Based upon our sustainability risk assessments conducted as part of our strategic planning, annual business planning and enterprise risk program, we have identified the most important risk and opportunity areas that we currently believe will have the greatest impact on Toromont’s long-term sustainability and growth.
These areas are outlined in the tables and sections that follow.
We are committed to advancing our approach in each area as part of our journey to continuously improve how we assess, articulate and make progress.
Sustainability risks and opportunities
Climate change and environment
Toromont has an opportunity to meet customers’ needs for environmentally sustainable products and services including energy efficient equipment as the world transitions to a lower carbon economy. We also face risks as demand for certain existing products and services may change and diminish over time. Toromont is responding through the expansion and evolution of product and service offerings that address changing customer needs and preferences.
Toromont faces climate change regulatory risk that could impact our operating costs. This includes but is not limited to carbon pricing. Toromont’s current costs of compliance, including under Federal and Provincial carbon tax regimes are not material and we do not currently anticipate any material expenditures will be necessary to ensure future compliance with more stringent GHG regulations. Toromont also faces compliance risk related to environmental laws and regulations which varies across our territories. We manage risks through our compliance efforts. To the extent more stringent regulations are enacted, Toromont intends to continue to address them in a proactive manner.
Climate change events can pose physical risks to our operations – which serve markets throughout North America – and to the operations of our customers. Our footprint of ~160 locations diversifies this risk but does not eliminate it. Accordingly, we operate with business continuity plans. We do not currently expect physical risks to our facilities to add costs that are material to our business.
People and workforce planning
Toromont depends on skilled labour, professionals and strong leaders to serve our customers and to grow. Through detailed business planning and ongoing investments, we enhance our ability to attract, protect, develop, retain and engage a healthy and committed workforce.
Good governance is a requirement for long-term growth, the success of our business, protection of Toromont’s assets and ability to contribute to our world in an ethical and responsible manner. Our Board of Directors is focused on providing good governance by understanding and applying best practices, including in the areas of leadership accountability and compensation.
Our sustainability approach is grounded in Toromont’s values:
Our Board sets the tone for responsible management and behaviours that are aligned to our values by providing guidance and active oversight of our approach to sustainability.
FOCUS AREA: Operational footprint (emissions, water, waste, hazardous materials)
WHY IT’S IMPORTANT: Responsible resource use is fundamental to efficient and compliant operations and is a business requirement that is essential to our performance and reputation as an employer, service provider and community member.
equivalent tonnes (Scope 1 and 2) were emitted in 2022 from measured operations
trees were planted in the Toromont Forest managed by Tree Canada under our One Year One Tree recognition program for new employees
programs along with various forms of recycling, and the use of paperless reporting helped to reduce our environmental footprint
recycling systems were employed at 15 Battlefield locations with plans formed to grow these capabilities
FOCUS AREA: Sustainable products and services
WHY IT’S IMPORTANT: Customers are striving to meet their sustainability targets and Toromont needs relevant, reliable solutions in order to grow our business and meet the expectations of all stakeholders as a contributor to a greener planet.
Caterpillar autonomous mining trucks were delivered in our territories
of revenue was generated in 2022 by providing product support for our customers, 16% more than in 2021
of Toromont Cat’s eligible installed base consists of connected assets that we monitor for customers to help them track fuel efficiency, manage GHG emissions and extend lifecycle machine usage
of CIMCO’s 2022 systems’ orders use natural, non-ozone-depleting refrigerants
FOCUS AREA: Circular economy
WHY IT’S IMPORTANT: Used equipment and components can be rebuilt, repaired and exchanged multiple times. Similarly, rental equipment can be reused repeatedly. By participating in the circular economy, we can reduce landfill waste and the energy expended in original manufacturing, while addressing customers’ business needs and sustainability goals and generating revenue for Toromont.
is the year-over-year increase in the ratio of remanufactured components to total parts sales in 2022
square feet of new remanufacturing capacity is under construction in Bradford, Ontario
revenue growth was generated from the provision of used and rental equipment in 2022 over 2021
our new ecommerce platform added convenience for customers as they buy, sell and consign used equipment, including components, attachments and power generators
FOCUS AREA: Health and safety
WHY IT’S IMPORTANT: We work in industrial sectors where hazards must be safely managed and we believe that taking a holistic approach to the physical, mental and financial health and wellbeing of our employees and the wellbeing of our communities is a key driver of corporate sustainability.
of Toromont’s locations achieved a Total Recordable Injury Frequency Rate of zero in 2022 and our TRIR improved by 31% over 2021
Toromont leaders completed Mental Health Certification training in 2022 to provide coaching to their teams
of our workforce participated in the Toromont Employee Share Purchase Plan in 2022
was once again the chief beneficiary of our community outreach and Toromont was recognized as a Local Leader in Greater Toronto
FOCUS AREA: Building capacity
WHY IT’S IMPORTANT: There is a competitive and undersupplied market for talent that we need to grow our business and serve customers in all geographic territories in which we operate.
net growth in our technician and apprentice population year over year
people were added to our workforce in 2022, a 7% net increase over 2021
Learning and enablement
WHY IT’S IMPORTANT: We need to ensure our workforce remains capable of providing superior customer service and continues to build the knowledge, skills and competencies to work with our latest products and technologies.
devoted to workforce training in 2022 including 40,000 hours for technicians and apprentices
or Toromont Learning Academy is our inhouse platform for the delivery of a broad variety of professional development and technical training
WHY IT’S IMPORTANT: Skilled workers are in short supply, competition for talent is intense and we must sustain our knowledge-based workforce in order to serve customers, grow our business and achieve our ESG aspirations.
was the average tenure of Toromont employees in 2022 while our workforce grew 7%
is the average tenure of our senior leadership team
Diversity, equity and inclusion
WHY IT’S IMPORTANT: DEI enriches our culture, adds important perspectives, enlarges our accessible talent pool, including with Canada’s Indigenous peoples, and meets the expectations of all stakeholders.
of our Board members are women
of Toromont’s senior management team members are women
FOCUS AREA: Accountability and executive compensation
WHY IT’S IMPORTANT: Alignment allows us to effectively execute our strategies and engage/develop employees.
our new Long-Term Incentive Plan with three-year performance targets was implemented in 2022 to further align the interests of public shareholders and Toromont’s business leaders
opportunities for senior leaders are tied to safety results and other important ESG outcomes consistent with leaders’ roles and accountabilities
FOCUS AREA: Code of Conduct
WHY IT’S IMPORTANT: It provides a framework for ethical, community-building behaviour.
of Toromont employees read and sign our Code of Conduct
FOCUS AREA: Cybersecurity and data privacy
WHY IT’S IMPORTANT: Our employees increasingly interact with customers and partners through information technology and we must protect the security and privacy of those communications to build trust and protect our reputation.
of employees received mandatory training in IT security awareness
FOCUS AREA: Paying our fair share of taxes
WHY IT’S IMPORTANT: Paying taxes ensures we contribute to the development, wellbeing and protection of our society and its critical infrastructure.
was our effective corporate income tax rate in 2022