Caterpillar shares the concerns of governments and the public about the risks of climate change and supports global efforts to mitigate its impact. We are committed to 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.
We are focused on achieving our climate-related goals while also supporting our customers in achieving their climate-related objectives. We have a legacy of providing products and services that continually improve the quality of the environment and our communities by fulfilling society’s basic needs such as shelter, clean water, education and reliable energy—in a sustainable way.
Caterpillar manages hundreds of facilities around the world, all of which require energy. Some of these operations, especially our manufacturing sites, are energy-intensive. To mitigate our impact, we are improving energy efficiency, investing in alternative and renewable power generation sources, and making other environmental improvements to conserve water and manage waste.
Our enterprise energy management team builds awareness, encourages action and develops improvements in 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. One significant contribution to alternative energy consumption is the operation of combined heat and power (CHP) systems to power several manufacturing facilities. The energy management team evaluates 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 efficient.
EHS Management System
Our high-performance standards for environmental, health and safety (EHS) encourage going beyond merely complying with EHS laws and regulations. Our EHS assurance manual outlines Caterpillar’s EHS Management System and establishes fundamental requirements for 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 more in-depth reviews of select facilities each year.
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 emissions reduction activities through internal awards and recognition processes.
Continuous improvement is an essential part of this approach, with new manufacturing technologies and best practices quickly creating opportunities for greater efficiency.
Energy and GHG Emission Goals
GHG 2020 GOAL
Reduce greenhouse gas
emissions intensity by 50%
from 2006 to 2020
51% Our GHG emissions intensity decreased 51% from 2006 to 2020, achieving our 2020 target. In addition, our absolute GHG emissions decreased by 51% from 2006 to 2020. Increases in productivity and efficiency have helped us to achieve our 2020 GHG emissions goal.
New 2030 Goal
We have set a science-based Scope 1 and 2 goal to reduce our absolute greenhouse gas emissions from our operations by 30% from 2018 to 2030.
Energy 2020 Goal
Reduce energy intensity by 50% from 2006 to 2020
33% Operations energy intensity decreased 33% from
2006 to 2020, and increased 4% from 2019 to 2020.
Alternative/Renewable 2020 Goal
sources to meet 20% of our
energy needs by 2020 4, 5, 6
33% of our electrical energy
was from renewable or alternative
sources in 2020.
Supporting Our Customers
We are contributing to a reduced-carbon future through our continued investment in new products, technologies and services. We are helping our customers achieve their climate-related goals by providing products that facilitate fuel transition, increased operational efficiency and reduced emissions. Our innovations include a battery-powered, zero-emissions switcher locomotive and underground loader, as well as reciprocating engines and gas turbines that burn hydrogen blends, landfill gas and other biogases. We are also developing a variety of alternative power solutions to support a lower-carbon future, including battery-powered construction machines.