SASB Code: RT-IG-130a.1
Global demand for energy is expected to increase significantly over the next 25 years according to the International Energy Agency, and Caterpillar will continue to play a key role by providing products and services to industries that enable access to reliable energy. As a global energy consumer and industrial manufacturer, as well as a major manufacturer of energy conversion and power generation products, Caterpillar has a fundamental interest in, and understanding of, energy needs around the world.
We provide products with leading integrated technology to various energy customers and leverage our technology and innovation to meet the world’s growing energy needs. In our own operations, we’re making strides to lower our energy use and environmental impact. Read more in our energy and climate policy.
Caterpillar manages hundreds of facilities around the world that require energy to power our operations. As a manufacturer of heavy equipment, Caterpillar has some operations that are energy-intensive. To mitigate our impact, we have set energy efficiency targets in our operations since 1998 and greenhouse gas emission (GHG) reduction targets since 2003. In addition, our 2020 sustainability goals include targets for energy, greenhouse gas emissions, water and waste in our operations. We are making progress toward these goals by improving energy efficiency, investing in alternative and renewable power generation sources, implementing water conservation projects and managing waste through remanufacturing, rebuilding, reuse and recycling. Continuous improvement is an important part of this approach, with new manufacturing technologies and best practices quickly creating new opportunities for greater efficiency.
Our high-performance standards for environmental, health and safety (EHS) require compliance with, and at times extend beyond, laws and regulations. Our EHS assurance manual outlines Caterpillar’s EHS Management System and establishes fundamental requirements that apply at all workplaces globally, including majority-owned subsidiaries and majority-owned joint ventures. Our facilities assess compliance with our requirements annually, and our EHS assessment team reviews those assessments while also conducting deeper reviews of certain facilities each year. The EHS assessment team is responsible for the following activities related to assessments:
- Planning, scheduling and conducting assessments
- Maintaining oversight, accountability, consistency and good performance
- Monitoring and recording assessment issues and completing action plan items
- Providing one source for EHS auditor tools, standards and specifications, assessment schedules, training/opening presentations and associated data
- Reporting assessment results to corporate EHS senior management
Beyond meeting standard expectations, we encourage facilities to implement their own initiatives to improve safety, decrease energy use and increase productivity. Facilities evaluate potential initiatives based on the total annual investment required, total anticipated cost savings and average pay-back period. We also invite facilities to report emission reduction activities through internal awards and recognition processes.
Energy management is an important component of EHS management. Our enterprise energy management team is instrumental in building awareness, encouraging action and developing solutions in the areas of energy efficiency and alternative/renewable power generation. These solutions include purchasing renewable energy certificates and installing renewable energy sources, such as photovoltaics (PV) or a microgrid installation that combines PV with battery storage to supplement and offset electricity generated with diesel fuel at an off-grid location. Our largest contribution to alternative energy consumption is the operation of combined heat and power (CHP) systems to power several manufacturing facilities. In 2019, 35.5% of our electrical energy was from renewable or alternative sources. The energy management team is evaluating additional opportunities for replication of CHP, PV and microgrids at other locations. We also continue to assess new ways to upgrade systems and make facilities more energy-efficient.
Reduce energy intensity by 50% from 2006 to 2020.
32% Operational energy intensity decreased 32% from 2006 to 2019, and increased 1% from 2018 to 2019. While absolute energy decreased slightly from 2018 to 2019, it decreased by 12% overall from 2006 to 2019. These results reflect our increased productivity and efficiency.
GHG Emissions Goal
Reduce greenhouse gas emissions intensity by 50% from 2006 to 2020.5
54% Our GHG emissions intensity decreased 54% from 2006 to 2019, achieving our 2020 target. In addition, our absolute GHG emissions decreased by 20% from 2018 to 2019, and decreased by 41% from 2006 to 2019. Increases in productivity and efficiency have helped us to achieve our 2020 GHG emissions goal.
2019 Total Absolute GHG Emissions
Million metric tons
- 0.905 million metric tons –
Scope 1 (direct emissions)
- 0.869 million metric tons –
Scope 2 market-based (indirect emissions from purchased electricity, heat or steam)
- 0.926 million metric tons –
Scope 2 location-based
(not included in the visual pictured here)
Use alternative/renewable sources to meet 20% of our energy needs by 2020.2,3
35.5% of our electrical energy was from renewable or alternative sources in 2019. In addition, our use of renewable energy increased from 2018 to 2019.