The Toronto-Dominion Bank | Fighting Against Forced Labour and Child Labour in Loan and Investment Portfolios at The Toronto-Dominion Bank

Status
Filed
AGM date
Previous AGM date
Proposal number
6
Resolution details
Lead filer
Mouvement d'éducation et de défense des actionnaires (MÉDAC)
Resolution ask
Report on or disclose
ESG theme
  • Social
ESG sub-theme
  • Human rights
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Financials
Company HQ country
Canada
Resolved clause
It is proposed that, starting in 2027, the Bank produce a report to its shareholders and interested parties [stakeholders*] on the measures taken during the previous financial year to prevent and reduce the risk of loans being granted to companies that use forced labor and child labor in the production of goods produced, purchased or distributed by its clients who use the Bank to finance their activities.
Supporting statement
It should be noted that, on May 11, 2023, the Fighting Against Forced Labour and Child Labour in Supply Chains Act(6) came into force. This act requires certain companies to file reports on their efforts to combat forced labor and child labor. The first of these reports must be filed by May 31, 2024. While this Act aims to protect children from exploitation and human rights violations in supply chains, we propose that the Bank take a proactive stance on this issue by committing, as a good corporate citizen, to prevent and reduce the risk that its loan and investment portfolio includes any form of support for companies that use forced labor or child labor in their business activities. It is important to us that the Bank be more proactive for the following key reasons: 1. Financing, even indirectly, companies which are involved in forced child labor is incompatible with the fundamental values of Canadians, the banks’ public commitments to human rights and the expectations of stakeholders. Scandals related to forced labour can: • Trigger media campaigns and boycotts; • Cause lasting damage to the brand and public trust; • Affect relations with responsible institutional investors. 2. Large institutional investors, including those committed to the Principles for Responsible Investment (PRI) and other ESG initiatives, demand rigorous management of human rights risks. Banks that delay action expose themselves to opposition votes at meetings and divestments. 3. Quebec and the country position themselves on the international stage as defenders of children’s rights and ethical values. As influential players in the economy, the country’s banks have a responsibility to reflect these principles into their financial practices, thereby strengthening the country’s credibility and influence. A proactive approach to reducing financing linked to forced child labor is not only a moral imperative, but a strategy for managing risk, protecting reputation and aligning with investor and stakeholder expectations. This enables the country’s banks to fulfill their role as responsible leaders in the global economy. This proposal has received the support of 27.19% of votes cast at the last annual meeting. (6) https://www.parl.ca/legisinfo/en/bill/44-1/s-211

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