Sustainability Focus Areas

Sustainability Focus Areas

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.

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.

Area of Long-Term Focus	Link to our Values	Why this is Important	2021 Highlights
Safety	Safe and respectful workplace	We work in the industrial sector where hazards must be safely managed A workplace that is safe and productive and keeps/attracts employees	80% of locations achieved a TRIR of zero Tied variable compensation of senior leaders to TRIR improvement
Operational footprint (emissions, water, waste, hazardous materials)	Returns to all stakeholders Social responsibility	Responsible resource use is fundamental to efficient and compliant operations It is a business requirement that is fundamental to our reputation	Total GHG emissions at 77,207 C0₂ equivalent tonnes (Scope 1, 2 and limited 3) at monitored locations
Sustainable products, services and technologies	Returns to all stakeholders Social responsibility	To meet customer demands and grow our business To engage employees and meet the expectations of all stakeholders Our most significant contribution to a greener planet	Partnered with Caterpillar to advance the development and use of new technologies including battery electric vehicles in mining Increased the number of connected assets in our territory Rebuilt 90 machines, remanufactured 4,400 components Introduced CIMCO Net Zero Naturally family of energy reducing, carbon offsetting refrigeration systems with natural refrigerants Discontinued CIMCO sales of all high GWP (global warming potential) refrigerants

Area of Long-Term Focus	Link to our Values	Why this is Important	2021 Highlights
Training & development	Growth of the individual and enterprise Empowerment at all levels	We need skilled, knowledgeable employees to serve customers, address complex machine technologies and grow our business To engage and develop employees	Delivered 100,000+ hours of learning and development
Recruitment & retention	Growth of the individual and enterprise	Skilled trades and preservation of our knowledge-based workforce are required to serve customers and grow our business Competitive and undersupplied market for talent To engage and develop employees	Maintained average workforce tenure of 10+ years Increased apprenticeship positions by 31% from 2020
Diversity, equity & inclusion	Safe and respectful workplace Growth of the individual and enterprise Social responsibility Returns to all stakeholders	DEI enriches our culture, adds important perspectives, enlarges our accessible talent pool, and meets the expectations of all stakeholders	Published our first Indigenous Engagement Report
Building relationships with Indigenous communities	Returns to all stakeholders Growth of the individual and enterprise Social responsibility	We serve customers operating in or near Indigenous communities It is our responsibility to build sustainable, mutually beneficial and collaborative relationships with Canada’s Indigenous peoples	Maintained joint ventures with Inuit, Innu and Cree First Nations to facilitate local skills development and investment Targeted recruitment activities

Area of Long-Term Focus	Link to our Values	Why this is Important	2021 Highlights
Accountability and aligning executive compensation	Empowerment at all levels Growth of the individual and enterprise Returns to all stakeholders	Alignment allows us to effectively execute our strategies and engage/develop employees	Annual bonus tied to personal objectives as well as company objectives including TRIR Developed for introduction in 2022 a Long-term Incentive Plan tied to performance, including TSR and ROCE
Code of Conduct	All values	It provides a framework for ethical, community-building behaviour	Annual confirmation by all employees
Paying our fair share of taxes	Uncompromising integrity Social responsibility	Paying our fair share of taxes ensures we contribute to the development, wellbeing and protection of our society and its critical infrastructure	27.2% effective tax rate