TD Bank Opens Prototype Green Branch

With the launch of an LEED Platinum-certified branch in Queens Village, N.Y., TD Bank takes a major step in its quest to significantly cut its greenhouse gas emissions.

At a time when many companies are still considering whether, and how, to go green, TD Bank already has advanced to platinum -- LEED Platinum-certified, that is.

The early April opening of an environmentally friendly branch that adheres to the most rigorous standards of Leadership in Energy and Environmental Design (LEED) marks a major step in the bank's efforts to reduce consumption and improve sustainability. It's all part of a transformation started three years ago by TD Bank's Toronto-based parent, TD Bank Financial Group, intended to cut greenhouse gas emissions from all North American facilities, fleet and travel -- the company's total carbon footprint -- by 5 percent relative to 2006 levels.

The new Queens Village, N.Y., branch will serve as a prototype that will guide the build out, or conversion, of future U.S. branches, reports Frank Sherman, the bank's U.S. green officer, who says TD Bank expects to open five to 10 LEED-certified branches this year. "Going green is a process, not a single project, and the opening of the Queens Village store ... is merely the first step," he says. "We hope to improve all of our efforts as we learn more about green building and operations." TD Bank also has opened LEED-certified offices in Boston and plans to open a certified call center in Auburn, Maine.

CORPORATE RESPONSIBILITY

Sherman joined TD Bank in January 2009, at a time when the organization wanted to align its environmental efforts with TD Bank Financial Group's efforts in Canada and the U.K. In fact, the green officer role was created for him.

"TD Bank sees going green as a responsibility of being a good corporate citizen," Sherman says. Green, he suggests, is more than the bank's logo color -- it's a part of the brand and will continue to shape the bank's identity. In addition to facilities upgrades to lower emissions, "This will extend to how we do business and how we run our operations," Sherman says of a broad vision that will include "giving back to communities" by improving air quality and leading by example, for instance.

The green initiative receives input from a cross-functional committee led by TD Bank EVP of shared services Carol L. Mitchell. Key objectives of the initiative include participating in public policy dialogue on green matters and in the environmental committees of international organizations (including the Canadian Bankers Association and the Environmental Bankers Association), as well as in industry initiatives, such as the Carbon Disclosure Project and the Equator Principles, according to the bank's Web site.

"We spent time in the beginning determining exactly what it means to be carbon-neutral," Sherman recalls, pointing to the ideal's impact on many aspects of the bank's operations, ranging from paper and consumables consumption to the energy used by IT systems. As part of the current project, he relates, TD Bank purchased a block of wind energy large enough to run its network of 2,600 ATMs and also picked up 31,000 metric tons of carbon offset credits to eliminate remaining emissions. Sherman says the bank works with third-party verification company Pembina to monitor greenhouse gas emissions.

According to Sherman, employees have been enthusiastic about making green attitudes and processes a priority. In fact, future ideas for improving the bank's carbon footprint, he notes, are likely to come from them.

LOCATION, LOCATION, LOCATION

As for the Queens Village store, Sherman says the location initially was chosen for business reasons and, in terms of timing, was a good fit to become the eco-friendly branch prototype. "It's a great location for expanding our market," he says. As a plus, community discussions revealed a rousing enthusiasm over the concept of green design, Sherman notes.

The design for the new 3,800-square-foot branch came out of a collaboration between bank architects and Boston-based architectural firm Bergmeyer Associates, the bank says. The prototype is designed to reduce energy consumption by 50 percent compared to typical branches. Solar panels will produce nearly 20 percent of the store's energy, according to a release.

Employees will benefit from an interior that features safer building materials, including wood that emits fewer volatile organic compounds (VOCs); walk-off mats and air filters that trap particles of dirt, dust and pollen for improved indoor air quality; and insulated glass with a low-E coating to maintain comfortable temperatures. And features such as water-efficient fixtures and draft-resistant landscaping will help keep the building low-maintenance, TD Bank says.

Although Sherman declines to address IT-related details or comment on data center efforts, the company responded through a spokeswoman: "Our commitment to being a carbon-neutral company affects many aspects of how we manage our physical and IT assets. TD Bank is focused on reducing overall energy consumption as a key component of its carbon-reduction strategy," she wrote in an e-mail.

"We are taking steps to improve the operational efficiency of printers, desktops, servers and peripherals. This includes changing sourcing standards, modifying operational parameters and enacting PC power management strategies. In addition, ... TD Bank Financial Group is in the process of upgrading data center technology to improve performance and reduce the overall energy load of its facilities. We are working to review all of the programs to make decisions on how we handle these as well."

Rodney Nelsestuen, senior director, financial strategies and IT investments, at Needham, Mass.-based TowerGroup, notes that customer-focused institutions such as TD Bank are likely to take a comprehensive and holistic approach to going green. "They want their facilities to reflect a new operational focus because a branch with a sustainable design is something tangible for customers to experience," he explains.

Although the financial crisis and ensuing recession put a damper on corporate contributions to the environmental movement, Nelsestuen adds, this year most big banks are talking about reducing their carbon footprint. Yet the size of the project, as well as the level of coordination between facilities management and IT, will vary from bank to bank.

"We've seen some firms where what goes on in terms of facilities is utterly disconnected from IT asset management, even though the CIOs of those firms are engaging in power-saving tactics like virtualization or grid computing," says Nelsestuen. "Again, though, from TD Bank, it makes sense that they are supporting the brand by being so coordinated with their program."

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Leadership in Energy and Environmental Design, or LEED, is a third-party certification program and the nationally accepted benchmark for the design, construction and operation of green buildings. LEED promotes a whole-building approach to sustainability by recognizing performance in five key areas of human and environmental health: sustainable site development, water savings, energy efficiency, materials selection and indoor environmental quality.