TD Bank shareholders issue ESG proposals for annual meeting vote

Certain Toronto-Dominion Bank shareholders have issued a couple environmental, social and governance proposals for the annual meeting, which will take place on April 1. The company is recommending shareholders vote against both proposals.

The common shareholders have proposed the bank publish a report of recent loans in support of the circular economy, which includes businesses that identify opportunities to recycle, repair, reuse, convert or refurbish products and materials. As an example, shareholders identified businesses that convert pulp and paper waste into renewable bioproducts.

Toronto-Dominion Bank's board recommended shareholders vote against the proposal, arguing the bank already shares information on low-carbon lending, financing, asset management and internal corporate programs. The board also noted the company is assessing additional targets for its new ESG strategy.

Also, shareholders proposed the bank set a benchmark that both sexes constitute at least 40% of its board of directors for the next five years.

The company's board again recommended voting against the proposal. The board argued that the bank has a 30% threshold while noting that the target does not represent a maximum and that the company has exceeded it in recent years. Five of the 13 independent director nominees, or 38%, up for election at the annual meeting are women. The board also noted that the company takes a holistic view on diversity and has worked to develop a pipeline of diverse talent throughout the organization.

Separately, a shareholder group known as MÉDAC issued six proposals but ultimately withdrew them after discussions with the bank.