Sustainability
Sustainability
Our 2025 Sustainability Report:
2025 Sustainability Report Message
Message to stakeholders
At Toromont, we strive to meet our environmental and social responsibilities while positioning our company for sustainable growth. To fuel our ambitions, we use a disciplined governance process to actively guide our strategies. We invest to make Toromont’s workforce, facilities and fleets more capable, effective and efficient. We provide equipment and service to advance the business and sustainability objectives of our customers, and participate actively in our local communities.
ENVIRONMENT
To protect and preserve the natural environment and address climate change while growing our capabilities, capacity and revenue, Toromont employs a deliberate and disciplined approach to corporate governance and the management of our operations.
CUSTOMERS
Our customers demand advanced equipment with embedded technologies and supporting services that enable them to operate safely, productively and efficiently, often in challenging conditions.
Read more about our sustainable products, technologies and services
CIRCULAR ECONOMY
Unlike the linear economy where products are used once and then scrapped, the circular economy is one in which worn components are remanufactured and machines are rebuilt to prolong their useful lives. Toromont, Caterpillar and our customers are all players in Canada’s circular economy where millions of tonnes of products are recirculated annually with benefits for all participants and the environment.
PEOPLE
Building strong, mutually rewarding relationships with our employees, customers, business partners, shareholders and communities is fundamental to our sustainability as a business.
Our sustainability pillars and 2025 highlights
Environment
Toromont focuses on reducing its environmental footprint and addressing climate change through disciplined governance, lower‑emission operations, responsible resource management, and the delivery of sustainable products, technologies, and services that support customers on their path to net zero.
People
Toromont prioritizes the safety, development, engagement, and inclusion of its people and communities, guided by strong values, transparency, and accountability to build long‑term, mutually rewarding relationships with employees, partners, and society.
Governance
Toromont upholds high standards of corporate governance and business integrity through Board oversight, ethical conduct, executive accountability, and robust disclosure, recognizing that strong governance underpins sustainable value creation for all stakeholders.
Sustainability governance
Toromont upholds high standards of corporate governance and business integrity, recognizing that effective governance benefits our company and stakeholders.
Our Board of Directors reviews governance practices for legal compliance, monitors industry standards, and works to improve sustainability efforts.
The Board also oversees disclosure of financial and sustainability information in this report.
Our Board operates with three committees: Audit; Human Resources & Health and Safety (HRHS); and, Governance & Sustainability (G&S).
For details, please refer to our Management Information Circular available at www.toromont.com, as well as the Sustainability Governance section of this report.
Toromont’s ESG framework and responsibilities are simplified in a pyramid chart divided into 5 horizontal sections that are separated by black lines and arrows pointing up. At the top of the pyramid, highlighted in yellow, is the Board of Directors, and below it, three Board committees side by side: Governance & Sustainability, Audit, and Human Resources & Health and Safety. The governance of sustainability-related risks and opportunities and climate-related risks and opportunities is the primary oversight of our Board, but accountability is shared with Toromont’s Executive Team. The next section of the pyramid shows the Executive Team, which provides management oversight. The third section is Toromont’s Sustainability Committee, the primary working and resource group for sustainability matters. The final layer of the pyramid is Business Unit Leadership where Toromont’s ESG priorities are carried out to achieve performance objectives, and deliver human capital strategies, environmental management and community programs.
Toromont believes that corporate sustainability demands a defined, multifaceted and disciplined approach to governance – one that leverages the expertise and experience of dedicated business leaders. Accordingly, we established and operate a governance system with clearly articulated roles and responsibilities.
Oversight
Oversight of sustainability-related risks and opportunities (SRROs) and climate-related risks and opportunities (CRROs) is primarily the responsibility of our Board, with shared accountability extended to Toromont’s Executive Team. The disciplined execution of Board and Executive Team decisions is facilitated by our Sustainability Committee and Business Unit Leaders. For complete details, please see our Management Information Circular.
Board of Directors: Oversees overall risk, strategy (including sustainability strategy), corporate governance, succession planning and Board and Director effectiveness. The Board retains overall oversight of sustainability strategies such as sustainable products supporting the energy transition1, reducing GHG emissions, water and waste management and supply chain sustainability2. Annually, the Board reviews and updates mandates, policies, strategies and objectives, and regularly reviews progress relating to the governance of material sustainability and climate-related topics.
Governance & Sustainability Committee: Oversees objectives and strategies for all sustainability-related risks and opportunities and climate-related risks and opportunities. This Committee also monitors progress in employing strategies as well as environmental compliance matters. The Committee recommends the composition of the Board and its committees, oversees Director recruitment, and monitors changes in regulations and compliance. Please see our G&S Committee’s Terms of Reference.
Audit Committee: Oversees the controls in place to monitor and measure progress on all material public disclosures, including disclosures related to sustainability- and climate-related information, including future oversight of Internal Audit’s assessment of GHG reporting and other sustainability-related reporting, as applicable. Please refer to Toromont’s Audit Committee’s Terms of Reference.
HRHS Committee: Has oversight and informs the Board of sustainability-related risks and opportunities relating to human capital and health and safety3, including sustainability-related metrics such as employee engagement and retention, health and safety, and executive compensation. Please see our HRHS Committee’s Terms of Reference.
Executive Team responsibilities
Toromont’s Executive Team establishes corporate strategy and objectives, provides leadership to embed corporate values, fosters relationships with stakeholders and scrutinizes results. Within its mandate, the Executive Team establishes Toromont’s sustainability strategies and objectives in accordance with the Board of Directors’ approvals, facilitates key initiatives, and monitors ongoing progress. Additionally, the Executive Team oversees risk and opportunity assessments as well as stakeholder engagement processes.
Sustainability Committee responsibilities
Comprising operational business leaders from various Business Units and subject matter experts, the Sustainability Committee is the primary working and resource group for sustainability matters. It has responsibility for assessing, planning, substantiating and tracking progress on strategies, objectives and tactics. The Sustainability Committee meets on a regular basis to support the implementation of sustainability projects and provides subject-matter expertise, including in the areas of environmental and regulatory compliance.
Business Unit leadership responsibilities
Business Unit leaders set objectives that are aligned to Toromont’s strategic priorities including for corporate sustainability, allocate resources to achieve performance objectives, and deliver human capital strategies, environmental management, as well as community programs. Business Unit leaders are tasked with growing customer, business partner and community relationships. Business Unit leaders also participate in risk and opportunities assessment and stakeholder engagement.
1SASB Industrial Machinery and Goods, RT-IG-130a.1
2SASB Industrial Machinery and Goods, RT-IG-440a.1
3SASB Industrial Machinery and Goods, RT-IG-320a.1
Sustainability-focused skills & competencies
The Governance and Sustainability Committee of our Board of Directors derives strength from the competencies, skills and diverse experience of its members.
Frederick J. Mifflin (chair)
Director since 2022. Also a member of the Audit Committee.
Relevant experience:
- a more than 30-year career in senior and executive roles with a wide range of financial services companies
- significant exposure to governance, environment and social responsibility practices as a director of several other public companies, including serving as Co-Chair of a Governance and Nominating Committee and member of a Governance and Sustainability Committee, as well as during his former role as Global Head of Mining and Metals at BMO Capital Markets
Cathryn E. Cranston
Director since 2013. Also Chair of the Audit Committee.
Relevant experience:
- a financial expert with a 32-year career in financial services, most recently as Senior Vice President and Treasurer at the Bank of Montreal from 2009 until her retirement in 2018
- significant exposure to governance and social responsibility practices as a public company director
Paramita Das
Joined the Board and the Governance and Sustainability Committee in November 2024. Also a member of the Human Resources and Health and Safety Committee.
Relevant experience:
- more than 20 years in strategic leadership at resources, mining and materials companies, including almost a decade with Rio Tinto
- most recently Global Head of Marketing, Development and ESG (Chief Marketing Officer) Metals and Minerals at Rio Tinto
- significant exposure to governance, health and safety, environment, and social responsibility practices as a director of several other public companies
Ave G. Lethbridge
Joined the Board and the Governance and Sustainability Committee in November 2024. Also a member of the Human Resources and Health and Safety Committee.
Relevant experience:
- more than 35 years of experience in the energy industry, including 20 years as Code of Ethics Officer at Toronto Hydro, and most recently as Executive Vice-President and Chief Human Resources and Safety Officer from 2013 until her retirement in 2021
- significant exposure to governance, health and safety, environment, and social responsibility practices as a director of several other public companies, including six years on the Governance and Nominating Committee at Kinross Gold
- holds a designation in Climate & Biodiversity from Competent Boards
Katherine A. Rethy
Director since 2013. Also a member of the Human Resources and Health and Safety Committee.
Relevant experience:
- has held senior executive positions at public companies, where she had responsibility for risk management, supply chain and logistics, information technology, facilities, human resources and community relations
- significant exposure to governance, health and safety, environment, and social responsibility practices as a director of several other public companies including as Chair of Governance and Human Resources committees
- holds an MA in Leadership for Sustainability, Lancaster University Management School, United Kingdom
Download the Sustainability Report 2025 PDF for the full Governance section and additional disclosures.
