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.
These processes are informed by our own operational analysis, leveraging professional expertise as appropriate. We also engage with our key stakeholders including customers, suppliers, employees, shareholders as well as governance advisors and regulators to understand their perspectives and priorities. 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.
Our sustainability pillars and focus areas
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 services 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 vary 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
Toromont’s first core value is to maintain safe and respectful working conditions. By doing so, we create the foundation for growth. We depend on skilled labour, professionals and effective leaders to serve our customers and grow our business. Through detailed planning, smart investments, and ongoing communications, we enhance our ability to attract, develop, retain and engage a healthy and committed workforce.
Governance
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.
Values
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.
ENVIRONMENT
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 2023 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 17 Battlefield locations with plans formed to grow these capabilities
FOCUS AREA: Sustainable products, services and technology
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.
of revenue was generated in 2023 by providing product support for our customers, 11% more than in 2022
of Toromont Cat’s 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 2023 capital project order bookings 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.
year-over-year increase in the ratio of remanufactured components to total parts sales in 2023
sq ft new Remanufacturing facility will open in Bradford, Ontario in the second quarter of 2024
revenue growth was generated from the provision of used and rental equipment in 2023 over 2022
Read more in detail in our 2023 Sustainability Report (PDF 8 MB)
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 2023 and our TRIR improved by 25% over 2022
Toromont leaders now have Mental Health Certification training (including 98 in 2023) to provide coaching to their teams
of our workforce participated in the Toromont Employee Share Purchase Plan in 2023
was once again the chief beneficiary of our community outreach and Toromont was recognized as a Local Leader in the Greater Toronto Area
FOCUS AREA: Building capacity
Recruitment
WHY IT’S IMPORTANT: There is a competitive and undersupplied market for the talent that we need to grow our business and serve customers in all geographic territories in which we operate.
growth in our technician and apprentice population year over year
Our total workforce increased by 5% in 2023 compared to 2022
Learning and development
WHY IT’S IMPORTANT: We need to ensure our workforce remains capable of providing superior customer service and continues to build the knowledge and skills to work with our latest products and technologies.
hours devoted to workforce training in 2023 including safety, technical, and professional skills development
or Toromont Learning Academy is our inhouse platform for the delivery of technical training
Retention and engagement
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.
is the average tenure of Toromont employees in 2023 while our workforce grew 5%
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
Long-standing participant in the federal government’s Employment Equity Program
Read more in detail in our 2023 Sustainability Report (PDF 8 MB)
GOVERNANCE
FOCUS AREA: Accountability and executive compensation
WHY IT’S IMPORTANT: Alignment allows us to effectively execute our strategies and engage/develop employees.
our Long-Term Incentive Plan was created in 2022 with 3-year performance targets 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
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 tax rate in 2023
Read more in detail in our 2023 Sustainability Report (PDF 8 MB)
SOCIAL