2022 Sustainability Report Message
To All Stakeholders
The people of Toromont are the first to acknowledge that we have a role to play in making our world, our customers and our business operations more sustainable. We perform that role in many ways.
In 2022, the need for sustainable products and services grew as more customers took action to investigate, test and invest in energy-efficient equipment, some driven by alternative fuels. Toromont was there to help. Indeed, we believe our greatest contribution to a sustainable world is in the provision of specialized equipment and product support that helps customers achieve their productivity, efficiency, safety and lower carbon or net-zero goals.
Thanks to our partnership with Caterpillar and investments to bolster Toromont’s own component remanufacturing capabilities, service offerings and expand the applications for natural refrigerants and net-zero heat recovery systems produced by our CIMCO operations, we have effective solutions to support our customers in meeting their sustainability goals. This report showcases some of these offerings, which will no doubt expand in the years ahead as markets develop.
More than this, our report provides readers with insights into Toromont’s approach to sustainability – including our governance framework, how we identify and assess risks and develop and execute strategies to achieve our goals. In this way, it goes beyond describing solutions to help customers. It conveys Toromont’s ESG framework, provides an explanation of why our Board of Directors chose to prioritize and attend to specific focus areas within our business and reports on the actions we took in each. Throughout 2022, we focused on gathering and assessing our operations and our data to develop and refine our sustainability strategies, objectives and tactics to improve our sustainability impacts.
ESG framework
Year over year, our ESG framework was unchanged as was accountability for delivering results, which is shared by the Board, Toromont’s Executive Leadership and Business Unit leaders. The reason: this approach works and serves to enlist all Toromont employees in the task of building a more sustainable business and contributing to a more sustainable planet.
Please see our ESG Governance and Framework
ESG focus areas
Our ESG focus areas were also consistent year over year with enhancements made in the way we communicate – including sharing information related to employee health in our social pillar and cybersecurity in governance. Our focus areas were reaffirmed based on a detailed assessment of Toromont’s sustainability risks and opportunities in the context of our business model, corporate strategies, business operations and customer markets. Throughout 2022, we focused on gathering and assessing our operations and our data to develop and refine our sustainability strategies, objectives and tactics to improve our sustainability impacts. We also sought insight and feedback from direct stakeholders, their advisors and other ESG experts to better understand their priorities and, in turn, to share our approach.
Please see our sustainability risks and opportunities and ESG focus areas
Reporting in future
In late 2021, the International Sustainability Standards Board (ISSB) was created by the International Financial Reporting Standards (IFRS) Foundation for the express purpose of enhancing the disclosure of sustainability information and creating global convergence through the development of IFRS Sustainability Disclosure Standards.
As a company that believes in providing clear and relevant disclosure of material information – and doing so within a common industry-wide framework – Toromont welcomed this development. We continue to prepare to align our approach with the anticipated ISSB framework, and are guided in our efforts by recommendations found in both the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) and the IFRS Foundation’s SASB Standards.
Moving forward
Operating a business in a complex economic environment as seen in 2022 was challenging but also enlightening. Real-life stress tests brought by supply chain shortages, inflation, a scarcity of skilled labour and the lingering impacts of the Covid-19 pandemic allowed us to evaluate the effectiveness of our approach, resilience and agility in demonstrating performance for all stakeholders.
In 2023, we will continue to advance our ESG strategies, including our objectives and target setting, how we measure our progress and how we report on these matters to our stakeholders.
We will apply what we learn to be better in all areas, including in our people programs. Safety, health, recruitment, retention, enablement and succession are all critically important to Toromont’s sustainability. We will support community causes that do great work in areas where our employees and customers reside.
We will also continue to reinvest with a sustainability mindset. This will include capital to construct a new remanufacturing plant in Bradford, Ontario – slated to open in 2024 – that will increase our contribution to the circular economy and do so with state-of-the-art process equipment. Investments will also be made to improve our operational energy efficiency, reduce energy use and conserve water and other valuable resources.
Data-driven insights, captured by the extensive information technology capabilities at our command will allow us to deliver infield customer solutions more proactively, faster and in a more targeted and efficient manner. The natural environment will be one of many beneficiaries.
Fundamentally, alone and in partnership, we will assist customers in meeting their sustainability objectives through innovation as well as advancements in equipment, technologies and product support.
In short, we will move forward, deliberately, constructively and with the knowledge that Toromont can and is contributing to a better world.
Yours sincerely,
Peter Blake
Chair, ESG Committee of the Board
Scott Medhurst
President and Chief Executive Officer
About Our Sustainability Reporting
This report outlines our approach to sustainability as well as our performance and progress against the sustainability focus areas we judge to be the most important to our business and stakeholders based on our risk and opportunity assessments. It covers the calendar year ended December 31 2022, the same as Toromont’s financial year. The report contains forward-looking statements that are subject to risks and uncertainties. Please see Toromont’s caution regarding forward-looking information at the end of this document. All figures are in Canadian dollars and/or use the Canadian metric system unless otherwise noted.
Information herein covers substantially all business lines in our two countries of operation (Canada and the United States), is based on management’s estimates and analysis and is unaudited.
Review and approval
Toromont’s sustainability initiatives, including the production of this report, are overseen by the Environmental, Social and Governance Committee of our Board of Directors. This report was reviewed and approved by the Board as a whole.
