Caterpillar’s enterprise strategy focuses on solutions to help our customers build a better world and enables us to deliver long-term profitable growth for our employees and shareholders. The enterprise strategy also helps further our sustainability journey, providing new opportunities for customers, employees and communities.
We have identified a set of focus areas that are relevant to our business and that guide environmental, social and governance (ESG) initiatives and decision-making throughout our global operations, as well as the content of this report. These focus areas are closely aligned with topics covered by the Sustainability Accounting Standards Board (SASB) Sustainable Industry Classification System (SICS), Resource Transformation sector and Industrial Machinery & Goods industry.
As part of our goal-setting efforts, we are reevaluating ESG focus areas for Caterpillar beyond 2020. Our existing focus areas will be amended to include recommendations from SASB and outcomes of the ongoing assessment process.
A world in which all people’s basic needs – such as shelter, clean water, sanitation, food and reliable power – are fulfilled in a sustainable way and a company that improves the quality of the environment and the communities where we live and work.
Enable economic growth through infrastructure and energy development and provide solutions that support communities and protect the planet.
operations and environment
Develop better systems
We are executing our strategy by working to meet our aspirational sustainability goals.
We provide work environments, products, services and solutions that make safe, productive and efficient use of resources as we strive to achieve our vision.
We apply innovation and technology to improve the sustainability performance of Caterpillar’s products, services, solutions and operations.
We believe sustainable progress is made possible by developing better systems that maximize life cycle benefits, while also minimizing the economic, social and environmental costs of ownership, as reflected in our sustainability principles.
Caterpillar sets aspirational, long-term ESG goals for its operations and product stewardship initiatives. We announced our first set of goals in 2006, and in 2013 we refreshed the goals with new targets. As we approach the conclusion of these goals at the end of 2020, we are progressing well toward many, and are proud of our progress to date. We have already achieved several of them, including achieving a recordable injury frequency below 0.60, reaching a lost-time case frequency rate of 0.15, achieving a greenhouse gas emissions intensity reduction of more than 50% from 2006, increasing managed fleet hours by more than 100% from 2013 and sourcing more than 20% of our energy needs with alternative and renewable sources.
While our work continues in 2020, we have already begun the process of establishing new goals that will enhance our company’s performance and impact. We are working with both external parties and leaders throughout our organization to ensure we choose appropriate metrics that support our progress within our sustainability focus areas. We look forward to continued progress as we enter this next phase of our sustainability journey.
2020 Goals for Operations
- Reduce recordable workplace injury rates to 0.60 and lost-time case rate due to injury to 0.15
- Reduce energy intensity by 50% from 2006
- Reduce greenhouse gas emissions intensity by 50% from 2006
- Use alternative/renewable sources to meet 20% of our energy needs
- Reduce water consumption intensity by 50% from 2006
- Reduce by-product materials intensity by 50% from 2006
- Design all new facility construction to meet Leadership in Energy and Environmental Design (LEED) or comparable green building criteria
2020 Goals for Product Stewardship
- Provide leadership in the safety of people in, on and around our products
- Leverage technology and innovation to improve sustainability of our products, services and solutions for our customers
- Increase managed fleet hours by 100% from 2013
- Increase remanufactured and rebuild business sales by 20% from 2013
Our sustainability efforts do not exist in isolation. Caterpillar’s stakeholders are increasingly interested in how we are confronting opportunities and risks related to a variety of ESG issues. We understand that true sustainability requires cooperation among governments, companies and their stakeholders – and we have an important role to play.
To this end, Caterpillar is setting future goals that will support our sustainability efforts. In doing so, we listen to stakeholders and incorporate feedback across our business functions. For example, we consider ESG topics in interactions with investors coordinated through our investor relations team; with suppliers through our procurement teams; and with customers through our customer services team. In addition, our Caterpillar Sustainability Steering Committee provides internal guidance, expertise and support for our sustainability initiatives. All of these serve as key inputs for the work of our sustainability team.
To provide further transparency to investors, our 2019 Sustainability Report has been prepared, for the first time, in alignment with Sustainability Accounting Standards Board (SASB) criteria. SASB publishes sector-specific reporting standards that are based on expert input and designed to allow businesses to identify the sustainability issues of highest importance to investors and most relevant in their industry.
Finally, we are working toward a common global purpose with contributions to the U.N. Sustainable Development Goals (UN SDGs). Given the breadth of our products, services and solutions, our advocacy on behalf of policies that enable sustainable development, and the efforts of the Caterpillar Foundation to build resilient communities, Caterpillar and our customers are helping to build a more sustainable future.