Message to All Stakeholders

A Message to All Stakeholders:

At Toromont, we recognize the ever-increasing importance of operating in and contributing to a more sustainable society. In addition to the clear business and social imperative of doing so, action on sustainability is fundamental for the continued long-term growth and success of our organization and its stakeholders.

For these reasons, a sustainability mindset is integrated into how we conduct our business, from protecting and developing our workforce and reinvesting in our assets and communities, to the innovative solutions we provide customers to support their sustainability goals. It is an important consideration in our daily operations and facilities’ management.

Our almost 30-year partnership with Caterpillar, a global producer of energy-efficient machines and alternative energy technologies, is a proud example of a sustainable approach to business.

To determine our sustainability focus areas, our Board of Directors and senior leaders assess sustainability risks and opportunities in the context of our business model, corporate strategies, individual business operations and customer markets. We also engage with our stakeholders, including customers, investors, employees and the broader community, to understand their perspectives and priorities. Through these processes, we identified the following areas of importance within each ESG dimension:

We report on these topics in our 2021 Sustainability Report along with the ESG framework we employ to drive sustainability forward. Toromont’s sustainability programs have strong support at the Board, executive and business-unit leadership levels. Of greater significance, our 6,400 talented employees across Canada and the United States are actively engaged. It is their mindful day-to-day actions that make all the difference in building a sustainable organization for the benefit of all stakeholders.

We are proud of our progress on sustainability matters in 2021 even as we navigated the COVID-19 pandemic. We continued to improve on the safety of our people, expanded our skilled and diverse workforce, provided training and development opportunities, and further strengthened our culture of alignment and accountability. We expanded our sustainable product and service sales and offerings to customers and responsibly managed our environmental footprint. We also continued our support of Indigenous communities, including through our joint venture relationships.

Looking ahead, the Board will guide the company to continuously improve our approach to sustainability and drive stakeholder returns and value. Current priorities in our journey include advancing our approach with an enterprise-wide lens, validating the assessment of our key risks and opportunities, confirming and setting our sustainability strategies and goals and enhancing communication of our strategies and progress. We will also work to establish new baselines incorporating our expanded territory, acquired businesses and newly opened facilities.

We believe our approach will align well with the anticipated introduction of sustainability reporting guidelines by the Canadian Securities Administrators together with the recently formed International Sustainability Standards Board. ISSB’s prototype standards are focused around four key pillars – governance, strategy, risk management and metrics/ targets – that will provide a framework for reporting on significant sustainability topics in a transparent and comparable manner.

Toromont understands there is no endpoint to sustainability. To continuously advance and improve, we must apply constant focus and effort, ensure that our team is always aligned with and understands what is important to the long-term sustainability of our business and our stakeholders, and measure and reward outcomes that reflect our values. This is our legacy and our pledge for the future.

Yours sincerely,

Peter J. Blake
Chair, ESG Committee of the Board

Scott J. Medhurst
President and Chief Executive Officer