout our organization. Reflect the materiality of issues in your The content of this report is driven by CR reporting. material topics raised by our stakeholders. • There is no clear relationship between the The discipline of moving to G4 reporting ranking of material issues and the quality has helped address some of the imbalance and depth of reporting. “What are the most between materiality and the depth of important areas, issues and metrics that information provided in our annual are actually monitored most closely in the disclosures. GO DEEPER C-suite and by the Board for TD to stay on course?” STAKEHOLDER PANEL FULL REPORT +

TD 2014 Corporate Responsibility Report Page 8 Material 2014 Matrix and Trends Issues Top material issues that matter for 2014 G4-2 G4-18 G4-21

Building The Better Bank This 2014 Corporate Responsibility Report is based on disclosing TD’s approach to managing and addressing these issues. Material Issues Stakeholder Panel ▲ 2014 Matrix and Trends Responsible Banking Economic Contextual Trends HIGH Customer Value ▲ Extraordinary Workplace Satisfaction How We Operate Created Environment and Financing Responsible Banking Strengthening our Communities Employee

Extraordinary Workplace Health & How We Operate ▲ Well-Being Managing Privacy Risk & Data ▲ Environmental Leadership Security Corporate Governance ▲ Strengthening Communities & Integrity Affordable ▲ Housing

Reporting ▲ Financial Diversity ▲ ▲

Employee Education & Inclusion

Engagement Responsible ▲ Changing ▲ Finance Climate Products & Services Eco- ▲

Efficiency

▲ Executive Access to ▲ ▲ Community Compensation Banking Investment

Sourcing ▲ MEDIUM

Tax Policy ▲

LOW MEDIUM HIGH Increasing Concern to Stakeholders

Importance to Business Success

▲ ▲ Trends Indication: A topic which is likely to increase/decrease/remain stable in terms of relevance to TD stakeholders and significance to TD performance. New topic in 2014 + Details of TD’s Materiality Assessment Process

TD 2014 Corporate Responsibility Report Page 9 Material Contextual Issues Trends

Building The Better Bank LOW INTEREST DATA INCREASINGLY A number of global trends Material Issues RATES SECURITY MOBILE continued to make headlines Stakeholder Panel during the course of our The sustained climate of low interest There were several high-profile The global mobile-phone market is 2014 Matrix and Trends rates continued to impact our security hacks in 2014 that drew expected to reach 5.1 billion users by materiality assessment. While ▲ Contextual Trends business. international attention and raised 20171. Mobile banking is dramatically these trends are not within many questions. changing the way customers complete Low interest rates have kept debt How We Operate their day-to-day financial transactions. TD’s direct control, they affordable for the average household All stakeholders are understandably Responsible Banking and lending in Canada and the U.S. concerned about privacy and security All banks are seeking to understand nevertheless influence the has continued at a moderate pace. in the digital age. Companies are the best model to sustain customer economic context in which Extraordinary Workplace increasingly aware of the investment relationships in an increasingly digital If perpetually low interest rates we operate and inform our required to eliminate vulnerabilities world. While most transactions are Environmental Leadership encourage additional borrowing, in their technology. For more on how now done virtually, the majority business decisions. we may see increased risk of TD is addressing data security, refer to of customers still prefer to receive Strengthening Communities households unable to meet debt privacy and data security. complex financial advice in person. Reporting obligations in the event of a sudden rise in interest rates.

%

URBAN GROWTH AND CHANGING RISING INCOME DENSIFICATION DEMOGRAPHICS INEQUALITY

Over half of the world’s population Demographic shifts continue to There is a growing concern now lives in cities – in North America have an impact on the workforce that rising income inequality in the number is over 80%2. Urban and the prospective labour market. advanced economies is posing a growth is occurring both horizontally Almost one in five Canadians are threat to economic growth and and increasingly through vertical immigrants and are projected to long-term prosperity. densification. This puts tremendous account for 75% of the country’s A major concern with rising income strain on the demand for natural future population growth by 20173. inequality levels in Canada and the resources. Adding to this challenge Recognizing the impact of an aging U.S. is that if pushed higher, they is the need to adapt to a changing population and other demographic th could jeopardize social mobility. climate and build resilience into shifts. TD is focused on innovative our cities. 10year A full discussion on this topic can solutions to recruit, retain and build be found here: TD Economics: As the majority of TD employees and strong talent for the future. The Case for Leaning Against customers live in urban centres, we Income Inequality in Canada. see the need for smarter cities, with more efficient use of resources.

1 http://www.emarketer.com/Article/Smartphone-Users- Worldwide-Will-Total-175-Billion-2014/1010536 2 http://esa.un.org/unpd/wup/Highlights/WUP2014- Highlights.pdf 3 Statistics Canada Population Projections of Visible Minority Groups, Canada, Provinces and Regions, 2001 to 2017

TD 2014 Corporate Responsibility Report Page 10

th

10year This is how we operate Governance, Ethics and Integrity

TD is committed to conducting its affairs according to the highest standards of ethics, integrity, honesty, fairness and professional- ism – in every respect, without exception, at all times.

Every employee and Director of TD is expected and required to assess each business decision and each action in light of whether it is right, legal and fair. HEADLINE PERFORMANCE Safest Bank in North America and one of the World’s 50 Safest Banks - Global Finance magazine MATERIAL ASPECTS IN THIS CHAPTER Over 30% ■ Corporate Governance and Integrity women on Board of Directors ■ Executive Compensation ■ Managing Risk TD Named Best Investor Relations in the financial sector by IR Magazine Awards

TD 2014 Corporate Responsibility Report Page 11 How We Corporate Governance Operate and Integrity

Building The Better Bank OUR APPROACH Material Issues The Board of Directors and the management How We Operate of TD are committed to leadership in corporate

▲ Governance, Ethics and Integrity governance. We have designed our corporate governance policies and practices to be sure Executive Compensation we are focused on our responsibilities to Managing Risk our shareholders and on creating long-term Responsible Banking shareholder value. We have a strong, independent Chairman with a clear corporate governance Extraordinary Workplace leadership mandate and a Board that is Environmental Leadership responsible for:

Strengthening Communities ■ Setting the tone for risk, integrity and Reporting compliance culture throughout TD ■ Overseeing the strategy and fundamental goals of the bank

■ Overseeing the identification and monitoring of the principal risks affecting the bank’s business TD is committed to diversity and inclusion at WHY IT’S MATERIAL TO TD + all levels in the workplace and on the Board. The Board is elected by the shareholders to oversee management and to assure This includes a commitment to ensuring there are no systemic barriers or biases in the that the long-term interests of shareholders are advanced responsibly while the bank’s policies, procedures and practices. The concerns of other stakeholders and interested parties including our employees, Corporate Governance Committee considers customers, regulators, communities and the public are also addressed. diversity when reviewing qualified candidates for recommendation for appointment or election to the Board. TD has extensive information about corporate governance practices available on our website: + The Board of Directors and its Committees + Disclosure of Corporate Governance Policies and Practices

GO DEEPER + 2015 Proxy Circular CODE OF CONDUCT AND ETHICS +

WHISTLEBLOWER HOTLINE +

AML/ATF/SANCTIONS POLICY SUMMARY +

ANTI-BRIBERY, ANTI-CORRUPTION POLICY SUMMARY +

TD 2014 Corporate Responsibility Report Page 12 How We Corporate Governance Operate and Integrity G4-38 G4-39 G4-57 G4-58 LA-12

Building The Better Bank 2014 PERFORMANCE Material Issues TD’s Board of Directors: (Information as of October 31, 2014) How We Operate

▲ Number of independent Board members 14 Governance, Ethics and Integrity Executive Compensation Chair and CEO are separate Yes Managing Risk Board oversight of corporate responsibility Yes Number of Meetings1 Responsible Banking Full Board 9 Extraordinary Workplace Corporate Governance Committee 6 Risk Committee 10 Environmental Leadership Audit Committee 9 Strengthening Communities Human Resources Committee 7 Board Diversity Reporting % of female directors Over 30% % of visible minority directors Over 12% % of independent directors Over 87%

1 For the 12-month period ending October 31, 2014

▲ Brian M. Levitt, Chairman of the Board

Promoting Responsible Conduct Policy/Standard/Guideline Description While reaching our business goals is critical to n Code of Conduct and Ethics A framework for how we interact TD’s success, equally important is the way we n Clearly states that irregular business conduct will not be tolerated achieve them. That’s why the actions of our n Applies to employees and directors employees are subject to a number of internal

n policies, standards and guidelines. Requires annual attestation n A version of the Code applies to contract workers in North America Anyone working on behalf of TD is required to Whistleblower Hotline n An independent, confidential and anonymous channel for reporting concerns complete compliance training related to customer

n Includes the ability to participate in an online anonymous chat protection and responsible business conduct. We also continue to enhance the bank’s anti- n Anti-Money Laundering and A Framework of policies designed to: Anti-Terrorist Financing n Prevent TD products and services from being utilized for money-laundering money laundering (AML)/ anti-terrorist financing n Sanctions and terrorist-financing activities (ATF), awareness/sanctions and anti-bribery/

n Anti-Bribery n Provide standards of conduct to prevent bribery and corruption anti-corruption training, to ensure our employees understand current and evolving risks. n Comply with economic and trade-sanction laws and regulations

TD 2014 Corporate Responsibility Report Page 13 How We Executive Operate Compensation G4-51

Building The Better Bank WHY IT’S MATERIAL TO TD + Material Issues Executive compensation is designed to reward results that are aligned with How We Operate the long-term strategy of the bank. Doing so provides an important incentive Governance, Ethics and Integrity for executives to act in the best interests of the organization, its employees ▲ Executive Compensation and its shareholders. Managing Risk Responsible Banking

Extraordinary Workplace MANAGEMENT APPROACH SAY-ON-PAY LINKING ENVIRONMENT, SOCIAL AND Environmental Leadership TD has a balanced approach to executive In 2010, TD voluntarily adopted “say-on-pay”, a GOVERNANCE (ESG) FACTORS IN EXECUTIVE COMPENSATION Strengthening Communities compensation that is intended to attract, retain process that provides shareholders a means to and motivate high-performing executives. Our express concerns about executive compensation. Incentive compensation is based on a combination Reporting compensation principles and approach are If significant concerns are raised, the board of financial and non-financial measures. One of described in TD’s Proxy Circular. of directors will engage with shareholders to the key performance measures used to determine understand the specific issues and recommend A key element of TD’s approach is that a incentive pools for executives is an evaluation of changes, as appropriate. In 2014, 93% of TD significant portion of the compensation awarded the customer experience, which is assessed using shareholders voted in favour of the bank’s to executives vests at the end of a minimum of feedback directly from customers following an approach to compensation, and there has been three years. As this portion is tied to the bank’s interaction with TD. similarly high support from shareholders every share price, there is added incentive for executives We typically structure performance objectives year since say-on-pay was introduced. to make decisions that are in the best long-term against five categories: Customer, Business interest of TD and its stakeholders. Operations, Financial, Employee and Community. These objectives are used to evaluate perform- ance, which has a direct impact on compensation, in alignment with the bank’s pay-for-performance philosophy. Detailed information about executive compen- sation practices can be found in our Proxy Circular. + 2015 Proxy Circular

TD 2014 Corporate Responsibility Report Page 14 How We Managing Managing Operate Risk Environmental Risk G4-14

Management of environmental risks is integrated Building The Better Bank WHY IT’S MATERIAL TO TD + within the TD Bank Group enterprise risk framework. Within this framework, environmental Material Issues Everyone in the bank has a role to play in risk management. It’s essential risk is the possibility of loss of strategic, financial, operational or reputational value resulting from the How We Operate that we each play our part in order to protect our institution, our customers impact of environmental issues or concerns and Governance, Ethics and Integrity and our employees. related social risk within the scope of short-term Executive Compensation and long-term cycles. ▲ Managing Risk Key environmental risks include:

■ Responsible Banking Direct Risks. Risks associated with the ownership and operation of our business, such as Extraordinary Workplace MANAGEMENT APPROACH TD’S RISK APPETITE STATEMENT management and operation of company-owned or managed real estate, fleet, business operations Environmental Leadership One of TD’s Guiding Principles is to only take We take risks required to build our business, and associated services risks that we understand and can manage. TD but only if those risks: Strengthening Communities ■ Indirect Risks. Risks associated with executives, directors and employees look to the Reporting environmental events such as changing climate Enterprise Risk Framework and our Risk Appetite 1) Fit our business strategy and can patterns that may have an impact on our retail Statement for a common understanding of how be understood and managed customers and clients to whom TD provides we manage risk. financing or in which TD invests 2) D o not expose the enterprise to any TD employs a “three lines of defence” model that ■ Risk Arising from Changing Regulatory significant single-loss events; we Environment. Including identification and describes the role of the businesses in managing don’t “bet the bank” on any single risk across TD: governance, risk and oversight risk management of emerging environmental acquisition, business or product regulatory issues groups, and internal audit. We regularly monitor ■ Risk of Opportunity Loss. Failure to understand and report on risk levels and compliance within 3) Do not risk harming the TD brand TD’s risk appetite to senior management, the and appropriately leverage environment-related Board and its committees. We also run education trends to meet customer and consumer demands for products and services sessions, communication programs and internal 2014 PERFORMANCE risk-management conferences to increase TD’s Business Continuity and Crisis awareness across the organization. ■ Continued enhancement of the enterprise Management (BCCM) program is proactive Risk Appetite Statement, associated measures and iterative in its approach to assessing risk and and reporting potential threats, ensuring that appropriate resilient arrangements are in place. The program routinely ■ Further development of an emerging risk- undertakes scenario testing and simulations to identification framework that includes how assess the potential impact of a range of natural we manage emerging risks, including planning events across our business. for uncertain and unexpected impacts In 2014, the BCCM team launched an enhanced global crisis structure, which included consideration of natural events associated with climate change that may impact TD or our ability to continue conducting business.

GO DEEPER + Read more on how TD Insurance is MANAGING RISK–ANNUAL REPORT P.68 + working to protect customers from changing climate patterns. UPDATE FROM THE RISK COMMITTEE– PROXY CIRCULAR P.20 +

TD 2014 Corporate Responsibility Report Page 15 This is how we deliver Responsible Banking

Our long-term success and our corporate reputation depend on the ability to anticipate and meet the needs of our customers. Our business strategy is aimed at delivering legendary customer service and convenience HEADLINE PERFORMANCE through an unmatched combination of advice, expertise, efficiency and 9th Year improved accessibility. TD Canada Trust was named “Highest in Customer Satisfaction Among the Big Five Retail Banks” for the ninth year in a row by J.D. Power in the Canadian Retail Banking Study1 Best Big Bank MATERIAL ASPECTS IN THIS CHAPTER awarded to TD Bank, America’s Most Convenient Bank® by ■ Economic Value Money magazine for the second ■ Customer Service year in a row ■ Privacy and Data Security ■ Access to Banking ■ Products and Services 10th Year IPSOS Best Banking Award to TD Canada Trust for Overall Quality of Customer Service

1 TD Canada Trust received the highest numerical score among the big five retail banks in the proprietary J.D. Power 2006-2014 Canadian Retail Banking Customer Satisfaction StudySM. Study based on 17,183 total responses and TD 2014 Corporate Responsibility Report measures opinions of consumers with their primary banking institution. Proprietary study results are based on experiences and perceptions of consumers surveyed May-June 2014. Your experiences may vary. Visit jdpower.com Page 16 Responsible Economic Direct and Indirect Banking Value Impacts EC-1 SO-2

TD’s impact on the economy is both Building The Better Bank WHY IT’S MATERIAL TO TD + broad and deep. When we succeed, the benefits of that success ripple Material Issues Healthy economies need healthy banks, and vice versa. Maintaining a strong through the economy, creating greater prosperity for the communities in How We Operate business with solid earnings allows us to pay our employees fair wages and which we operate. Responsible Banking benefits, compensate our suppliers, support local small business, contribute to Although banking products are more ▲ Economic Value government revenues through taxes and provide dividends to our shareholders. intangible than those of a retailer or manufacturer, their impacts can be far- Customer Service reaching. For example, when managed Privacy and Data Security responsibly, a mortgage provides a path to home ownership, financial Access to Banking MANAGEMENT APPROACH SUPPORTING SMALL-BUSINESS OWNERS stability and the social well-being that Products and Services TD’s business strategy is to produce long-term, As the economic health of our communities comes from feeling rooted in the local Extraordinary Workplace profitable growth by building strong franchises and depends to a large degree on the viability of community. Environmental Leadership delivering value to customers, shareholders and the their small and medium-sized businesses, TD is Given the direct and indirect impacts broader community. We aim for repeatable and committed to helping those enterprises succeed. of our business, we are profoundly Strengthening Communities growing income streams, focus on customer-driven aware of the importance of embedding ■ In 2014, TD Canada Trust provided small- products and only take risks that we understand corporate responsibility into business Reporting business customers with more than $1.5 billion and can manage. decisions. This is how TD’s vision, in new and increased credit authorizations. strategy and guiding principles help Top priorities in 2014 were to maintain our focus us navigate the path to building a ■ In the U.S., we provided more than 31,000 on customer experience, introduce new products Better Bank. small-business totaling more than and services that respond to genuine customer US$2.2. billion. 86% of these loans needs, resolve complaints fairly and quickly, were for amounts less than $100,000. improve access to banking and make TD the bank of choice for diverse communities.

2014 PERFORMANCE Direct Economic Value Generated in 2014 (in millions of dollars) In economic terms, the bank distributed $18.8 billion 2014 Revenue1 2014 Distributed Value Economic Value in direct economic value based on total revenue of Retained $29.9 billion. ▲ $29,961 ▲ $11,149

OPERATING COSTS2 SALARIES AND BENEFITS $4,389 $8,451

TAXES CASH DIVIDENDS3 COMMUNITY GIVING $2,702 $3,188 $82

1 Amounts based on International Financial Reporting Standards as issued by the International Accounting Standards Board. See the bank’s 2014 Annual Report for more information. 2 Operating costs include occupancy, equipment, marketing, professional services and communications. Refer to the 2014 consolidated financial statements GO DEEPER for more information.

3 ANNUAL REPORT + At October 31, 2014, the quarterly dividend was $0.47 per share, consistent with the Bank’s current target payout range of 40 to 50% of adjusted earnings.

TD 2014 Corporate Responsibility Report Page 17 Responsible Customer Banking Service

Building The Better Bank WHY IT’S MATERIAL TO TD + Material Issues Building a Better Bank starts with building strong and lasting How We Operate relationships with customers. In 2014, we continued to focus on Responsible Banking legendary customer service and convenience across our business. Economic Value ▲ Customer Service Privacy and Data Security Access to Banking MANAGEMENT APPROACH During the past year, we continued to refresh Products and Services our understanding of our customers and further Watch one amazing day in 2014 Legendary customer experience is at the heart of strengthen our relationships by: when we turned our ATMs into Extraordinary Workplace TD’s business strategy. We look for opportunities Automated Thanking Machines. in our operations and processes and products ■ Conducting 600,000 customer calls Environmental Leadership and services to make banking simple, fast and ■ Engaging with over 67,000 followers on Twitter #TDTHANKSYOU Strengthening Communities easy for our customers. ■ Generating more than 546,000 ‘likes’ Reporting TD continued to deliver on its convenience on Facebook and comfort strategy, actively responding to Common Complaints in 2014 our customers’ growing preference for mobile ■ Launching “Social Customer Service”, and banking and a totally seamless customer answering more than 6,000 questions a month Level of service through social media experience – wherever, whenever and however Credit decisions and holds on funds they chose to connect with us. In 2015, we will begin measuring overall customer Processing errors experience through a new Legendary Experience Mortgage fees (interest rate differential) 2014 PERFORMANCE Index (LEI) that will continue to raise the bar in TD’s strong Customer Experience (CE) strategy terms of exceptional experience delivery. Processing delays has long been a competitive differentiator. It is supported by continuous measurement which PROBLEM RESOLUTION When the issue is more complex, TD provides an escalation process that is also communicated on began with only a few programs in 1996 and has Effective handling of customer complaints is our website. The Problem Resolution framework grown substantially over the years. another essential element of good customer enables customers to file a complaint regarding service. We appreciate customers taking the time a potential violation of a code or commitment to tell us what went wrong, so that we have an through the TD Office of the Ombudsman opportunity to improve. Employees are encouraged (Canada) or the Chairman’s Service Center (U.S.). to take ownership and resolve the issues, ideally at the first point of contact. When problems do arise, Notable improvements in Problem we strive to respond quickly, get the problem fixed Resolution included: GO DEEPER and address the root cause. ■ 12% fewer complaints required investigation CODE OF CONDUCT AND PUBLIC COMMITMENTS + by TD Office of the Ombudsman (Canada) ■ 4% fewer complaints escalated to Chairman’s RESOLVING YOUR CONCERN + Service Center (U.S.) TD OMBUDSMAN ANNUAL REPORT +

APPENDIX: PERFORMANCE DATA +

TD 2014 Corporate Responsibility Report Page 18 Responsible Customer Banking Service

Building The Better Bank CONVENIENCE: SERVING CUSTOMERS Material Issues WHERE THEY ARE TD MOBILE How We Operate The spread of mobile technology is causing a seismic TRANSACTIONS JUMPED Responsible Banking shift in the way the world operates. The mobile-phone BY 48% YEAR-OVER-YEAR market – estimated as 4.1 billion users globally in 2012 – Economic Value is expected to reach 5.1 billion users globally by 20171. ▲ Customer Service For TD, the mobile platform is an increasingly important Privacy and Data Security additional channel through which we enhance our Access to Banking relationship with customers. It has been identified, Products and Services therefore, as a material issue in this report and is integral Extraordinary Workplace to our overall success and ability to compete in this sector. +48% Environmental Leadership The bank continued to roll out new products and services in 2014 in response to evolving customer expectations Strengthening Communities around mobile banking including: Reporting TD Mobile Deposit Integrated into the TD app, it allows eligible personal and Number of mobile active users business customers to deposit cheques into their bank Activity (millions) 2014 2013 account by taking a photo with their smartphone or tablet. Canada 2.5 1.8 Mobile Money Manager U.S. 1.7 1.3 TD began work with New York-based Moven on the development of a real-time financial-management tool, designed to help customers keep track of their purchases, TD was ranked #1 by thus allowing them to control discretionary spending and Comscore for the number save money. of mobile subscribers TD Mobile Payment accessing This secure payment solution allows customers to pay for 2 everyday purchases with their smartphones. TD was the via their mobile devices. first bank in Canada to offer a mobile payment solution for a variety of devices on Canada’s three major wireless networks. Banking for the future TD Insurance App TD is working with Communitech, an innovation hub in Waterloo, , to collaborate with TD also rolled out a separate mobile app for its TD local startups and work alongside innovative companies to explore new technologies for the Insurance customers in Canada. A key feature of this app financial services sector, with a focus on the customer experience. is the accident toolkit, which offers a step-by-step guide Lean, creative and experimental, the TD Lab runs like a startup – exploring emerging to submitting a claim and gives our customers one-click technology and new customer solutions, recruiting and developing high performing talent access to important phone numbers. and testing the latest design, development and prototyping tools and techniques.

1 http://www.emarketer.com/Article/Smartphone-Users-Worldwide-Will-Total-175-Billion-2014/1010536 TD 2014 Corporate Responsibility Report 2 Comscore reporting current as of September 30, 2014, based on an audience of approximately 24 million Canadian mobile subscribers above the age of 13. Page 19 Responsible Privacy and Banking Data Security

Building The Better Bank WHY IT’S MATERIAL TO TD + Material Issues The number of cyber attacks has increased globally, affecting many How We Operate sectors. TD has made strategic investments in people, technology, and Responsible Banking programs in order to protect itself and its customers from this risk. Economic Value Customer Service ▲ Privacy and Data Security Access to Banking Technology and information-security risks TD’s Chief Executive Officer is a member of a PROTECTING CUSTOMERS AGAINST FRAUD Products and Services for large financial institutions like ours have CEO Advisory Committee to the Prime Minister of TD Online and Mobile Security Guarantee. increased in recent years. This is due, in part, to Canada, and senior TD executives in Canada and Extraordinary Workplace In the unlikely event a customer experiences a TD the proliferation, sophistication and constant the United States are active advocates in industry account loss resulting from a transaction through Environmental Leadership evolution of new technologies and methods and leadership groups. a TD online or mobile service, they will receive used by those who wish to cause disruption or Strengthening Communities TD’s Privacy Program is led by the Global Chief 100% reimbursement provided their security criminal damage. Reporting Privacy Officer, who reports to TD’s Global Chief responsibilities have been met. The consequences of a breach in privacy and Compliance Officer. Local privacy officers are The safeguards TD has put in place to protect data security include financial loss, disruption responsible for the jurisdictions where the bank the security, privacy and integrity of customer to our operations and unauthorized release of operates. The Global Privacy Program includes information during transactions include: secure confidential information. Such incidents could policies, procedures, standards and guidelines firewalls to help prevent unauthorized access to TD have a negative impact on the sustainability of to help protect the privacy of our customers’ internal systems, data encryption to help ensure our business in terms of public trust and ultimately personal information and mitigate privacy risk. that customer information can only be decoded and our brand and our reputation. Our employees also complete a mandatory read by TD’s online and mobile environment, and privacy and information-security training course, around-the-clock monitoring to maintain the quality MANAGEMENT APPROACH which is refreshed annually. of TD’s systems and proactively help identify unusual The bank actively monitors, manages and We are committed to creating a safe and secure customer account activity. continues to enhance its ability to mitigate these environment for our employees and customers, technology and information-security risks through and to complying with the many industry-level enterprise-wide programs, industry best practices codes of conduct and public commitments and robust threat and vulnerability assessments designed to protect the interests of consumers. and responses. Mobile Apps Privacy Code. The bank TD’s commitment to information security is introduced a new Mobile Apps Privacy Code to reflected in the bank’s overall governance advise users how TD handles the information it structure. Cybersecurity topics are managed by obtains when they use the TD app. the Enterprise Risk Management Committee through the Senior Vice President, Technology Risk Management and Information Security. A new Vice President of Cybersecurity was hired last year.

TD 2014 Corporate Responsibility Report Page 20 Responsible Privacy and Banking Data Security PR-8

Building The Better Bank TD customers are offered free protection through Material Issues McAfee Internet Security for one year, as well as How We Operate through Trusteer Rapport. Q&A Responsible Banking 2014 PERFORMANCE

Economic Value ■ In Canada, we had one privacy complaint from Customer Service a customer in which the Office of the Privacy ▲ Privacy and Data Security Commissioner of Canada ruled in favour of the Access to Banking customer. There were no such cases in 2013. Products and Services ■ TD established an Office of the CDO (Chief Extraordinary Workplace Data Officer) with accountability for leveraging our data assets. Continued investment in Environmental Leadership data analysis will allow us to provide superior CYBERSECURITY AT TD: Strengthening Communities end-to-end customer experience and build our leadership position in the digital banking arena. An interview with Paul Milkman, Senior Vice President, Reporting Technology Risk Management and Information Security

Q: What investments were made in 2014 to further protect TD customers and employees from cyber-attacks? A: TD continually invests in cybersecurity and has a mature program experienced in dealing with cyber-attacks. Last year, we made substantial investments in customer protection, data leakage protection and perimeter security, adding to investments made the previous year in malware detection and threat analytics. Going forward, our goal is to further enhance our model for securely interacting with mobile devices and cloud services. We will also continue to strengthen our defenses against advanced malware and determined adversaries. Together these efforts constitute a robust arsenal with which to protect the bank and our customers.

Q:What is the rationale behind these different investments? A: TD strives to maintain an exceptional ability to quickly defeat cyber-attacks. To achieve this, we invest in multiple layers of defence, including real-time monitoring, and preventive and detective controls, all enriched by threat intelligence. Our cybersecurity program is global. GO DEEPER It fully integrates people, processes and technology, with consistent execution throughout TD’S PRIVACY COMMITMENTS + our business.

TD’S ONLINE AND MOBILE SECURITY Q:What about investments in people? GUARANTEE + A: Talent is a top management challenge. Well-trained cybersecurity experts play a critical PHISHING – HELPING CUSTOMERS PROTECT AGAINST FRAUD + role in our security strategy. I’m proud to say that TD is an employer of choice in this area. We recently hired a new Vice President of Cybersecurity and, over the past five years, have TOOLS AND RESOURCES TO increased the size of our team, with commensurate investments in systems and processes. PROTECT YOUR PRIVACY +

TD 2014 Corporate Responsibility Report Page 21 Responsible Access to Banking Banking EC-8 FS-13 FS-14

Building The Better Bank WHY IT’S MATERIAL TO TD + HEADLINE PERFORMANCE Material Issues TD serves a broad diversity of customers across 2,500 communities in How We Operate North America and access to our services is a key management priority. Responsible Banking We continue to remove barriers and make banking more accessible and Economic Value inclusive, particularly for vulnerable and under-served populations. Customer Service New to Canada Privacy and Data Security TD launched a New to Canada ▲ Access to Banking program providing advice and MANAGEMENT APPROACH The fundamental values of diversity and inclusion Products and Services support for new immigrants. are ingrained and promoted through our Strategic TD has strategies in place to ensure that products, Extraordinary Workplace Framework and Guiding Principles, supported by services and marketing initiatives reflect the our Corporate Diversity Office and, at the highest Environmental Leadership communities and cultures that are part of our levels, by TD’s Diversity Leadership Council (DLC), Strengthening Communities operational footprint. which reports into the Group President and CEO. Reporting We work to increase social and physical access Checking Account to our business in all communities. TD opens Transparency personal accounts regardless of whether a person is unemployed, is or has been bankrupt, TD Bank placed in the top 10 U.S. or is unable to make an initial deposit, as long banks by Wallet Hub. as required conditions are met. TD is involved in many innovative programs to help remove social barriers and increase access primarily through TD’s financial education initiatives. By equipping people with the tools and knowledge to manage their accounts, we can help improve their financial Gold Award stability and personal well-being. Refer to TD was awarded gold in the Financial Education for details. Progressive Aboriginal Relations Certification program.

GO DEEPER NEW TO CANADA WEBSITE +

CASE STUDY: PRESERVING WEALTH FOR FUTURE GENERATIONS +

BUILDING PRIDE: CELEBRATING THE LGBTA COMMUNITY +

TD AND ABORIGINAL COMMUNITIES IN CANADA +

TD 2014 Corporate Responsibility Report Page 22 Responsible Access to Banking Banking

Building The Better Bank Material Issues How We Operate Responsible Banking Accessibility and Economic Value Reaching Out to Aboriginal Banking Customer Service New-to-Canada LGBT Customers in Canada Privacy and Data Security ▲ Access to Banking CONTEXT CONTEXT CONTEXT Products and Services Extraordinary Workplace 11 million+ 7 out of 10 $32 billion Environmental Leadership Visible minorities in Canada1 LGBT individuals say they would Estimated total income of Aboriginal Strengthening Communities and 37% Minorities2 population conduct business with a company households, business and government 3 4 Reporting in the U.S. that supports the LGBT community sectors by 2016 – TD Economics

How TD is Responding How TD is Responding How TD is Responding

■ Translation services for non-native English ■ A new ‘Market Leaders’ initiative being piloted in ■ TD’s Aboriginal Banking Group focuses on speakers. Language Line is a phone service that allows Canada, and in the early stages in the U.S., leverages providing a comprehensive approach to delivering TD to serve customers in 200 languages. Since the the bank’s deep roots in Canada’s LGBT community, products, services and financing for Aboriginal service was made available at the branch level, there paving the way for future customer growth. In communities and businesses to help them achieve have been over 2,500 minutes of assistance in Mandarin, June, we established two new Regional Managers, their goals and thrive. Spanish and Korean – the predominant languages in specializing in business development in the LGBT ■ We developed specialized mobile tablets that will which customers chose to connect with us. community. allow us to provide a comprehensive approach ■ Multilingual Websites. The bank began to implement to banking (Commercial, Wealth and Retail) for ® Motion Point technology to more efficiently manage Aboriginal communities in remote locations. The the translation of its many websites (including mobile) tablet roll-out begins in March on Manitoulin Island and communicate information about products and “ We know that LGBT customers’ in Northern Ontario. services to customers more quickly in their language of choice. ■ In 2014, TD was honoured to be awarded Gold Level experiences with financial Status through the Canadian Council for Aboriginal ■ New-to-Canada website. This site provides New Business (CCAB) Progressive Aboriginal Relations Canadians with the information and resources they need institutions have not always (PAR) Certification program. This program supports to build a financial foundation in Canada. Here they can progressive improvement in Aboriginal relations access an account with no monthly fee, a bonus rate on been easy. Our job is to and assesses progress against four key performance a , a and the option for a no- areas: employment, business development, fee money transfer. differentiate ourselves from our community investment and community engagement. ■ Assistive technology. We use design standards that help customers find, understand and interact with competitors, by making it easy, information on our digital properties. Last year, we comfortable and convenient to introduced touch-screen ATMs at TD Bank America’s Most Convenient Bank®. Across North America, our ATMs now include fully accessible alternatives (through do business with us.” use of headphones) for persons with visual disabilities. Grant Minish, Regional Manager, Vancouver.

1 3 TD 2014 Corporate Responsibility Report Statistics Canada, Projections of the Diversity of the Canadian Population 2006-2031, March 2010 https://www.census.gov/newsroom/releases/archives/population/cb12-243.html 2 (Minorities consist of all but the single-race, non-Hispanic white population.) 4 IPSOS, LGBT Community Research, Nov 30, 2012 Page 23 Responsible Products and Banking Services FS-7 FS-14 PR-3

Building The Better Bank WHY IT’S MATERIAL TO TD + HEADLINE PERFORMANCE Material Issues We want our customers to understand their financial portfolios. That’s why How We Operate TD embeds responsible design, marketing and education into our suite of Responsible Banking products and services. Economic Value Customer Service Privacy and Data Security $5.1 billion saved Access to Banking MANAGEMENT APPROACH

▲ by TD Canada Trust customers Products and Services through automated savings As a major financial institution, TD aims to Extraordinary Workplace plans in 2014 promote responsible attitudes towards money. Our goal is to design products and services that Environmental Leadership help customers conveniently manage their day-to- Strengthening Communities day finances and achieve financial goals – whether big or small – with simple and personalized advice. Reporting We train our employees to take sufficient time to explain issues and answer questions. We make product and fee information readily available 749 families in our branches, stores, investment centres and assisted through TD Bank’s websites, and our guidelines require us to present Right Step Mortgage® program information about our products and services in clear, easy-to-understand language.

2014 PERFORMANCE Low-cost banking for seniors TD Right Step Mortgage® The bank has made changes to the TD Minimum In the U.S., TD Bank’s Right Step Mortgage® Account. The changes include an increase in the program provides qualified home buyers with number of transactions, from eight to 12, and no an alternative to Federal Housing Administration 60,000 questions monthly cost for those who receive Guaranteed (FHA)-backed products. The program Income Supplement (Canada) and those who are answered through the features a low three percent down payment beneficiaries of TD Registered Disability Savings TD Helps online platform option and the potential for significant savings on Plans (RDSP). a borrower’s monthly payment, with no private TD Connect Card mortgage insurance requirement. In 2014, 749 TD Bank launched the new TD Connect Card in homes were purchased or refinanced through the the U.S. – a pre-paid bank card to assist customers TD’s Right Step Mortgage® product, more than in better managing their money. tripling the number of customers from 2013.

TD 2014 Corporate Responsibility Report Page 24 Responsible Products and Banking Services FS-7 FS-15 PR-4

Building The Better Bank WAYS WE INVOLVE STAKEHOLDERS IN In 2014, there were no incidents of non- Material Issues PRODUCT DEVELOPMENT compliance with regulations and voluntary codes concerning any form of marketing How We Operate We recognize the value of involving stakeholders communications of products and services. Responsible Banking in the research and development of new or enhanced products and services. For example: Economic Value HELPING CUSTOMERS IN TOUGH TIMES ■ To enhance service for the deaf and hard of Customer Service Canada: hearing we recently conducted focus-group Privacy and Data Security We encourage customers facing financial research with the deaf community. The insight challenges to talk to us so we can help get them Access to Banking provided has been integral to further strategy ▲ back on track before it’s too late. As a result, Products and Services development and decisions regarding innovative Helping East Vancouver Thrive customers don’t have to resort to potentially more Extraordinary Workplace technology enhancements. Watch Spencer’s story about costly and time-consuming alternative means of ■ Recognizing the language barriers Chinese financing, and we retain customers and avoid Environmental Leadership building a branch in the Downtown consumers experience, we conduct online costly write-offs. Strengthening Communities Eastside community. omnibus research with the Chinese community ■ In 2014 we helped restructure $98.1 million in Cantonese and Mandarin. Reporting in loans, down from $140 million in 2013. We see this reduction as a positive sign that HOW WE SELL OUR PRODUCTS indicates better stability in the economy and AND SERVICES less need for special intervention in managing We balance our practice of rewarding our household debt. employees for sales performance with a system Foreclosure Avoidance in the U.S.: of checks and balances to ensure that solutions Compared to other banks in the U.S., TD had offered are in the best interests of each customer. relatively limited exposure to subprime mortgages. All employees receive training on product features, TD Bank’s Loss Prevention team continued to Know Your Customer policies and suitability. focus on strengthening customer outreach efforts Branch and phone-based sales representatives by expanding the options available and helping are trained to use online discussion tools in their customers avoid losing their homes. conversations with customers. These tools prompt The value of troubled real-estate assets employees to consistently put the customer restructured by TD Bank in 2014 was $36 million, first, ask the right questions and suggest up from $31.9 in 2013 (U.S. dollars). appropriate solutions.

GO DEEPER An example is an Account Advisor, which helps CODE OF CONDUCT AND PUBLIC ensure customers are not paying for products COMMITMENTS + or services they don’t need. In the case of credit products, our credit-underwriting team checks LOW COST BANKING OPTIONS + that customers are not being overextended and UNDERSTANDING TD PRODUCTS + offers alternative solutions if necessary.

TD’S FINANCIAL LITERACY WEBSITE +

PEW CHARITABLE TRUST CHECKS AND BALANCES REPORT +

TD 2014 Corporate Responsibility Report Page 25 Responsible Products and Services: Banking Financial Education for Consumers FS-13 FS-16

Building The Better Bank Financial literacy is a critical skill for navigating today’s financial world and is therefore a priority for TD. Material Issues We strive to educate our customers and give them the financial information, resources and support they How We Operate need to adequately understand our products and services and better manage their personal finances. Responsible Banking Economic Value Social Media TD Helps is an online community that encourages Clear We want customers to properly understand what Customer Service both customers and non-customers to ask questions Communication they are buying or signing up for, so they can make about their finances and receive answers from TD informed banking decisions that are in the best Privacy and Data Security experts, helping them make good financial decisions. interest of both the consumer and TD. Access to Banking Unlike other sites that simply offer FAQs, answers from ▲ Products and Services TD Helps are specific to the questions asked and are In 2014, The Pew Charitable Trust assessed the provided in a matter of hours. In 2014, we expanded 50 largest U.S. banks on how well their disclosure, Extraordinary Workplace the program to the U.S. overdraft and dispute-resolution practices met policy Environmental Leadership recommendations. TD placed 7th, achieving a best- + View a real example of TD Helps advice practice designation in four of seven categories. Strengthening Communities Reporting Systematic We encourage customers to build their savings Tools and TD has several websites that provide consumers with Savings Tools through the use of free automated savings plans. Resources tools and resources to better understand and manage There continues to be great uptake of these tools by financial products. Here are a few examples: our customers. By the end of 2014, more than two ■ Advice on Everyday Finances million TD Canada Trust customers had set up an ■ Spending Smart at School automated savings plan, helping them save more than ■ Financial Planning for the Modern Family: (a series $5 billion. of four YouTube videos): Couples with Young Children; The Sandwich Generation; Newly Single, We also have options designed to help customers Newly Divorced; New Canadians. reach their savings goals faster. For instance, Simply Save helps customers save money every time they use their . In 2014, we also supported the Awareness and Every November as part of Financial Literacy Month, first ever Education Savings Week in Canada through Outreach we launch an ad campaign throughout our branches promotions including a strong social media campaign, to promote financial literacy and draw attention to and our Get Saving website provided videos and the tools and resources available. support tools that re-enforce financial literacy topics. TD offers hundreds of free seminars each year The Canada Learning Bond (CLB) is a government on topics such as buying a home and making grant that encourages customers to save for a child’s investments. For example, in 2014 we delivered future education. In 2014, we facilitated $11.3 million 306 small-business workshops in the U.S., with in CLB payments and improved our process to increase 5,476 small-business owners gaining knowledge uptake of the CLB. In 2015, we will be working with about cash-flow analysis, business planning and SmartSaver – a non-profit organization that helps more. eligible low-income families access education funding through government savings plans.

See the Community section of this report to learn more about financial education programs in the community.

TD 2014 Corporate Responsibility Report Page 26 This is how we are building an Extraordinary Workplace

To be The Better Bank, we need the better employee. That’s why we have a strong focus on ensuring TD is an extraordinary workplace. Our business model – to provide legendary customer service – fully relies on having an engaged, diverse and healthy workforce to deliver the customer experience we strive for.

HEADLINE PERFORMANCE 90% of employees say TD values diversity in the workplace MATERIAL ASPECTS IN THIS CHAPTER $88.5 million ■ Employee Engagement invested in training and ■ Diversity and Inclusion developing our people ■ Health and Well-Being 4.20 best-in-class employee engagement score

TD 2014 Corporate Responsibility Report Page 27 Extraordinary Employee Workplace Engagement

Building The Better Bank WHY IT’S MATERIAL TO TD + MORE THAN JUST WORK Material Issues TD’s goal is to engage our people so they feel inspired and supported. It’s an How We Operate important part of our entire business strategy, and one of the ways we strive Responsible Banking to differentiate TD as a “best employer”. We believe that employees should Extraordinary Workplace feel they are doing work that matters, have opportunities beyond expectations

▲ Employee Engagement and be motivated by inspiring leaders. Diversity and Inclusion Health and Well-Being Environmental Leadership Strengthening Communities The TD Difference: What Our Employees Say 88% of new hires tell us they Reporting are excited about their “ I am extremely proud to “ TD values the contributions that personal and professional opportunities at TD be employed by a global women make to the organization leader in diversity in the while allowing them to focus on the 86% workplace.” other things that matter.” of employees say they Josh Brooks Tracey Maciocia are proud to work for TD 87% of employees agree that TD supports their ambitions to get involved in corporate “ I don’t worry about the fact that I’m gay “ Leaders are the responsibility initiatives or hide the existence of my partner. I’m a reason why TD better employee for it.” is different.”

Heather Richardson Mushtak Najarali

GO DEEPER TD’S LEADERSHIP PROGRAMS +

APPROACH TO JOB LOSS +

2014 TD BANK GROUP WORKFORCE PROFILE +

TD 2014 Corporate Responsibility Report Page 28 Extraordinary Employee Workplace Engagement

Building The Better Bank MANAGEMENT APPROACH ■ Employees told us that TD excels in the areas Material Issues of communication and listening, inclusion, Named one of the To create a highly engaged workforce, we: How We Operate customer focus, supporting employee growth 50 Best Employers ■ Work closely with our employees to understand and leadership. An area where employees noted in Canada for the seventh Responsible Banking and respond to what matters to them – the they need more support is additional tools and year in a row Extraordinary Workplace tangibles and intangibles, monetary and technology to do their jobs. In response, TD has non-monetary Aon Hewitt

▲ invested significantly to improve both the access Employee Engagement ■ Give them wide-ranging opportunities to and the functionality of online resources. Diversity and Inclusion Named one of the learn and develop so they can reach their Management teams across the company use Health and Well-Being 50 Best Workplaces full potential the survey results, which are analyzed by Environmental Leadership in Canada ■ Focus on management behaviour in helping to business area, region and demographic groups, Great Place to Work Institute Strengthening Communities design a positive, inclusive work environment to drive ongoing improvements in our workplace practices. Reporting ■ Communicate openly and regularly about Named one of the Employee Turnover TD’s mission, values and culture – effectively Best Workplaces in connecting the dots for our employees TD’s average global turnover for 2014 improved slightly, to 18.40% from 19.17% in 2013. the United Kingdom Great Place to Work UK 2014 PERFORMANCE ■ In Canada, voluntary turnover was 9.26% Global Engagement Survey ■ In the U.S., voluntary turnover was 20.20% Received the Gold In 2014, we conducted our annual employee engagement survey, TD Pulse, across all of Voluntary turnover rates are higher in the U.S. Canadian Award for our locations globally, and 90% (74,283) of banking industry, including in TD’s U.S. operations. Training Excellence We saw improvement during 2014, and continue employees participated. Canadian Society of Training to address opportunities. There is an integrated ■ and Development The overall engagement score increased to 4.20 U.S. plan in place to reduce voluntary turnover, in 2014 versus 4.17 in 2013 (on a five-point with strong executive and HR sponsorship. Major scale). This is a best-in-class level of engagement efforts underway include: improving our new- TD Bank was named a as defined by the Aon Hewitt Employee hire processes to better match skills for key roles, Training Top 125 winner Engagement Index and the Great Place to Work focusing on part-time/temporary employees and for the eighth year in survey, the two industry benchmarks we use to their unique needs and increasing awareness for a row for employee gauge our performance. all employees of career development, coaching development and mentoring opportunities. Training magazine

TD 2014 Corporate Responsibility Report Page 29 Extraordinary Employee Workplace Engagement

Building The Better Bank CASE STUDY DEVELOPING OUR PEOPLE Material Issues In 2014, TD hired 13,568 new employees. We aim Investing in the Next Generation of Talent How We Operate to hire from the broadest possible talent pools, Responsible Banking which allows us to represent the changing demographics in our markets and to benefit from TD invests significantly in young people, both Extraordinary Workplace the innovation that comes from applying diverse within our workplace and in the broader ▲ Employee Engagement experience and thinking to competitive challenges. community. Here are some of the ways we do it: Diversity and Inclusion TD supports a strong develop-and-promote-from- ■ To help students gain work experience, we Health and Well-Being within culture: provide paid internships and co-op programs with colleges/universities. Environmental Leadership ■ We offer career coaching, mentoring, over 1,000 training courses (classroom and virtual) and a ■ We offer unique rotational programs, which Strengthening Communities dedicated Career Month to highlight career- allow recent graduates to explore different Reporting planning resources and required skills for various career options at TD while building their business lines. network and industry knowledge.

■ In 2014, 1,443 employees participated in ■ Both interns and young full-time hires receive mentoring programs and 1,118 employees mentorship from senior employees on career participated in TD’s Career Month. development. Learning and Development: ■ We recruit high-performing talent through the TD Lab as part of our work with ■ In 2014, we spent $88.5 million globally on entrepreneurs and innovative technology training and development, representing an startups at Communitech (see case study). investment of $969 per employee. The amount per employee is slightly lower than the previous ■ We fund a range of bursaries, scholarships year because we continue to develop smarter and programs across Canada, including the ways to deliver better quality training. TD Scholarships for Community Leadership, to help students cover the costs of pursuing ■ In 2014, 76,806 leadership courses were post-secondary education, donating completed. Our suite of leadership-development $2.2 million last year alone. programs (in some cases facilitated by the CEO and senior executive team) help executives and managers understand and apply TD’s business strategy, leadership values, culture “ At TD, I am not treated like ‘just an intern’ – instead, I can and talent priorities. direct my own development, work on enterprise strategies ■ Employees completed more than 1.9 million e-learning courses through TD’s Learning and present to some high-profile stakeholders. I’ve increased Management System, including mandatory my leadership capability.” compliance courses. Miranda Dela Cruz, Recipient of TD Scholarship for Community Leadership, 2011, and a TD intern.

TD 2014 Corporate Responsibility Report Page 30 Extraordinary Employee Engagement Workplace and Sustainability EN19

Building The Better Bank We continually promote our sustainability HEADLINE PERFORMANCE Material Issues activities and goals within our workplace and How We Operate encourage employee involvement. Responsible Banking 2014 TD Green Nation TD Green Nation is at the heart of our employee Extraordinary Workplace Innovation environmental engagement programs. It’s a ▲ Employee Engagement web-based gamification platform that inspires Diversity and Inclusion of the Year employees to pledge and accomplish “green acts” in the workplace, at home or in the Health and Well-Being awarded to TD for our community. In 2014, TD Green Nation achieved environmental employee Environmental Leadership great success: engagement program by Strengthening Communities ■ The number of users grew to 22,256 Charities at Work Reporting members, from 17,859 in 2013. ■ Members achieved 110,107 acts of green, TD Green Teams and Leaders 185,000+ resulting in 134,429 carbon savings from acts TD has approximately 72 Green Teams across pledged (tonnes CO2e). North America. In retail locations, a Green Leader trees planted in 167 TD Green Pledge acts as a point person for environmental initiatives communities by TD volunteers As part of a broader employee engagement and campaigns. globally over the past strategy in the U.S., the TD Green Pledge TD Tree Days five years provided seven practical commitments that map TD Tree Days provides TD employees, their families closely to TD’s business objectives, community and friends, and members of the community the volunteering and paper and energy-reduction opportunity to demonstrate their commitment 87% goals. In 2014, over 54% of U.S. employees took to forest stewardship. In 2014, we celebrated the the pledge. of employees agree that TD is fifth anniversary of the program, with some 8,000 a leader on the environment TD volunteers, up from 7,200 in 2013, planting more than 50,000 trees across North America and the U.K. Watch the video.

Take the Green Pledge

Hold and promote Turn off your Unplug all chargers Reduce your ‘fair share’ paperless meetings. computer monitor at when not in use. of travel to cut carbon the end of the day. emissions.

Print double-sided “Make it Real” by Join the conversations about Environment GO DEEPER and multiple slides volunteering for the  at TD on Connections and TeamWOW! TD TREE DAYS + per page when possible. environment in TD BANK: WHERE GOING GREEN IS your community. GOING VIRAL +

TD 2014 Corporate Responsibility Report Page 31 Extraordinary Diversity and Workplace Inclusion

Building The Better Bank WHY IT’S MATERIAL TO TD + Material Issues Named one of Canada’s Best Achieving our mission to be a leading North American bank depends on How We Operate Diversity Employers for the understanding and reflecting the people, cultures and communities where third straight year Responsible Banking we operate. At the same time, diversity of expertise and perspectives in Mediacorp Extraordinary Workplace our boardrooms, branches and stores makes us a smarter, more creative organization, leading to better decision-making and a stronger bottom line. Ranked #1 in North Employee Engagement America on the Return ▲ Diversity and Inclusion on Disability Index for Health and Well-Being supporting and engaging Environmental Leadership MANAGEMENT APPROACH every new hire undergoes diversity-awareness people with disabilities training. Our longstanding workplace policies We take an integrated approach to diversity and Strengthening Communities and guidelines support our commitment, and Fifth Quadrant Analytics inclusion, with initiatives for employees, customers the fundamental values of diversity and inclusion Reporting and communities. The Diversity Leadership Best Place are ingrained and promoted through the bank’s TD Bank voted Council, which comprises senior leaders across Strategy Framework, Guiding Principles and to Work for LGBT Equality TD, sets the strategy and oversees our progress on Leadership Profile. for the sixth straight year diversity and inclusion. The Council is supported by more than 300 leaders who are active on diversity Additionally, we strive to be a model of successful Human Rights Campaign Foundation subcommittees and regional councils, a Corporate diversity and inclusion for our customers and Diversity Office and diversity-management systems. communities. Learn more about our efforts: In the workplace, our efforts include diversity Access to Banking training programs for management and employees, Community Investment mentoring tools and programs, employee networks and resource groups, and opportunities to share ideas and experiences. We also embed diversity and inclusion into our recruitment practices, and

GO DEEPER DIVERSITY WEBSITE + CASE STUDY: DIVERSITY & INCLUSION AT “ You’re not going to deliver legendary service to TD: 10 YEARS AND COUNTING + customers if you don’t feel included.” EMPLOYMENT EQUITY REPORT + Amy Hanen, AVP, Diversity and Inclusion TD AND ABORIGINAL COMMUNITIES IN CANADA +

LGBTA REPORT – BUILDING PRIDE +

TD 2014 Corporate Responsibility Report Page 32 Extraordinary Diversity and Inclusion Workplace Workplace Highlights 2014

Building The Better Bank AWARENESS AND WOMEN IN LEADERSHIP PEOPLE WITH DISABILITIES VISIBLE MINORITIES Material Issues TRAINING How We Operate ■ Grew participation in 11 online ■ Expanded our U.S. mentoring ■  Spent more than $690,000 to improve ■ Created a Visible Leadership Responsible Banking diversity communities by 30% in program – Emerging Leaders, the accessibility of TD facilities and Program exclusively for TD’s Visible Extraordinary Workplace just one year. we matched 300 aspiring female services across North America. Minority community. Comprising leaders with mentors and doubled workshops, role-plays and other ■ Raised awareness through story- ■ Over 1,700 employees benefited participation from 2013. developmental activities, the Employee Engagement telling, highlighting employees from ergonomic modifications and

▲ two-day program is designed to Diversity and Inclusion who have been reached by ■  Issued a TD Economics Special accommodations. help employees achieve their full diversity and inclusion initiatives. Report – Time Treasure Talent – Health and Well-Being ■ Piloted a speed-mentoring program potential. Women & Philanthropy. ■ Delivered Mental Health in the Greater Toronto Area for ■ Hosted a quarterly teleconference Environmental Leadership Awareness training to ■ Several TD women were given employees with a visible or invisible series for minority leaders in 1,700 employees. leadership awards including disability. Strengthening Communities the U.S. called “Getting to NJBIZ Best 50 Women in Business ■   Introduced the Individuals with Know You”, designed to create awards, American Banker’s Top 25 Reporting Disabilities Etiquette Guide to awareness of TD Bank leaders and Women to Watch and Women in educate all U.S. employees about provide employees with access to Capital Markets Rising Star award. different disabilities and appropriate role models. work etiquette.

Women Minorities People with disabilities Women Minorities People with disabilities Women Minorities People with disabilities

ABORIGINAL PEOPLES LGBTA VETERANS IN THE U.S.

IN CANADA Aboriginal peoples Lesbian, gay, bisexual, Veteran in the U.S. (a new in Canada transgender and allies (LGBTA) focus area starting in 2014) ■ Participated in the Progressive ■ Grew our LGBTA Pride Network to ■ Introduced a new areaAboriginal of focus peoples Lesbian, gay, bisexual, Veteran in the U.S. (a new Aboriginal Relations Certification 1,920 members – making it one in the U.S. in response toin Canada transgender and allies (LGBTA) focus area starting in 2014) program offered by the Canadian Aboriginalof TD’s largest peoples and most engaged Lesbian,increased gay, bisexual, employee interest Veteran in the U.S. (a new Council for Aboriginal Business, employee networks. and new regulations related to and earned gold-level certification in Canada transgenderveteran and recruitment.allies (LGBTA) focus area starting in 2014) ■ Introduced the SAFE Pin, a visible for having best practices in sign to identify allies of the LGBTA ■ Created an employee resource Aboriginal relations. community and show they are group to focus on opportunities ■ Approximately 1,000 employees – a “safe” person to talk to about for veterans and help with more than ever before – LGBTA matters – over 5,000 transitioning from active duty Women participated in National AboriginalMinorities pins have been produced by thisPeople withto the disabilitiesworkplace. Day events across the country. employee-led initiative. Watch TD’s CFO Colleen Johnston Women Minorities People with disabilities talk about women as leaders.

Aboriginal peoples Lesbian, gay, bisexual, Veteran in the U.S. (a new Aboriginal peoples inLesbian, Canada gay, transgenderbisexual, and allies (LGBTA) Veteranfocus inarea the starting U.S. in 2014)(a new TD 2014 Corporate Responsibilityin Canada Report transgender and allies (LGBTA) focus area starting in 2014) Page 33 CASE STUDIES Extraordinary Health and True Work-Life Integration Workplace Well-Being With a son in Grade 3 and a daughter in Grade 1, Jenny Diplock, Senior Manager, says TD’s Flexible Work Options helps her get the Building The Better Bank WHY IT’S MATERIAL TO TD + most out of her time with family and work. Material Issues Every day our people bring TD’s brand of being The Better Bank to life. “ I live and work in different cities, so I schedule How We Operate That’s why we need – and want – employees who are healthy, happy all of my face-to-face meetings for days when I am in the office. On days when I work from Responsible Banking and well-balanced. home, I structure my day to allow me to walk Extraordinary Workplace my kids to school in the morning and use conference calls and online meetings during the Employee Engagement day,” she says. “On days that I spend any time Diversity and Inclusion at the school, I usually work in the evenings ▲ Health and Well-Being MANAGEMENT APPROACH 2014 PERFORMANCE when I’m feeling most creative. It’s true work- Environmental Leadership Taking a holistic approach, we provide We view workplace flexibility not just as an life integration!” comprehensive wellness and Health and Safety employee benefit, but as good business strategy. Strengthening Communities (H&S) programs that help employees thrive in the To be truly engaged and productive in their Reporting workplace and at home. We support and promote work, our employees need to be able to balance TD Employee Shares his healthy, active and balanced living by providing their business obligations with family and other opportunities for employees to assess, manage and demands on their time. Mental Health Journey improve their entire physical, mental, emotional TD’s Flexibility Committee includes senior and financial well-being. For example, we offer a representation from all business units that seeks robust health-benefits program, a variety of flexible “ Mental health challenges still carry a stigma in opportunities to further embed flexibility in our work options, and an employee-assistance program society, but TD’s culture stands up and strikes workplace. In 2014, we continued to offer our that provides third-party counselling to help deal down bias and stigma, which allows employees comprehensive Flexible Work Options Program with a wide range of life events. like me to bring their authentic selves to work. which includes: TD’s overall H&S focus is on mitigating safety risks “ I’ve been talking openly about my own mental ■ Job sharing relevant to our business, which primarily include health issues for about three years now. I can slips, trips and falls, ergonomic conditions (e.g., ■ Shortened work weeks honestly say that I have never felt that it has negatively affected my relationships with my TD repetitive strains), and injuries related to lifting. ■ Reduced summer schedules colleagues. If anything, it’s strengthened them. We continue to identify ways to reduce risk that ■ Gradual back-to-work transitions The vast majority of people want to show lead to injury. In 2014, TD reviewed its current support when they know that someone faces ■ Telecommuting occupational H&S programs in Canada and unique challenges, and that couldn’t be more will be working to enhance their processes and We introduced a Short-Term Assignment Policy true than in the TD family. communications in 2015. that allows employees to apply for short-term “ Through this experience, I have developed a assignments without losing their status in their deeper appreciation for how my uniqueness current role. TD strives to provide a workplace helps create different ways of thinking. I’d say where informal flexibility enables employees to it’s made me a stronger leader.” balance their responsibilities at work, home and in the community. Adrian Lawford, Associate Vice President

GO DEEPER SUMMARY OF BENEFIT PROGRAMS +

TD 2014 Corporate Responsibility Report Page 34 This is how we demonstrate Environmental Leadership

Our goal is to be an environmental leader. We do this by embedding an environmental perspective into our core business strategy. While our goal has not changed, the standards for corporate leadership are evolving rapidly as consumers and HEADLINE PERFORMANCE investors increasingly expect strong environmental performance to be part and parcel of strong business performance. Climate leader: Named to The A List: The CDP Climate Performance Leadership Index All of TD MATERIAL ASPECTS IN THIS CHAPTER locations ■ Adapting to a are managed under Energy Changing Climate Star® Portfolio Manager® ■ Eco-Efficiency ■ Responsible Finance and Investing 100% of TD Green Bond proceeds allocated to low-carbon financing

TD 2014 Corporate Responsibility Report Page 35 Environmental CASE STUDY Leadership Introducing Natural Capital

Building The Better Bank To understand TD’s environmental performance, it helps to know what we mean by the term Material Issues “natural capital” and how this concept has How We Operate become a focus of our environmental strategy. Responsible Banking As a financial institution we are committed to measuring our impacts. In 2013 we initiated a Extraordinary Workplace program, in collaboration with TD Economics, Environmental Leadership aimed at gaining a better understanding of

▲ the links between the environment and the Natural Capital economy. In 2014, we built on this program by Adapting to a Changing Climate developing a framework for the valuation of Eco-Efficiency natural capital. This framework has been applied Responsible Finance and Investing in a number of instances in this report. Green Product Options “ Natural capital is the stock of natural Strengthening Communities resources (finite or renewable) and ecosystems that provide direct or indirect Reporting benefits to the economy, our society and the world around us.” TD Economics Natural capital recognizes that environmental and social benefits have a financial value that can be calculated. The concept of natural capital can be widely applied – for example to a tree, a city or an entire ecosystem. Why is natural capital so important? Natural capital valuation helps to inform better planning and decision-making by extending a business-case assessment to include the value of environmental benefits. What is natural capital and why is Meeting our environmental challenges it important?

GO DEEPER Follow TD’s Chief Environment Officer TD Bank ranked TD Chief Environment TD’S 2014 NATURAL CAPITAL @KClarkeWhistler 18 in the EPA’s Green Officer named one of VALUATIONS + Power Partnership Canada’s 2014 Clean16 National Top 100 for “outstanding VALUING THE WORLD AROUND US: AN INTRODUCTION TO NATURAL CAPITAL + contribution Environmental Protection Agency to clean capitalism” THE VALUE OF URBAN FORESTS IN CITIES ACROSS CANADA +

URBAN FORESTS: THE VALUE OF TREES IN THE CITY OF TORONTO +

TD 2014 Corporate Responsibility Report Page 36 Environmental Adapting to a CASE STUDY Leadership Changing Climate Working with stakeholders to find industry solutions EC-2

Building The Better Bank WHY IT’S MATERIAL TO TD + Material Issues Climate change is a global issue How We Operate that has implications for our Responsible Banking business, customers and employees. Extraordinary Workplace We are working to understand and anticipate how changes in climate Environmental Leadership and the need for adaptation will Natural Capital impact not just our own business, ▲ Adapting to a Changing Climate but our customers and those Eco-Efficiency companies we lend to, invest in and Responsible Finance and Investing purchase from. Green Product Options Strengthening Communities Reporting “The Rebuild Stronger On June 17, 2014, a Level-2 tornado with winds MANAGEMENT APPROACH gusting up to 180 kilometres an hour hit the Homes program is a loss- small town of Angus, Ontario, north of Toronto, Climate change is a material issue that cuts across prevention strategy that causing significant damage. The TD Insurance all aspects of our business and is a driver of much Mobile Response Unit arrived on the scene to help of our work in the areas of eco-efficiency and is absolutely essential in residents recover after the storm. responsible financing and investing. As a result, rather than addressing it as a separate topic, we helping the industry and our With the frequency and intensity of severe weather have woven our discussion of climate change into customers protect themselves events increasing, we see first-hand the need the sections on eco-efficiency and responsible to make our buildings and communities more finance and investing, specifically considering by addressing the alarming resilient. TD is an active member of the Advisory the following: international trend of Committee of the Institute for Catastrophic Loss Reduction (ICLR) and last year we piloted an ■ Contributing to a low-carbon economy increasing disaster damage. innovative program called Rebuild Stronger Homes. ■ Adaptation to climate change We are the first insurer to The program specifies construction, design and landscaping guidelines to increase a new home’s agree to test the new program. resilience to natural disasters and ultimately provide Ultimately, the pilot will be a greater protection to our customers. win for customers, for builders and for insurers.” Maude Choquette, Vice President, Insurance, who represents TD Insurance on the Institute for Catastrophic Loss Reduction Advisory Committee.

TD 2014 Corporate Responsibility Report Page 37 Environmental Our Low-Carbon Leadership Journey

Building The Better Bank How we have invested over $7 billion in the low-carbon economy (2006–2014) Material Issues How We Operate Responsible Banking STEP 1 Extraordinary Workplace Reduce Environmental Leadership Energy ECO-EFFICIENCY Use Natural Capital $22.6 million ▲ Adapting to a Changing Climate spent on green IT energy and INVESTING travel reduction initiatives Eco-Efficiency Reduce energy use and • Green bond charge our business $31.8 million • Embedded ESG considerations Responsible Finance and Investing in all investments $10/tonne of CO2e spent on green building Green Product Options energy reduction initiatives

Strengthening Communities Reporting STEP 2 Green Be Carbon Our Energy TD CUSTOMERS Supply Neutral • Paperless banking • Insurance discounts for electric and hybrid vehicles Generate renewable electricity from our • Green guide for small business facilities; purchase certified EcoLogoTM customers or Green-e® renewable energy credits (RECs) COMMUNITY $11.7 million invested in carbon offsets & RECs STEP 3 $140 million Develop on energy-efficient Innovative affordable housing LENDING Carbon $41.2 million $6.6 billion $130.4 million Offsets on environmental projects to low-carbon in loans for small-scale renewables in the community financing and energy efficiency projects Offset remaining GHG emissions with innovative North American-based carbon offsets

GO DEEPER TD’S ENVIRONMENT POLICY + ▲ What we learned about energy by becoming carbon-neutral, we applied to TD’S APPROACH TO MANAGING our business to benefit customers and clients. ENVIRONMENTAL RISK +

TD 2014 Corporate Responsibility Report Page 38 Environmental Eco-Efficiency Leadership EC-6

Building The Better Bank WHY IT’S MATERIAL TO TD + Material Issues Eco-efficiency means doing more with less – finding ways to grow our How We Operate business while reducing our environmental impact. The business case for Responsible Banking eco-efficiency is clear. It results in improved business-process efficiency, Extraordinary Workplace cost savings, and increased customer and employee satisfaction. Environmental Leadership TD’s sustainable energy-efficient concept branch. Natural Capital Adapting to a Changing Climate ▲ Eco-Efficiency MANAGEMENT APPROACH Improving the eco-efficiency of our buildings is First Canadian financial institution to fully key to reducing both our carbon footprint and our adopt Energy Star® Portfolio Manager® Responsible Finance and Investing We focus on those aspects of our business operating expenses. In 2014, energy-reduction In 2014, we made the key decision to adopt Green Product Options operations where we have the biggest opportunity initiatives translated into 55 million KW of Energy Star® Portfolio Manager® to manage to reduce our environmental footprint: Strengthening Communities energy saved. our entire North American real-estate ■ Maintaining our carbon-neutral commitment by portfolio. Developed and supported by the U.S. Reporting In 2014, we added 23 LEED-certified buildings reducing our energy use, greening our energy Environmental Protection Agency and Natural to our portfolio, bringing the total to 140, supply and offsetting the remaining carbon Resources Canada, the online tool allows TD to comprising nearly 1.1 million square feet. that we emit track energy use, greenhouse-gas emissions and Energy-reduction initiatives: A list of ■ Reducing our office paper use as well as water use on a facility-by-facility basis, enabling initiatives and the energy saved is available paper used for our customer statements and us to benchmark the performance of our facilities on our website. commercial printing against hundreds of similar buildings. We became Steps 2 and 3: Renewable Energy Credits the first Canadian company to use the online tool ■ Reducing our water use and waste generation (RECs) and Carbon Offsets across our entire building portfolio. Our goal is to TD has developed multi-year metrics and targets set individual performance targets for each of our TD purchases high-quality RECs within North to track and improve upon our performance. facilities by the end of 2015. America from renewable-energy projects Eco-efficiency programs and reporting are + that have achieved EcoLogoTM or Green-e® Energy TD Renewable Energy Credits and managed through a collaborative approach with certification. Carbon Offsets Map key internal business stakeholders: Enterprise, Real Estate, Strategic Sourcing and Information ■ RECs used to offset 52% of our electricity Technology. We collect and review data on a use, which represents 70% of our emissions

quarterly basis as part of our Environmental from electricity DID YOU KNOW Management System. ■ More than $7.6 million spent on North Achieving Carbon Neutrality American carbon-offset projects since 2010 The reduction in atmospheric emissions achieved through TD’s 2014 purchases Step 1: Energy Reduction ■ Over 63% of TD’s carbon offsets were generated through impact investing projects of REC’s and offsets has a natural capital Our electricity use represents a total of 59% of value of over $118 million for the year. emissions. In 2014, we managed 25 million square in 2014 feet of North American real estate including more than 2,500 retail stores and branches and 190 corporate offices.

TD 2014 Corporate Responsibility Report Page 39 Environmental Eco-Efficiency Leadership How Eco-Efficiency Helps TD be Carbon Neutral

Building The Better Bank Material Issues How We Operate LEED platinum Virtual meeting LED signage Solar panels Responsible Banking data centre software 1,113 tonnes 738 tonnes Extraordinary Workplace 550 tonnes 1,415 tonnes Environmental Leadership CO2e saved CO2e saved CO2e saved CO2e saved Natural Capital 10001010001101010001000010010010010010 Adapting to a Changing Climate 000 101101010001101001010100000100010000100 01

▲ 0 0 10010101001000100100101100010001000011 01 1 Eco-Efficiency 00 00 0 01 1 0 0 1 0 Responsible Finance and Investing 0 1 0 0 0 0 0 1 0 Green Product Options 1 0 0 0 0 1 1 1 0 Strengthening Communities 0 0 1

0 1

0

0

0

0

1 Reporting 010001000 0011100000000 000011010000

Printer reduction 36 tonnes

CO2e saved Drought tolerant 100% Low energy landscaping e-waste work stations diverted from 4,000 tonnes Electric landfill vehicle CO2e saved charging stations

E

▲ Despite 24% growth in our occupied space, TD’s total GHG emissions from energy decreased by 11% since 2008. 53% reduction in GHG emissions/$revenue since 20081. This image includes examples of eco-efficient features that can be found at TD. 1 Emissions from energy include our emissions from electricity as well as heating and cooling for our owned and leased facilities. TD 2014 Corporate Responsibility Report Page 40 Environmental Eco-Efficiency Leadership

Building The Better Bank CASE STUDY OUR APPROACH TO MANAGING PAPER Through this approach we discovered that Material Issues procurement costs account for only about 10% TD has made a significant commitment of the cost of paper management. Indirect costs Using an Environmental How We Operate to responsible paper use by: associated with paper management – such as Perspective to Responsible Banking ■ Offering more paperless banking options those involving handling, distribution and storage Extraordinary Workplace to our customers – account for the majority of costs. Drive Business Environmental Leadership ■ Reducing the paper we use in our business In order to further reduce the environmental operations footprint of our paper use, we have committed Natural Capital ■ Increasing our use of post-consumer recycled to protect an area of critical forest habitat Adapting to a Changing Climate representative of the volume of paper that we use.

▲ paper and certified paper from sustainably Eco-Efficiency managed forests. In 2014 through the TD Forests program, the bank Responsible Finance and Investing worked with the Nature Conservancy of Canada TD gives preference to paper and wood products Green Product Options and The Nature Conservancy (U.S.) to help protect from sustainably managed forests. We purchase nearly 3,000 hectares (nearly 7,500 acres) of Strengthening Communities products certified through the Forest Stewardship forest habitat in nine provinces and four states Reporting Council (FSC), the Canadian Standards Association within TD’s North American operating footprint. Sustainable Forests Management (CSA SFM), Since it was established in 2012, TD Forests has the Sustainable Forestry Initiative (SFI) and the helped protect nearly 13,000 hectares (nearly Programme for the Endorsement of Forests 33,000 acres) of critical forest habitat. For more Certification (PERC). information see the TD Forests map. Managing paper is about much more than procurement. In order to make real change, we considered the total cost of paper We developed a paper-management tool that management by business process. allows project managers to analyze the full cost of paper-based business processes. Read the case study to learn more.

TD’S 100% E-WASTE DIVERSION PROGRAM

GO DEEPER 2014 CARBON NEUTRAL SCHEDULE + $1.2 million TARGET SCORECARD + saved in 2014 by diverting

RECS AND OFFSET MAP + e-waste from landfills. APPENDIX: PERFORMANCE DATA + 90% DETAILS ON ENERGY of e-waste refurbished and Watch TD Forests Video EFFICIENCY INITIATIVES + donated to charity in 2014. 2014 PAPER REDUCTION SCHEDULE +

TD 2014 Corporate Responsibility Report Page 41 Environmental Responsible Finance Leadership and Investing G4-14 FS-1 FS-3

Building The Better Bank WHY IT’S MATERIAL TO TD + Material Issues PROHIBITED TRANSACTIONS We recognize that the activities of companies we finance and invest in can have How We Operate TD does not finance transactions relating to environmental impacts. Understanding and managing the environmental and the following: Responsible Banking social (E&S) risks associated with the companies with whom we work is essential • Activities within World Heritage sites Extraordinary Workplace to being a responsible bank and to our commitment to environmental leadership. • Activities that would result in the degradation of protected critical natural Environmental Leadership habitats as designated according to World Natural Capital Conservation Union classification and International Finance Corporation Standards Adapting to a Changing Climate • Activities that would involve the purchase of Eco-Efficiency RESPONSIBLE LENDING timber from illegal logging operations ▲ Responsible Finance • Mountaintop-removal coal mining and Investing HEADLINE PERFORMANCE We manage E&S risk based on a lifecycle • Production or trade in any product or activity approach that begins well before our formal Green Product Options deemed illegal under host-country laws or engagement with a client and continues regulations, including: Strengthening Communities 100% throughout our relationship. TD’s Environmental o Those ratified under international Reporting and Social Risk Policy for Non-Retail Credit conventions and agreements of transactions were reviewed Business Lines applies to all general corporate- o Production or trade of wildlife or products against TD’s E&S Credit Risk purpose, project and fixed-asset financing. Our regulated under the Convention on Management Process risk-review procedures are based on a progressive International Trade in Endangered Species five-step process that includes a review of the of Wild Fauna and Flora (CITES) borrower’s policy, process and performance: o Deals that directly relate to the trade in 150 or manufacturing of material for nuclear, 1. A high-level screen to assess for financing policy chemical or biological weapons or for shareholder proposals supported exclusion land mines or cluster bombs by TDAM on E&S issues in 2014 2. An environmental and social risk assessment o Lending deals that are directly related to the mining of “conflict” minerals. 3. An Equator Principle evaluation and Top Holding categorization among 100 SRI investors, TD is the 4. Sector-specific due diligence for Top Holding out of Canada’s Big environmentally high-risk sectors Five Banks 5. Escalation to senior executive review, if required MANAGEMENT APPROACH TD undertakes a review of our E&S Risk Policy Our goal is to make informed and transparent every three years. Our policy will be updated in decisions by proactively identifying opportunities 2015 and will incorporate the Equator Principles III GO DEEPER and mitigating E&S risks. In order to do this requirements. TD’S ENVIRONMENTAL AND we’ve integrated E&S factors into our non- SOCIAL CREDIT RISK PROCESS + retail finance and investment decision-making TD AND THE EQUATOR PRINCIPLES + processes and procedures. POSITION STATEMENT ON RESPONSIBLE ENERGY DEVELOPMENT +

TD 2014 Corporate Responsibility Report Page 42 Environmental Responsible Finance Leadership and Investing

Building The Better Bank 2014 PERFORMANCE Carbon-Related Risk Water-Related Risk Material Issues We define carbon risk as risk driven by changes We define water-related risk based on the n 100% of our non-retail lending transactions in carbon-related regulation, resource constraints potential economic and environmental impacts How We Operate were reviewed under our ESR (environmental and the business realities within our financing of changing patterns of precipitation and of and social credit risk) review processes. Responsible Banking activities to carbon-intensive industries. exposure to flooding, drought or extreme storm Extraordinary Workplace n 230 corporate lending transactions were events caused by climate change. We track our identified as having high or medium exposure to sectors that are water sensitive. Environmental Leadership environmental or social risk and were subject Natural Capital to sector-specific due diligence. There were no significant changes in our risk profile between 2013 and 2014. Adapting to a Changing Climate n Transactions that are not expected to meet TD’s Environmental Sensitivity by Sector Eco-Efficiency stringent risk requirements are not advanced for ▲ Responsible Finance consideration. For this reason, over the last four Carbon-Related Risk Water-Related Risk years, we have not declined a deal that was and Investing Residential & personal, residential real-estate, financial, government & public sector, professional services, Low Risk Green Product Options advanced to the ESR review process. health & social services, media, entertainment, retail, telecommunications

Strengthening Communities Non-residential real-estate, agriculture, automotive, Non-residential real-estate, automotive, Moderate Risk food & beverage, industrial construction, chemical, industrial construction, Reporting manufacturing, transportation manufacturing Agriculture, food & beverage, forestry, Chemical, forestry, metals & mining, oil & gas, pipelines, High Risk metals & mining, pipelines, oil & gas, power power & utilities & utilities

Portfolio Exposure to Carbon Risk Portfolio Exposure to Water Risk Canada and U.S. Canada and U.S. (as of October 31, 2014) (as of October 31, 2014) 2.5% 2.5% 3.7% 3.7% High Risk High Risk High Risk High Risk

11.9% 11.9% 9.7% 9.7% Medium Risk Medium Risk Medium Risk Medium Risk

85.6% 85.6% 86.6% 86.6% Low Risk Low Risk Low Risk Low Risk

TD 2014 Corporate Responsibility Report Page 43 Environmental Responsible Finance Leadership and Investing G4-15 FS-1 FS-3 FS-10

Building The Better Bank RESPONSIBLE INVESTING Material Issues TD Asset Management (TDAM) manages more How We Operate than $250 billion in assets on behalf of retail Responsible Banking and institutional investors. TDAM was the first asset manager of a major Canadian financial Extraordinary Workplace institution to be a signatory to the UN Principles Environmental Leadership for Responsible Investing (UN PRI). TDAM believes that environmental, social and governance (ESG) Natural Capital analysis provides an additional lens to more robust Adapting to a Changing Climate risk analysis. Eco-Efficiency Our management approach focuses on direct ▲ Responsible Finance engagement with companies and participation and Investing in industry best-practice initiatives. We maintain Green Product Options a proprietary ESG investment scoring matrix, Strengthening Communities the results of which are incorporated into our investment research reports. Reporting In 2014, TDAM participated in the first round of reporting under the UN PRI’s new assessment framework, which provides a consistent roadmap for implementation of responsible investing. 2014 PERFORMANCE Based on this assessment, TDAM will focus on In 2014 TDAM supported proposals on Company engagements improvement in the following two areas: a wide range of subjects including: TDAM engaged with companies across a 1. Establishing a process to identify and prioritize broad range of industries in order to discuss n Nomination of directors with company engagements, both directly and via management and best practices related to environmental expertise collaborative engagements environmentally sensitive issues such as: n Environmental risk-reduction effort 2. Systematically reviewing ESG issues while n Fuel efficiency, health and safety procedures researching companies and sectors n Spill mitigation efforts for railroads

n Deforestation n The use, disposal and treatment of water in oil and gas extraction and mining n Mitigating hydraulic fracturing n The management of greenhouse-gas emissions n Lowering greenhouse gas emissions in oil and gas extraction and railroads n Reducing effects of climate change n The leaking of potentially hazardous materials GO DEEPER n Energy efficiency at the site during oil and gas extraction 2013 TRANSPARENCY REPORT + n Recycling n Pipeline safety and integrity issues SUSTAINABLE INVESTING APPROACH + n Sustainability reporting n Encouraging companies to participate in the DISCLOSURE ON PROXY PRACTICES + Carbon Disclosure Project survey UPDATE FROM THE RISK COMMITTEE – PROXY CIRCULAR P.20 +

TD 2014 Corporate Responsibility Report Page 44 Environmental Green Product Leadership Options EN19 FS-8

Building The Better Bank Material Issues How We Operate $6.6B 25% 19% $130M Responsible Banking low-carbon growth in paperless growth in green renewable and financing accounts vehicle insurance energy efficiency Extraordinary Workplace projects Environmental Leadership Natural Capital Adapting to a Changing Climate In 2014, TD introduced Eco-Efficiency a green leaf symbol to Responsible Finance and Investing identify products, services ▲ Green Product Options and business-related initiatives that support our Strengthening Communities environmental goals. Reporting Advice to Our Small Business Customers We see a great opportunity to share what we have learned about the environment with our customers. We supported the Network Low-Carbon Financing Paperless Banking Insurance for Hybrid and Lending for Small-Scale for Business Sustainability Since 2006, TD has provided In the past year, the number Electric Vehicles Renewables and Energy in its development of an $6.6 billion in financing of paperless accounts has risen TD has offered financing and Efficiency online guide, How to Make to companies with low- from 4.8 to 6 million. insurance of hybrid vehicles in In 2010, TD launched an Money by Going Green. Using the recommended carbon operations. In 2014 we continued to Canada since 2008. In 2011 innovative financing program actions, a business can develop our online and mobile the program was extended to for the development of cut costs, enhance its product options to meet electric vehicles. small-scale renewables reputation and sales and growing market demand. With a 19% growth in 2014 projects focused on ground- motivate employees – alone, our business reflects a mounted and rooftop solar We stopped printing over all while helping the steady increase in consumer energy installations. TD’s 86 million paper statements, lending program for small environment. saving almost 1,000 tonnes purchases of these fuel- efficient vehicles. scale renewable projects has of paper. generated over 9 million kWh We estimate TD Auto Insurance in electricity since 2010. customers have reduced their GHG emissions by over 6,000 Since 2010 TD has lent over $130 million for these projects. tonnes CO2e through the use of hybrid and electric vehicles.

TD 2014 Corporate Responsibility Report Page 45 Environmental Green Product Leadership Options FS-8

Building The Better Bank TD GREEN BOND TD INSURANCE n Membership and sponsorship of the Board Material Issues of the Alberta Severe Weather Management TD became the first commercial financial In 2014 TD Insurance continued to actively Society and sponsor of the Atmospheric and How We Operate institution in Canada to issue a green bond, work on understanding the potential impact of Environmental Research (AER) Emerging Risk attracting 12 new institutional investors. a changing climate on our insurance business Responsible Banking research program The proceeds of the three-year $500-million TD and identifying opportunities for enhancing Extraordinary Workplace Green Bond were directed solely to projects that risk management, underwriting practices and n Second Canadian-based signatory to the Environmental Leadership contribute to the low-carbon economy through: customer protection. United Nations Environment Program Finance Initiative’s Principles for Sustainable Insurance Natural Capital n Renewable and low-carbon energy and TD Insurance is committed to being a catalyst for (UNEP FI-PSI). UNEP FI-PSI serves as the global related infrastructure industry action on a range of sustainability issues Adapting to a Changing Climate framework for insurance companies to better such as natural-catastrophe risks and climate Eco-Efficiency n Energy efficiency and management with manage environmental, social and governance change. TD Insurance has demonstrated Responsible Finance and Investing a focus on green buildings risks (as well as opportunities) in their core progress through: ▲ business strategies and operations. Green Product Options n Green infrastructure and sustainable land use n Participation in the Insurance Bureau of Strengthening Communities TD Green Bond standards are aligned with Canada’s Adaptation to Climate Change Reporting the Green Bond Principles group, of which Committee and the Institute for Catastrophic TD is a member. We worked with the Canadian Loss Reduction (ICLR) Standards Association to develop the project criteria, and the allocations are independently audited by Ernst and Young, LLP.

DID YOU KNOW TD GREEN BOND1,2,3

The reduction in atmospheric 5% emissions achieved through projects Hydroelectric Green Bond funded by the TD Green Bond has 17% Allocation a natural capital value of $356,200 Solar Power By the end of Q4, 100% per year. 2% of the TD Green Bond Green Bond Allocation Wind Energy proceeds ($500 million) By the end of Q4, 100% of the green bond proceeds had been allocated to low GO DEEPER had been allocated to carbon financing. low carbon financing TD GREEN BOND FAQS + 5% GREEN BOND – ERNST & YOUNG Biomass ASSURANCE REPORT +

UN PRINCIPLES FOR + 71% SUSTAINABLE INSURANCE Green buildings (LEED Platinum CASE STUDY – WORKING or Gold) WITH STAKEHOLDERS TO FIND INDUSTRY SOLUTIONS +

APPENDIX: PERFORMANCE DATA +

1 Includes financing or refinancing of existing and/or future projects including the committed amount of loans financed or refinanced. TD 2014 Corporate Responsibility Report 2 TD received cash proceeds of $498.8 million net of agency fees. Page 46 3 For more information on the basis of allocating the use of proceeds, see the TD Green Bond Term Sheet for Investors. This is how we are Strengthening Our Communities

From corporate giving, volunteering and fundraising to responsible procurement, we work to enrich our communities by contributing to their social and economic development in long-lasting, sustainable ways.

HEADLINE PERFORMANCE $82 million donated to strengthen communities across North America and the U.K., up from $74.7 million in 2013

MATERIAL ASPECTS IN THIS CHAPTER 20,803

■ Community Investment volunteers ■ Financial Education registered in the TD ■ Affordable Housing Volunteer Network ■ Sourcing ■ Tax Policy 108 suppliers assessed against TD responsible procurement requirements

TD 2014 Corporate Responsibility Report Page 47 Strengthening Community Communities Investment FS-EC-1 SO-1

Building The Better Bank WHY IT’S MATERIAL TO TD + MANAGEMENT APPROACH Material Issues We want to see communities thrive. Our reputation and success as a company Our community strategy rests on investing How We Operate depends on the well-being of communities that support our business, as well significant financial and human resources in the Responsible Banking as the relationships we have in those communities. Employees, customers and following ways: Extraordinary Workplace other stakeholders also look to TD to play an active role in helping address n Corporate giving: TD donates millions important community issues. of dollars each year in funding and in-kind Environmental Leadership resources to support non-profits in carrying out Strengthening Communities their missions. ▲ Community Investment TD’s Community Priorities n Employee engagement: We encourage and Financial Education facilitate employee community involvement, through programs such as the TD Volunteer Affordable Housing We use strategic philanthropy to target our contributions in four areas: Network and TD Volunteer Grants. Sourcing Tax Policy n Collaboration: A number of our partnerships are multi-year commitments where TD Reporting contributes marketing support, business expertise and other resources, in addition to funding.

n Thought leadership: TD supports and participates in multi-stakeholder initiatives that aim to generate discussion, ideas and best practices for addressing key community issues. COMMUNITY PRIORITIES Our four priorities were chosen based on customer and employee feedback, as well as insight on where we can make the most difference. In each 1 2 3 4 area, we also look for opportunities to support diversity and inclusion. Educational The Creating Affordable Driven by material topics, this report provides and Financial Environment Opportunities Housing in updates on our progress in financial education Literacy for Young the U.S. and affordable housing. For more information People about our overall community investment program, please refer to our 2014 Community Investment Snapshot.

GO DEEPER TD 2014 COMMUNITY INVESTMENT SNAPSHOT +

LONDON BENCHMARKING GROUP REPORT +

TD 2014 Corporate Responsibility Report Page 48 Strengthening Community Communities Investment

Building The Better Bank 2014 PERFORMANCE Targets Material Issues n TD donated $82 million to support more than 2014 Targets Rating 2014 Results 2015 Targets How We Operate 5,000 community organizations throughout Maintain our charitable giving at or above the 1% target set Canada: 1.3% Met Same as 2014 Responsible Banking North America and the U.K. by Imagine Canada and the Giving USA Foundation U.S. 1.03%

n Extraordinary Workplace In the U.S., the TD Charitable Foundation Canada: 56.8% donated over $18.3 million throughout its 55% of giving is applied to TD’s giving priorities Met ($32.2MM) Same as 2014 Environmental Leadership footprint from Maine to Florida. U.S.: 62.1%

Strengthening Communities n 15% of giving is applied to diversity and inclusion TD employees volunteered over 96,000 hours Met 20.8% 15%

▲ (Canada only) Community Investment in their communities, as logged on the TD Volunteer Network website, up from 65,000 Financial Education 20,000 employees across North America registered in the TD hours in 2013. Met 20,803 Increase year-over-year Affordable Housing Volunteer Network by end of calendar year Sourcing n We made 653 Volunteer Grants worth $401,760 to charities in which TD employees Tax Policy 2014 Corporate Giving1 Breakdown of Our Giving by Focus Area volunteered 40 or more hours of their time. (Canadian dollars) Reporting n Employees also organized fundraising 16.5% Canada $56.7 Million 43.2% Financial campaigns, the largest of which was TD’s Other Literacy and annual employee-giving campaign administered U.S.2 $25.22 Million Education by the United Way, raising over $16 million for U.K. $106,577 registered charities in Canada and the U.S. 14.8% Environment TD Friends of the Environment Foundation Asia Pacific $11,750 CANADA (TD FEF) is a national charity that supports TOTAL $82 Million environmental initiatives across Canada. In 2014 25.5% addition to contributing over $1 million annually, 1 All amounts converted into CDN dollars using exchange rates. Creating TD covers the management costs of running Beyond the countries listed in the chart, TD does not make donations in other Opportunities countries where we operate due to TD having a very small market presence for Young the Foundation. In 2014, TD FEF distributed in those regions. The total giving amounts reported do not include in-kind People donations, program management costs (i.e., salaries of the community relations $4.9 million to 1,065 grassroots projects across team), marketing sponsorships, employee donations or the value of hours the country, including urban-greening initiatives, volunteered by employees. For the total value of our contributions, please refer to the summary provided by London Benchmarking Group Canada, which performs 33.7% 37.9% Financial environmental-education programs for kids an annual independent audit of our community investment – download here. Other Literacy and 2 Includes $18.3 million from the TD Charitable Foundation. and more. Education

U.S. 2014 1.4% 27.0% Environment Affordable Housing

TD 2014 Corporate Responsibility Report Page 49 Strengthening Community Communities Investment SO-1

Building The Better Bank Material Issues How We Operate Responsible Banking Extraordinary Workplace Environmental Leadership Strengthening Communities

▲ Community Investment Financial Education After the Storm – Springfield Watch Annie’s story about the Affordable Housing impact of a tornado on her home Sourcing and community. Tax Policy Reporting

SOCIAL FINANCE AND Eight social ventures have received nine loans since Here are some examples: COMMUNITY DEVELOPMENT the Catapult Fund was launched in May 2013. ■ Through the New Markets Tax Credit program, Fresh City Farms is one of them. Offering farm- Our community investments go beyond we provided more than US$2.3 million to to-table groceries, the Toronto-based company philanthropy. From the TD Green Bond for support the revitalization of low-income combines sustainable farming with a convenient investors and green product options for customers and distressed communities by improving online shopping platform, allowing consumers to to financing social ventures, TD is involved in access to capital for job creation and buy fresh, local and organic food that is delivered a range of initiatives that provide a financial economic opportunities. to their door. return to the bank while creating positive ■ State tax credits and other investments social, economic and environmental impacts in Supporting Underserved Communities supporting local initiatives for low- to communities where we operate. in the U.S. moderate-income individuals and families As one of the largest banks in North America, we Catapulting Social Ventures to Success exceeded US$1.6 million. have a particular responsibility to demonstrate TD is playing a pivotal role in catalyzing the leadership and commitment to serving the needs ■ TD originated 172 community development Canadian social finance marketplace, as a partner of low- and moderate-income individuals, families loans for low- to moderate-income groups, in the Ontario Catapult Microloan Fund for and businesses – in areas such as credit, lending, totaling more than US$662.8 million, under the Social Ventures. Administered by the Centre for financial outreach and real-estate development. following categories: Social Innovation in partnership with TD, the In 2014, TD Bank in the U.S. provided more than Province of Ontario, , Microsoft • Affordable housing (74%) US$1 billion, up from US$422 million in 2013, for Canada, KPMG and Social Capital Partners, the • Community services (13%) community development loans and investments in Fund provides low-interest loans of $5,000 to • Revitalization (11%) underserved locations. $25,000 – along with training and mentorship • Economic development of small – to help social ventures succeed. Fund partners businesses (2%) also offer one-on-one meetings with unsuccessful For more examples, please see the Affordable applicants on how to improve their submissions. Housing section of this report.

TD 2014 Corporate Responsibility Report Page 50 Strengthening Financial Communities Education FS-13 FS-16

Building The Better Bank WHY IT’S MATERIAL TO TD + 2014 PERFORMANCE Material Issues Financial literacy is an important life skill that’s more relevant than ever to the In 2014, TD invested over $3.1 million to support How We Operate prosperity and well-being of our customers and society as a whole. The issue community financial literacy programs across North Responsible Banking is directly related to our business as a financial institution. We therefore have America and the U.K. In addition, more than 1,800 the unique ability through our expertise, skills and relationships with millions TD volunteers around the world taught money skills Extraordinary Workplace in classrooms and community centres. of consumers to support financial education and help build a financially Environmental Leadership literate society. ■ Launched in 2011, Money Matters is a free Strengthening Communities financial literacy program for adult learners, developed by ABC Life Literacy Canada and Community Investment TD, with TD employees as volunteer tutors. In ▲ MANAGEMENT APPROACH Financial Education HEADLINE PERFORMANCE 2014, we committed an additional $450,000 to Affordable Housing Our goal is to help people develop the knowledge, support the program, which is generating great Sourcing skills and confidence to make better financial results: since inception, 89% of Money Matters Tax Policy $12+ million decisions and improve their lives. To achieve that, participants have felt more able to manage their invested by TD since 2010 in we take a two-fold approach: money to meet their needs. More than 300 TD Reporting employees have volunteered over 2,500 hours community financial literacy ■ Customers – TD helps customers take control of teaching close to 3,000 Canadian adults. initiatives across North America. their finances in many ways. Learn more in the Responsible Banking section of this report. ■ For more than 17 years, TD has been instrumental in supporting the ongoing ■ Communities – Our community financial development and delivery of Junior Achievement literacy strategy is to collaborate with non-profits (JA) Canada’s programs. In October 2014, we to raise financial literacy levels in our society, extended our support by donating $1 million with a focus on underserved or disadvantaged to JA’s programs, including Dollars with Sense. communities (low-income, youth, Aboriginal As part of this donation, more than 1,200 TD peoples and newcomers to Canada). employees will volunteer their time to deliver This past year we formed the TD North American 800 programs reaching more than 23,000 youth Financial Education Council to better align financial over three years. literacy activities across TD, and further embed ■ We renewed our partnership with the National financial education in the bank’s overall approach Foundation for Credit Counseling (NFCC), to product development, community activities and sponsoring 110 adult financial education engagement with employees and the public. seminars for approximately 2,000 people in Florida, New York City, Philadelphia, North Carolina and South Carolina. NFCC member Targets agencies, with assistant instructors from 2014 Targets Rating 2014 Results 2015 Targets TD Bank, taught the free seminars, which

Help 150,000 participants improve financial literacy Over 294,000 people 200,000 participants focused on budgeting, understanding through a TD-sponsored program. Met reached across North credit reports and scores, and preparing for America and U.K. home ownership.

TD 2014 Corporate Responsibility Report Page 51 Strengthening Financial CASE STUDY Communities Education Increasing financial inclusion across Canada

Building The Better Bank ■ WOW!Zone is the bank’s own financial Since its inception five years ago, the TD Material Issues education curriculum, pioneered in 1990 to Financial Literacy Grant Fund – co-founded How We Operate teach American students in Grades K–12 about with the Prosper Canada Centre for Financial building good financial habits early in life. Literacy – has awarded approximately Responsible Banking Through a partnership with the W!SE Institute, $10.4 million to 140 community organizations Extraordinary Workplace TD Bank “adopted” a freshman class at the across Canada that deliver financial literacy High School for Economics and Finance in New programming to people living in low- Environmental Leadership York City, to provide our WOW!Zone Financial income and economically disadvantaged Strengthening Communities Education Program. Trained TD Bank volunteers circumstances. This includes $1.1 million visited the school every week for seven weeks awarded in 2014 to support financial education Community Investment

▲ to teach topics including “Credit 101” and initiatives for homeless youth, Aboriginal Financial Education “Reduce, Reuse, Save Money”. peoples, newcomers to Canada, deaf people, Affordable Housing women and seniors. ■ For the fourth year in a row, TD Bank teamed Sourcing up with First Book to support its Banking on In 2014, TD pledged a further $3 million to Tax Policy Books program. Our US$125,000 contribution support Prosper Canada in its goal to build Reporting is helping to put more than 22,000 financially the financial capability of 1 million vulnerable $3 million themed books in the hands of children in need, Canadians by 2020. The gift will help Prosper while TD Bank volunteers read to K-2 students Canada embed financial education into other gift to Prosper Canada to build at Title 1 schools in Boston, New York City, services for vulnerable groups, support the financial capability of 1 million Philadelphia, North Carolina, South Carolina national piloting and roll out of free financial vulnerable Canadians by 2020 and Florida. coaching services, and increase financial literacy research and knowledge exchange. ■ In the U.K., TD continued to support the A number of activities will also mobilize TD Number Partners program, dedicated to volunteers seeking opportunities to give back improving numeracy and financial literacy in their communities. among primary-school children, with TD employees volunteering to involve students in number games and confidence- building activities. “ TD’s investment is foundational to our efforts to empower low-income and vulnerable Canadians to participate fully in our financial system and to help them overcome barriers to achieving financial well-being.” Elizabeth Mulholland CEO of Prosper Canada

GO DEEPER Watch Ken’s story. “Money TD’S FINANCIAL LITERACY WEBSITE + Matters Changed My Life” TD WOW!ZONE +

TD 2014 Corporate Responsibility Report Page 52 Strengthening Affordable Communities Housing FS-7 EC-7 EC-8

Building The Better Bank WHY IT’S MATERIAL TO TD + ■ Investing significant support from the TD Material Issues Housing is a necessity of life. Yet the lack of affordable shelter is a persistent Charitable Foundation, including through our How We Operate annual Housing for Everyone grant competition, and growing problem in cities across America. It threatens the health and which funds non-profits that are leading the Responsible Banking quality of life of millions of people who struggle to find an affordable place way in building new affordable housing and Extraordinary Workplace to live, while also impeding business investment and growth in affected enhancing the existing supply neighbourhoods. Environmental Leadership 2014 PERFORMANCE Strengthening Communities We know that TD employees and customers need to live, work and raise TD Charitable Foundation Activities Community Investment families in thriving and diverse communities. Access to safe, affordable housing In 2014, the TD Charitable Foundation continued Financial Education is essential to that. Given TD’s role in local economies, particularly in mortgage to promote affordable housing and community

▲ economic development. Our signature giving Affordable Housing and development financing, we can make a powerful difference by mobilizing program, the Housing for Everyone grant Sourcing investment and collaboration to tackle affordable housing issues. competition, distributed 25 grants of US$100,000 Tax Policy each to non-profits supporting affordable housing Reporting initiatives from Maine to Florida. Including these MANAGEMENT APPROACH contributions, the competition has awarded HEADLINE PERFORMANCE more than US $17.4 million since the program’s Our goal in this area is to improve the quality and inception in 2006 to provide or improve access availability of affordable housing units across our to safe, affordable housing to low- to moderate- footprint, in an effort to create positive outcomes US $16.6 million income individuals. for people and neighbourhoods on which our donated over the past four years business depends. To achieve this, we take a Last year’s competition – themed “Building for by the TD Charitable Foundation multi-faceted approach by: the Future” – focused on building, rehabilitating, to organizations that are improving renovating or expanding quality rental housing ■ Providing community development loans and and expanding affordable housing. units for families with children. Here are some services to companies developing or preserving examples of the award-winning projects: affordable housing in low- and moderate- income areas ■ New Jersey Community Capital (Newark, NJ) was awarded US$100,000 ■ Making investments through low-income- for its ReSeed Newark Initiative in which housing tax credits that benefit underserved its real-estate subsidiary, Community Asset communities Preservation Corporation (“CAPC”), will lead the redevelopment of 156 properties (approximately 360 units) of abandoned Targets housing in four of Newark’s most distressed 2014 Targets Rating 2014 Results 2015 Targets communities. ReSeed Newark will invest in Provide 25 grants totaling US$2.5 million to organizations Achieved Same as 2014 these local neighborhoods in three key ways: Met working to develop or rehabilitate affordable housing units. through the expansion of affordable housing units, the creation of construction jobs and 2014 Funding for affordable housing through TD Charitable Foundation1 entrepreneurship opportunities for Newark U.S. (millions of U.S. dollars) $4.5

1 Total charitable funding, including $2.5 million provided through the annual Housing for Everyone competition.

TD 2014 Corporate Responsibility Report Page 53 Strengthening Affordable Communities Housing

Building The Better Bank CASE STUDY residents, and the provision of training and Material Issues technical assistance for emerging construction- Revitalizing an Historic Neighborhood How We Operate business owners. Responsible Banking ■ Ability Housing of Northeast Florida (Jacksonville, FL) was awarded US$100,000 for Extraordinary Workplace its Oakland Terrace Apartments project located Environmental Leadership on Jacksonville’s Eastside. The project is a 60- unit apartment building under threat of closure Strengthening Communities due to deteriorating conditions. Ability Housing Community Investment is partnering with Family Foundations, River Financial Education Region Human Services and Catholic Charities ▲ Affordable Housing Workforce Development to deliver a variety of financial services, job training and life- Sourcing management courses so that resident families Tax Policy have the opportunity to improve their Reporting living situation.

AFFORDABLE HOUSING LENDING AND INVESTMENTS

In 2014, we originated 74 loans totaling over ▲ BEFORE AND AFTER ▲ US$491 million – up from US$136 million the previous year – to support developers and organizations in addressing affordable housing in the U.S. communities we serve. TD Bank also funded US$346 million last year in Low-Income Housing Tax Credits (LIHTC) to support new construction and rehabilitation of affordable housing for families, individuals and elderly residents. This is down slightly from $381 million funded in 2013.

East Baltimore’s historic Oliver neighborhood suffered years of disinvestment and economic decline. The community, adjacent to Johns Hopkins University, is part of a multi-phase revitalization initiative developed by The Reinvestment Fund to create affordable housing. TD Bank has invested over GO DEEPER $2.2 million through the federal Low-Income Housing Tax TD BANK COMMUNITY + Credit (“LIHTC”) program to support this active project. LIST OF 2014 HOUSING FOR EVERYONE RECIPIENTS +

TD 2014 Corporate Responsibility Report Page 54 Strengthening Sourcing Communities G4-12 EC-8 FS-1 FS-2 FS-3

Building The Better Bank WHY IT’S MATERIAL TO TD + The questionnaire and risk assessment process help Material Issues We view our suppliers as an extension of our brand, integral to helping us run ensure that TD extends its responsible procurement How We Operate agenda into the supply market. We assign a risk a responsible, efficient business as we strive to deliver legendary experiences rating to the type of product or service being Responsible Banking to our customers. TD works with thousands of suppliers each year and we can sourced and apply enhanced due diligence to Extraordinary Workplace only be a truly sustainable company if those in our supply chain are too. higher-risk categories. Environmental Leadership TD’s Supplier Code of Conduct provides further transparency concerning TD’s expectations. The Strengthening Communities MANAGEMENT APPROACH code reflects and frames the principles set out in Community Investment TD’s Responsible Procurement Policy, as well as the HEADLINE PERFORMANCE Supply chain management continues to grow minimum performance standards and obligations Financial Education in complexity, as our business grows and the that suppliers and their subcontractors must meet Affordable Housing external landscape evolves. New types of risks are

▲ when doing business with TD. Sourcing $5.7 billion emerging around geopolitics, corporate reputation spent in the procurement of and data security, generating a heightened focus Tax Policy 2014 PERFORMANCE goods and services of our on risk management as it relates to procurement. Reporting expenditure was with suppliers We assessed 108 suppliers against our Responsible As a major purchaser, TD is committed to using Procurement Policy, up from 85 in 2013. We based in North America our influence to drive strong ethical, social and are expanding the scope of our responsible environmental performance across our supply procurement assessment by sending questionnaires chains. TD’s Strategic Sourcing Group works to to suppliers who had existing contracts before ensure that we have a responsible and diverse the policy was introduced. The first phase of this network of suppliers who deliver high-quality and implementation focused on TD’s top suppliers and appropriate goods and services. will continue into 2015. We aim to buy products and services from suppliers who share our values and demonstrate 2014 Spend on TD’s Sourcing TD given a responsible practices through strong sustainability programs. Greener Purchasing 11% Real Estate Our Responsible Procurement Policy embeds 31% Award from a wide range of sustainability criteria into TD’s Business Operations Office Depot sourcing practices and decisions. Prospective 15% suppliers must complete a questionnaire that HR Services, encompasses their: Travel and Marketing $5.7 Billion ■ Corporate responsibility performance

■ Health and safety record 20% IT and 23% GO DEEPER ■ Human rights and labour practices, Communications Professional Services RESPONSIBLE PROCUREMENT including child or forced labour + POLICY SUMMARY ■ Diversity and inclusion efforts SUPPLIER CODE OF CONDUCT + ■ Code of conduct, ethics and anti-bribery/ anti-corruption practices PROSPECTIVE SUPPLIER WEBSITE + ■ Environmental sustainability efforts TD 2014 Corporate Responsibility Report Page 55 Strengthening Sourcing Communities

Building The Better Bank Results from our Responsible Procurement SUPPLIER DIVERSITY In 2014: Material Issues Program in 2014: Designed to create a level playing field, TD’s ■ TD launched a group mentorship program to How We Operate ■ All suppliers agreed to participate in the survey North American Supplier Diversity Program works help the development of diverse suppliers. to include women, visible minorities, Aboriginal Responsible Banking ■ Three suppliers improved their health and safety ■ We asked key primary suppliers to report Peoples, the LGBT community, persons with Extraordinary Workplace policies and procedures how much they are spending with their own disabilities, veterans and other minority groups in network of diverse suppliers. Environmental Leadership ■ Seven suppliers improved their ethical policies our procurement selection process. and procedures ■ TD was named a top 50 diversity organization TD is a corporate partner with the eight diverse Strengthening Communities by DiversityInc based in part on our supplier ■ 11 suppliers improved their environmental supplier organizations in North America that Community Investment diversity practices. policies and procedures certify a supplier’s diversity credentials. We also Financial Education ■ 12 suppliers improved human and labour educate our own employees to raise awareness of Affordable Housing rights policies and procedures (including anti- our Supplier Diversity Program. ▲ Sourcing discrimination, child and forced labour) Tax Policy To date, no contracts or relationships have Reporting been withdrawn as a result of the Responsible Procurement Policy though several suppliers have improved their practices as a result of IMPROVING A BUSINESS RELATIONSHIP their participation. Screening for conflict minerals U.S. Dodd-Frank Act requirements came into Background Findings Outcome Results effect in May 2014 requiring companies that A vendor was Several gaps The vendor ■ Improved business manufacture products to report whether any of asked to complete were found in introduced the operations their raw materials have been extracted from TD’s Responsible the vendor’s policies following policies between TD and the Democratic Republic of the Congo (DRC) or Procurement and practices. and programs: the vendor other regions where there is armed conflict or Questionnaire (RPQ) The vendor ■ Responsible ■ More responsible instances of human rights abuses. We started during a contract committed to procurement vendor business asking relevant suppliers to report to TD on their renegotiation. address these gaps. practices compliance with the Act. No exceptions were ■ Human rights and identified, and we will continue to monitor labour rights ■ Reduced supply this issue. chain risk, for ■ Diversity and inclusion both TD and the vendor ■ Anti-bribery/ corruption

■ Environmental responsibility

TD 2014 Corporate Responsibility Report Page 56 Strengthening Tax Communities Policy EC-8

Building The Better Bank WHY IT’S MATERIAL TO TD + Tax Policy Material Issues TD is committed to paying our fair share of taxes in the jurisdictions We believe that when it comes to tax, all How We Operate companies should compete on a level playing where we operate. field. The international financial market is highly Responsible Banking competitive and TD will continue to leverage Extraordinary Workplace our presence in all jurisdictions in order to Taxes We Pay compete effectively. Environmental Leadership TD pays corporate income taxes on the profits HEADLINE PERFORMANCE To help tax authorities keep abreast of changes Strengthening Communities we earn, as well as various taxes incurred in our in the banking business, we hold Commercial business operations. Community Investment Awareness Sessions on a wide range of banking issues. These sessions provide a forum for the Financial Education $2.7 billion Cash Taxes Borne by TD Affordable Housing (restated for IFRS II adjustments) discussion of tax trends and issues. Should a amount TD contributed in taxes (in millions of dollars) 2014 dispute arise with a tax authority as to how the Sourcing

▲ borne in 2014 Income taxes 1,512 law should be interpreted and applied, our policy Tax Policy is to resolve any issue promptly in a transparent Payroll taxes for over 87,000 employees across 435 Reporting 16 countries and cooperative manner.

23% increase Transaction and sales taxes 426 Types of Taxes Borne by TD in taxes paid by TD year-over-year Capital and insurance premium taxes 157 56% Property and business taxes 172 Income taxes MANAGEMENT APPROACH 16% TOTAL 2,702 Transaction and sales taxes TD continues to work transparently and co- Effective income tax rate – reported 16.7% operatively with tax authorities in all jurisdictions 6% in which we operate. We aim to: Effective total tax rate 26.3% Capital and insurance premium taxes ■ Establish and manage robust tax governance Taxes We Collect $2.7 Billion processes that ensure full compliance with TD collects taxes on behalf of governments in 16% tax disclosure and filing obligations in all Payroll taxes the countries and regions where we operate. We jurisdictions assume the administrative costs associated with ■ Consult with leading law and accounting firms this activity, understanding and supporting the 6% Property to obtain expert, objective advice and opinions benefits to the broader economy. The taxes we and business taxes on tax matters collect include:

■ Work in a proactive way with policy-makers and ■ The employee portion of payroll taxes revenue authorities over the long term ■ Income tax on behalf of employees

■ Property tax on behalf of customers who are GO DEEPER mortgage holders

APPENDIX: PERFORMANCE DATA + ■ Transaction tax on customer transactions to which sales taxes apply FAIR SHARE AND FAIR TAXATION; ■ A BALANCING ACT + Withholding taxes on behalf of investors

TD 2014 Corporate Responsibility Report Page 57 Approach to This Is How We Reporting Approach Reporting G4-33

Building The Better Bank Reporting Scope External Assurance Reports During the transition to G4 we are taking the Material Issues The 2014 Corporate Responsibility Report is Selected performance indicators were opportunity to evaluate TD’s stated KPIs, ensuring How We Operate designed to inform our stakeholders about TD’s independently assured by Ernst & Young LLP. that they link to both our material topics and environmental, social and economic performance. Ernst & Young performed a limited assurance future strategy. Independent assurance of non- Responsible Banking engagement for a selection of TD’s performance financial data is important to our reporting and Report Scope indicators including TD’s greenhouse-gas we will seek to reinstate the process once the KPIs Extraordinary Workplace This report presents the material issues and emissions and Carbon Neutral Schedule, and are confirmed. Environmental Leadership impacts of our activities during the fiscal TD’s paper-usage figures. year ending October 31, 2014. Reports from + Assurance Statement for the Strengthening Communities previous years are available online: TD has obtained independent assurance on 2014 Greenhouse Gas Emissions ▲ Reporting www.td.com/responsibility 15 social performance metrics from 2010 to 2013 + Assurance Statement for the and we are confident in the reliability of both the The scope of this report encompasses all of TD’s 2014 Carbon Neutral Schedule data and the systems used to collect the data. wholly owned operations and activities, which + Green Bond Assurance Report are organized around the following operating business segments: Canadian Retail, U.S. Retail External reviews of TD’s corporate responsibility performance and Securities. Sustainability rankings provide a useful tool for benchmarking our progress and help focus our efforts to G4 strengthen TD’s corporate responsibility performance. The table below shows improvements over time. TD has used the Global Reporting Initiative (GRI) We wish to be clear that sustainability rankings are an outcome and not the reason for our efforts. framework for corporate responsibility reporting since 2007. TD’s 2014 Corporate Responsibility Reviewer 2014 2013 Report is written in accordance with the G4 framework and fulfils the requirements for a Carbon Disclosure Project Score: 99 for disclosure Score: 94 for disclosure (CDP) (out of 100) and A for (out of 100) and A for Core report. performance performance Materiality Disclosure Service • Listed as a Top 500 Global • Listed as a Top 500 Global Carbon Performance Carbon Performance TD’s 2014 Corporate Responsibility Report Leadership Index Leadership Index has successfully completed the Materiality • Listed as a Canada 200 • Listed as a Canada 200 Disclosure Service. Disclosure Leadership Index Disclosure Leadership Index (among top 20) (among top 20) + Online GRI Index Dow Jones Sustainability Score: 81 (out of 100) Score: 78 (out of 100) + Material Aspects and Boundary Table Indexes (RobecoSAM Score) Included in World Index and Included in North American North American Index. Index

Appendix Sustainalytics Score: 80 (out of 100) Score: 73 (out of 100) All of TD’s 2014 detailed social and environmental Position: 8 (out of 226 global Position: 19 (out of 349 data, including three-year performance trends can financial peers) global financial peers) be found in a separate online PDF. FTSE4Good Index Series Included Included (EIRIS Score) + Appendix: Performance Data Global 100 Most Sustainable Included – ranked 90th in 2014 Not Included (Corporate Knights) (76th in 2015)

Canada’s Top 50 Most Included Included Responsible (Macleans/Sustainalytics)

Best 50 Corporate Citizens in Ranked: 9 (out of 50) Ranked: 14 (out of 50) Canada (Corporate Knights)

TD 2014 Corporate Responsibility Report Page 58 ®  The TD logo and other trade-marks are the property of The Toronto-Dominion Bank or a wholly-owned subsidiary, in Canada and/or other countries. PDF only (05/15)