The Arctic Circle “is warming significantly faster than the rest of our planet, which poses the risk of increased green-house gas releases and further warming,” Canada’s second-largest bank said in a statement.
The bank’s move signals the start of a shift for Canadian lenders that have largely continued to support the fossil fuel industry even as global counterparts have distanced themselves from parts of the sector.
Last month, biggest lender Royal Bank of Canada became the first Canadian bank to say it will not directly finance exploration or development in the Arctic National Wildlife Refuge (ANWR).
RBC also said it will limit financing for clients with significant coal-mining operations.
Oil and gas loans accounted for less than 4% of business lending at Canada’s two biggest banks in the quarter through July, and a little over 1% of total loans.
Goldman Sachs, JPMorgan Chase , Wells Fargo , Citigroup and Morgan Stanley have all committed to ending fossil fuel financing in the Arctic.
TD shares rose 4.9% to C$62.40 in morning trading in Toronto, compared with a 1.5% gain in the Toronto stock benchmark .
TD said it will support clients to capitalize on “opportunities of the low-carbon economy,” and will begin reporting progress toward its net-zero goal from 2021.