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


  1. 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.
  2. Location-based Scope 2 GHG emissions are provided in accordance with the GHG Protocol Scope 2 guidance (2015). Our market-based Scope 2 emissions are calculated using the 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 power generation facilities and, for the remainder of our facilities, grid average emission factors from USEPA’s eGRID (2017) and the International Energy Agency’s data (2018). For 2020 calculations, Caterpillar did not use residual mix factors.
  3. Total energy and energy intensity data for 2018 and 2019 has been revised to bring our calculations into alignment with GRI guidance (302 Energy related disclosure standard).
  4. Total renewable and alternative energy 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.
  5. 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.
  6. 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, coal with carbon sequestration and localized power generation.
  7. Data does not include Progress Rail or Solar Turbines.
  8. Product returned for remanufacture (called “core”) is not always returned within the same calendar year as sold.
  9. Percentages may not add to 100% due to rounding.
  10. Water consumption intensity does not include noncontact cooling water from foundry operations.
  11. 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.
  12. This represents employee and retiree donations made in the calendar year 2019 and the Caterpillar Foundation’s match made in the calendar year 2020.
  13. This includes employee and retiree contributions and the Foundation match for campaigns in the United States, Canada, Mexico and Panama.
  14. Data includes Caterpillar and agency employees. Data does not include contractor employees.

Note: Some of the photos included within our 2020 Sustainability Report were taken before the COVID-19 pandemic and prior to masks being a requirement in Caterpillar facilities.

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