We work to reduce GHG emissions in our operations while also minimizing water use and waste generation. Environmentally efficient operations align with our strategy for operational excellence across the enterprise. Guided by our enterprise sustainability goals, we have demonstrated progress and are committed to reaching our targets.
Caterpillar manages hundreds of facilities worldwide and some of these operations, especially our manufacturing sites, are energy intensive. To reduce our energy consumption and our GHG emissions, we are improving energy efficiency, investing in renewable power generation technologies, and considering new solutions. Likewise, we are making other environmental improvements to conserve water by implementing best management practices, notably at facilities located in water-stressed regions, and managing waste through improved recycling and waste minimization activities.
Our enterprise energy management team builds awareness, encourages action and develops improvements in energy efficiency and renewable power generation. These solutions include installing renewable energy technologies, such as photovoltaics (PV) or microgrid installations that combine PV with battery storage to supplement and offset electricity generated with diesel fuel at off-grid locations. 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 continue to assess new ways to upgrade systems and make facilities more efficient.
We have set a science-based Scope 1 and 2 goal to reduce absolute greenhouse gas emissions from our operations by 30% from 2018 to 2030.
reduction in absolute GHG emissions from 2018
Implement water management strategies at 100% of facilities located in water high-risk areas by 2030.
facilities achieved the goal of water strategy implementation
Reduce landfill intensity by 50% from 2018 to 2030.
reduction in landfill intensity from 2018
An example of energy innovation can be found at our facility in Lafayette, Indiana, which conducts endurance testing for many Cat products. Testing runs 24 hours a day to provide valuable data insights to improve our products, and the process produces large amounts of energy. Rather than waste this energy, our team at the facility has utilized Cat gensets to harness the energy and use it for supplemental facility power. This change is estimated to have resulted in more than 114,000 metric tons of CO2e emissions avoided over the last five years. In addition to contributing to Caterpillar’s goal to reduce absolute GHG emissions from our operations by 30% from 2018 to 2030, this change has saved the facility more than $8.5 million.
We maintain high standards for environmental, health and safety (EHS) throughout the company. Caterpillar’s EHS Management System, documented in our EHS assurance manual, establishes foundational requirements and best management practices 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 conducting more in-depth audits of select facilities each year.
Beyond meeting standard expectations, facilities implement initiatives to enhance safety, decrease energy use and increase productivity. As facilities evaluate potential environmental initiatives, they also consider annual investment required, total anticipated cost savings and average pay-back period. We invite facilities to report emissions reduction activities through internal awards and recognition processes.