Climate & Energy Statement
Our Commitment
We support the goals of the Paris Agreement to limit global temperature rise, and we are committed and contributing to a reduced-carbon future. We have a legacy of providing products and services that continually improve the quality of life and the environment by helping our customers fulfill society’s need for infrastructure, including shelter, clean water, transportation and reliable energy – building a better world in a sustainable way. Caterpillar demonstrates our commitment in many ways, including through significant progress in reducing greenhouse gas (GHG) emissions from our operations. We also continue to invest in new products, technologies and services to help customers achieve their climate-related objectives. Caterpillar has been a technology leader for nearly a century, and we continue to invest to meet the needs of our diverse global customer base. We are increasing our investments in autonomy, alternative fuels, connectivity and digital, and electrification (AACE).
Sustainability oversight is conducted at Caterpillar’s highest levels, beginning with our board of directors. Given the importance of sustainability, the board created the new Sustainability and other Public Policy Committee (SPPC) in 2022. Among other responsibilities, the SPPC has oversight of climate and sustainability. Our sustainability governance also includes our CEO and all Executive Officers who report directly to the CEO, including the Chief Sustainability Officer (CSO). The opportunities presented by the energy transition and our work to help our customers achieve their climate-related objectives led us to include sustainability as a focus area of our enterprise strategy in 2022. Caterpillar also establishes and reports progress on meaningful environmental, social and governance (ESG) goals. We will continue to be transparent about our goals, progress and innovations, and remain committed to demonstrating shareholder responsiveness.
Our commitment to a reduced-carbon future extends to our public policy efforts as we advocate for a thoughtful approach to identifying and advancing policies that support our customers during the energy transition. Click here to learn more in our Lobbying Report: The Purpose of Engagement – a report we plan to issue annually – which provides greater transparency and disclosure of our advocacy efforts and political engagements, including Climate Lobbying, as well as a description of the oversight and management of these activities.
Our Progress
- In 2023, we published our inaugural Task Force on Climate-related Financial Disclosure (TCFD) report, which aligns with the 11 recommended disclosures of the TCFD. The disclosure summarizes how we govern our strategy to address climate-related risks and opportunities, and support customers in the energy transition – click here to download our TCFD report
- We also disclosed our Scope 3 use of sold products emissions, which is our largest Scope 3 category – click here for a summary of our Scope 3 emissions
- Beginning in 2022, we incorporated ESG performance into the incentive plan for executive officers – click here to learn more
- In 2021, we set seven new sustainability goals for 2030, including reducing absolute Scope 1 and 2 GHG emissions by 30% between 2018 and 2030. We also set a goal that 100% of our new products through 2030 will be more sustainable than the previous generation – click here for our latest progress update on our 2030 goals
Our more recent progress builds on our long-standing commitment to sustainability, including setting and achieving GHG reduction targets. We’ve published our progress in our annual Sustainability Report since 2006.
Our Customers’ Climate Journey
With nearly a century of sustainable innovation, Caterpillar is uniquely positioned to address a wide range of customer needs on the rapidly evolving pathway to decarbonization and to help them build a better, more sustainable world. Now more than ever, our customers rely on Caterpillar to provide a diverse portfolio of products, services and solutions that lower GHG emissions, improve efficiency and productivity, and deliver energy flexibility. For example, our remanufacturing and rebuild options deliver multiple sustainability benefits. By returning components at the end of their initial serviceable lives to like-new condition, we reduce waste and minimize the need for raw material, energy and water to produce new parts. Stakeholders can read about several examples of sustainable product innovations and the latest list of sustainability-related announcements by clicking here.
Our Focus on Building Sustainable Communities
The Caterpillar Foundation, the company’s philanthropic organization, has contributed to helping improve the lives of people around the world for more than 70 years. Over the past two decades, the Foundation's innovative approaches to nature-based solutions continue to help create resilient, more sustainable communities that can thrive in a rapidly changing world. The Foundation partners with organizations around the globe in building basic infrastructure services, like water and energy, and restoring natural ecosystems to withstand natural disasters and environmental challenges. Learn more about the Caterpillar Foundation here.
