About This Appendix

Our sustainability practices focus on ways to maximize the life cycle benefits of our products while minimizing the economic, social and environmental costs of ownership for Caterpillar customers. Our most recent results are reflected in this Appendix to the 2017 Sustainability Report, and build on the themes and results described in our 2016 report. The reporting period is the 2017 calendar year, which is also Caterpillar’s fiscal year.

This Appendix has been prepared in accordance with Global Reporting Initiative (GRI) Standards at the Core application level. Appendix content represents 100 percent of the products and operations of Caterpillar Inc. and its subsidiaries where we have a controlling financial interest. Where noted, Caterpillar’s independent dealer network and supplier network are also represented. Caterpillar and subsidiary brands are listed here.

Caterpillar’s environmental and safety metrics for operations are consolidated based on the Greenhouse Gas Protocol “operational control” approach. Caterpillar is headquartered in Deerfield, Illinois, USA. Contact us here.14

ERM Certification and Verification Services (ERM CVS) has conducted independent assurance of selected 2017 environmental and safety data. To understand the scope, activities and conclusions of the assurance process, please see the ERM CVS Assurance Statement here.

Environmental data includes all manufacturing and office facilities with more than 500 employees. Safety data includes employees in all manufacturing and office facilities within Caterpillar’s reporting boundary.

Endnotes

1 This represents employee and retiree donations made in the calendar year 2016, and the Caterpillar Foundation’s match made in the calendar year 2017.

2 This includes employee and retiree contributions, and the Foundation match, for campaigns in the United States, Mexico and Panama.

3 Information regarding reporting boundaries and data assurance are provided in About this Appendix and Data Assurance

4 Caterpillar provides guidance that actual hours worked be used wherever possible. Where necessary, Management and Salaried employee hours should be estimated as 9 hours per day (may use another value with appropriate documentation). In some cases, vacation hours have not been subtracted from Management and Salaried employee estimates of hours worked.

5 Data prior to 2017 has been restated due to data updates realized from improved accuracy.

6 Total includes purchased and on-site generated alternative and renewable energy, as well as calculating the percentage of renewable energy from grid-purchased electricity using data obtained from the International Energy Agency.

7 Renewable Energy: Caterpillar defines renewable energy as energy resources that are naturally replenishing over a short period of time and virtually inexhaustible. Power generation examples include wind, solar, hydro, geothermal, tidal, wave, biomass and biogas from anaerobic digestion.

8 Alternative Energy: Caterpillar defines alternative energy as any source of usable energy that offers substantial environmental benefits compared to the conventional sources of energy that it replaces. Power generation examples include landfill gas, coal mine and abandoned mine methane, combined heat and power (cogen, trigen and quadgen), coal with carbon sequestration and localized power generation. Transportation fuel examples include pure methanol, ethanol blends of 85 percent or more with gasoline, pure natural gas, natural gas blends of 85 percent or more with diesel fuel, liquid fuels domestically produced from natural gas (compressed natural gas, liquefied natural gas and gas to liquid fuels), propane, coal-derived liquid fuels, hydrogen and electricity.

9 GHG emissions intensity reduction goal is based on our combined Scope 1 (direct) and Scope 2 (indirect, market-based) GHG emissions using a 2006 baseline year. Likewise, total absolute GHG emissions are a sum of Scope 1 and Scope 2 (market-based) emissions.

10 Location-based Scope 2 GHG emissions are provided in accordance with the GHG Protocol updated Scope 2 guidance. In 2015, the GHG Protocol provided updated Scope 2 calculation guidance. Our market-based Scope 2 emissions are calculated using the updated Scope 2 Quality Criteria. The following instruments were used in calculating our market-based Scope 2 emissions: Renewable Energy Guarantees of Origin, energy contracts, supplier specific emission rates, Caterpillar owned combined heat and power cogeneration facilities, and, for the remainder of our facilities, grid average emission factors from USEPA’s eGRID and the International Energy Agency’s data. For 2017 calculations, Caterpillar did not use residual mix factors.

11 Water consumption intensity does not include non-contact cooling water.

12 Data does not include Progress Rail or Solar Turbines. Product returned for remanufacture (called ‘core’) is not always returned within the same calendar year as sold.

13 This includes remanufacturing, component overhauls at Cat® dealers, power generation using alternative energy sources, customer job site optimization and innovative new products. The components are evaluated each year to adjust for acquisitions, divestitures, offerings that become standard and improvements to data accuracy.

14 Environmental data includes all manufacturing and office facilities with more than 500 employees. Safety data includes employees in all manufacturing and office facilities within Caterpillar’s reporting boundary.