Thank you, Mr. Chairman, and good afternoon.

Thank you for the opportunity to speak about the important study this committee is undertaking. Thank you to my colleagues for providing the land acknowledgement, which we as well acknowledge.

Today, we find ourselves in the midst of a global economic transition to net zero that is unfolding against a backdrop of socio-economic and geopolitical challenges. This transition requires focus, investment, innovation and new technologies in all sectors of the economy. Progress will take engagement and partnership between the private and public sectors, and all of this is happening as people and societies, including financial institutions, face increasing climate risk.

This afternoon, I'd like to make three key points related to this global context: the economic imperative, the critical importance of a balanced approach and the need for engagement among all stakeholders.

First is the economic imperative. We believe TD has an important role to play in supporting our clients in the transition to a low-carbon economy, and that focus on sustainability drives long-term value for our shareholders, the Canadian economy and the many communities we serve. For a sense of the type of economic opportunity before us, TD Economics' analysis shows that connecting new renewable power generation assets to the grid could require upwards of $25 billion to $50 billion in transmission investments alone by 2035 in the context of Canadian emissions reduction pathways.

TD has a long history of environmental engagement that we are building on. More than 30 years ago, we launched the TD Friends of the Environment Foundation, helping to support grassroots projects in communities across Canada. We have been focused on decarbonizing our own operations. We were the first major bank in Canada to set a 2050 net-zero goal, and in 2020 we launched our climate action plan.

TD has also announced financing targets. In 2017, we introduced an initial low-carbon economy target for lending, financing, asset management and internal corporate programs, and we met it ahead of schedule. We then set our $500-billion sustainable and decarbonization finance target in 2023 and, in the first year under the new target, delivered nearly $70 billion in business activities toward our goal. As we navigate this transition landscape, our focus is on resilience for the bank and our clients strategically, financially and operationally.

That brings me to my second point. We believe it is critically important to take a balanced approach through this transition to net zero. TD supports and engages with clients across all sectors as they meet the world's needs today while investing in opportunities to meet the demands of tomorrow, all within the larger context of meeting our long-term climate objectives. As part of our efforts to support our clients, we've released specific targets related to the energy, power generation, automotive and aviation sectors. Led by our TD Securities ESG solutions group, we focus on understanding our clients' decarbonization initiatives and future plans and support them through advisory and financing solutions.

That brings me to my third point: engagement with a range of stakeholders and partners. Our transition plan continues to evolve through work with clients and experts, engagement in industry forums and consideration of new guidance. We think engagement with a broad set of stakeholders is critically important for us, Canada and the world in enabling us to meet our collective objectives and obligations. On the role of policy-makers specifically, government policy shapes how our clients navigate the net-zero transition.

I look forward to our discussion today, because we are on this journey together. In the complex economic and geopolitical environment in which we find ourselves, we understand that TD has an important role to play and can make a positive contribution through our own efforts and by supporting engagement among stakeholders and partners.

Thank you.