Toromont recognizes the importance and necessity of protecting and preserving the natural environment, addressing climate change and positioning our business to help customers achieve their sustainability goals.
Why Environmental Management is Important
Climate change presents a risk and challenge to society as a whole, our markets and Toromont specifically. To succeed in the future, we must address the related risks in a serious and thoughtful manner and where possible, embrace solutions that create business opportunities for Toromont.
From a regulatory perspective, Toromont is subject to provincial, federal and state laws and regulations relating to emissions into water, air and land, the disposal of waste, and the handling, storage and transportation of hazardous materials and lubricants and fluids in bulk storage tanks. Toromont’s current costs of compliance, including under federal and provincial carbon tax regimes are not material. Although such costs are expected to rise in future years, we do not currently anticipate any material expenditures will be necessary to ensure future compliance with more stringent GHG regulations. To the extent more stringent regulations are enacted, Toromont intends to continue to address them in a proactive manner.
How We Manage Our Environmental Risks
Our Board, through its ESG Committee, oversees environmental matters, including the development and execution of our environmental strategies. Our Executive Team provides further leadership and oversight, collaborates to set meaningful objectives and shares responsibility for compliance with our business-unit leaders and all employees. Management reports regularly to the Board of Directors on environmental performance. Under the auspices of a formal Environmental Management Program, the Toromont Cat environmental team is responsible for developing annual priorities, promoting and enabling environmentally sustainable practices, educating and training our workforce and performing compliance and audit functions.
What We Measure
As part of our environmental management program, we commission annual GHG inventory reports (per the GHG Protocol standard) from a recognized third party that allow us to measure/track our carbon footprint.
As our largest business, Toromont Cat has the largest carbon footprint, followed by Battlefield Equipment Rentals and CIMCO. Energy sources included natural gas, fuel oil, diesel, gasoline, propane, landfill gas and electricity and were divided into direct emissions (fuel combustion and refrigerant losses), indirect emissions (purchased electricity, steam and cooling) and other indirect emissions (waste disposal, air travel).
In a typical year, the greatest source of Toromont’s greenhouse gas emissions is fossil fuel usage in fleet vehicles, followed closely by diesel and natural gas combustion arising from our operations. Building energy sources (electricity and oil) represent a smaller percentage of the total and air travel is the smallest contributor. All forms of energy use are monitored and managed with a conservation mindset and goals are set for continuous improvement. For the 2021 GHG report, new operations and locations were added. While the majority of our operations are now captured in our GHG inventory, we continue to work to identify, integrate and validate additional sources of use across our enterprise.
We will continue to improve and advance our environmental sustainability strategies, objectives and monitoring approaches. This will include a resetting of related targets as we come to the end of our current three-year 22+U strategic plan, as well as providing additional climate-related disclosure as we prepare for the introduction of a consistent reporting model through ISSB. We will maintain our focus on protecting and preserving the natural environment using our established conservation, water, waste and emission reduction programs and invest in energy-efficient service vehicles, building upgrades and water recycling systems. We will also plant one tree in the Toromont Forest for every new employee who joins us.
2021 Key Outcomes and Actions
- approximate total emissions for 2021 at 77,207 C02 equivalent tonnes (Scope 1, 2 and limited 3), a 2.3% increase from 2020 as we incorporated additional operations and noted a significant increase in business activities in year two of the pandemic with our parts and service revenues increasing by 5% year over year
- continued to manage our fleet emissions by:
- optimizing fleet dispatch using intelligent dispatch software and route planning
- using telematics to track idling time and monitor for hard accelerations and speeding that are unsafe for our team and hard on the environment
- operating with an anti-idling policy for all company vehicles and vehicles on our properties
- training to maintain driver awareness of the need to conserve fuel to reduce emissions
- employing Auxiliary Power Units on our service vehicles, alleviating the need to idle engines and needlessly burn fuel
- assessing fleet additions on total cost of ownership including fuel economy resulting in the purchase of fuel-efficient field-service vehicles
- minimized the release of nitrogen oxide and sulfur during generator and engine testing at Power Systems and Remanufacturing operations in Ontario using selective catalytic reduction equipment and optimizing test run times
- maintained our focus on reducing emissions, energy use and water consumption within our facilities by:
- investing in energy-efficient LED lights and low-flow toilets as part of facility renovations/upgrades with Battlefield targeting 15 facilities for 2021 but completing 18
- continuing to recycle water at 15 Battlefield Equipment Rental stores
- using environmentally friendly steam cleaning methods
- reinforced our commitment to landfill diversion by expanding our Zero Waste programs at Toromont Cat branches, introducing a COVID-19 mask recycling system and maintaining our recycling efforts that include materials such as paper, printer toner, batteries and electronics
- expanded the green procurement of office supplies and uniforms
- provided training on safely shipping, receiving, handling, using, storing and disposing of hazardous materials at our facilities