Caterpillar to begin reporting Scope 3 GHG emissions data in 2023
Caterpillar’s Approach to GHG Emissions
Caterpillar supports the goals of the Paris Agreement to limit global temperature rise, and we are committed to contributing to a reduced-carbon future. We demonstrate our commitment by setting targets and disclosing progress toward greenhouse gas (GHG) emissions reduction goals. We announced our first sustainability goals in 2006 and refined them in 2013 to include a 50% reduction in Scope 1 and 2 GHG emissions intensity from 2006 to 2020. We actually achieved a 51% reduction against this goal.
In 2021, we set seven new sustainability goals for 2030. Among them is a new goal to further reduce absolute Scope 1 and 2 GHG emissions by 30% between 2018 and 2030.
Also in 2021, we further emphasized our commitment to reducing product-related emissions by disclosing an additional new goal that 100% of our new products through 2030 will be more sustainable than the previous generation.
In 2023, Caterpillar will provide our first-ever public disclosure of estimated Scope 3 emissions data (including for Category 11 – Use of Sold Products), utilizing the Greenhouse Gas Protocol for reporting. Also of note, our first TCFD report will also be published in 2023. We will continue to be transparent about our goals, progress and innovations and are committed to continue enhancing our climate and sustainability disclosures.
Sustainability Governance
Caterpillar Restructures Board To Further Emphasize Sustainability and ESG
Sustainability oversight is conducted at Caterpillar’s highest levels, beginning with our board of directors. Given the importance of sustainability, the board restructured its committees, effective June 8, 2022, and created the new Sustainability and other Public Policy Committee (SPPC). Among other responsibilities, the SPPC will have oversight over climate and sustainability.
Management’s sustainability governance includes our Chief Executive Officer (CEO) and all executive officers who report directly to the CEO, including the Chief Sustainability & Strategy Officer.
Read more about our Corporate Goverance
Shareholder Engagement and Responsiveness
Caterpillar values the diverse perspectives and input of our shareholders. Through regular, ongoing shareholder engagement, we hear their interest
in how Caterpillar is addressing and reporting on climate change, as well as how our company is contributing to a reduced-carbon future.
We have responded to shareholder feedback by taking and announcing several key actions, including:
- Disclosing our estimated Scope 3 GHG emissions data beginning in 2023;
- Committing to utilize the TCFD framework to further enhance our sustainability reporting beginning in 2023;
- Incorporating ESG performance into the 2022 incentive plan for executive officers;
- Creating a new executive leadership position of Chief Sustainability & Strategy Officer, reporting directly to the Chief Executive Officer; and
- Launching our annual Diversity and Inclusion Report, which also includes a link to the disclosure of our EEO-1 report.
