We sought to address climate-related risks and opportunities through our strategic planning process.

Connect26, Toromont’s strategic plan, is based on comprehensive risk assessments, industry analyses, market conditions, and other material factors and analyses that our Board and management team have deemed relevant to Toromont. Our plan is further informed by our Enterprise Risk Management framework. In recent years, our governance process and strategic plan have added consideration of both climate- and sustainability-related risks and opportunities, influenced in part by stakeholder engagement processes involving customers, employees, business partners and third-party experts with intimate knowledge of evolving practices and regulations. In 2024, we used this governance and planning process to reaffirm our ESG focus areas (described in this report) and guide our investments in carbon-reduction technologies and initiatives.

We created a Greenhouse Gas Inventory Management Plan (IMP) and implemented a carbon accounting system.

Toromont’s IMP formalizes our process for collecting GHG data and includes quantification methodologies – per the GHG Protocol standard – and emission factors. With this playbook, supported by carbon accounting software, we are creating a foundation to address anticipated requirements of the Canadian Securities Administrators to be based, in part, on new Canadian Sustainability Disclosure Standards (CSDS 1 – General Requirements for Disclosure of Sustainability-related Financial Information and CSDS 2 – Climate-related Disclosures). In the meantime, improved recording of carbon data allows us to track emissions, analyze results and find opportunities to meet reduction objectives. The creation of an IMP and integration of a carbon accounting system were outcomes of an analysis we commissioned by an expert third party in 2023.

We built, occupied and commissioned a new Toromont Remanufacturing (TR) Centre to enhance our contribution to the circular economy and created plans for additional facility investments.

Located in Bradford, Ontario, this new 143,000 square foot facility opened in 2024 with a variety of capabilities that enable us to rebuild and recondition highly worn equipment and return it to customers as new. It employs advanced environmental and contamination controls and CIMCO high-efficiency HVAC systems. In addition, we announced our plans to build another new remanufacturing facility in Québec City in the coming years to further our contribution to the circular economy, and a new headquarters for Toromont Industries and Toromont Cat on owned land, northwest of the present location. We are using a sustainability-informed process to design these new locations.

We grew our workforce by 4% year over year and devoted many hours to workforce development to position Toromont for future opportunities as an employer of choice.

Equipping our workforce with the skills and tools to be safe, effective and productive is an ongoing priority, particularly in the context of the sophisticated, evolving, and technology-enabled machines we sell, rent and service. To meet this priority, we provided approximately 150,000 hours of safety, technical and professional development training in 2024. We also continued to grow our team by hiring and retaining great people and investing in a culture that supports, empowers and rewards performance.

Looking ahead.

Progress, the kind Toromont seeks in its approach to ESG, is not a matter of happenstance. It requires an informed focus and disciplined follow-through. With the assistance of customers, employees, partners and shareholders, we believe Toromont strengthened its foundation in 2024 and became more capable of making progress in our sustainability journey. We look to prove it in future years.

Yours sincerely,