TD Bank Financial Group’s Canadian operations will be “carbon neutral” by 2010, the company said today.

The bank says it plans to set up it’s TD Emissions Reduction Fund, as well purchase green energy from sources like wind power and low-impact water power and create internal incentives for TD businesses to reduce greenhouse gas (GHG) emissions.

“Reducing our own greenhouse gas emissions (GHG) is a key element of our ongoing commitment to take climate change and the environment seriously,” said
Ed Clark, president and CEO of TD, in a release. “Our approach will start with energy savings programs to reduce our emissions. We will also use green power, and make investments to reduce greenhouse gas emissions outside TD to offset any emissions we cannot eliminate.”

TD published its Environmental Management Framework in June 2007, which set a target for reducing its GHG emissions in 2008.

TD has worked with the Pembina Institute to quantify 2006 emissions for its Canadian bank operations at 138,548 tonnes. TD will target a reduction of 5% in these emissions by 2010.

As well, after the planned merger of TD Banknorth and Commerce Bank, TD says it plans to set a target in 2009 for reducing GHG emissions from its US operations.

“However, we recognize that it is unrealistic to expect that we can eliminate all emissions from TD’s operations,” said Mike Pedersen, group head corporate operations, at TD. “Therefore, through the TD Emissions Reduction Fund, we will invest in projects with strong sustainability and community benefits, including initiatives to assist non-profit organizations in reducing their emissions.”

Policies related to climate change and other environmental concerns are a growing trend. Yesterday, Scotiabank Securities launched its new Scotia Climate Change Fund, saying “climate change presents the greatest risk we’ve seen in the history of the capital markets, but most importantly, an enormous opportunity.”