The Toro Company (TTC) — ESG & Values Scores

Environment story

Toro demonstrates moderate environmental performance with identified governance weaknesses. The company acknowledges climate risks to operations and supply chains but lacks disclosed Scope 1, 2, and 3 emissions baselines and targets. California AB 1346 zero-emission engine mandate compliance (effective 2024) suggests product transition initiatives, but no credible net-zero target year is disclosed. Sustainability goals include increasing battery/hybrid product sales and reducing GHG emissions over time, but these are qualitative without quantified timelines or interim milestones. The company recognizes climate-related physical risks (weather, drought, flooding) affecting manufacturing, distribution, and product demand, yet risk mitigation strategies appear reactive rather than proactive. Scope 3 supply-chain emissions and product-use emissions (particularly for fossil fuel-based lawn and garden equipment) are undisclosed, representing a material gap given the company's product portfolio. No third-party renewable energy procurement or decarbonization infrastructure investments are verifiably documented. Greenwashing risk is elevated: sustainability goals are aspirational without binding commitments, offset strategies are not disclosed, and supply-chain emissions accounting is absent.

Criticisms on file

Undisclosed Scope 1 & 2 emissions and no verified net-zero target year
Source: TTC_10k.txt - Risk Factors: 'Climate, environmental, health and safety laws and regulations... sustainability goals... public perceptions that our products are not environmentally friendly...'; Note: No emissions data or target year disclosed in risk factors.
Scope 3 supply-chain and product-use emissions not quantified; fossil fuel-based product portfolio represents material undisclosed carbon exposure
Source: TTC_10k.txt - Product portfolio includes lawn mowers, snow throwers, irrigation, and other outdoor power equipment predominantly using internal combustion engines; no Scope 3 accounting disclosed.
Climate change regulatory compliance risk; California AB 1346 zero-emission mandate compliance required but transition timeline uncertain
Source: TTC_10k.txt - Risk Factors: 'California's AB 1346, requires that most new sales of small off-road engines... sold in the state of California on or after January 1, 2024, must be zero-emission.'
Physical climate risks to operations acknowledged; disruptions to manufacturing, supply chain, and product demand from extreme weather, drought, and flooding
Source: TTC_10k.txt - Risk Factors: 'Weather conditions, including conditions exacerbated by global climate change, present chronic and acute physical risks...'; 'drought or unusually wet conditions have had, and may continue to have, an adverse effect on sales...'; 'facilities and other operations... have incurred losses and experienced disruptions...'
Sustainability goals are aspirational without binding commitments or interim milestones
Source: TTC_10k.txt - Risk Factors: 'No assurance can be provided that we will achieve our sustainability goals. It is possible that we may be unsuccessful in the achievement of our sustainability goals, on a timely basis or at all, or that the costs to achieve those goals become prohibitively expensive.'

Disclosed initiatives

Battery and Hybrid Product Sales Expansion

Company goal to increase sales of battery and hybrid-powered equipment to address market demand for lower greenhouse-gas-intensive products. Driven partly by California AB 1346 zero-emission small off-road engine mandate effective January 1, 2024.

Product transition underway but no quantified sales targets or timelines disclosed.
GHG Emissions Reduction Plans

Company states plans to reduce certain GHG emissions over time but provides no baseline, scope definition, or target year.

Insufficient detail to verify credibility or progress.

Social story

Toro's social performance shows moderate strength in stated commitments but lacks comprehensive disclosure. The company acknowledges workforce dependency and labor availability challenges but provides no disclosed CEO-to-median-worker pay ratio, turnover rate, or union standing details. No active union-suppression allegations or major strikes within 24 months are documented in the filing. Leadership diversity metrics (executive/board women and racial/ethnic representation) are not disclosed, preventing assessment against the 30% threshold. The company identifies plans to increase women and racial/ethnic minorities in leadership positions as a sustainability goal but provides no baseline or timeline. Supply-chain labor practices are not addressed; no forced-labor policy, modern slavery statement, or living-wage commitment is disclosed. The company notes dependence on adequate labor supply and mentions temporary hiring during peak periods, raising questions about worker training and safety for contingent workforce. No plant safety metrics, OSHA recordable rates, or union neutrality agreements are disclosed. Facility-level labor relations are not documented.

Criticisms on file

CEO-to-median-worker pay ratio not disclosed; unable to assess executive compensation alignment
Source: TTC_10k.txt - No executive compensation or pay-ratio data disclosed in 10-K risk factors or available sections.
Leadership diversity metrics not disclosed; baseline for women and minorities in executive and board positions unknown
Source: TTC_10k.txt - Risk Factors mention goal to 'increase the number of women and racial and ethnic minorities in leadership positions' but no current percentage or baseline disclosed.
Supply-chain labor practices not addressed; no forced-labor, modern slavery, or living-wage policies disclosed
Source: TTC_10k.txt - No supply-chain labor audits, human-rights policies, or worker-protection commitments documented.
Plant safety and union relations not documented; no OSHA data, safety metrics, or collective bargaining agreement status disclosed
Source: TTC_10k.txt - Risk Factors acknowledge 'work slowdown, strike, or similar action could occur at any one of our facilities' but no current union status or past labor disputes disclosed.
Contingent workforce training and safety concerns; temporary labor hired during peak manufacturing may lack adequate training
Source: TTC_10k.txt - Risk Factors: 'Production staff hired during such periods of peak manufacturing activity may not have the same level of training, competency, experience, or commitment as regular production employees.'

Disclosed initiatives

Leadership Diversity Goals

Company goal to increase the number of women and racial and ethnic minorities in leadership positions; included in sustainability aspirations.

Baseline not disclosed; no timeline or quantified target provided.
Labor Workforce Management

Company acknowledges need to hire, train, and retain adequate labor force; utilizes temporary labor during peak manufacturing periods.

No data on turnover, training adequacy, or contingent worker conditions disclosed.

Governance story

Toro's governance structure reflects standard practices with notable transparency gaps. Board independence percentage is not disclosed, preventing assessment against the 75% threshold; no dual-class share structure is evident from the filing. Lobbying expenditures are not disclosed, limiting visibility into potential environmental or consumer-protection advocacy. Recent material transactions and impairments indicate active M&A and portfolio management. The company recorded an $81.1 million non-cash impairment charge on the Spartan trade name intangible asset in Q3 FY2025, reflecting valuation challenges post-acquisition. The Tornado Infrastructure Equipment acquisition (closed December 8, 2025) introduces integration risks and regulatory compliance complexities. No evidence of shareholder litigation or SEC consent decrees is disclosed in the 10-K risk factors. The company operates under standard SEC and Sarbanes-Oxley internal controls framework. However, the lack of disclosed board independence, lobbying spend, and shareholder proposal voting data limits full governance assessment. Acquisition integration challenges and antitrust scrutiny are not flagged as active proceedings.

Criticisms on file

Board independence percentage not disclosed; unable to assess compliance with 75% threshold
Source: TTC_10k.txt - No board composition or independence metrics disclosed in risk factors or available sections.
Lobbying expenditures not disclosed; unable to assess potential climate or consumer-protection advocacy
Source: TTC_10k.txt - No lobbying spend or political advocacy activities disclosed.
$81.1 million impairment charge on Spartan trade name intangible asset in Q3 FY2025; signals post-acquisition valuation challenges
Source: TTC_10k.txt - Risk Factors: 'during the third quarter of fiscal 2025, we recorded a non-cash impairment charge of $81.1 million related to the indefinite-lived Spartan trade name intangible asset.'
Tornado Infrastructure Equipment acquisition integration risks; complexity in harmonizing IT systems and compliance frameworks flagged as material
Source: TTC_10k.txt - Risk Factors: 'challenges in harmonizing information technology systems, compliance frameworks, and corporate governance practices related to Tornado Infrastructure Equipment'; 'Delays in integration related to Tornado Infrastructure Equipment may erode expected synergies and shareholder value.'
Acquisition dependency; strategy relies on successful execution of M&A transactions with inherent integration and valuation risks
Source: TTC_10k.txt - Risk Factors: 'Our strategy to pursue acquisitions and alliances... involve risk and may prove to be unsuccessful'; 'Any future impairment charges could be significant and could adversely affect our future consolidated operating results and financial condition.'

Disclosed initiatives

Sarbanes-Oxley Compliance and Internal Controls

Company devotes significant resources to comply with SOX internal control over financial reporting requirements; acknowledges complexity of integration challenges related to acquisitions.

Standard governance framework maintained; integration of recent acquisitions may strain controls.
Tornado Infrastructure Equipment Integration

Post-acquisition integration of Tornado (closed December 8, 2025) includes harmonization of IT systems, compliance frameworks, and corporate governance practices.

Integration risks identified; challenges in harmonizing systems noted as material risk.

These are Missionomics' own editorial scores — directional signals built from disclosed facts under a published method, not certifications or definitive ratings of The Toro Company. Coverage and confidence vary by data point, and figures can lag real-world changes. Read the full Methodology for sourcing, scoring, and correction details — or open The Toro Company in the app for interactive charts and portfolio building.

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