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2020 Sustainability Report Caterpillar’s Environmental,
Social and Governance Approach

Sustainability at Caterpillar

Caterpillar is committed to sustainability, and contributing to a reduced-carbon future. We demonstrate this in many ways including through our significant progress in reducing greenhouse gas (GHG) emissions from our operations and our continued investment in new products, technologies and services to help our customers achieve their climate-related objectives as they build a better, more sustainable world.

Caterpillar’s global workforce is united by Our Values in Action, Caterpillar’s Code of Conduct. Integrity, Excellence, Teamwork, Commitment and Sustainability provide the foundation for our values-based culture.

Sustainability, one of our five Values in Action, is part of who we are and what we do. It inspires us to help our customers build a better world.

Focus Areas

We have identified a set of focus areas relevant to our business that guide environmental, social and governance (ESG) initiatives and decision-making throughout our global operations:

  • employee health and safety
  • operations energy and emissions
  • operations water
  • operations waste
  • product emissions/energy efficiency
  • remanufacturing
  • customer safety
  • material sourcing
  • human capital management

These focus areas were refreshed during our recent goal-setting efforts and are closely aligned with topics covered by the Sustainability Accounting Standards Board (SASB), Resource Transformation sector and Industrial Machinery & Goods industry.

Sustainability Vision

Our longstanding commitment to sustainability inspires us to improve the quality of the environment and the communities where we live and work and provide products and services that help our customers fulfill society’s basic needs—such as shelter, clean water, sanitation, food and reliable power—in a sustainable way.

Sustainability Mission

We strive for economic growth through infrastructure and energy development while providing solutions that support communities and protect the planet.


Awards and recognition

  • Dow Jones Sustainability Indices, World and North America, 21 years
  • No. 44, Fortune World’s Most Admired Companies
  • No. 21, Wall Street Journal's 100 Most Sustainably Managed Companies (as of February 2021)
  • Best-Managed Companies of 2020, Wall Street Journal
  • S&P Global 2021 Sustainability Yearbook
  • No. 203 of 399, Newsweek America’s Most Responsible Companies 2021
  • Forbes Magazine World’s Best Employers 2020 (#99), Best Employers for New Grads 2020 (#166), Best Employers for Women 2020 (#289)
  • America’s Best Employers for Diversity 2020, Forbes Magazine
  • 80% Ranking, Human Rights Campaign Corporate Equality Index 2020
  • 2020 “Best Places to Work for Disability Inclusion;” Disability Equality Index
  • 2020 Best Company to Work for in Brazil, Great Place to Work Institute
  • Chile’s 20 Best Places in 2020 to Work for LGBTQ Equality; Human Rights Campaign
  • U.S. Environmental Protection Agency's Clean Air Excellence Award in the category of Clean Air Technology for the Cat 3512E Tier 4 DGB engine
  • United Way Worldwide’s Global Corporate Leadership Program
  • 2019-2020 U.S. President’s Volunteer Service Award, Junior Achievement

For more than 10 years, the annual internal awards have recognized Caterpillar teams or individuals that demonstrate sustainable excellence through the development of more sustainable products, services, solutions or processes.

2020 Goals: Progress on Our Sustainability Journey

Caterpillar set its first sustainability goals in 2006, establishing targets to be achieved by 2020 related to our operations and product stewardship. In 2013, we revised our strategy and refreshed our goals, adding several new targets. Although the global pandemic adversely affected results in several areas in 2020, we are proud of the significant progress that has been realized through the close of the decade.

Operations Goals

Safety: Recordable
Injury Frequency

GOAL:
Reduce RIF to 0.60

0.42

Exceeded by 30%

Greenhouse Gas Emissions

GOAL: Reduce
GHG intensity
by 50% from 2006

51%

Exceeded by 2%

Energy
Source

GOAL: Use alternative /
renewable sources to meet
20% of our energy needs

33%

Exceeded by 65%

Energy
Consumption

GOAL: Reduce
energy intensity
by 50% from 2006

33%

Progress of 66%

Safety: Lost-Time Case
Frequency Rate

GOAL:
Reduce LTFR to 0.15

0.20

Progress of 98%

Water
Consumption

GOAL: Reduce water
consumption intensity
by 50% from 2006

31%

Progress of 62%

Waste
Generation

GOAL: Reduce by-product
materials intensity
by 50% from 2006

4%

Progress of 8%

Sustainable
Construction

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

Our new facilities are designed to be more energy- and resource-efficient, including our most recently completed construction in 2019 that met LEED certification requirements.

Product Stewardship Goals

Systems
Optimization

GOAL: Increase managed
fleet hours by 100%
from 2013

769%

Exceeded by 669%

Reman and
Rebuild

GOAL:
Increase remanufacturing
and rebuild sales by 20%
from 2013

-12% Reman. 1% Rebuild

Customer
Safety

GOAL:
Provide leadership
in the safety of people in,
and around our products

We prioritize safety in the design and development of every Caterpillar product, service or solutions

Products, Services
and Solutions

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

We annually introduce new products with sustainable attributes that increase productivity, improve fuel economy and / or lower emissions.

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