A UniqUe ApproAch to VAlUe creAtion2013 Toronto-Dominion Centre Sustainability Report

David HoffmanGeneral ManagerToronto-Dominion Centre

T H E

FoUr corner StoneS O F B U S I N E S SMESSAGE FROM THE GENERAL MANAGERAt Toronto-Dominion Centre, we strive to create value for our tenants’ organizations in all that we do. This report is about how Cadillac Fairview’s commitment to sustainability supports value creation in business. Our purpose is to build a strong connection between business and sustainability with an aim to demonstrate and measure how TD Centre’s sustainability efforts and performance enhance value creation for our tenants’ organizations with greater accuracy and reliability.

Sustainability is a growing business necessity that needs to continuously respond in an ever changing world through integrated thought and focus. Integrated thinking is embedded in all our activities and underlies Cadillac Fairview’s unique approach to value creation. This is how the TD Centre’s sustainability efforts are guided. Our approach results in efficient operations, thriving workplaces, forward-focused actions, and enhanced property stewardship, all for the ultimate goal of value creation for our tenants.

At TD Centre we understand that our tenants’ most important priority is the health and success of their businesses. When we look at the foundations of any business there are four main drivers that must be well supported to deliver long-term success. We believe those drivers are:

FINANCIAL Capital REAL Capital

HUMAN Capital BRAND Capital

We call these The Four Cornerstones of Business. These cornerstones form the framework and underpin our concept of value creation.

This year’s sustainability report uses the Four Cornerstones framework as a structure for reporting TD Centre’s sustainability information and performance. By aligning the Centre’s sustainability efforts with this framework we aspire to demonstrate how our sustainability efforts support long-term business vitality enabling our tenants’ businesses to excel.

Last year we started a dialogue by publishing the industry’s first property-specific sustainability report. It was a great start with an enthusiastic reception. As we continue to deliver on our commitment to enhancing our tenants’ businesses and inspiring our industry, we want to evolve the dialogue and clearly show how sustainability is not only about supporting the “planet”, but equally about supporting “profit” and “people”. Our objective is to evolve the “traditional” sustainability dialogue by examining our own efforts through the eyes of our tenants and demonstrating how environmental initiatives at the TD Centre deliver on business priorities such as return on investment and risk mitigation, and on social priorities such as employee productivity and health.

As organizations search for new and inventive ways to create value, the TD Centre is uniquely positioned to support that pursuit. It is with immense excitement that I present to you this year’s Toronto-Dominion Centre Sustainability Report. Together, we are fostering a healthy workplace and environmental stewardship by supporting a unique approach to value creation for the organizations that choose to call Toronto-Dominion Centre home.

Toronto-Dominion Centre 2013 Sustainability Report

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FINANCIAL CAPITALENHANCING PROFITABILITY

The FINANCIAL CAPITAL cornerstone is supported through initiatives that enable operational cost containment, such as containing energy costs.

REAL CAPITALENHANCING THE WORKPLACE ENVIRONMENT

The REAL (ESTATE) CAPITAL cornerstone is supported through initiatives that improve overall physical performance and operating capabilities, such as building upgrades.

HUMAN CAPITALENHANCING HUMAN HEALTH AND PRODUCTIVITY

The HUMAN CAPITAL cornerstone is supported through initiatives that promote employee productivity and well-being, including occupant education and awareness.

BRAND CAPITALENHANCING REPUTATION

The BRAND CAPITAL cornerstone is supported through initiatives that enhance reputation, customer loyalty and employee retention.

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tAble oF contentS3 TOP ACHIEVEMENTS

2012-2013

4 PERFORMANCE SUMMARY 2009-2013

6 FINANCIAL CAPITAL

8 TD BANK GROUP INTERVIEW

10 HUMAN CAPITAL

14 REAL CAPITAL

18 BRAND CAPITAL

20 ADDITIONAL INFORMATION

TD North Tower and Joe Fafard’s “The Pasture”

Toronto-Dominion Centre 2013 Sustainability Report2

LEED CERTIFICATIONAs of August 2013, four of TDC’s six office towers are certified LEEDTM EB Gold or LEED EB Platinum. 100 Wellington Street West was one of the first LEED Existing Building (EB) Platinum certifications in Canada. TDC is committed to achieving LEED certification in all six towers by the end of 2014.

REX GREEN AWARDThe TD Centre won the 2013 REX (Real Estate Excellence) NAIOP Green Award, the first for an existing building, at the 12th Annual NAIOP (Commercial Real Estate Development Association) Greater Toronto Chapter Gala.

THE GREEN PORTALThe first of its kind in Canada’s commercial real estate industry when launched in 2012, TDC’s interactive online site provides comprehensive information on sustainability initiatives and achievements, as well as tips, facts and real-time electricity data. It is made freely available to the public.

INAUGURAL SUSTAINABILITY REPORTThe TDC inaugural sustainability report, published in 2013, was the first singular property sustainability report published in North America.

EXPANDED DAYTIME CLEANINGToday some 51% of the TD Centre is on daytime cleaning, which improves the cleaners’ quality of life, and helps reduce TDC’s night-time energy consumption.

GREENER COMMUTETD Centre continues to expand its alternative transportation options for tenants through its Greenspace+, including indoor bike racks, electric vehicle charging stations, BIXI bike access and Zipcar availability.

WASTE CAMPAIGNWaste reduction and diversion was the focus of this 2013 behavioural change campaign as part of the Occupant Engagement Program. The results: diversion of almost 4,500 metric tonnes of waste; 1,200 tonnes of organics and 2,400 kg of electronic waste collected in 2013. The waste diversion rate rose to 79% from 75% in 2009. TD Centre’s goal is to achieve zero waste.

LIVING ROOFThe 22,000 square foot green roof on top of the TD Bank Pavilion is one of Toronto’s largest living roofs and actively contributes to a healthier community. It is a collaborative initiative between Cadillac Fairview and the TD Bank Group.

TDC Sustainability at a Glance Top Achievements 2012-2013Toronto-Dominion Centre (TDC) is committed to continually raising the bar on sustainability, involving all stakeholders in the process. Since 2008, TDC has consistently reduced its energy and water consumption per square foot and improved its waste diversion rate. We have exceeded the five-year Cadillac Fairview (CF) targets for water and waste within the CF corporate

GREEN AT WORK™ program. Last year, we reduced our total energy consumption by 7%, while our five year performance was just below the targeted 15%. The high level of performance in 2013 is the result of TDC’s strategy to meet the highest green building standards, integrating sustainability into all operational aspects, and by actively engaging occupants in collaboration.

Tear along this perforation for a summ

ary of TDC’s green initiatives and sustainability performance.

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KEY PERFORMANCE MEASURE

CADILLAC FAIRVIEW TARGET

TORONTO DOMINION CENTRE PERFORMANCE

energy 15% reductionfrom 2008 baseline

13% reductionfrom 2008 baseline

WAter 15% reductionfrom 2008 baseline

42% reductionfrom 2008 baseline

WASte 65% diversion 79% diversion

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TDC Sustainability at a Glance Performance Summary 2009-2013In the real estate industry, material sustainability indicators for environmental performance include energy consumption, water use, greenhouse gas emissions and waste production.

Over the past five years, data shows a steady improvement in energy and water efficiency, greenhouse gas (GHG) emissions and waste diversion. These results are a function of a dedicated capital investment program, strong building operations and stakeholder collaboration. The Occupant Engagement Program continuously engages tenants in sustainability activities and the Energy Innovation Team (formerly Green Braintrust) facilitates

collaboration between building operations and consultants in monitoring and improving building performance.

The graphs show TDC’s key environmental performance indicators 2009-2013. As audited data for steam and chilled water became available in 2012, we expanded our energy disclosure to provide a complete picture. In previous years, our centralised environmental management system only included electricity and gas consumption.

TDC aspires to include green procurement, human health and well-being metrics in our sustainability reporting in future years.

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Tear along this perforation for a summ

ary of TDC’s green initiatives and sustainability performance.

Toronto-Dominion Centre 2013 Sustainability Report4

About Toronto-Dominion CentreDesigned by Ludwig Mies van der Rohe, the Toronto-Dominion Centre (TDC) comprises six office towers located at 66 Wellington Street West (TD Bank Tower), 77 King Street West (TD North Tower), 100 Wellington Street West (TD West Tower), 79 Wellington Street West (TD South Tower), 222 Bay Street (Ernst & Young Tower), and 95 Wellington Street West in Toronto. The office complex offers more than four million square feet of leasable space.

TDC tenants include leading Canadian and international firms in the legal, financial, mining and professional services sectors, among others. Every day, a community of over 21,000 occupants and 50,000 visitors connect in these buildings for business and personal purposes, contributing to the economic and social fabric of the Toronto downtown core.

The Toronto-Dominion Centre is owned by The Cadillac Fairview Corporation Limited, the real estate arm of the Ontario Teachers’ Pension Plan.

About This ReportThe Toronto-Dominion Centre has become a recognized sustainability innovator and leader in Canada. This Sustainability Report reports on our strategy, performance and ongoing commitment to Building Sustainability TogetherTM and a responsible business community. It covers sustainability activities and achievements to August 31, 2013. It is the successor to TDC’s Inaugural Sustainability Report, which was the first singular property sustainability report published in North America.

TD Centre from the North-East Corner

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Sustainability makes good financial senseOur focus on efficient operations results in cost containment that benefits our tenants’ bottom line. In business, Financial Capital is measured through profitability. TD Centre contributes to enhancing our tenants’ Financial Capital by working daily on sustainability initiatives that cap or reduce operating expenses.

While reducing energy, water and carbon emissions is a part of our commitment as a responsible property manager, there are also attractive financial returns. Efforts focused on energy efficiency work to contain current and future energy, carbon and maintenance costs.

An integrated approach to decision making around capital expenditures results in cost savings and protects the TDC from future obsolescence. Examples of such efforts include energy audits, retro-commissioning, and tenant energy sub-metering.

This section of the TDC sustainability report showcases efforts and initiatives of the past year that directly contribute to and support the Financial Capital cornerstone of our tenants’ businesses.

INVESTMENTS IN ENERGY CONSERVATION SAVE MONEYInvesting in conservation can result in considerable savings. As an example, our lighting retrofit program provides energy savings of over 3 million kilowatt hours each year and the investment will be paid back in 5 years. The retrofit also decreases cooling needs and the ongoing maintenance cost associated with replacing light bulbs.

When electricity is sub-metered and billed separately, tenants only pay for what they use and see the direct benefits. Tenants have also received

cash rebates from waste diversion initiatives and replacement of toilets and faucets with water efficient models. Demand response, another initiative, provides rebates from reducing peak electricity demand by switching off or shifting some building operations to off-peak hours.

Further cost savings also stem from initiatives such as daytime cleaning (see p. 13) thanks to savings from reduced after-hours lighting and ventilation.

*Audited data for district steam and chilled water, which is used for heating and cooling in most towers, has only been available since 2012. This explains the 2012 increase in the energy consumption.

ENERGY CONSUMPTION

enHAncinG ProFitABiLitY 20132009

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Toronto-Dominion Centre 2013 Sustainability Report6

During 2013 the TD Centre worked with its tenants to increase waste diversion. Coffee cups, organics, paper, construction materials, electronic waste (e-waste) and more were recycled. A total 4,475 metric tonnes of waste was diverted in 2013. This included over 2,000 tonnes of paper, over 1,300 tonnes of organics, over 100 tonnes of plastics and cans, and 2,390 kg of e-waste. The 4% increase in diversion since 2009 means that 277 tonnes of waste were not hauled away to landfill this year. This is the equivalent to the annual waste produced by about 360 Canadian households.

Diverting waste from landfill has a big impact on waste handling costs, natural resource conservation, and

greenhouse gas emissions. While TDC’s diversion rate is significant, at almost 80% (exceeding the Cadillac Fairview corporate target of 65% and the Canadian national average diversion rate of 25%) challenges still exist as overall waste volumes are trending upwards.

To encourage further progress towards the TD Centre’s goal of zero waste to landfill, TDC will run ongoing waste campaigns and enhance policies for procurement and construction. TDC uses annual waste audits to identify ways to continually improve diversion. For example, the most recent audit found that only 4% of the total waste stream was landfill waste. 49% could have been recycled and 47% was compostable.

Diverting waste cuts costs In a successful campaign to divert waste from landfill, TDC tenants saw benefits go straight to the bottom line in reduced waste handling costs.

Waste diversion rates have steadily increased since 2009. Total waste volumes have also been increasing, partly due to construction waste from renovations, as well as increased occupancy.

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4,900

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BY THE NUMBERS

ENERgyIn 2013, TDC continued to cut energy use, demonstrating a downwards trend in total energy consumed. Steam and chilled water energy sources were added to the energy reporting in 2012 to give a more complete picture of our overall energy consumption. In total, the TD Centre used the equivalent of 223 gigawatt hours of energy in 2013. TDC has reduced base building energy consumption by 13% since 2008, just below the 15% Cadillac Fairview target with an annual average reduction of almost 3%. This reduction is equivalent to the electricity used annually by more than 1,600 Ontario homes. Total energy usage has been steadily decreasing over the past five years, including both base building and tenant usage.

WAsTEWaste diversion rates have steadily increased over the past five years and remain above the 65% CF target set in 2009. In 2013, 4,475 tonnes of waste was diverted from landfill. This is equivalent to 300 waste haulage trucks. These increases have been made possible by our occupant engagement program. A remaining challenge is that total waste volume is rising. This is partly attributed to construction waste from renovations, as well as increased occupancy. The TD Centre, in collaboration with the Green Council, will be looking at strategies to reduce waste volume per occupant, including working with suppliers on measures such as packaging reduction on goods shipped to TDC and eliminating the need to dispose of certain products. This is expected to further reduce waste management costs.

WASTE PRODUCTION AND DIVERSION

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Enhancing value through partnership: a Cadillac Fairview-TD Bank Group dialogueTD Centre General Manager David Hoffman invited Karen Clarke-Whistler, Chief Environmental Officer and Roger Johnson, Senior Vice President, Enterprise Real Estate, TD Bank Group, as valued tenants and members of the TDC Green Council (see p. 15) since its inception, to share their perspectives about how collaboration between landlord and tenant drives sustainability performance and supports value creation for TD.

Karen Clark-Whistler, Chief Environmental Officer TD Bank Group (left), Roger Johnson, Senior Vice President, Enterprise Real Estate, TD Bank Group (centre), David Hoffman, General Manager, Toronto Dominion-Centre (right)

Toronto-Dominion Centre 2013 Sustainability Report8

We’ve been able to reduce operating expenses in the complex that save us millions of dollars per year and that goes straight to the bottom line.”Roger Johnson

our employees, by any measure, are among the most engaged on the environment of any canadian company.”Karen Clarke-Whistler

David: What is the bank’s environmental strategy and how does it make for a stronger business?

Karen: We are the green bank and that’s not just our logo. Our objective is to be a North American environmental leader. It’s good for the environment, good for business. Our strategy is based on embedding environment right through our business, our financing and products, our employees and our communities and of course in the most physical aspects of our business, our facilities. Our employees, by any measure, are among the most engaged on the environment of any Canadian company. They hold us to high standards. Being genuine and walking the talk is absolutely fundamental to our strategy

David: How are TD Centre’s and Cadillac-Fairview’s sustainability initiatives supporting one or more of the Four Cornerstones of Business?

Karen: We’re focused on being an environmental leader and the sustainability initiatives we’ve worked on with Cadillac Fairview – the living roof on top of our King and Bay branch and our new workspaces – have helped us reduce our environmental footprint. They also illustrate – to our customers and employees – that we really are the green bank.

Roger: We’ve been able to reduce operating expenses in the complex that save us millions of dollars a year. We’ve been able to provide better and healthier premises for our people. And the serious effort around environment and sustainability in everything you do supports our brand and hopefully through our efforts, adds to the Cadillac Fairview brand.

David: What have you seen as the major benefits of our collaboration?

Roger: The Green Council has been a homerun for everyone who participates. None of us would be as good on the individual level as we are collectively. In the past five years, the bank has reduced its energy consumption in this complex by more than 40 percent. It would have been impossible to do it without you. We were having problems getting part of our recycling program going, but sitting on the Council, listening to how other businesses were dealing with it, helped us improve our diversion rate.

David: Are there areas you’d like to see us collaborate on in the future?

Karen: From a big-picture perspective, the environmental challenges our society faces are not solvable by a single group and it really takes the power of people working together to start to tackle them. I do know that when two important brands such as ours work together and are genuine about it, we can have an impact that goes much beyond us.

Roger: If I were to wish for anything, it would be to continue what we’re doing. You push us, we push you. That’s how you keep moving the needle. To the extent that we can have strategically linked goals as tenant and landlord, that’s the secret sauce to working together and driving the success. When you can link it to reduced absenteeism, to increased productivity, to better health, the business drivers become that much more positive.

tD bAnk groUp interVieW AbStrActDavid Hoffman I Karen Clarke-Whistler I Roger Johnson

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Towards a productive, healthy, inspired workforceWhen well supported, the well-being and effectiveness of an organization’s employees are its biggest assets. The true economic value of Human Capital is immeasurable, but when well supported, its value exceeds all else. The Human Capital cornerstone of business relates to the people power of an organization. When people are supported, they are a source of great innovation, creativity, problem solving, and value creation. The quality of an organization’s Human Capital also impacts its ability to attract and retain talent.

The TD Centre is committed to occupants’ well-being, with the work environment as top priority. Recent data from the World Green Building Council shows that sustainable initiatives increase human productivity. Better ventilation has shown to increase productivity by 11% while improved lighting has shown to increase productivity by 23%.

Programs like TD Centre’s Occupant Engagement Program not only drive sustainability, but they provide building occupants with the motivation, knowledge and tools that encourage behaviour change.

This section of TD Centre’s sustainability report showcases efforts and initiatives of the past year that directly contribute to and support the Human Capital cornerstone of our tenants’ businesses.

enHAncinG HuMAn HeALtH And ProductivitY

I THINK THERE’S BEEN A REAL GROUNDSWELL OF ENTHUSIASM FOR WORKING IN AN ENVIRONMENT THAT REFLECTS THE VALUES OF YOUR WORKPLACE.”

John Esvelt, National Director of Risk Management, Dentons Canada LLP

Occupants and visitors in Oscar Peterson Square

Toronto-Dominion Centre 2013 Sustainability Report1010

We are better positioned to achieve sustainability when we make decisions collectively with our tenants. This delivers value not only through cost efficiencies but also in employee satisfaction and productivity. Continuous collaboration and engagement is the best way to ensure our efforts are sustainable in the long-term. The Green Council (see p. 15) is the tenant advisory steering committee that drives our award-winning Occupant Engagement Program (OEP). The OEP has been successful in inspiring and driving change in occupant behaviors and tenants’ practices through a number of ongoing campaigns which are outlined in this report, including energy and waste reduction and indoor air quality. In addition to tenants, we also work closely with business partners and suppliers, and embrace industry association and NGO initiatives such as REALpac’s energy and water benchmarking program and Civic Action’s Race to Reduce in executing our sustainability objectives.

Case sTuDy INDOOR AIR qUALITYCanadians spend 90% of their time indoors. Indoor air quality in buildings can vary greatly. Properly managing the indoor environment is essential to our tenants’ comfort and productivity. The TD Centre monitors indoor air quality to assess and improve indoor air quality standards. We audit air quality levels, share third-party air quality test results with tenants, and proactively manage issues. Policies regulate outdoor spaces designated for smoking and idling vehicles. In fall 2013, we launched a campaign on indoor and outdoor air quality. Campaign results will be reported on in our 2014 Sustainability Report.

OCCUPANT ENGAGEMENT PROGRAM – PARTNERING WITH OUR TENANTS

Morning commuters at TDC’s north-east corner

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Supporting higher quality of lifeTDC contributes to the well-being of its occupants by providing options for greener commuting and has long supported local charitable organizations.

SUPPORTING ACTIVE AND LOW-CARBON TRANSPORTATION Transportation accounts for 28% of Canada’s greenhouse gas emissions and air pollutants. TDC supports the use of low-carbon transportation modes such as bicycles, electric and hybrid vehicles, and car sharing. This helps reduce commuting emissions and congestion and enhances well-being of our occupants. A secure bicycle parking area is located in the P1 parking level of the TD South Tower. Plaza-level bike racks have capacity for 430 bikes. The Greenspace+ parking area offers several sustainable commuting options including five Zipcars and electric vehicle charging stations. TDC also provides onsite access to the city-wide BIXI bike rental system. Our tenant survey shows that more than 80% of our occupants take transit to work, and our proximity to the TTC subway and GO Transit facilitates this. Less than 5% of TDC’s occupants use a motor vehicle in their daily commute.

Greenspace+ Zipcar parking space

Commuters take the Toronto Transit Commission (TTC) streetcar, just meters from the TDC

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CONTRIBUTING TO COMMUNITIES As a member of the Toronto downtown business community, we are proud to contribute to the quality of life in the City. The TD Centre has supported over 60 local and national charities that feed and educate children, reduce violence and raise funds for medical research and equipment, among other causes. Our charitable contributions have been in the form of financial contributions as well as donated time to serve the community. In 2013, TDC contributed over $140,000 to causes, which together with tenants’ contributions generated $1,310,000 in total for organizations such as The Yonge Street Mission, The Daily Bread Food Bank, The United Way, The Juvenile Diabetes Research Foundation, and Heritage Toronto. We also contribute in-kind space to community groups and art exhibits on a regular basis.

Case sTuDy DAYTIME CLEANINGApproximately 180 office cleaners work in the the TD Centre towers. Daytime cleaning improves quality of life for cleaners and helps reduce TDC’s night-time energy consumption from reduced after-hours lighting and use of HVAC systems. This program, launched in 2012, is constantly expanding. Now more than 50% of our tenants use daytime cleaning. This ground-breaking property management practice has been shown to improve relationships and communications between cleaners and occupants, with a minimal negative impact on tenants. The Cadillac Fairview Green Procurement policy recommends use of environmentally safe cleaning products, also contributing to health and safety on the job.

daytime cleaning Was the best decision that i made. i find that my health has improved, i get home early, get to spend time With my husband and daughters, i get to go to sleep early, to Wake up to make my family their lunches and i take my daughter to school.”Lucia Ferreira, cleaner at TD Centre

Daytime cleaning tenant information poster

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Investment in Real Capital reaps environmental rewardsSustainability supports the overall physical performance and operational capabilities of the buildings we occupy, striving to provide a positive workplace environment.Expenditures on Real Capital are just part of doing business. The Real Capital cornerstone of business is typically a capital expenditure that supports a business in the production of its goods or services. Sound management of our real capital is also an important way to address the growing concern over climate change and other environmental issues, and is key to TD Centre’s long-term business strategy.

Commercial buildings rely on energy to operate and as a result are responsible for 13% of Canada’s greenhouse gas emissions. Therefore, our carbon reduction strategy is focused on implementing best-in-class energy management through capital upgrades and ongoing collaboration with our tenants.

Measures the TD Centre undertakes to enhance the Real Capital cornerstone include:

Commitment to operating our buildings to the highest standards of performance and environmental management. We strive to earn and retain LEED certification for each building (see p. 19)

Retro-commissioning – ongoing building equipment and systems reviews ensure tenant spaces are properly ventilated and conditioned, and that equipment is optimized for energy efficiency

Electricity sub-metering – provided to all TDC tenants, it delivers useful consumption and cost information for each occupied space

Window retrofits – replacing single pane windows with thermal low-e double pane insulated glass units results in energy savings and occupant comfort enhancements

High performance building upgrades and other sustainability activities support the physical work environment and contribute to the TDC’s integrated approach to maximizing the performance of Real Capital.

This section of TD Centre’s sustainability report showcases efforts and initiatives of the past year that directly contribute to and support the Real Capital cornerstone of our tenants’ businesses.

enHAncinG tHe WorKPLAce environMent

Building improvements on the TD North Tower

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Operating governanceThe TD Centre uses an integrated approach to maximize the performance of the property, including operations of and investments in Real Capital. Integrated thinking is embedded in the overall management of the property, meaning that the CF management team actively considers the interdependencies and connectivity among all operating and functional units that affect sustainability. The result is a collaborative and efficient decision making process that supports TDC tenants in the short and long-term.Sustainability integration begins at the corporate level. We follow the operating standards outlined in GREEN AT WORKTM, Cadillac Fairview’s (CF) sustainability program. Consultation with the CF strategic asset management group supports strategic capital investments that enhance sustainability and tenant value creation.

At the property level, we develop and implement innovative programs together with the Green Council and Energy Innovation Team that go beyond the corporate mandate. TDC General Manager David Hoffman is responsible for the overall sustainability program and results, and his operations team manages the implementation of sustainability initiatives and meeting annual performance targets.

STRATEGIC ASSET MANAGEMENT The TD Centre management team works with the CF strategic asset management group to ensure that capital reinvestments align with the property’s operational and sustainability objectives.

GREEN AT WORKThe GREEN AT WORK program integrates sustainability into all CF properties through green operational standards. It specifies environmental management practices and performance targets, and financially rewards facilities and employees achieving targets. An information portal provides a central data repository for environmental performance data, which enables benchmarking and tracking. This national program drives overall company and property level performance and allows for knowledge sharing and leverage of resources.

THE GREEN COUNCILThe Green Council is a tenant advisory steering committee that drives the Occupant Engagement Program. It is made up of senior representatives from some of our largest tenant organizations. With the goal of driving engagement and conservation through occupant behaviour change, the Green Council members meet quarterly to prioritize initiatives and advise on program direction and future occupant campaigns.

THE ENERGY INNOVATION TEAM The Energy Innovation Team is a unique forum that draws on the collective expertise of many property management disciplines including TDC’s building operators, equipment suppliers, building engineers and sustainability consultants. The team is responsible for designing an energy roadmap, setting targets, and establishing alignment with other high-performance buildings that are defined as high efficiency, low cost, low emission and technologically advanced. The interdisciplinary team uses a forward-focused approach to energy management. Innovative solutions identify energy conservation measures, operational improvements and the development of the corresponding action plans centered on achieving low energy and GHG emission intensity for the property. This collaborative process has been so successful that it is being rolled out across the CF portfolio as part of the GREEN AT WORK program.

Looking up at TD North Tower, TD Bank Tower and Earnst and Young Tower

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Case sTuDy LIVING ROOFIn 2012, TDC collaborated with TD Bank Group to build a Living Roof on top of the TD Bank Pavilion. The Living Roof, one of Toronto’s largest green roofs, actively contributes to a healthier community. This 22,000 square foot green roof uses native drought-resistant creek sedge grass and was designed to the Toronto Green Roof Construction Standard. The Living Roof reduces storm run-off, provides cooling through evapotranspiration, reduces the heat island effect, and contributes to improved air quality. In other landscaping, TDC uses integrated pest management programs, native, drought-resistant plants and maintains green outdoor spaces.

IN ADDITION TO STRENGTHENING EXISTING GREEN CORRIDORS, GREEN ROOFS REPRESENT AN OPPORTUNITY TO CREATE NEW GREEN SPACE IN AREAS THAT ARE OTHERWISE UNSUITABLE FOR NATURAL RESTORATION.”

Report by Beth Anne Currie and Brad Bass: Using Green Roofs to Enhance Biodiversity in the City of Toronto (2010).

Greenhouse gas emissions have decreased by 13% since 2011. Since the release of the TDC Inaugural Sustainability Report, GHG emissions have been recalculated in ac-cordance with the CF corporate greenhouse gas inventory. Emissions contain all direct emissions sources including natural gas, diesel, and refrigerants, as well as indirect emis-sions from electricity, steam, chilled water, waste and transportation of waste to landfill.

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Constructing the TDC Living Roof

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Wise water consumptionConserving water is increasingly important. TDC is committed to doing its part.Canadians consume almost twice the volume of water per capita as residents in most European countries, and in certain parts of Canada, water shortages and aged water infrastructure are becoming significant issues. The TD Centre has made significant progress in reducing water consumption. TDC used 337 million litres of water in 2013, down from 537 million litres in 2009. This is equivalent to the water volume of 80 Olympic-sized swimming pools. Since 2008 water usage has almost halved, exceeding the 15% Cadillac Fairview reduction

target. In 2003 we introduced Deep Lake Water Cooling, which uses water from Lake Ontario to cool the buildings, eliminating the need for evaporative cooling towers. This reduced TDC’s water consumption by 15%. Enwave cooling has also enabled us to reduce electricity for air conditioning by 90%, contributing to a lower carbon footprint. Water consumption is also addressed by efficient water technologies like low-flow toilets and low-flow fixtures, which have been incorporated in the continuous refurbishment program at TDC.

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Deep Lake Water Cooling from Lake Ontario

Enhancing brand and reputation through sustainabilityA brand is enhanced when it includes a commitment to environmental stewardship. It becomes authentic when that commitment is proven through execution.TD Centre’s commitment to executing on environmental initiatives ensures that the Brand Capital cornerstone of a tenant’s business is authentically supported. By making sustainability a core factor in decision making, employee and customer loyalty is enhanced. Well-developed Brand Capital ensures brand recognition, increases market share and helps in attracting and retaining talent. The TDC pursues innovative approaches to build environmental success and proves that success through the pursuit of industry recognition and awards. This positions the TD Centre as industry leader with innovative strength. We share that recognition with all our tenants who are our key partners in those achievements and deserve equal brand recognition for our collective efforts.

This section of TD Centre’s sustainability report showcases efforts and initiatives of the past year that directly contribute to and support the Brand Capital cornerstone of our tenants’ businesses.

NAIOP REX GREEN AWARDIn 2013, TDC won the prestigious REX (Real Estate Excellence) Green Award at the 12th Annual NAIOP (Commercial Real Estate Development Association) Greater Toronto Chapter Gala. The REX Awards recognize “Best of the Year” properties and management. It was the first time that an existing individual property was honoured with the Green Award. The award committee cited TDC’s innovative sustainability initiatives such as daytime cleaning, LEED certification, the TDC Green Council, Occupant Engagement Program, and being the first singular property in Canada to publish a sustainability report.

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BUILDING CERTIFICATIONS

TD BANK TOWER 66 Wellington st. W.

LEED EB: O&M – Gold (2013)BOMA BESt Level 3 (2011)Race to Reduce Gold Participation (2012)

TD NORTH TOWER 77 King st. W.

LEED EB: O&M – Gold (2010)BOMA BESt Level 3 (2011)Race to Reduce Bronze Participation (2012)

TD WEST TOWER 100 Wellington st. W.

LEED EB: O&M – Platinum (2012)BOMA BESt Level 3 (2011)Race to Reduce Bronze Participation (2012)

TD WATERHOUSE TOWER 79 Wellington st. W.

LEED EB: O&M – Gold (2011)BOMA BESt Level 3 (2011)Race to Reduce Silver Participation (2012)

ERNST AND YOUNG 222 Bay st. W.

BOMA BESt Level 3 (2011)Race to Reduce Gold Participation (2012)

95 WELLINGTON 95 Wellington st. W.

Race to Reduce Bronze Participation (2012)

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CIVIC ACTION’S RACE TO REDUCEToronto CivicAction’s Race to Reduce challenges the Greater Toronto Area office building landlords and tenants to publicly commit to work together to reduce energy use in participating office buildings by at least 10% over four years. TDC and its tenants won a number of awards, including an award for innovation for the Occupant Engagement Program in 2011.

TENANT SATISFACTIONTenant surveys further measure tenant satisfaction. According to the “Office Client Survey”, conducted by a leading, independent research company, the satisfaction score increased from 69% in 2012 to 74% in 2013.

LEED CERTIFICATIONLEED EB (Leadership in Energy and Environmental Design for Existing Buildings: Operations and Maintenance) is a highly respected and rigorous green building certification program. The program credits energy and water efficiency, green technologies, recycling programs, maintenance and cleaning practices, and more. LEED EB is administered by the Canadian Green Building Council (CaGBC). 77 King Street West was the first Canadian LEED EB Gold and 100 Wellington Street West was one of the first LEED EB Platinum in Canada. LEED is one of the most commonly used green certification programs. The table on the opposite page shows certification progress to date. TDC is committed to having the remaining two towers LEED certified by the end of 2014.

BOMA PINNACLE AWARDBrand and reputation are also enhanced by the investment and commitment in innovative programs like the Occupant Engagement Program. This program was recognized by being awarded the National Pinnacle Award for Innovation at BOMA (Building Owners and Managers Association) in 2012.

THROUGH THE GREEN PORTAL In summer 2012, TDC launched its Green Portal, a real-time interactive site dedicated to everything green about TDC - the first of its kind in Canada. This sustainability communications tool is designed to provide all TDC sustainability information in a single digital source. The Green Portal provides easy access to the following:

Real-time hourly, weekly, monthly and annual data regarding energy consumption

Waste diversion information and progress

TDC’s green initiatives, programs and reporting

Green news and useful tips

The site has proven to be of great interest not only to tenants but also to the general public both in Canada and internationally. We invite you as a reader to consult the Portal for more information.

To visit the Green Portal, go to and click on the TDC Green icon.

For further information regarding TDC’s sustainability initiatives, please contact David Hoffman, General Manager at david.hoffman@cadillacfairview.com

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Additional informationDefinitions:BOMA BESTThe Building Owners and Managers Association Building Environmental Standards program rates existing buildings based on energy, water, waste, emissions, indoor environment, and environmental management system performance. Buildings can be awarded levels 1-4 based on their performance.

CO2eStands for carbon dioxide equivalent. This measure is used to compare different greenhouse gases by converting them to the standard measure of carbon dioxide. It is often displayed in tonnes, or tCO2e.

DAYTIME CLEANINGCleaning of interior office space that takes place between 6am and 6pm as opposed to off peak hours. TDC is the first major office development in Toronto to utilize this energy saving initiative.

DEMAND RESPONSEChanging electrical consumption behaviour to reduce the electricity demanded at peak times therefore reducing the overall requirements on the electrical system and cost paid at peak hours.

eKWH Stands for equivalent kilowatt hours. This metric allows different energy sources to be compared by equating them to the standard measure of electrical energy. Standard conversion rates for common fuels is available through Natural Resource Canada.

LEEDLeadership in Energy and Environmental Design is the internationally recognized third-party certification standard administered in Canada by the Canadian Green Building Council (CaGBC). LEED EB stands for Existing Building: Operation and Maintenance, which is the most recent standard in the LEED portfolio and the only program available for existing buildings. The rating system rates buildings in eight areas: Location and transportation, site management, water, energy, materials, indoor environment, innovation and regional priorities.

REALPACThe Real Property Association of Canada is national association of large owners and developers of commercial real estate. It develops and maintains national real estate standards and conducts research in areas including sustainability.

SUB-METERINGA system used to track energy or water consumption of a particular space within a larger area that is already being measured. Sub-metering for electricity is in place for all tenants in the TDC and allows tenants to understand exactly how much energy they use and reduce.

WASTE DIVERSION RATEThe percentage of total waste that is diverted away from landfill disposal through recycling, or composting.

ZERO WASTE Achievement of a minimum of 95% diversion of waste from landfill. This is a common industry standard.

Data:Reporting years begin September 1st and end August 31st of the listed year. This is in line with the Cadillac Fairview GREEN AT WORK reporting cycle.

Energy data is provided for all buildings and includes base building electricity and natural gas. Tenant spaces, steam and chilled water are noted where included and include all buildings except for major users such as data centres (as per the Canadian normalization standard set by REALpac).

Water data is provided for all buildings and all spaces. Since the publishing of the TDC Inaugural Sustainability Report, we have appended water usage with data from 95 Wellington St. W.

Waste data includes all office and retail space for all buildings.

Energy and water data is normalized to a baseline year according to weather (heating and cooling degree days) and occupancy. Very large users have been omitted (see above).

Steam and chilled water is provided by Enwave, who operates a district heating and cooling system in downtown Toronto. This data has been provided since 2012, as this is the first year district energy data was audited and captured by the Cadillac Fairview environmental management system. In 2013, we are adjusting TDC energy data to ensure full disclosure of environmental performance.

Since the release of our first sustainability report in 2012, we have recalculated our greenhouse gas inventory. Our recalculated 2011 emissions were 32,475 tCO2e, not 22, 100 tCO2e as originally reported.

TD Centre uses the operational control approach to consolidating its greenhouse gas inventory and therefore accounts for all direct and indirect energy-related emissions from building areas under direct control (i.e. common areas) in scope 1 and 2. Tenant-controlled areas that are sub-metered for electricity are considered outside of TD Centre’s control and are thus included in the scope 3 emissions. Electricity consumption from one tenant controlled data centre was excluded from the GHG inventory to maintain

consistency with prior years’ methodology. This data is considered to be a “non-reporting account”. Activity data is not normalized for weather or occupancy. Emissions include all direct emissions sources including natural gas, diesel, and refrigerants, as well as indirect emissions from electricity, steam, chilled water, waste and transportation of waste to landfill.

MEASUREMENT STANDARDSGreenhouse gas emissions have been have been measured and reported since 2011 following the CSA/ISO 14064-1 GHG accounting standard.

Guidance and information from REALpac’s Energy Normalization Methodology v3.01, 2012 Energy Benchmarking Report: Performance of the Canadian Office Sector, Water Management: A Benchmark for Canadian Office Buildings, and A Guide to Corporate Responsibility and Sustainability Reporting in the Canadian Real Property Sector were consulted during report development.

Cornerstone photos - p 1,6,10,14,18 by Tony Lea

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www.tdcentre.com© The Cadillac Fairview Corporation Limited, November 2013.This report was developed and produced in collaboration with Quinn & Partners, One Stone Advisors and Jones Lang LaSalle.Printed in Canada using vegetable-based inks and 100% recycled paper.