2015 Sustainability Report

GOALS & PROGRESS

OPERATIONS

Safety

GOAL: Reduce our recordable workplace injury rate to 0.6 and lost-time injury case rate to 0.15 by 2020.

0.59 Recordable Injury Frequency (RIF)

Recordable injuries per 200,000 hours worked

We have improved our Recordable Injury Frequency rate by 90.5 percent from our 2003 base year and 17 percent from our last reporting period.

0.20 Lost-Time Case Frequency Rate (LTCFR)

Work-related injuries resulting in lost time per 200,000 hours worked

We have improved our Lost-Time Case Frequency Rate by 93 percent from our 2003 base year and 13 percent from our last reporting period.

Energy

GOAL: Reduce energy intensity by 50 percent from 2006 to 2020.
 

526 Energy Intensity

Absolute gigajoules energy use/million dollars of revenue

Operational energy intensity decreased 24 percent from 2006 to 2015. In addition, our absolute energy consumption decreased 10 percent from 2014 to 2015.

GOAL: Use alternative/renewable sources to meet 20 percent of our energy needs by 2020.

27.1 Alternative/Renewable Energy1

Sum of alternative and renewable electrical energy use/total electrical use x 100

1Total 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.

In 2015, 27.1 percent of our electrical energy was from renewable or alternative sources.

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.

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 renewable sources listed above, plus 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 renewable sources listed above, plus 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.

GHG Emissions

GOAL: Reduce greenhouse gas emissions intensity by 50 percent from 2006 to 2020.

48.8 GHG Emissions Intensity1

Absolute metric tons of CO2e/million dollars of revenue

1GHG 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.

Through 2015, Caterpillar has reduced GHG emissions intensity from our facilities by 32 percent compared with our 2006 base year. From 2014 to 2015, our absolute GHG emissions were reduced by 7 percent.

2.29 Total Absolute GHG Emissions

Million metric tons
1.45 million metric tons location-based Scope 2 GHG emissions2

2Location-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 2015 calculations, Caterpillar did not use residual mix factors.

Water

GOAL: Reduce water consumption intensity by 50 percent from 2006 to 2020.

53.6 Water Consumption Intensity1,2

Absolute thousand gallons of water/million dollars of revenue

1Data prior to 2015 has been restated due to data updates realized from improved accuracy.

2Water consumption intensity does not include non-contact cooling water from foundry operations.

Through 2015, we have reduced water consumption intensity at our facilities by a total of 30 percent from our 2006 base year intensity. Our 2015 absolute water consumption, including non-contact cooling water from foundry operations, was 3.82 billion gallons of water, a reduction of 12 percent from the previous year.

3.82 Total Absolute Water Consumption

Billion Gallons

Water Sources

By-Product Materials

GOAL: Reduce by-product materials intensity by 50 percent from 2006 to 2020.

14.4 By-Product Materials Intensity

Absolute metric tons of by-product materials/million dollars
of revenue

In 2015, we generated a total of 676,000 metric tons of by-product materials, with 90 percent of those materials recycled. Our by-product materials intensity increased 4 percent from our 2006 base year to 2015. However, we decreased our generation of total absolute by-product materials by 12 percent from 2014 to 2015.

676 By-Product Materials

Thousand Metric Tons

Sustainable Construction

GOAL: Design all new facility construction to meet Leadership in Energy and Environmental Design (LEED) or comparable green building criteria.

According to the U.S. Green Building Council, 88 percent of the Fortune 100 companies use LEED design and construction criteria. Facilities designed to the LEED criteria are more energy- and resource-efficient than traditional construction. LEED facilities are also designed to create a healthier indoor environment for employees.

33% Facilities that completed construction in 2015 that met LEED or comparable green building criteria

In 2015, the following Caterpillar facilities received certification in accordance with the U.S. Green Building Council’s LEED BD+C (Building Design and Construction) certification process or comparable criteria:

LEED Silver

Advanced Components & Systems Division, Monterrey, Mexico