Shareholders attending TD Bank Financial Group’s annual meeting in Vancouver today received a little more than they expected as ForestEthics and Rainforest Action Network handed out a report accusing TD Bank of a poor record on social and environmental issues.

The report calls on TD shareholders to press the bank’s CEO, Ed Clark, to adopt policies that will protect the environment.

The report claims to show that, “bank executives are ignoring scientific consensus on global warming and biodiversity.” It alleges that TD bankers have set no targets for reducing greenhouse gas emissions for their lending and investments or set any investment goals for transitioning to a low-carbon economy.

“Similarly, TD Bank’s weak biodiversity safeguards are attracting Canada’s most environmentally destructive projects and clients,” it claims. “These include the controversial Fort Hills oil sands mega-project and the clear-cutting of critical caribou habitat by West Fraser Timber. In other cases, TD financing supports projects in the face of deep international stakeholder opposition, such as the proposed Rosia Montana gold mine in Romania.”

The report calls on TD Bank to stop financing activities that destroy endangered forests, immediately increase investment in renewable energy and sustainable forestry and respect the right of First Nations to Free Prior Informed Consent of industrial activity on their land.

TD’s latest corporate responsibility report outlines a number of actions that it has taken in response to environmental concerns, including: setting up a committee to define environmental standards, policies and compliance mechanisms for the company; reducing its own waste and promoting energy efficiency; assessing environmental impacts of its lending activity; and, supporting community environmental projects; among other things.

Yesterday, TD announced a $500,000 donation to Science World in support of a new outdoor science experience focused on the concept of environmental sustainability. “The ‘Environmental Trail’ is an exciting project that complements TD’s commitment to both education and our longstanding focus on the environment through our TD Friends of the Environment Foundation,” says Paul Douglas, executive vice president commercial banking at TD. Since 1990, the TD Friends of the Environment Foundation has provided over $40 million in funding to more than 15,000 grassroots environmental projects throughout Canada.

At the meeting, Clark defended the bank’s environmental record, noting that “TD believes passionately about the environment.” He insisted that its efforts to improve environmental practices are not a marketing ploy, but reflects a genuine belief that in the long run it must pay attention to environmental issues.

Nevertheless, environmental groups are calling on it to do more. In August and October 2005 they sent letters encouraging bank executives to accept the conservation community’s offer to help reorient its policies on forests, biodiversity, energy, climate and human rights. They note that similar ongoing collaborations have resulted in new industry best practices recently adopted by banks including Citigroup, Goldman Sachs, JPMorgan Chase and others.

“There is nothing green about tree stumps and tar sands,” said Jodie Van Horn, co-author of the report. “TD Bank’s greenwashing is covering up shortsighted investment strategies that are leaving behind a legacy of long-term environmental and social debt. It’s time for TD to stop pretending to be green and realize that nothing less than our environmental security is at stake.”

Clark, however, admitted that there are areas where the bank could improve its environmental policies and practices. In terms of its own impact on the environment, Clark said, “I wouldn’t give us an A plus, I think we have a way to go.”

But he also indicated that where it comes to the practices of its lending customers it becomes trickier. He said it will look at signing the revised Equator Principles, which are due to be released this summer, regarding developing world project finance guidelines. However, Clark said that it won’t impose its values on clients operating in Canada.