Environmental, Social and Governance (ESG)
At TD Greystone Asset Management, ESG factors are incorporated into our existing investment process as one of several categories of risk factors included in our assessment for both risk and return for a company or security. ESG risks are reviewed on an asset-by-asset basis and at the aggregate portfolio level. The relative importance of ESG factors compared to other traditional business risks for a security will depend on whether these factors have a material impact on cash flows and/or the ability to execute the long-term growth strategy. ESG has been integrated into decision-making in each of our Public Equities, Fixed Income, Infrastructure, Real Estate and Mortgage portfolios.
In December 2016, TD Greystone Asset Management became a signatory to the United Nations-supported Principles for Responsible Investment (“PRI”). PRI commits asset owners and managers with collective assets of $60 trillion to advocate for and integrate considerations for ESG factors in the investment management process. Through our PRI membership, we recognize the importance of ESG integration in contributing to investment excellence and stable, long-term returns. TD Greystone Asset Management formalized its ESG approach across all asset classes in 2015-16.
The TD Greystone Asset Management Real Estate Strategy aspires to integrate best-in-class sustainability practices in all our real estate investment and portfolio management processes. Since 2014, we have implemented strategic initiatives across portfolio management, monitoring and reporting to advance sustainability.
We developed internal tools to embed sustainability in our investment due diligence, development, asset management and property budgeting and planning processes. We train our Real Estate Team regularly on our tools, our process and industry/sustainability trends and collaborate with our management partners to promote best practices contributing to financial and sustainability performance.
We measure sustainability metrics, including energy, greenhouse gas emissions, water, waste and tenant engagement activities, at all properties. We have participated in the Global Real Estate Sustainability Benchmark (GRESB) assessment since 2016 to measure and benchmark our performance relative to the industry.
We update our investors annually on our sustainability program and initiatives. We use our Sustainability Integration Scorecard, which tracks and reports the sustainability performance of our Core portfolio, to provide quantitative information to our clients.
- GRESB: Increased our score by 20% since 2016
- Greenhouse gas emissions: Reported to clients for four years