Sustainable Investing

Our investment thesis involves an integrated engagement approach to Environmental, Social and Governance (ESG) factors. As investors in an array of investment classes, we believe we have a role to play in positively influencing ESG improvements.

We focus on ESG-related issues that may impact the long-term value of an investment.

Our Stewardship Approach

We engage with companies when we believe we need more clarity on how they are approaching ESG-related issues or to advocate for changes which we believe may benefit shareholders in the long run. We are also committed to acting as true stewards of our clients' capital through active proxy voting and collaborating with industry participants.

TD Epoch is a member or supporter of, or signatory to, the following organizations:

Our Climate Change Principles

We consider climate change as a systemic risk affecting economies, companies, and investors. Our approach to climate change is aligned with our overall philosophy of integrating all sources of risk and return in our investment processes.

As an investment manager of diversified asset classes, we, consider climate change as an important area of focus. We actively engage with companies and leverage our asset ownership positions to encourage improvements in industry collaborations including Climate Action 100+ and CDP which furthering our company engagement efforts

Our approach continues to evolve to help position our portfolios to capitalize on investment opportunities arising from an accelerated transition to a low carbon economy and manage climate-related physical and transition risks.

Our Dedicated Team

Our dedicated ESG Research and Engagement Teams support our investment teams with ESG research, ESG integration and stewardship efforts.

Ravi Varghese

Director, Head of ESG
Maya McFann

Senior Associate, ESG Analyst

ESG Integration

We strive for an integrated ESG engagement process for our investment products. We proactively evolve as ESG data matures, materiality comes into focus, and regulatory frameworks expand market awareness. Under this approach, material ESG factors are reviewed alongside traditional investment criteria. Implications arise if an ESG factor changes the intended risk or return profile of an investment.

Alternatives
Equities
Fixed Income
Multi-Asset

The TD Greystone Infrastructure (Global Master) LP's strategy seeks to be a leader in sustainable infrastructure investing. Due to the long-life span of infrastructure assets, we systematically consider ESG factors in our processes. We believe that our sustainability strategy is aligned with our culture that focuses on risk management, disciplined processes, sustainable returns and creating mutually beneficial solutions for our clients and our key stakeholders.

For additional information on how the TD Greystone Infrastructure Fund integrates ESG factors throughout its investment lifecycle, please see the publicly available 'TD Greystone Global Infrastructure Fund: Environment, Social, and Governance Procedures' document.

The TDAM Global Real Estate Fund's strategy aspires to integrate best-in-class sustainability practices in all our real estate investment and portfolio management processes, including, acquisitions, developments, asset management, capital planning and ongoing operations.

Sustainability includes how the Global Real Estate team considers environmental and social impacts and performance in decision making, and how the team governs and manages itself to fulfill its commitments.
For additional information on how the Global Real Estate Fund integrates ESG factors throughout its investment processes and long-term objectives, please see the publicly available 'TD Greystone Global Real Estate Fund: Environment, Social, and Governance Procedures' document.

The TD Greystone Mortgage Fund integrates ESG best practices into its processes to enhance risk-adjusted returns, to play its part in responsible investing, and to raise ESG awareness in the market. Moreover, investments in sustainability can improve real estate marketability to environmentally and socially conscious tenants and enhance operational efficiency by reducing utility and insurance costs, which benefits the tenant, the landlord and ultimately the lender.

The TD Greystone Mortgage Fund has developed a multi-faceted approach to incorporating ESG into its underwriting and portfolio management practices, including via its borrower survey and annual ESG review.

For additional information on how the TD Greystone Mortgage Fund integrates ESG factors throughout its investment lifecycle, please see its publicly available 'Mortgage Strategy Sustainability Procedures' document.

Our Fundamental Equity team integrates ESG factors as relevant into their investment analysis. The process for incorporating these factors into decision-making is essentially threefold, involving the following central components: systematic ESG reviews, thematic ESG research and active ownership.

Systematic ESG Reviews
We believe that ESG issues should be given consideration as they provide us with a more robust view of potential risks and opportunities. We look at a number of ESG indicators that we believe apply to all industry sectors and elevate any issues that could put a company’s expected earnings at risk. We strive to incorporate relevant ESG assessment in research reports, ensuring concerns around ESG risk exposures are reviewed, updated and evaluated by our sector analysts. Although we augment our work with information from third parties, including sell-side brokerage firms as well as ESG data providers, we consider conducting our own review and assessment a key part of the process.
Thematic ESG Research
We produce broad thematic ESG research on topics that have the potential to highly impact the companies in which we invest. We have found this to be the best way to highlight the structural changes to various sectors and impacts to the companies themselves.
Active Ownership
Our in-depth research helps inform our commitment to active ownership. We strive to be active owners by engaging with the companies, in which we invest and by taking advantage of our voting rights to help drive long-term shareholder value. Our intent is to both improve corporate ESG disclosures as well as improve companies' ESG-related practices.
Engagement
Our engagement activities serve as a central input to our investment analysis, and we use our in-depth research to prioritize engagement efforts. Incorporating ESG data and ratings into our processes has allowed us to refine our ESG engagement plan and has provided for more informed discussions with management teams leading to improvements to our assessments of quality. Our sector analysts regularly meet with company management teams and discuss applicable ESG issues, goals, and emerging trends in addition to broader investment relevant topics. Findings are internalized and integrated into our investment analysis.
Proxy Voting
We vote on proposals that involve ESG issues on a case-by-case basis. ESG research is incorporated within our process impacting both management and shareholder proposals where relevant.

At TD Epoch, we believe that the best approach to ESG integration is to complement the fundamental investment team with a dedicated ESG team. Our ESG integration efforts revolve around three main pillars:

Research: We focus on sector/company-specific materiality. We combine the bottom-up ESG research led by fundamental analysts with more thematic research by our Sustainable Investing team.

Engagement: We engage with our holding to better understand companies' strategies with regards to ESG considerations, and where necessary, advocate that companies address material issues.

Stewardship: We conduct a wide range of stewardship activities to ensure the best outcomes for our clients. Proxy voting is a major component of our stewardship, aimed at delivering long-term shareholder value.

While holdings within our passive strategies are guided by the relevant indices that they replicate, we continue to evolve our analyses to comprehensively advance sustainability across all portfolios. Passive strategies benefit from the firm's direct and collaborative engagements on ESG issues, the ESG-relevant research incorporated into our proxy voting, and the dialogue we continue to have with regulatory bodies, stock exchanges and other stakeholders on ESG matters.

Our Credit Research team evaluates ESG factors as part of a comprehensive credit review process for both corporate and government issuers. In addition to evaluating the financial strength of issuers, an ESG assessment is conducted for every issuer included on the TDAM credit approved list. To gain a complete picture of a company's credit quality, the team also engages management to understand how issuers are addressing material ESG exposures. Our credit research and issuer engagement inform both our internal credit ratings as well as an ESG-specific score. Our analysis is continually updated and incorporated into sector analyst reports to TDAM's Credit Committee.

ESG Credit Review & Exposure scores
Each sector analyst focuses on the potential short-term and long-term risks associated with ESG factors, and the possible impact they could have on TDAM's internal credit rating. Several ESG dynamics are weighed and factored into an internal ESG Credit Exposure Score.
We have built out a database of ESG Credit Exposure Scores for every issuer on our approved lists to ensure ESG risks are properly identified, characterized, and calibrated in our analysis across fixed income portfolios. We use a variety of sources to inform these scores, incorporating ESG data from credit rating agencies, third-party ESG data providers, and independent international organizations. ESG topics of focus depend on the sector, with our areas of focus guided by well-established ESG materiality frameworks. Sector experts use these resources alongside sector expertise to assign ESG scores.
Issuer Engagement
We regularly meet with officials from the companies and governments in which we invest or consider for potential investment. Discussion of ESG dynamics is a component of these engagements, with credit analysts elevating inquiries on ESG issues that might have a material impact on our internal credit ratings.
ESG Credit Committee
With the increasing awareness of ESG risks and the in-depth discussions required, we have also created an ESG Credit sub-committee. This committee meets on a quarterly basis, with more material and cross-sector ESG topics filling their agenda.

The TD Asset Management Private Debt team evaluates ESG factors through the same process as TD Asset Management Active Fixed Income.

We evaluate ESG factors as part of a comprehensive credit review process for all issuers, with an ESG assessment conducted for every issuer. This is further subject to an annual review by the TDAM Credit Committee throughout the life of the issuance.

ESG Credit Review & Exposure scores
The Private Debt team follows the same process as TD Asset Management Active Fixed Income. TDAM's Private Debt investments are generally held for the long-term and we evaluate the ESG risks within that context.
Issuer Engagement
Private Debt transactions do not have the same quality or quantity of ESG data that is available for public market issuers. As such, Private Debt relies heavily on direct engagements with issuers to formulate its ESG perspectives. The Private Debt team uses the opportunity to engage directly with issuers pre-transaction to ask ESG questions and gather as much ESG data as possible in the due diligence phase.
ESG Credit Committee
The Private Debt team works in conjunction with TD Asset Management Active Fixed Income and has strong representation on this quarterly committee.

The Institutional Asset Allocation Team seeks to add value through a multi-disciplined analytical framework, incorporating fundamental and technical analysis. From a fundamental perspective, the team continuously analyzes economic, policy and market expectations and leverages off insights from the broader asset allocation research and strategy teams along with the Wealth Asset Allocation Committee.

Our approach combines three decades of asset allocation experience with new thinking directed at improving investment outcomes for our clients. Our extensive history of integrating private and public investments has fostered a firm understanding of how they trade in relation to each other, and ultimately how multi-asset portfolios can be built to enhance risk adjusted returns.

We tailor the structure of your solution based on your program’s unique needs. It could involve creating a strategic asset mix that help meets your unique needs, investing alongside our pooled fund offerings, or a combination of both. Our Relationship Managers and Asset Allocation team are available to help assess and recommend the best solution for you.

At TD Asset Management Inc. (TDAM), we believe managing assets on behalf of insurance companies and pension plans requires special skills. Institutional investors are often faced with a myriad of constraints and unique considerations. It can feel like a complex and changing process influenced by a variety of factors, such as an investing landscape that has experienced elevated inflation, episodic market volatility, shifting demographics and an evolving regulatory environment. We have been helping our liability focused clients meet their objectives since 1994. Our approach to ALM combines our disciplined investment process with our actuarial expertise and robust analytics tools, to develop an objective-based solution that helps clients achieve their investment goals with greater confidence. Our solutions are inspired by innovation, strengthened by experience, and validated by results.

ESG Resources

For a greater understanding of specific ESG topics, browse and read through our detailed resources, including frameworks and in-depth reporting.

See all Resources

Insight Listing

Investment Insights

March 31 2022

Greenflation: The energy Transition Will Prove Inflationary

The transition to net-zero emissions (NZE) involves a fundamental change in the structure of the economy, and will likely be messy, implying periodic supply shortages and even more volatile energy prices. Further, inflation and nominal interest rates will probably be higher and more volatile, especially relative to the levels of the last two decades. This has not yet been priced into markets

15 min read

Kevin Hebner, PhD, Managing Director, Global Portfolio Management, TD Epoch; William W. Priest, CFA, Executive Chairman, Co-Chief Investment Officer and Portfolio Manager, TD Epoch; Ravi Varghese, Director, Head of Sustainable Investing

Investment Insights

April 26 2022

Analyzing the "S" in ESG

Ravi Varghese, Head of Sustainable Investing joins the podcast to explain how we look at the "S" including how it is analyzed against the backdrop of the war in Ukraine and pressure on Big Tech and energy companies.

Steven D. Bleiberg, Managing Director, Portfolio Manager, TD Epoch; Ravi Varghese, Director, Head of Sustainable Investing, TD Epoch

Investment Insights

March 31 2022

Greenflation: The energy Transition Will Prove Inflationary

The transition to net-zero emissions (NZE) involves a fundamental change in the structure of the economy, and will likely be messy, implying periodic supply shortages and even more volatile energy prices. Further, inflation and nominal interest rates will probably be higher and more volatile, especially relative to the levels of the last two decades. This has not yet been priced into markets

15 min read

Kevin Hebner, PhD, Managing Director, Global Portfolio Management, TD Epoch; William W. Priest, CFA, Executive Chairman, Co-Chief Investment Officer and Portfolio Manager, TD Epoch; Ravi Varghese, Director, Head of Sustainable Investing
Investment Insights

April 26 2022

Analyzing the "S" in ESG

Ravi Varghese, Head of Sustainable Investing joins the podcast to explain how we look at the "S" including how it is analyzed against the backdrop of the war in Ukraine and pressure on Big Tech and energy companies.

Steven D. Bleiberg, Managing Director, Portfolio Manager, TD Epoch; Ravi Varghese, Director, Head of Sustainable Investing, TD Epoch

View more Insights

Sustainable Investing

Our Stewardship Approach

TD Epoch is a member or supporter of, or signatory to, the following organizations:

Our Climate Change Principles

Our Dedicated Team

ESG Integration

TD Greystone Infrastructure

TD Greystone Real Estate

TD Greystone Mortgage Investments

TD Asset Management Fundamental Equities

TD Epoch Free Cash Flow and Data Enhanced Equities

TD Structured Passive Equities

TD Asset Management Active Fixed Income

TD Structured Passive Fixed Income

TD Asset Management Private Debt

Asset Allocation

Asset Liability Management

ESG Resources

Greenflation: The energy Transition Will Prove Inflationary

Analyzing the "S" in ESG

Greenflation: The energy Transition Will Prove Inflationary

Analyzing the "S" in ESG