2024 Sustainability Report Message

To All Stakeholders

Frederick J. Mifflin, Chair, ESG Committee of the Board, and Mike S.H. McMillan, President and Chief Executive Officer

Toromont’s commitment to sustainability is long-standing, as is our belief in making disciplined business decisions to strengthen our ability to meet our environmental and social responsibilities as a business, employer and partner. Acting on this belief, our Board of Directors and executive leaders took additional steps in 2024 to identify, assess and monitor ESG risks and opportunities, and position Toromont for the future. We summarize recent actions below.

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 expanded our offerings to help customers meet their sustainability goals.

The greatest contribution Toromont makes to a sustainable world is providing customers with products, services and technology to improve productivity, efficiency and safety while lowering or eliminating carbon outputs. As customers navigate the complexities of lowering their carbon footprint and transitioning to the use of different forms of energy, they look to Toromont for assistance for several reasons. We represent Caterpillar, a world leader and continuous innovator in electric, alternative energy, fuel-flexible and autonomous machine development. We bring additional value by knowing how to match machine to application and by operating product support infrastructure to keep advanced equipment performing at peak levels. Our future-ready solutions include technology and services customers use to assess their total cost of equipment ownership (including carbon taxes), and track machine health, efficiency and fuel consumption/GHG emissions.

Through CIMCO, our thermal management solutions business, we enable customers to reduce their energy consumption and emissions, use natural refrigerants, identify opportunities to qualify for clean-energy incentives and meet regulatory requirements.

Collage of five images of Toromont employees at work.
Collage of five images of Toromont employees at work.

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 more than 142,000 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,

Frederick J. Mifflin
Chair, ESG Committee of the Board

Mike S.H. McMillan
President and Chief Executive Officer

About this report

This report covers Toromont’s financial year (12 months) ended December 31, 2024, incorporates 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. The report also contains forward-looking statements that are subject to risks and uncertainties. Please see Toromont’s caution regarding forward-looking information on page 43. All figures are in Canadian dollars and/or use the Canadian metric system unless otherwise noted. Product names referred to in this report, including those manufactured by Caterpillar, appear under license as registered trademarks.

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. The Board oversees the public disclosure of financial and sustainability information, including information in this report.