GOALS & PROGRESS3

Caterpillar has set aspirational, long-term goals for its operations and product stewardship. We believe these standards affirm our determination to lead our industry to a more sustainable future.

We focus on efficiency improvements, and these efforts contributed to year-over-year performance gains in most areas in 2017. Improved sales and revenue, in addition to efficiency gains made in the last several years, are reflected in the improved performance toward our 2020 intensity targets.

2020 Operational Goals

SAFETY GOAL

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

Zero
2017 Fatalities

Recordable Injury Frequency (RIF)4
Recordable injuries per 200,000 hours worked
 

92%
We have improved our Recordable Injury Frequency rate by 92 percent from our 2003 base year.

Lost-Time Case Frequency Rate (LTCFR)4
Work-related injuries resulting in lost time per
200,000 hours worked

94%
We have improved our Lost-Time Case Frequency Rate by 94 percent from our 2003 base year.

ENERGY GOAL5

Reduce energy intensity by 50 percent from 2006 to 2020.

17% Absolute energy
reduction 2006-2017

Energy Intensity
Absolute gigajoules energy use/million dollars of revenue
 

24%
Operational energy intensity decreased 24 percent from 2006 to 2017.

Total Electricity Consumption
Sum of purchased and self-generated electricity
in million MWh

Alternative / Renewable Energy Goal

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

Alternative/Renewable Energy6,7,8
Sum of alternative and renewable electrical energy use/total electrical use x 100

  • Alternative
  • Renewable
31.2%
In 2017, 31.2 percent of our electrical energy was from renewable or alternative sources.

GHG EMISSIONS GOAL

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

2017 Total Absolute GHG Emissions9
Million metric tons

  • 0.86 million metric tons – Scope 1 (direct emissions)
  • 1.26 million metric tons – Scope 2 market-based (indirect emissions from purchased electricity, heat or steam)

GHG Emissions Intensity9
Absolute metric tons of CO2e/million dollars of revenue

35%
GHG emissions intensity decreased 35 percent from 2006 to 2017. In addition, our absolute GHG emissions decreased by 29 percent from 2006 to 2017.

1.29 million metric tons – Scope 2 location-based10

WATER GOAL

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

Water Consumption Intensity5,11
Absolute thousand gallons of water/million dollars of revenue

24%
Through 2017, we have reduced our water consumption intensity at our facilities by a total of 24 percent from 2006. In addition, our absolute water consumption decreased by 32 percent from 2006 to 2017.

2017 Total Absolute Water Consumption
Billion gallons
 

  • 1.40 billion gallons – non-contact cooling water
  • 2.64 billion gallons – enterprise water consumption excluding non-contact cooling water

2017 Water Sources
Percent

  • Non-contact cooling water
  • Municipal water
  • Groundwater
  • Surface water
  • Other water

SUSTAINABLE CONSTRUCTION GOAL

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

In 2017, 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 Gold: Monterrey, Mexico Certifiable: Gauteng, South Africa

100%
Facilities that completed construction in 2017 met LEED or comparable green building criteria.

BY-PRODUCT MATERIALS GOAL

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

By-Product
Materials Intensity
Absolute metric tons of by-product materials/million dollars of revenue

4%
Our by-product materials intensity decreased 4 percent from 2006 to 2017, and decreased 9 percent from the previous year. Our generation of total absolute by-product materials increased 4.4 percent from 2006 to 2017. Streamlining of production capacity has negatively impacted waste generation.

2017 By-Product Materials
Thousand metric tons

 

  • Recycled
  • Disposed (sent to landfil or incinerated)

2020 Product Stewardship Goals

SAFETY GOAL

Provide leadership in the safety of people in, on and around our products.

SYSTEMS OPTIMIZATION GOAL

Increase managed fleet hours by 100 percent from 2013 to 2020.

Fleet Hours
Percent increase from 2013

124%
Increase in fleet hours managed by Job Site Solutions (2013 to 2017)

Service Agreements
Percent increase from 2013

151%
Increase in number of machines covered by service agreements with Job Site Solutions (2013 to 2017)

REMAN & REBUILD GOAL

Increase remanufactured and rebuild business sales by 20 percent from 2013 to 2020.

14%

Rebuild
Percent Business Sales
Growth Since 2013

Reman End-of-Life
“Take-Back” by Weight12
Millions of pounds of end-of-life material received

2%

Reman
Percent Business Sales
Growth Since 2013

Reman End-of-Life
“Take-Back” Percent12
Actual end-of-life returns/eligible returns x 100

PRODUCT, SERVICES & SOLUTIONS GOAL

Leverage technology and innovation to improve sustainability of our products, services and solutions for our customers.

21%
2017 reported sales and revenues derived from products, services and solutions that demonstrate an improved sustainability benefit over existing offerings.13

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.