R

2023
SUSTAINABILITYREPORT
Caterpillar’s Environmental,
Social and Governance Approach

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Caterpillar Inc. is the world’s leading
manufacturer of construction and mining
equipment, off-highway diesel and natural
gas engines, industrial gas turbines anddiesel-electric locomotives.
For nearly 100 years, we’ve been helping customers build
a better, more sustainable world and are committed andcontributing to a reduced-carbon future. Our innovative
products and services, backed by our global dealer network,
provide exceptional value that helps customers succeed.
Caterpillar does business on every continent, principally
operating through three primary segments — Construction
Industries, Resource Industries and Energy & Transportation— and providing financing and related services through ourFinancial Products segment.

$67.1B

Sales & Revenues

150~
Primary Locations
25 Countries withOperations

4M+

Cat Products at
Work Around the World*

113,200

CONTENTS
3 Executive Summary
7 Supporting a Lower-Carbon Future
22 Returning People Home Safely
25 The Power of Everyone
31 Our Values in Action
43 Reporting

Employees*Includes discontinued products.
All numbers represent year-end 2023 data.

Caterpillar Inc.

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THE POWER OF EVERYONEOUR VALUES IN ACTIONREPORTINGCHAIRMAN & CEO LETTER
Caterpillar’s legacy of sustainable innovation spans nearly acentury. Throughout that time, we have provided products
and services that improve the quality of life and theenvironment while helping customers fulfill society’s needfor infrastructure in a sustainable way.
We support the transition to a lower-carbon future, and weare contributing by significantly reducing greenhouse gas(GHG) emissions in our operations and continuing to invest
in a diverse portfolio of products, technologies and services
that help customers achieve their sustainability goals.
We believe the energy transition and growing global energy
demand expand opportunities for long-term profitable
growth through increasing demand for a variety ofCaterpillar products and services. For example, demand forcommodities is expected to increase due to the growing
adoption of electric vehicles, battery storage, and wind andsolar power. Increasing global energy demand will require
investments in renewables and many traditional forms ofenergy, as well as grid modernization. The energy transition
requires significant global infrastructure investment, which
expands opportunities for Caterpillar.

From our earliest days, Caterpillar has been a technology
leader, and we continue to invest in technology tomeet the needs of our diverse global customers. Our
increasing investments in the core technologies ofautonomy, alternative fuels, connectivity and digital, andelectrification (AACE) support customer requirementsfor performance, durability and economic value. As you
will see in this report, we are developing an expanded
portfolio of fully electric, fuel-flexible and increasingly
fuel-efficient products to help customers achieve theirclimate-related objectives.
The work we do — and how we do it — is driven by
Caterpillar’s Values in Action. They define what westand for and guide us on our sustainability journey. The
Caterpillar Foundation’s strong corporate citizenship isevident in its support of sustainable development andbuilding more resilient communities. The Foundation
donated more than $43 million to community partners
toward disaster relief, workforce development, STEM
education and natural infrastructure during the past year.
I am proud of our global team’s work to advance oursustainability journey in 2023. Together with the Cat®
dealer network, we are helping customers build a better,more sustainable world.

Jim Umpleby
Chairman & CEO

Caterpillar Inc.

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2023 SUSTAINABILITY HIGHLIGHTS & DISCLOSURES

Investments of more than

$30B
in R&D over the past 20 years todeliver best-in-class innovation

Induction into theBillion Dollar
Roundtable35%

reduction in Scope 1 + 2
GHG emissions from 2018

147M lbs
of material taken backthrough Cat® Reman

to promote excellence in supply
chain diversity
Since 1985, Cat dealers
have completed more

50,000than
Cat Certified Rebuilds on
machines, powertrains
and components

25%
14

10
years of autonomous operations

Employee Resource Groups(ERGs) building community,
belonging and experiences tosupport development

safety improvement in recordable
injury frequency from 2018

Over

$935M

contributed by the Caterpillar
Foundation since 1952

Learn more in our:
Task Force on Climaterelated Financial
Disclosures (TCFD) Report
ESG incorporated into
incentive plan for executive
officers
Lobbying Report: The
Purpose of Engagement
Diversity & Inclusion Report

All data represents 2023, unless otherwise noted.

Caterpillar Inc.

2023 Sustainability Report

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2030 GOALS & PROGRESS
We are pleased to share a summary of our progress toward our 2030 sustainability goals. For more context aboutprogress toward each goal, please refer to the respective topic discussions in our 2023 Sustainability Report.

OPERATIONS ENERGY& EMISSIONSOPERATIONS
WASTE

Goal: We have set a science-based
Scope 1 and 2 goal to reduce absolutegreenhouse gas (GHG) emissions fromour operations by 30% from 2018 to 2030.

GOAL: Reduce landfill intensity
by 50% from 2018 to 2030.

35%

reduction in absolute GHG
emissions from 201844%

reduction in landfill
intensity from 2018

EMPLOYEE HEALTH& SAFETY

GOAL: Implement water
management strategies at 100%of facilities located in water
high-risk areas by 2030.

GOAL: We aspire to prevent all injuries
and will further our industry-leading
safety results by reducing recordable
injury frequency (RIF) by 50% from2018 to 2030.

facilities achievedgoal of water strategy
implementation
Caterpillar Inc.

GOAL: Increase sales and revenues
from remanufacturing offerings by 25%
from 2018 to 2030.

31%

increase in sales and revenues fromremanufacturing offerings from 2018

PRODUCT EMISSIONS& ENERGY EFFICIENCYGOAL: 100% of Caterpillar’s new products
through 2030 will be more sustainable
than the previous generation throughcollaborating with customers, reduced
waste, improved design for rebuild/remanufacturing, lower emissions or
improved efficiency.

OPERATIONS
WATER

57%

REMANUFACTURING

CUSTOMER SAFETY
GOAL: Provide leadership in the safetyof people who work in, on and aroundour products.

100%

new products introduced in
2023 were more sustainable thanprevious generations

We are committed to customer
safety. See page 24 for examplesof our progress

25%

improvement in recordable injury
frequency from 20182023 Sustainability Report

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A CONVERSATION WITHGEORGE MOUBAYED,
Chief Sustainability & Strategy Officer at Caterpillar
At the beginning of 2024, George Moubayed, Caterpillar’s senior vice president — Enterprise
Strategy Division, assumed new responsibilities as our chief sustainability & strategy officer.
Here is his perspective on the importance of having sustainability embedded within our
strategy for profitable growth, as well as his thoughts on his new role.
How do strategy and sustainability align?
The opportunities presented by the energy transitionand our work to help customers achieve their climaterelated objectives led us to add sustainability as a focus
area of our enterprise strategy in 2022.
Each customer’s trajectory on this journey is unique,and we provide a range of solutions that meet themwhere they are. Our customers rely on us to provide
diverse products, services and technologies tohelp lower GHG emissions, improve efficiency andproductivity, and deliver energy flexibility. We areconfident in our ability to help customers reach theirclimate-related objectives.
Tell us about Caterpillar’s sustainability journey.
We continue to be transparent about our sustainability
journey, sharing our goals, progress and innovations.
In our 2020 Sustainability Report, we set sevensustainability goals for 2030. You can find these goals
on page 5. These goals encompass the sustainability ofour products, as well as goals related to our operations,employee health & safety, customer safety andremanufacturing. In this report you can read more about
our plans, as well as the progress we’ve made towardachieving these goals.

Caterpillar Inc.

What do you plan to focus on as chief sustainability& strategy officer at Caterpillar?
Hands down, my most rewarding days at Caterpillar
have been when I’m on site working with a customer,
so I’m excited to work with our customers to help
achieve their climate-related objectives.
Importantly, we don’t have a one-size-fits-all approach,and we draw upon our diverse products, services andtechnologies to partner with our customers during theenergy transition.
From supporting the development of the mine site of
the future that can sustainably source materials criticalto the energy transition to investing in machinesthat operate on alternative fuels, we are helping ourcustomers reach their objectives. At the same time,
our reciprocating engines and gas turbines can beused to support both grid stability and for upstream
natural gas production and transmission.
In a large enterprise like Caterpillar, I also believe that
effectively measuring and communicating our progressis essential, and we remain committed to beingtransparent about our own journey.
At Caterpillar, we take pride in what we do and makepossible — and ultimately, how we help our customers
build a better, more sustainable world.

CATERPILLAR
AWARDS & RECOGNITION
Barron’s
100 Most Sustainable U.S. Companies 2024 (#96)
Financial Times
Europe’s Diversity Leaders 2024 (#108)
ForbesWorld’s Best Employers 2023 (#124)
ForbesBest Employers for Diversity 2023 (#229)
Newsweek
America’s Most Responsible Companies 2024 (#157)
USA Today
America’s Climate Leaders 2023
The Wall Street Journal
Best Managed Companies of 2023 (#39)

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Supporting a
Lower-Carbon
FutureCat R1700 XE Underground Loader

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THE POWER OF EVERYONEOUR VALUES IN ACTIONREPORTINGOUR ROLE IN THE
ENERGY TRANSITION
For nearly 100 years, Caterpillar has supported
customers through energy transitions.
Caterpillar leans on our experience to offer numerous
opportunities to help our customers transition to a lowercarbon economy. These opportunities start with reducing
the GHG emissions of our operations and extend to help
our customers achieve their climate-related goals throughcontinued investment in new products, technologies
and services that facilitate fuel flexibility, increased
operational efficiency and reduced emissions.
To underscore the significance of these opportunities, ourenterprise strategy includes sustainability as a focus area
along with operational excellence, expanded offeringsand services. Caterpillar’s commitment to supporting
our customers in the energy transition also underscores
our support of the goals of the Paris Agreement to limit
global temperature rise. Caterpillar is committed andcontributing to a reduced-carbon future.

Caterpillar Inc.

Cat 336 Excavator

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THE POWER OF EVERYONEOUR VALUES IN ACTIONREPORTINGSUPPORTING OUR CUSTOMERSIN THE ENERGY TRANSITION
Supporting the Mine
Sites of the Future

Enhancing Energy
Reliability

Our mining equipment
supports the increased
demand for critical materials
required for evolving energy
technologies. These include
copper, lithium, nickel
and aluminum for electricvehicles, battery storage, windand solar power, and gridmodernization and stability.

Customers utilize ourreciprocating engine andgas turbine generator sets
to support grid stability
as renewable energy isincreasingly added to
the grid.

Building Infrastructure
Our construction equipment
helps build the infrastructureneeded for the energy
transition. Improving fuelefficiency and productivityof machines helps customers
reduce greenhousegas emissions.

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Optimizing Natural Gas

Increasing Alternative Fuel Capabilities

Our reciprocating engines and gas turbines arewidely used across the globe in upstream natural
gas production and transmission. Natural gas isplaying an important role in the energy transition.

We offer machines and engines that are capable ofoperating on alternative fuels, such as biodiesel, biogas,
hydrogen, hydrotreated vegetable oil and methanol
while continuing to develop technologies for the future.

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THE JOURNEY TO 2030

Goal
HELPING OUR CUSTOMERSBUILD A BETTER, MORESUSTAINABLE WORLD
Caterpillar’s diverse products, services and technologies that can lower GHG
emissions, deliver energy flexibility and improve efficiency and productivity
allow us to help customers achieve their sustainability objectives.
Our ability to provide these solutions reflects investments of more than $30 billion in
R&D over the past 20 years to deliver best-in-class innovation. This innovation has
focused on autonomy, alternative fuels, connectivity and digital, and electrification— technologies we refer to as AACE. With our customers’ sustainability needs
continuing to grow, our commitment to innovation and the required investment tosupport R&D remains strong.
As we bring innovations to market, it’s important to ensure the viability of new
solutions in real-world applications that will power the energy transition. To thisend, we continue to transform our Tucson Proving Ground in Arizona into a working,sustainable “mine site of the future” by installing and utilizing renewable energy
sources. The objective is to implement the same sustainability solutions that mining
companies will use at their operations and learn firsthand what it takes to run anelectrified mine site and effectively support customers through the changes.
Cat machines are built with innovative features that improve productivity and conservefuel. Improving productivity and fuel efficiency of our products helps customers domore work with the fuel they use, benefiting the customer’s business and reducing
the GHG emissions intensity. For example, through internal testing conducted in2020 in a truck loading application, the 982 XE Medium Wheel Loader, with the Catcontinuously variable transmission, demonstrated lower fuel consumption and related
tailpipe emissions by up to 11% as compared to the 982 powershift model.
Caterpillar Inc.

100% of new Caterpillar products through 2030 will be more sustainable
than the previous generation through collaborating with customers,
reduced waste, improved design for rebuild/remanufacturing, lower
emissions or improved efficiency.1

100%of new products introduced in 2023 were more sustainable thanprevious generations.
Progress includes:
More than 50 new products in 2023 satisfied the goal criteria:•

Introduced the Cat R2900 XE Diesel Electric Underground Loader with a high-efficiency electric drive
system for mining customers. This electric drive machine improves fuel efficiency by greater than
31% and productivity by 20% compared to the R2900G — helping mines reduce GHG.

•

Began offering the Cat G3600 Gen 2 in gas compression applications, which, when running at fullload, reduces methane emissions by 33% on g/bhp basis,2 compared to the previous model, whileboosting power by 10%.

•Introduced the Cat MH3050 Material Handler, which combines components from next generation
Cat excavators with the material handler cab, improving productivity and enhancing comfort for theoperator. The Cat C9.3B Turbo Diesel Engine meets U.S. EPA Tier 4 Final and EU Stage V emission
standards, while Auto Engine Speed Control reduces unnecessary fuel burn and GHG by allowing
the engine to automatically go into idle mode when the machine is not operating.

•TalosTM helps customers analyze train runs and optimize train operation. Talos can help improve
performance efficiency, resulting in fuel savings and related emission reductions while also enabling
the locomotive engineer to focus on safety and situational awareness.

1 For this goal, new products include new or improved prime product such as machines, engines, generator sets, upper powertrain and other complete
solutions sold directly to a customer, original equipment manufacturer (OEM) or dealer under any majority-owned brand. Exclusions from the goal include,
but are not limited to, new source introduction programs, work tools, component development programs for prime product, defense products, aftermarket
kits or site solutions. Collaborating with customers is key to Caterpillar’s identification of sustainability criteria. To meet the goal requirements, products
must meet one or more of the four criteria in comparison to the previous generation: reduced waste, improved design for rebuild/remanufacturing, lower
emissions or improved efficiency.
2 With appropriate compressor match-simulation results provided using Ariel Performance Program.

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THE POWER OF EVERYONEOUR VALUES IN ACTIONREPORTINGINNOVATING ADVANCED TECHNOLOGIES
Autonomous Technology
Caterpillar has long invested in autonomous development.
In 2023, the team reached a milestone of 10 years ofautonomous operations. Through the end of 2023, this fleet
counted more than 630 large mining trucks that moved a
combined 7.5 billion metric tons.
This fleet is growing every year as customers look to
automation and autonomy to drive operational consistency
and deliver results.
In 2023, zero of our autonomy customers reported lost time
injuries caused by Caterpillar’s autonomous system. Anothercustomer publicly reported their autonomous fleet burns lessfuel per ton moved due to less idle time and fewer specificnear-miss events. Today, we offer a range of remote control,
semi-autonomous and fully autonomous solutions designed
to meet specific customer needs at their worksites, witha portfolio of options for haul trucks, water trucks, drills,
dozers, wheel loaders and underground loaders. For example,
a single operator can simultaneously operate up to four semiautonomous dozers from a remote location.

The demand for an autonomous fleet also has expanded
dramatically. When we first introduced autonomous machines
a decade ago, only about 10% of mines in the world had afleet large enough — approximately 70 trucks or more —to justify the capital investment. That investment can makefinancial sense for mines with as few as 12 trucks in their fleet.
This opportunity not only translates into business growth forCaterpillar, but also offers the opportunity to impact carbon
reductions and safety improvements.

Alternative Fuels
We offer machines and engines that are capable of operatingon alternative fuels, such as biodiesel, biogas, hydrogen, HVO
and methanol.
All Caterpillar diesel engines, for example, can operate on
100% HVO. While fuels such as HVO and biodiesel produce
GHG emissions at the tailpipe that are essentially the sameas traditional fuels, lower-carbon intensity fuels may reduce
lifecycle GHG emissions in the fuel value chain. In 2023, LCL
Data Centers, the operator of five independent data centers
in Belgium, commissioned a standby power solution for adata center that operates exclusively on 100% HVO fuel. It
is the first data center in Belgium to use biofuels for standby
power operation. In another data center application, Caterpillar
commissioned and initiated testing of the 1.5 MW hydrogenbased fuel cell standby power system at Microsoft’s data
center in Cheyenne, Wyoming.

1 MW Cat 3512C land drilling module withdynamic gas blending technology. Alreadytoday, we offer a line of generator sets andretrofit kits capable of operating on natural gas
blends with up to 25% hydrogen in a range ofpower nodes. In addition, all gas turbines offeredby Caterpillar can operate on hydrogen blends, withsome operating on 100% hydrogen.
In the maritime industry, we’re committed to supporting
our customers’ climate-related objectives throughmethanol-powered solutions, which are efficient, costeffective, and meet Caterpillar fuel standards. In 2023,
Caterpillar Marine and Svitzer, a leading global marine
operations and towage operator, signed a Memorandumof Understanding (MOU) to adopt solutions that enable
Svitzer to utilize methanol in their fleet — a key enabler ofSvitzer’s decarbonization strategy.

Hydrogen is a promising alternative fuel for electricity
generation applications. We continue to be involved inprojects that demonstrate the potential viability of hydrogen
while the infrastructure to support the availability of
renewable hydrogen is under development. For example,
Caterpillar worked with EQT, the largest producer of natural
gas in the U.S., on a demonstration that utilized hydrogen in a

988 XE Wheel Loader

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THE POWER OF EVERYONE

equipment. As an example, a customer in Chile monitored
more than 2,300 hours of operation on a new D6 XE, which
delivered a 30% reduction in fuel consumption versus the
D6T working in the same operation.
In the industrial gas turbine space, Solar Turbines leverages
the InSight Platform™ and the Energy Optimization products
to support our customers in their sustainability journey. The
digital tools provide our customers with recommendations for
operations to optimize energy and financial considerations.
Tangent Energy Solutions’ Energy as a Service offerings,
including Cat AMP, monitors energy market conditions toefficiently dispatch distributed power assets. The software
predicts opportunities to lower energy costs for sites withnatural gas gensets, renewable power generation, energy
storage or microgrids.

Electrification

Connectivity
Caterpillar has more than 1.5 million connected assets. Robust
connectivity enables our customers to work smarter and more
efficiently by using machine and engine data. Our team has
evolved how we extract data from equipment. Now, we areharnessing the next wave of connectivity technologies, suchas 5G, Next-Gen Satellite and C-V2X, to build smarter solutions
across the industries we service and provide even better
customer insights and recommendations.
In 2023, we continued to enhance capabilities with a newversion of VisionLink®, which introduces the ability forcustomers to track, all in one application, estimated CO2
emissions related to fuel consumption for their Cat and non-Cat

Caterpillar Inc.

Deploying an electrified industrial equipment portfolio,
however, is a more complex undertaking than theelectrification of a passenger vehicle. Among the many
considerations are longer battery life requirements to enable
operation at a jobsite throughout the day and unique charging
infrastructure challenges in remote areas where mining andinfrastructure work may occur. With a portfolio that includes
both transportation and energy solutions, we have a unique
opportunity to solve these challenges and innovate newelectrification solutions for our customers.
We are gaining valuable experience from initial introductionsof battery-powered equipment and the additional batterypowered machines and chargers under development that canhelp our customers achieve their climate-related objectives.
Following the demonstration of our first battery electric
793 Large Mining Truck Prototype in 2022, we continue todevelop the Caterpillar Early Learner program, which focuseson accelerating the deployment and validation of the Cat

OUR VALUES IN ACTIONREPORTING

battery electric trucks at participating customers’ sites.
The building of Early Learner trucks is underway. Caterpillar
has also successfully demonstrated our first battery
electric prototype underground mining truck. This battery
electric truck will complete Caterpillar’s first fully electric
underground load and haul solution when paired with thecommercially available R1700 XE Battery Electric Loader.
In 2023, we launched Pathways to Sustainability — a four-yeartraining program for enrolled customer groups. Representatives
from each participating customer and their Cat dealers
will receive a holistic learning experience in preparation
for the energy transition, focusing on its impacts on people,
processes, products, technology and infrastructure.
At the CONEXPO-CON/AGG construction trade show in 2023,
we displayed components of Caterpillar’s total construction
site solution for the energy transition, including four battery
electric machine prototypes — the Cat 301.9 Mini Excavator,
320 Medium Excavator, 950 GC Medium Wheel Loader and
906 Compact Wheel Loader — in addition to AC and DC
charging solutions. Caterpillar’s battery prototypes power
these battery electric machines using lithium-ion technology.
Railway transportation is another sector in which we arehelping to deliver zero exhaust emissions solutions. Australia’s
largest rail freight company, Aurizon, has contracted with
Progress Rail to build the first zero-exhaust emissions freight
locomotive constructed in the country, retrofitting an existing
4000 class locomotive to a battery electric locomotive. This
type of work can potentially reduce Australia’s transport
emissions and transform the nation’s freight supply chains.
This will be the first freight unit to be constructed in Australia
powered by batteries, allowing the potential future use of
totally renewable energy sources for freight hauls. Progress
Rail also has built a zero-idle EMD® Joule battery-electric
locomotive for Pacific Harbor Line, which services the ports
of Los Angeles and Long Beach, California. The locomotive
began testing at the ports in 2023.

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THE POWER OF EVERYONEOUR VALUES IN ACTIONREPORTINGA CIRCULAR BATTERY VALUE CHAIN

Cat Battery Energy Storage Systems

The Cat Energy Storage System (ESS) can help
to meet a wide range of our customers’ energy
storage and charging needs, including power source
integration at a worksite, grid stabilization, transient
assist and renewable energy storage. To provide
even more flexibility, we have introduced the Cat
Compact ESS, a mobile battery energy storage
system that supplements traditional mobile power
solutions to reduce noise and enable the deploymentof renewable energy sources. Additionally, customers
using ESS can reduce fuel costs and GHG emissions
when compared to continuous generator set usage.
Designed for rapid plug-and-play installation andintegration, the Cat Compact ESS module can beused with any combination of diesel, natural gas or
renewable energy sources such as solar. It storessurplus power from these energy sources andthen discharges from its reserve as needed. The
modules are ideal for equipment charging stations,
offices, auxiliary buildings, and security systems at
construction, mining, oilfield and pipeline worksites.
The modules also provide flexibility for remoteagriculture operations such as irrigation, emergency
response and other temporary power applications.

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Regulatory ComplianceIn addition to investments in new technologies tosupport the energy transition, we’re committed tocontinuously improving efficiency for traditionally
powered machines and equipment as well ascompliance with stringent emissions regulations.
Caterpillar provides U.S. Environmental Protection
Agency (EPA) Tier 4 Final, European Union (EU) StageV or equivalent products in North America, Europe andselect regions around the world. Products meetingthese standards provide up to a 90% reduction innitrogen oxides and particulate matter emissions
compared to U.S. EPA Tier 3 or EU Stage IIIA
emission standards. Product improvements in eachsegment provide customers with cost-saving benefitsof improved fuel efficiency and fuel flexibility. Modular
offerings allow the customization of products tooptimize technology.

Supplying battery-powered solutions to support ourcustomers’ goals in the energy transition requiresa reliable supply of the essential element lithium. A
unique collaboration between Caterpillar and Albemarle,
a provider of essential elements for mobility, energy,
connectivity and health, is designed not only to support
our lithium supply chain but also to make the miningof lithium itself more sustainable. Here’s how thecollaboration will work.

Using Cat battery-powered mining
equipment at Albemarle’s planned
North Carolina mine site to help establish
the first-ever zero-exhaust emissions
lithium mine site in North America.

Albemarle supplying North Americanproduced lithium for use in Caterpillar
battery production.

Albemarle and Caterpillar collaborating
on R&D for battery cell technology andrecycling techniques.

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HOW SERVICES AND SUSTAINABILITY
GO TOGETHER AT CATERPILLAR
Services revenues increased to $23 billion1 in 2023 as we continue to target $28 billion by 2026. Growing
services-related sales is not only good for our business but also has additional sustainability-related benefits.
These include:•

Remanufactured products offered through Cat Reman, Solar Turbines, Progress Rail, Caterpillar
Energy Solutions and Cat Defense that result in reduced GHG emissions compared to manufacturing
new products•

Cat Certified Rebuilds, performed by trained dealer service professionals, increase the lifespan ofequipment while providing customers with product updates•

Failure models to detect problems before they occur, which can save maintenance costs and extend thelife of components such as tires and axles•

Condition monitoring and remote diagnosis to decrease service calls and associated transportationrelated emissions•

Application of advanced analytics to optimize productivity to reduce fuel burn and associated emissions•

Streamlined equipment management with digital tools like VisionLink, which helps improve fuelefficiency, reduce idle time and boost profitability•

Battery replacement management to enable recharging and end-of-life solutions
1 ME&T Services Revenues include, but are not limited to, aftermarket parts and other service-related revenues and exclude most Financial Products’ revenues,
discontinued products and captive dealer services.

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THE JOURNEY TO 2030

CARBON IN OURVALUE CHAIN
Our commitment to a reduced-carbon future is long-standing.
From 2006 through 2020, in pursuit of our previous goals, we achieved a reductionof 33% in energy intensity and 51% in GHG emissions from our operations. Today,
we are building on these efforts as we work toward our 2030 goals. We have alsoenhanced our understanding of Caterpillar’s broader carbon footprint by reporting
Scope 3 emissions for the first time in our 2022 Sustainability Report.

Emissions in Our Operations
Increasing the efficiency of our environmental management practices at our facilitiesaligns with our strategy for operational excellence across the enterprise. We work to
reduce GHG emissions in our operations while also minimizing water use and waste
generation. Caterpillar manages hundreds of facilities worldwide, and some of these
operations, especially our manufacturing sites, are energy-intensive.

Goal

We have set a sciencebased Scope 1 and 2 goal
to reduce absolutegreenhouse gas emissions
from our operations by
30% from 2018 to 2030.

Goal

Implement water
management strategies at
100% of facilities locatedin water high-risk areas
by 2030.

Goal

Reduce landfill intensity
by 50% from 2018 to 2030.

35%
reduction in absolute GHG
emissions from 2018
Progress includes:•

Implementing energy/GHG reduction
initiatives at our facilities•

Improving operational efficiency of ourglobal footprint

57%
facilities have achieved the goal of water
strategy implementation
Progress includes:•

Continued progress in our third year of implementing
water management strategies at our facilities in water
high-risk areas•

While 57% of our impacted facilities have
implemented all 9 of the required management
elements, over 75% of all management elements
have been completed by in-scope facilities

44%
reduction in landfill intensity from 2018
Progress includes:•

Continued to increase the percentage of non-metals
recycled, improving by 4% in 2023 from our 2022
performance•

In addition to reducing the landfill intensity of ouroperations, we have also reduced our overall waste(recycled and landfilled materials) intensity by 18%
compared to our 2018 base year by focusing on waste
reduction and improved operational efficiency
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To reduce our energy consumption and GHG emissions, weare improving energy efficiency, investing in renewableenergy technologies, and continually evaluating new solutions
for feasibility and implementation. Likewise, we are making
other environmental improvements to conserve water byimplementing best management practices, notably at facilities
located in water-stressed regions and managing waste throughimproved waste minimization, reuse and recycling activities.
Examples of these initiatives in 2023 included:•

Implementing energy conservation projects at our San
Luis Potosi, Mexico, facility, now using 100% on-site
renewable solar electricity. In total, the site has been able
to reduce its overall energy consumption by more than
35% from a 2018 baseline. This improvement allowed for
100% of the electricity required for operations to comefrom on-site, renewable solar power in 2023.

Caterpillar Inc.

RETURNING PEOPLE HOME SAFELY

THE POWER OF EVERYONE•

Increasing cafeteria waste composting, remanufacturing
electronic components, recycling plastic and reusing oil
absorbents at our proving ground in Peoria, Illinois, to exceed
the facility’s internal 2030 target for non-metal recycling.

•

Reducing approximately 625 tons of GHG emissions
annually at our Grimbergen Parts Distribution Center
through solar electricity and geothermal heating andcooling, implemented from 2019 through 2022.

OUR VALUES IN ACTIONREPORTING

Beyond meeting standard expectations, facilities implement
initiatives to enhance safety, improve energy efficiency
and increase productivity. As facilities evaluate potential
environmental initiatives, they also consider the annual
investment required, total anticipated cost savings andaverage pay-back period. We encourage facilities to reportemissions reduction activities through internal awards andrecognition processes.

Our enterprise energy management team builds awareness,encourages action and develops improvements in energy
efficiency and renewable energy power generation.
Solutions include renewable energy procurement and on-site
installations. For example, photovoltaics (PV) or microgrid
installations supplement and offset electricity generated withdiesel fuel at off-grid locations. Operating combined heatand power (CHP) systems at some of our facilities has alsosignificantly contributed to our conversion from traditional toalternative energy sources. The energy management teamevaluates opportunities for replicating renewable energy
power purchase agreements and CHP, PV and microgrid
installations at other locations. We continue to assess new
ways to upgrade systems and make facilities more efficient.

Environmental, Health and Safety Management System
We maintain high standards for environmental, health andsafety (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
those of majority-owned subsidiaries and joint ventures.
Our facilities assess compliance with our requirements
annually, and our EHS assessment team reviews those
self-assessments while conducting in-depth audits of selectfacilities each year.

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THE POWER OF EVERYONE

Understanding Our Scope 3 Emissions

The impact of macroeconomic conditions on global markets, including the COVID-19
pandemic, had an effect on enterprise emissions due to product mix changes and lower
unit volume shipped in 2020 and 2021. Caterpillar’s sales and revenues reflected strong
growth from 2020 through 2023. While emissions remained essentially flat from 2020
through 2022, they increased in 2023 primarily due to product mix and volume changes
across our portfolio. The resulting product mix change was dependent on market andcustomer trends, especially in certain emissions-intensive industries that changed
significantly during that period.

REPORTING

SCOPE 3 USE OF SOLD PRODUCTS GHG EMISSIONS1

2023 marks our second year disclosing Scope 3 use of sold products emissions. Our Scope
3 emissions are estimated to be more than 95% of the company’s total Scope 1, 2 and3 GHG emissions inventory. Given the company’s large, global customer base covering adiverse set of industries, including construction and mining equipment, off-highway diesel
and natural gas engines, industrial gas turbines, diesel-electric locomotives and others,
Category 11 — use of sold products — is our largest Scope 3 category. The remaining 14
categories of estimated Scope 3 emissions are either not relevant to our business or are
immaterial, representing collectively less than 5% of total enterprise GHG emissions.

$55

54
92

$67

$59
$54

$51
$42

1,023

Millions of MT CO2e

The six-year trend of Caterpillar’s estimated Scope 3 use of sold products emissions, which
utilizes guidance from the GHG Protocol, illustrates annual emissions at the enterpriselevel and by primary segment — Construction Industries (CI), Resource Industries (RI)and Energy & Transportation (E&T) — as well as emissions intensity (MT CO2e divided
by enterprise sales and revenues). Most of Caterpillar’s Scope 3 emissions come fromproducts with high power output, high fuel consumption, high runtime and long productlife. In some cases, product life extends decades through service life extension activities,
including rebuilds, remanufacturing and overhauls.

OUR VALUES IN ACTION

929
53
82

759
61
571
43
64

564
52
84

75

606
61
83

877

794

464

428

462

623

2018

2019

2020

2021

2022

2023

Emissions Intensity
Use of Sold Products/Thousands of Dollars of Enterprise Sales and Revenues

18.7

17.3

13.7

11.1

10.2

Resource Industries

Energy & Transportation

Construction Industries

Enterprise Sales
and Revenues ($B)

11.3

1 The annual estimates for lifetime use of sold products GHG emissions are calculated from the GHG Protocol expression: ∑ (total lifetime expected uses of product x number of products sold in reporting period × fuel or electricity consumed per use (kWh) × emission factor for fuel/electricity (kg CO2e/kWh)). The inputs to this equation are specific to construction machines, mining machines, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives, applied at the product-level to calculate lifetime emissions, then aggregated across the full enterprise portfolio. Included in the calculation are GHG emissions from combustion of fuels and/or use of electric power until the estimated point of final disposal covering rebuild, remanufacturing and overhaul events that extend the service life of the product. While we continue to grow lower-carbon intensity, alternative fuel offerings, given the difficulty predicting customer fuel switching, all liquid fuel is assumed to be diesel andall gaseous fuel is assumed to be natural gas. Excluded from this calculation are emissions from upstream production of fuel consumed in Caterpillar products, fuel efficiency and emission factor changes through the life of the product, refrigerant emissions, and others considered insignificant to Caterpillar’s enterprise number. The inputs toperform this calculation were integrated from many data sources including but not limited to: Operation and Maintenance Manuals (OMM), product design data, telemetry data, public data sources (U.S. EPA, IEA, industry data), and internal engineering, product, marketing, and other subject matter expertise. These inputs are refined yearlyas needed based on telemetry data, product design data, and/or internal expertise, considering industry best practices, consistency and accuracy, data maturity, and regulatory/policy change. Data for prior years has been revised to reflect updated product life and energy consumption estimates. Our company’s total enterprise Scope 3 use ofsold products emissions calculation was verified by a third-party assurance firm (ERM CVS); see the assurance statement.

Caterpillar Inc.

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RETURNING PEOPLE HOME SAFELYAs previously reported, Scope 3 use of sold products emissions were
expected to increase in 2023 based on customer demand, as well as
anticipated shifts in product mix and customer and business trends.
The 2023 emissions reported align with that prior expectation. In
E&T, emissions increased due to higher sales of products withhigh power output and runtime as compared to 2022. This led to anincrease in both emissions and intensity. In CI, emissions decreased
due to lower sales of larger construction machines. In RI, emissions
remained essentially flat. As of the date of this report, Scope 3 use ofsold products emissions are expected to increase in 2024 based on
customer demand, as well as anticipated shifts in product mix
and customer and business trends.
Now more than ever, our customers rely on us to provide diverse
products, services and technology that can help lower GHG emissions,improve efficiency and productivity and deliver energy flexibility. New
product introductions focused on AACE technologies across our CI, RI
and E&T segments, as highlighted throughout this report, demonstrate
how we are meeting this need.

Read more about products, services andtechnologies that are helping our customers
achieve their climate-related objectives.
Caterpillar Inc.

THE POWER OF EVERYONEOUR VALUES IN ACTIONREPORTINGEXECUTIVE SUMMARYSUPPORTING A LOWER-CARBON FUTURE

RETURNING PEOPLE HOME SAFELYSUPPORTING A
CIRCULAR ECONOMY
Caterpillar products are built to be rebuilt. They are designed to withstandheavy-duty operating conditions and to be restored and used for multiple
lifecycles, reducing the need for raw materials and associated GHG emissions.
Remanufactured parts, commonly used in rebuilds, provide customers with quality
products that help lower the total cost of ownership. Remanufacturing also helps
Caterpillar contribute to the circular economy. Together, these benefits are why
we have a goal to increase sales and revenues from remanufacturing offerings by
25% by 2030.
Remanufacturing means to return end-of-life product to original quality andperformance specifications using a combination of salvaged and new parts in a
manufacturing environment. Remanufacturing also helps keep high-value raw
materials, such as iron, in productive use and helps extend the value createdthrough the use of important resources like energy and metals consumed in acomponent’s original manufacturing process.

THE POWER OF EVERYONEOUR VALUES IN ACTIONREPORTING

THE JOURNEY TO 2030

Goal

Increase sales and revenues from remanufacturing
offerings1 by 25% from 2018 to 2030.

31%
increase in sales and revenues from remanufacturing
offerings from 2018
Progress includes:•

147 million pounds of material taken back for remanufacturing through
Cat Reman.2•

Cat Reman introduced 29% more remanufacturing offerings from 2018
to 2023 to support sustainability and total cost of ownership initiatives.2•

Remanufacturing produces 65-87% less GHG process emissions
compared to manufacturing new parts.3•

Cat Reman product line meets the needs of the industries served byCaterpillar, including construction, mining, energy and transportation, as wellas on-highway truck engines. We have parts for agriculture, demolition andscrap, forestry, railway power and more.

1 Data includes remanufacturing offerings provided by Cat Reman, Progress Rail, Solar Turbines, Caterpillar Energy
Solutions and Caterpillar Defense.
2 Data does not include Progress Rail, Solar Turbines, Caterpillar Energy Solutions and Caterpillar Defense.
3 Represents U.S. environmental impacts comparing “gate-to-gate” remanufacturing and manufacturing processes
for engines and components. Based on 2018 external study of Cat engines, alternators and turbochargers. Does notinclude impacts elsewhere in our value chain.

Caterpillar Inc.

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THE POWER OF EVERYONEOUR VALUES IN ACTIONREPORTINGREBUILD PROGRAMS

Putting Circularity to Work
Remanufacturing

For many products and components, the remanufacturing process begins when we design them intentionallywith multiple lifecycles in mind. The quality and durability required to withstand heavy-duty operating conditions
also translate into the potential for more than one product life.
The remanufacturing process uses the proprietary know-how of the original manufacturer. The result is a like-newcomponent created using fewer new materials because we use the existing core.
Here are steps within our remanufacturing process:Product & Parts Return

Remanufacturing & Assembly

When eligible parts or components reachthe end of one life, they may be returnedto the respective Cat dealer or subsidiary,
Solar Turbines or Progress Rail.

Repair options include reassembly tooriginal Caterpillar performance and quality
specifications. For Cat Reman, the advanced
remanufacturing processes and quality
controls provide like-new performance,
coupled with a same-as-new warranty.

Disassembly & Cleaning

We inspect all products and components
before disassembling them down to theirindividual parts. A multi-part cleaning processensures the removal of microscopic debris.
Inspection & Salvage

Imperfections are addressed through stateof-the-art salvage techniques and advanced
remanufacturing processes that follow
strict reuse guidelines.

Inspection & Testing

We test remanufactured products to meet
original equipment manufacturer (OEM)performance and quality specifications.
Return to Customer Use

Rebuilt equipment with remanufactured
components is provided to ourcustomers, extending the life of
their assets.

Cat Certified Rebuild programs
ONE MACHINE.
increase equipment lifespan
MULTIPLE LIVES.
by providing customers withproduct updates at a fractionof the cost of buying a newmachine, extending the lifeof materials. A complete Cat
Certified Rebuild includes morethan 350 tests and inspections,
automatic replacement orreconditioning of approximately
7,000 parts, and a like-new
machine warranty. Trained dealer
service professionals perform rebuild work using genuine
parts while incorporating the latest engineering updates.
Caterpillar provides information, data, training and service
tools to help dealers decide which parts to reuse to achieve
the expected longevity of rebuilt components.
CAT ® CERTIFIED REBUILD PROGRAM

Benefits of a Cat Certified Rebuild include:•

Opportunity for product enhancements introduced after theequipment was first manufactured.
•Upgrade optional features and technologies tocurrent standards, which may reduce costs,
boost productivity, and enhance efficiency, allat a lower cost compared to new.
•Same-as-new support and services fromthe dealer and financing options throughCat Financial.
Since 1985, Cat dealers have completed
more than 50,000 Cat Certified Rebuilds
on machines, powertrains and components.

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THE POWER OF EVERYONEOUR VALUES IN ACTIONREPORTING

REMANUFACTURING OFFERINGSCat Reman restores end-of-life components to like-new condition.

OUR
REMANUFACTURING
IMPACT
147M

88%

OUR
LOCATIONS1SUSTAINABILITY BENEFITSOF REMANUFACTURING

pounds ofmaterialtaken backin 20231

BrazilChina
IndianaIndonesia
MexicoMississippi
North Dakota

end-of-life
eligible returns
collected2

65-87%

less process energy
use and GHG process
emissions3

80-90%

less new materials used,by weight3
1 Data does not include Progress Rail, Solar Turbines, Caterpillar Energy Solutions and Caterpillar Defense.
2 Represents Cat Reman customers’ end-of-life components (“core”) returned to Caterpillar by dealers, as a percentage
of core returned plus unreturned core eligible for credit no later than 2023.
3 Represents U.S. environmental impacts comparing “gate-to-gate” remanufacturing and manufacturing processes forengines and components. Based on 2018 external study of Cat engines, alternators and turbochargers. Does not include
impacts elsewhere in our value chain.

Solar Turbines remanufactures turbine components to support theoverhaul business.
Progress Rail extends the use of existing locomotives by providing rebuild,
overhaul and repower options.
Caterpillar Energy Solutions X-Change program is a parts replacement
program for medium and large MWM and Cat branded engines.
Caterpillar Defense responds to each operation’s individual needs for machines,
engines, power generation, services and support, offering solutions that extend
the lifecycle of products.

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THE POWER OF EVERYONEOUR VALUES IN ACTIONREPORTING

Returning
People Home
SafelyCaterpillar Inc.

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RETURNING PEOPLE HOME SAFELY

THE POWER OF EVERYONE

We work to create a global workplace environment where people can work safely, stay healthy and live productive
lives. Safety is at the forefront of our strategic goals and metrics, with visible commitment and support of leadership.

Safety at Caterpillar is led by both management andemployees. From practical experience, our employees cancreate and champion their own safety improvements. We
provide every employee, including newly hired employees,with knowledge to perform their jobs safely, and leaders
regularly receive training on safety principles and set an

REPORTING

THE JOURNEY TO 2030

EMPLOYEE SAFETY
We believe the best way to drive a culture of safety
excellence is to create an environment where each person
and team is accountable for their own safety and thesafety of those around them. Additionally, we nurture aculture of learning that enhances safety through training
and experiences.

OUR VALUES IN ACTION

example for a strong safety culture. These actions help us
manage risk while creating a culture focused on learning,speaking up and protecting those around us.
We track enterprise metrics and targets as well as
individual business unit goals. Consistent enterprise targets
create structure and accountability, while business unit
strategies focus on safety culture to create opportunities
for continuous improvement. We drive clear accountability
with our EHS management system, which establishes
expectations for each facility worldwide.

Goal

We aspire to prevent all injuries and willfurther our industry-leading safety resultsby reducing recordable injury frequency(RIF) by 50% from 2018 to 2030.

25%
improvement in RIF from 2018
Progress includes:•

Developed a refreshed safety strategy to strengthen
our focus on preventing serious injuries. We
benchmarked with safety thought leaders and otherglobal companies to continue our learning around
Human & Organizational Performance (HOP) principles.

•

In 2023, recorded our best year on record forrecordable injury frequency (RIF) and lost timecase frequency (LTCFR).

SAFETY PERFORMANCEThe strong safety culture at Caterpillar today represents a journey that started two decades ago when we maderecordable injury frequency (RIF) a global metric and safety part of our company strategy.
Since then, our safety programs have evolved as part ofCaterpillar’s continuous improvement efforts. To drive
workplace safety to an even higher level, we have a goal
to deliver a 50% improvement from our 2018 performanceby 2030. To help achieve this goal, in 2023, our safety teamworked on a refreshed safety strategy.
The work included benchmarking with safety thought leadersand other global companies on similar journeys. Many ofthe learnings aligned with the Human & Organizational
Performance Principles or HOP. HOP is an operating
Caterpillar Inc.

philosophy centered around how humans and organizations
interact to accomplish work and understand the context andconditions of work.
Our resulting refreshed safety strategy builds onCaterpillar’s existing safety strengths and focuses on
three key outcomes:•

Preventing serious injury is critical•

Learning and improving is vital•

Demonstrating care is foundational
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RETURNING PEOPLE HOME SAFELYHELPING CUSTOMERSRETURN HOME SAFELY
We want not only our employees to return homesafely, but also anyone operating a Caterpillar
product or present on a jobsite with Caterpillar
equipment. That ambition starts with a mindset
that it requires a safe workplace culture to
manufacture safe products.
Designing a product for safe operation is critical.
Customer feedback is a key tool in our continuous
improvement design process. We offer a broad rangeof safety solutions that include technology, training
and consulting services.

Safety Technology
Our research and development initiatives include
innovating technologies that help increase jobsite
safety. For example, Caterpillar Safety Monitoring
Center provides customers with visibility to bothmachine and operator information to help mitigate risk
and improve productivity. Through in-cab and wearable
technologies, data is correlated to a magnitude of
conditions such as fatigue and distraction. Currently,
the Safety Monitoring Center covers more than 9,000
connected assets around the globe. Another example is
Cat Detect — an intelligent vision camera system that
can alert an operator when someone or something getsclose to the machine. This innovative technology enables
customers to enhance jobsite and machine safety as
well as increase operator awareness and visibility.

Caterpillar Inc.

Operator Training
Our suite of training programs meets customers
and their operators where needed — on the jobsite,
virtually, or at one of our Demonstration & Learning
Centers. Cat Simulator training provides a hands-on
learning experience for operators in an environmentthat reflects real-world conditions and machine
controls. Web-based e-learning opportunities canintroduce new operators to safety controls andoperating procedures, as well as provide experienced
operators with a refresher on safe and responsible
machine operation. We also offer training for jobsite
supervisors who learn how to conduct site evaluations
and identify improvement opportunities.

THE POWER OF EVERYONEOUR VALUES IN ACTIONREPORTING

THE JOURNEY TO 2030

Goal
Provide leadership in the safety of people who work in,on and around our products.

Progress includes:•

In 2023, trained 8,800 Caterpillar, dealer and customer employees insafety leadership, culture and process improvements.

•

Over 9,000 connected assets around the globe were covered by theCaterpillar Safety Monitoring Center in 2023.

Consulting Services
Caterpillar Safety Services supports customers
around the world, helping to create a safer place
to work through cultural transformation. They workwith customers to develop a strategy for continuous
improvement based on the four components of a
resilient safety culture: System, Mindset, Leadershipand Ownership.

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THE POWER OF EVERYONEOUR VALUES IN ACTIONREPORTING

Better Together:
The Powerof Everyone

EXECUTIVE SUMMARYSUPPORTING A LOWER-CARBON FUTURE

THE POWER
OF EVERYONEAt Caterpillar, we believe in The Power of Everyone
as a source of innovation and competitive
advantage. Our people come from across theglobe, with diverse backgrounds, experiences andperspectives united by Our Values in Action. Our
employees care deeply about our purpose and play
an important role in helping our customers build abetter, more sustainable world.

RETURNING PEOPLE HOME SAFELY

THE POWER OF EVERYONEOUR VALUES IN ACTIONREPORTING

DEVELOPING OUR PEOPLE
We encourage all employees to focus on continuous learning so they can develop
skills and grow their careers. We have invested in a variety of programs and learning
tools, coupled with meaningful work and an inclusive environment, to help our
employees build capabilities needed to grow throughout every phase of their careers.
We provide a variety of opportunities for learning and development:•

Onboarding new employees to gain a holistic view of the business•

Formal classroom, virtual and on-demand courses build skills and capabilities so
employees can continue to problem solve, innovate, and meet the changing needsof our customers•

Experiential learning creates opportunities for employees to learn by doing•

Coaching and mentoring accelerates improved performance andinterpersonal growth•

Leadership development programs for all levels of leaders focus on a variety of topics
such as coaching, communications, giving feedback

In 2023, over 7,700 employees participated in professional development sessions on topics
ranging from analytics to growing services to inclusive leadership. Employees completed
over 2 million training courses on a variety of professional, technical and compliancerelated subjects.

Over680,000

skill improvement training
courses completed by
employees

Caterpillar Inc.

1,500

global interns

2,500

early career employees hiredfrom over 150 colleges anduniversities around the world

Nearly 600 Caterpillar interns gathered for orientation at the Edwards Demonstration
Center in Edwards, Illinois. Students grew their business acumen and learned about
the rewarding career opportunities Caterpillar provides.

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THE POWER OF EVERYONEOUR VALUES IN ACTIONREPORTING

Pictured left: The 13-week front-line manager development
program is designed to encourage application, along withpeer networking and coaching for reinforcement. Pictured areparticipants from the Europe, Asia and Middle East region.

A 2023 Engineering Rotational Development
Program participant builds their knowledgeof Caterpillar machines and technology
during time in the field.

Development Starts on Day One
Caterpillar provides opportunities for aspiring engineers throughthe Engineering Rotational Development Program, which was
implemented in 2004 to focus on early talent development
to support Caterpillar’s engineering talent pipeline. To date,
we have onboarded over 2,000 engineers to Caterpillar. The
purpose of the program is to build a strong foundation for
long-term success at Caterpillar and an accelerated integration
into the company through a holistic development approach.
Participants set goals that directly impact the business andtheir professional development. They complete impactfulrotations tailored to help them build future-focused skills, haveopportunities to build their network, and are offered a numberof formal education opportunities. In 2023, 189 Engineering
Rotation Development participants across 17 engineeringmajors and 45 universities joined the Caterpillar team.
We support employee development through our 14 Employee
Resource Groups (ERGs), where members have access topersonal and professional growth opportunities. Our employees
are also active in many external professional associations,
technical societies and organizations focused on networking
and growing skills like the Society of Women Engineers,
Society of Hispanic Professional Engineers, National Society ofBlack Engineers, the Thurgood Marshall College Fund and the
Executive Leadership Council.
Caterpillar Inc.

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THE POWER OF EVERYONEOUR VALUES IN ACTIONREPORTINGHEALTH & WELL-BEING
Caterpillar wants our employees and their families to have the resources to leadhealthy lives and perform at their best at work, home and in their communities. Our
Total Rewards offerings span our employees’ life cycles and support their health andwell-being.
Our competitive Total Rewards package varies by location but can include:•

Health care coverage, including medical prescription drug, dental, vision,and preventive exams and testing•Tax-savings accounts, including flexible spending accounts, health savings
accounts and commuter/parking/transit accounts•

Parental and adoption leave, adoption assistance, and infertility benefits•Life and disability insurance•

Retirement savings plans•

Time-off benefits, including vacation, holidays and paid volunteer time*•

Matching gifts on employees’ charitable contributions•

Additional voluntary benefits, such as accident insurance, legal services
and identity theft•

Employee Assistance Program•

Employee and group discounts for a range of services, including legal
services and identity protection

117K

U.S.-based employees,
retirees, spouses anddependents enrolled
in Caterpillar healthcare plans

NearlyOver

global employees andfamily members who
engaged with the
Employee Assistance
Program to obtain
resources, referrals,
training, counselingand more

U.S.-based employees who
participated in a financial
health webinar

20,0002,800*In 2023, paid volunteer time was expanded globally in multiple countries.

Caterpillar Inc.

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RETURNING PEOPLE HOME SAFELYEMPLOYEE EXPERIENCEAt Caterpillar, we believe feedback plays a big role in helping us improve, and weprioritize listening and taking action to create a culture where employees can dotheir best work.

THE POWER OF EVERYONEOUR VALUES IN ACTIONREPORTING

85%

employeeparticipationin the annual
employeeengagement
surveyEach year, we invite our employees to participate in a confidential employee
engagement survey to provide their feedback and perspective.

2023 Annual Employee Engagement Survey Statistics•

85% employee response rate•

Employees say, “Challenging Work” and “Impact” are our greatest strength, as
communicated through the survey•

All indices maintained or increased year-over-year

POSITIVE EMPLOYEE & LABOR RELATIONSAt Caterpillar, we respect freedom of association and where we have unions, works councils
and other forms of employee representation, we always strive to have respectful, values-basedlabor-management relationships. We also collectively bargain, inform and consult in good faith,
fully complying with all country labor-management laws and standards.
Additionally, we understand and respect that there are also employees who may prefer orchoose not to be represented, and we have the same direct and positive relationship withthem. Most importantly, and through Our Values in Action, regardless of whether represented
or non-represented, we foster a positive employee-relations environment built on trust,confidence and respect.

Caterpillar Inc.

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THE POWER OF EVERYONEOUR VALUES IN ACTIONREPORTING

DIVERSITY & INCLUSIONAt Caterpillar, we remain committed to fostering a diverse workforce andinclusive environment and believe that diversity and inclusion is a journey,
not a destination.
We are proud of our progress and continually work to ensure our workplace is diverse
and representative of the countries in which we operate and the customers we servearound the globe. We continue to take action to ensure an inclusive environment
where all employees have opportunities for personal and professional development
and are welcome to learn, connect, and foster a sense of belonging.

Every year we share our progress in our annual
Diversity & Inclusion Report.

Employees gathered in-person in Irving, Texas, and around the world in regional D&I conferences toshare their personal D&I journeys and commitments to helping Caterpillar cultivate a more diverse andinclusive workplace.

Caterpillar Inc.

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THE POWER OF EVERYONEOUR VALUES IN ACTIONREPORTING

Our Valuesin Action

Caterpillar Inc.

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THE POWER OF EVERYONEOUR VALUES IN ACTIONREPORTINGCORPORATE GOVERNANCE
The Caterpillar board of directors has direct oversight of our climate andsustainability efforts. The Sustainability & other Public Policy Committee
has explicit oversight for sustainability, social and other public policy
matters, including those related to the environment, climate change,
human rights and lobbying.
Management-level sustainability governance includes our chief executive officer(CEO), all executive officers, and the chief sustainability officer (CSO). The CSO
reports directly to the CEO. ESG performance is incorporated into annual incentive
plans for executives. Further information on the incentive plans is provided in the
Proxy, page 38.

SUSTAINABILITY GOVERNANCE
Caterpillar Board of Directors
Sustainability & other Public Policy Committee
Chief Executive Officer
Executive Office including Chief Sustainability Officer

Caterpillar Inc.

Additional information about Caterpillar’s corporate
governance policies and procedures can be found in thegovernance section of our corporate website and theCaterpillar Proxy Statement.

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THE POWER OF EVERYONEOUR VALUES IN ACTIONREPORTINGSHAREHOLDER ENGAGEMENT
Caterpillar values the diverse perspectives and input of our shareholders.
Through regular, ongoing shareholder engagement, we hear their interestin how Caterpillar is addressing and reporting on climate change, as well
as how our company is contributing to a reduced-carbon future.

Climate Action
Caterpillar is committed and contributing to a reduced-carbon future. We
demonstrate our commitment in many ways, including through significant progressin reducing GHG emissions from our operations and continuing to invest in new
products, technologies and services to help our customers meet their climate-related
objectives. We continue to support our diverse range of global customers while
executing our strategy for long-term profitable growth.
Caterpillar values shareholder feedback. Through regular shareholder engagement,
we hear their interest in how Caterpillar is addressing and reporting on Caterpillar’ssustainability journey. We continue to demonstrate our commitment to shareholder
responsiveness, including updating our TCFD report, Scope 3 emissions and ourdescription of incorporating ESG into the incentive plan for executive officers in 2023.

2023 Lobbying Report: The Purpose of Engagement
As a leading global manufacturer and U.S. exporter, Caterpillar actively
participates in the public policy process, advocating for key issues that align with
our purpose and the execution of our strategy. We value Caterpillar shareholders’
input and their demonstrated interest in our political engagement strategy. Our
2023 Lobbying Report, The Purpose of Engagement, outlines how we advocate
for a policy and regulatory environment that supports our long-term success andprovides value to shareholders. Our spotlight on climate and energy lobbying
includes examples of how we support our customers as they transition to alower-carbon future.

Learn more about our investor outreachin our Proxy Statement.
Caterpillar Inc.

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THE POWER OF EVERYONEETHICS & INTEGRITY
We operate according to Our Values in Action — Caterpillar’s Code of
Conduct. The Code defines Our Values — Integrity, Excellence, Teamwork,
Commitment and Sustainability — which represent what we standfor and how we conduct ourselves with our customers, suppliers,
communities and one another.
It guides our employees, subsidiaries and affiliates, and board members inliving Our Values each day. Some of the topics that the Code covers include
avoiding conflicts of interest, fair competition, anti-bribery, trade compliance,
employee performance and development, non-harassment, non-discrimination,
personal privacy, supplier expectations and environmental responsibility.

Code of Conduct Training
All Caterpillar employees are required to complete Code of Conduct training
annually. As part of this training, employees must certify that they have
read, understand, and agree to comply with the Code of Conduct. Additional
compliance training is provided to employees based on risks identified in theirjob roles.

Ethics & Compliance Helpline
We hold ourselves to the highest standard of integrity and ethical behavior. We
promote and respect the rule of law and expect our employees and suppliers
to do the same. We encourage individuals to report situations in which they
have a good-faith belief that any circumstance or action has violated our Codeof Conduct, enterprise policy or applicable law. Those who wish to report a
concern can do so through internal and local channels or confidentially andanonymously report through resources maintained by our Office of Business
Practices. These resources include:•

Online reporting•

Email reporting at BusinessPractices@cat.com•

Telephone reporting with toll-free and call-collect dialing options that
support reporting in multiple languages and from multiple countries

Caterpillar will not take any action — or tolerate any reprisal — against any
party for raising an issue in good faith.
Caterpillar Inc.

Learn more about
the Caterpillar
Code of Conduct.

OUR VALUES IN ACTIONREPORTINGEXECUTIVE SUMMARYSUPPORTING A LOWER-CARBON FUTURE

POLITICALENGAGEMENT
Caterpillar participates in the public policy
process, advocating for a range of issues that
supports our corporate strategy and businessobjectives. The policy priorities are driven by
our enterprise strategy and reflect the value
we provide to shareholders, customers andother stakeholders.
Our commitment to transparency and disclosure in
our advocacy activities have long been recognized.
As part of that commitment, numerous voluntary
disclosures and links to filings related to our politicalengagements are provided on our website. We publish
a lobbying report, The Purpose of Engagement,
annually. The report provides greater transparency anddisclosure of the company’s U.S. political engagement
strategy, a description of the governance oversight and

RETURNING PEOPLE HOME SAFELY

THE POWER OF EVERYONE

management of these activities, including the Caterpillar Inc.
Political Action Committee. We maintain memberships with
U.S. trade and industry associations as their work helps create
an environment where companies from all industries — notjust our own — can be successful.
Based on shareholder feedback, in 2022, we lowered thereporting threshold of our U.S. trade and industry association
memberships from $50,000 to $25,000 and provided
additional information on the percentage of Caterpillar’smembership dues used for federal lobbying. We havefurther enhanced our disclosures for 2023 to include a tiered
reporting of the dollar amount of Caterpillar’s membershipdues paid to all U.S. trade and industry associations andthe percentage of those dues used for federal lobbying
activities, as reported by each organization.

Download the 2023 lobbying report:
The Purpose of Engagement.

OUR VALUES IN ACTIONREPORTING

Political Contributions
Where allowable by law, Caterpillar may make corporate
contributions to political organizations or committees tosupport public policies that align with our business interests.
Any corporate political contributions by Caterpillar must
be approved by our senior vice president of Global
Government & Corporate Affairs. In addition, the board
annually reviews the company’s political spending policy andpolitical activities, including corporate political contributions,political contributions of the Caterpillar Inc. Political Action
Committee (CATPAC), trade association participation andCaterpillar’s lobbying priorities.
CATPAC contributions are made only in U.S. federal andstate elections. CATPAC is funded through voluntary
contributions by eligible individuals. A steering committee
comprised of Caterpillar non-officer employees representing
a diverse mix of U.S. locations and business units oversees
all CATPAC disbursements to ensure they promote thecompany’s business interests.

Additional information regarding
Caterpillar’s corporate contributions,
CATPAC contributions and tradeassociation memberships is available on
our political engagement website.

Caterpillar showcased at the Construction
on the Mall event in Washington, D.C.

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THE POWER OF EVERYONEOUR VALUES IN ACTIONREPORTINGRISK MANAGEMENT
Through robust programs, including Enterprise Risk
Management, Compliance and Audit, we engage
across the enterprise to identify, prioritize andmanage risks.
Enterprise Risk Management and our enterprisestrategy are linked. To better inform our decision making,we evaluate risks at the business unit and enterpriselevels, considering the likelihood and potential impact ofeach risk. These evaluations guide our approach to risk
management, allow us to understand the challenges
these risks bring and position our business for theopportunities they present.
We consider risks across many categories, including
strategic, operational, financial, compliance, hazard andsustainability/climate risk categories. Sustainability andclimate risks continue to be considered in connection
with other risk categories as well. We treat thesesustainability and climate risks with the same priority
and rigor as other risks across the business. For
example, the results from the global climate scenario
analysis Caterpillar completed in 2022 and summarized
in its TCFD report were integrated into the Enterprise
Risk Management process.

Caterpillar Inc.

As risk management is fundamental to our culture,
there is strong engagement in risk management fromthe CEO, executives and senior leaders. The company’s
officers share accountability for business risks, and theboard of directors oversees the enterprise process. The
board and its committees also oversee risk and haveregular updates on topics that are identified throughthe risk management process. Outputs from risk
management drive strategic initiatives and disclosures.
Our risk management culture enables us to criticallyevaluate risks to our business and identify opportunities
to create value for our employees, customers andshareholders. Our commitment to sustainability isreflected in our risk management practices as we strive
to build a better, more sustainable world.

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THE POWER OF EVERYONEOUR VALUES IN ACTIONREPORTINGSTRATEGIC PROCUREMENT &RESPONSIBLE SOURCING
Our commitment to helping our customers
successfully navigate the energy transition and meettheir sustainability objectives depends upon strong
relationships up and down our value chain.

to confirm their alignment with the Code. Suppliers areprovided with access to the same ethics reporting channels
as employees and encouraged to report any concerns or
behaviors that violate our Supplier Code of Conduct.

Supplier relationships have always been important for
product quality, manufacturing excellence, customer
service and financial performance. Today, sourcing
strategic components and materials essential toadvanced technologies makes these relationships evenmore important.

Our Conflict Minerals Position Statement contains clear
expectations for our suppliers regarding their sourcing of thesematerials. We have established a process that identifies areasof risk and corrective action plans to mitigate or remediate suchrisks relating to conflict minerals. A supplier’s failure to takecorrective actions when required may lead to additional actions,
up to and including the termination of our business relationship.
Caterpillar supports the Responsible Minerals Initiative tohelp influence smelters’ engagement to support supply chaintransparency and leverage industry collaboration toward greaterbusiness intelligence.

We recognize the importance of supplier relationships
and actively engage in programs to strengthen them.
These include advisory and safety councils, certification
programs and excellence awards. As we strengthen
relationships with suppliers, we are better positioned
to improve product quality, operational efficiencies,
business competitiveness and crisis response,
accelerate innovation, manage costs and profitability,
and mitigate risk. We leverage our supplier advisory
councils to continue to grow the relationships. In 2023,
we formed our first enterprise supplier advisory council
with 10 supplier representatives.

Responsible Sourcing
We pursue suppliers and business allies who
demonstrate strong values and commit to the ethicalprinciples outlined in the Caterpillar Supplier Code of
Conduct, which is available in 18 languages. We expect
suppliers to comply with the sound business practices
we embrace and follow the law and conduct activities
in a manner that respects human rights. Caterpillar
asks priority suppliers to complete a self-assessment

Caterpillar Inc.

Supplier Diversity
Supplier diversity continues to be a focus for our strategic
procurement team. With a strong base of diverse suppliers
already in place, we are investing in tools to help identify
diverse suppliers for new business opportunities. This is
key to delivering on our commitment to foster and increasebusiness purchases with diverse suppliers.
We are members and serve on boards of organizations thatcertify, develop and advocate for diverse suppliers. In 2023,
Caterpillar was honored to be inducted into the Billion Dollar
Roundtable (BDR), a corporate advocacy organization that
promotes supply chain diversity excellence. BDR member
companies commit to a documented supply chain spend of$1 billion or more annually on a first-tier basis with diverse
suppliers as a condition of membership.

Read: Supplier Code of Conduct,
Conflict Minerals Position Statement.
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RETURNING PEOPLE HOME SAFELYHUMAN RIGHTS
In accordance with Our Values in Action, Caterpillar is committed torespecting internationally recognized human rights principles throughout
our global operations.
We support individual and collective rights across the globe.
Our Code of Conduct, Human Rights Policy, Slavery and
Human Trafficking Statement and Supplier Code of Conduct
represent our commitment that we will not condone and will
strive to eliminate all forms of forced labor, child labor, humantrafficking and discrimination in the workplace.
We remain committed to establishing safe and healthy
working conditions.
We value diversity as a foundational key to the success of ourbusiness strategy and seek to compensate our employees fairly
and competitively where they work.
We respect the principles of freedom of association and theright to collective bargaining.
We have compassion for all persons affected by conflict
wherever it occurs, and we expect our directors, officers,
employees, business partners and suppliers, including inconflict-affected areas, to comply with all applicable laws andconduct activities in a manner that respects human rights. This
also applies to our subsidiaries and majority-owned
joint ventures.

Read our Human Rights Policy.
Caterpillar Inc.

THE POWER OF EVERYONEOUR VALUES IN ACTIONREPORTINGEXECUTIVE SUMMARYSUPPORTING A LOWER-CARBON FUTURE

RETURNING PEOPLE HOME SAFELYBEYOND CATERPILLAR:INVESTING IN COMMUNITIESBuilding resilient communities is a core priority for
Caterpillar’s philanthropic organization, the Caterpillar
Foundation. The Foundation provides resources toorganizations around the world to help build stronger,
more sustainable communities. Caterpillar employees
generously volunteer in the communities where they live
and work — whether at a youth soccer game, in foodpantries or through STEM education in programs like
FIRST Robotics.
Since its creation in 1952, the Caterpillar Foundation has
granted more than $935 million to organizations to help
build resilient communities. The Foundation’s global work inscience, technology, engineering and mathematics (STEM)
education, workforce readiness, natural infrastructure, accessto basic services and disaster relief has helped communities
achieve sustainable progress and improve the lives of people
around the world.
Caterpillar employees and retirees demonstrated remarkablegenerosity in 2023 with a record-breaking $14.8 million inpledges to United Way chapters across the United States,
Mexico, Canada and Panama — placing Caterpillar among
the top ten companies that have contributed to United Way.
Additionally, via the Foundation’s Matching Gifts and new
Volunteer Service Match programs, $10.8 million and over
109,000 hours of volunteer time were given to thousandsof charities across the globe. In times of crisis, Caterpillar,
employees, dealers and the Foundation swiftly responded to
global disasters by supporting response organizations.

Caterpillar Inc.

THE POWER OF EVERYONEOUR VALUES IN ACTIONREPORTINGEXECUTIVE SUMMARYSUPPORTING A LOWER-CARBON FUTURE

RETURNING PEOPLE HOME SAFELY

THE POWER OF EVERYONEOUR VALUES IN ACTIONREPORTING

CATERPILLAR FOUNDATION HIGHLIGHTS IN 2023
$43.5M
granted$3.7M

disaster response$10.3Mwater systems
projected to beinstalled

employee matching gifts

56K

4,351

projected individuals gained
industry-recognized credentials

community partners

93K

$514K
volunteer service match
47

countries supported

Caterpillar Inc.

546

465K
acres to be restored

projected individuals
with access to STEM
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THE POWER OF EVERYONE

Establishing Natural InfrastructureOver the past two decades, the Foundation’s innovative
approaches to nature-based solutions help create resilient,more sustainable communities that thrive in a rapidly changing
world. In 2023, the Foundation supported 20 organizations in
21 countries in building basic infrastructure services, like waterand energy, and restoring natural ecosystems to withstandnatural disasters and environmental challenges.
One organization the Foundation supports is Asociacion
Reforesta, a Spanish organization devoted to natural
restoration. Volunteers for Reforesta have planted more than
6,000 native seedlings in several drove roads in the Madrid
region. These reforestations strengthen the ecologicalcorridor function along these historical livestock routes tofight against habitat fragmentation and soil erosion, andprovide food and shelter to several species.

Creating the Workforce of the 21st Century
The Caterpillar Foundation understands the importance of
preparing the next generation for the challenges of today
and tomorrow through STEM, technical and vocational
education and training. The Foundation donated nearly$13 million across 30 countries in 2023 to equip individuals
and communities with the skills, resources and services
they need to thrive in our changing world.
Through collaboration with the International YouthFoundation’s EquipYouth program, young individuals in
Latin America are provided with manufacturing and IT skills
training. The program has set many of its participants ona path to success, with an 85% completion rate and 63%
of graduates securing employment.

Caterpillar Inc.

OUR VALUES IN ACTIONREPORTING

Humanitarian Crisis. Through this support, the Red Cross
can help communities prepare for, respond to and recoverfrom disasters big and small around the globe.
China Foundation for Rural Development (CFRD) isanother organization the Foundation supports to assist
those impacted by disasters. In 2023, CFRD successfully
provided support for multiple disasters — from flooding
and mudslides to power outages. The Foundation’s support
helped CFRD distribute essentials such as drinking water,
blankets, insect repellent, flashlights and power banks forphones to many communities.

Disaster Relief
Lives are turned upside down when disasters strike. That
is why the Caterpillar Foundation donated $3.7 million
to support disaster preparedness and response efforts
in 2023.
The Caterpillar Foundation is a long-standing member of theAmerican Red Cross Annual Disaster Giving Program. The
Foundation’s annual donation of $1 million helps ensure that
the American Red Cross is able to pre-position supplies andpersonnel and be on the ground immediately after disasters
big and small, including floods, storms and countless othercrises across the United States. This support also aided inalleviating suffering around the world through the global Red
Cross and Red Crescent network, including providing relief
to those affected by the Türkiye earthquake and Middle East

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THE POWER OF EVERYONEOUR VALUES IN ACTIONREPORTING

Diversity & Inclusion
Communities are strongest when there is equality for all.
Access to clean water and safe sanitation impacts every facet of life, from health to education to economic
outcomes. Vulnerable populations, including low-income communities and people of color, are most impacted.
The Navajo Nation is one of the hardest-hit pockets of water poverty in the United States.
DigDeep’s Navajo Water Project is an innovative Indigenous-led field team working to get clean water tohomes without access to piped water or sewer lines. With the help of the Caterpillar Foundation’s funding,
DigDeep has committed to serving more than 1,000 individuals on the Navajo Nation through off-grid waterand sanitation solutions that bring clean, running water and safe sanitation into homes across the Navajo
Nation. Not only does the program provide much-needed water, but the community-managed approach creates
meaningful employment opportunities with benefits, including employer-paid health coverage, a sanitation andseptic installation program and the Navajo Nation’s first-ever plumbing certification training program.

CATERPILLAR FOUNDATION AND THE UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS (UN SDGS)The Caterpillar Foundation’s investments align with several of the UN SDGs. The Caterpillar Foundation works to build resilient communities in theplaces where Caterpillar employees live and work and where there is need.

Caterpillar Inc.

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THE POWER OF EVERYONEOUR VALUES IN ACTIONREPORTING

Reporting

Cat 745 Articulated Truck and Cat 374 Hydraulic Excavator

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ABOUTTHIS REPORTThe reporting period is the 2023 calendar year,
which is also Caterpillar’s fiscal year. Caterpillar
is headquartered in Irving, Texas.
This report has been prepared with reference to the
Sustainability Accounting Standards Board (SASB),
as well as with reference to the Global Reporting
Initiative Universal Standards (GRI). In addition,
we have published a TCFD Report, which aligns
with the 11 recommended disclosures of the TCFD
and summarizes how we govern our strategy to

RETURNING PEOPLE HOME SAFELY

THE POWER OF EVERYONE

address climate-related risks and opportunities and support
customers in the energy transition. Our sustainability efforts
and approach are consistent with the UN SDGs.
Given the breadth of our products, services and solutions,
our advocacy on behalf of policies that enable sustainable
development and the Caterpillar Foundation’s effort to build
resilient communities, Caterpillar and our customers are
helping build a more sustainable future. The contents of thisreport represent the products and operations of Caterpillar
Inc. and its subsidiaries with which we have a controlling
financial interest. Where noted, certain information relates
to Caterpillar’s independent dealer network and supplier
network. Caterpillar and subsidiary brands are listed on our
website. Caterpillar’s environmental and safety metrics for
operations are consolidated based on the Greenhouse Gas
Protocol “operational control” approach. Environmental data
excludes office locations with fewer than 500 employees

OUR VALUES IN ACTION

and minor operations with fewer than 50 employees which
will not have a significant impact on reported metrics.
Safety data includes employees and agency workers inCaterpillar workplaces.
ERM Certification and Verification Services, Inc. (ERM
CVS) has conducted independent assurance of selectedenvironmental and safety data, including Scope 3
emissions. To understand the scope, activities andconclusions of the assurance process, please see the
ERM CVS Assurance Statement.

Contact us
TCFD Report

Fleet of Cat 793 Mining Trucks

REPORTINGEXECUTIVE SUMMARYSUPPORTING A LOWER-CARBON FUTURE

RETURNING PEOPLE HOME SAFELY

THE POWER OF EVERYONEOUR VALUES IN ACTIONREPORTINGESG DATA & ENDNOTES
2018 BASELINE(2030 GOALS)

2019

2020

2021

2022

2023

Total number of employees

102,300

97,300107,700

109,100

113,200

Number of employees outside of theUnited States

58,70057,00063,40060,90062,400

Women in enterprise

20%

20%

23%

23%

23%

20%

20%

21%

22%

23%

PERSPECTIVEPEOPLE DATA

Women in leadership1

Collective bargaining% of employees covered

41%

40%

40%

41%

38%

0.15

0.20

0.18

0.18

0.14

0.43

0.42

0.41

0.44

0.40

Employee fatalities

0

0

0

1

0

Contractor fatalities

1

2

1

0

0

We continue to increase our women’s representationin leadership.
We respect the right of our employees to form, join or not tojoin any lawful organization of their choice without fear of
reprisal, interference, intimidation or harassment. We believe
it is important for individuals to exercise that right with thebenefit of available information.

SAFETY
Lost-time case frequency rate
(LTCFR) /A/ worker-related injuries
resulting in lost time per 200,000
hours worked
Recordable injury frequency(RIF) /A/ recordable injuries per
200,000 hours worked

Caterpillar Inc.

0.53

The most important thing we do is ensure employees go homesafely every day. Our LTCFR decreased by 22% and our RIF
decreased by 9% from 2022 recording our lowest LTCFR and
RIF levels ever.

We can never rest in our efforts to keep our employees andcontractors safe and will continue to work to ensure ourworkforce goes home safely every day.

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THE POWER OF EVERYONEOUR VALUES IN ACTIONREPORTINGESG DATA & ENDNOTES
2018 BASELINE(2030 GOALS)

2019

2020

2021

2022

2023

Total energy use /A/gigajoules

24,000,000

19,370,000

20,610,000

20,640,000

19,465,000

Total electricity /A/million MWh

2.38

2.09

2.25

2.27

2.21

Grid electricity
%

83.8

87.3

86.7

87.4

88.9

Renewable energy2, 3
%

21.2

21.0

24.2

27.4

27.6

Energy intensity /A/absolute gigajoules energy use/
million dollars of sales and revenues

446

464

404

347

290

1.78

1.46

1.51

1.49

1.44

Scope 1 Direct emissions /A/million metric tons CO2e

0.91

0.70

0.74

0.74

0.69

Scope 2 Market-based indirectemissions from purchased electricity,heat or steam /A/6, 7
million metric tons CO2e

0.87

0.76

0.77

0.74

0.75

Scope 2 Location-based /A/6
million metric tons CO2e

0.93

0.83

0.85

0.80

0.81

GHG intensity /A/4, 7absolute metric tons of CO2e/million
dollars of sales and revenues

33.09

34.97

29.82

25.07

21.47

PERSPECTIVE

ENERGY-OPERATIONS

Absolute greenhouse gas (GHG)
emissions /A/4, 5
million metric tons CO2e

Caterpillar Inc.

2.22

In 2023, we reduced our total energy use by 23% from our2018 baseline.

In 2023, more than 27% of our electrical energy was obtained
from renewable sources.

In 2023, we reduced our Scope 1 (direct) emissions by 27%
from our baseline.

In 2023, we reduced our GHG emissions intensity by 47% fromour baseline.

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THE POWER OF EVERYONEOUR VALUES IN ACTIONREPORTINGESG DATA & ENDNOTES
2018 BASELINE(2030 GOALS)

2019

2020

2021

2022

2023

N/A

N/A

N/A

11%

14%

57%

Water management strategies8% of management elementscompleted by in-scope facilities

N/A

N/A

27%

41%

76%

Total water /A/7
billion imperial gallons

3.76

3.4

3.75

4.14

4.7

Cooling water from foundry
operations

35.2%

35.2%

37.4%

40.9%

52.1%

Municipal water

30.8%

29.6%

28.8%

25.5%

23.4%

Surface water

18.0%

20.4%

19.4%

20.4%

13.2%

Other water

0.7%

0.6%

0.5%

1.3%

1.2%

15.4%

14.2%

13.9%

11.9%

10.1%

69.9

81.4

73.6

69.7

70.1

Total waste
metric tons

587,000

554,000

567,000

575,000

637,000

Waste intensity
absolute metric tons of waste/million
dollars of sales and revenues

10.9

13.3

11.1

9.7

9.5

PERSPECTIVE

WATER-OPERATIONS
Water management strategies8% of in-scope facilities that meet allnine management elements

Water management strategies is a recent goal for Caterpillar
and data collection began in 2021. Previous years are listed
as N/A as this is a newly composed goal. In this third year of
implementation, we are pleased to report significant progress
toward our 2030 goal of 100%.

Total water consumption by source

Groundwater
Water consumption intensity /A/absolute thousand gallons of water/
million dollars of sales and revenues

While cooling water from our foundry operations increased,water withdrawals from all other sources in 2023 decreased
by 13% from our baseline.

7

WASTE-OPERATIONS

Landfill intensity
absolute metric tons of landfill waste/million dollars of sales and revenues
Waste recycled%
Caterpillar Inc.

In 2023, we reduced our landfill intensity by 44% from our2018 baseline.
1.49

1.36

1.09

0.98

0.96

0.83

87.1%

91.5%

90.8%

89.6%

91%

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THE POWER OF EVERYONEOUR VALUES IN ACTIONREPORTINGESG DATA & ENDNOTES
2018 BASELINE(2030 GOALS)

2019

2020

2021

2022

2023

Scope 3 Emissions Enterprise /A/9
use of sold products emissions,million metric tons CO2e

929

571

564

606

759

Scope 3 Intensity Enterprise /A/9
use of sold products emissions/
thousands of dollars of sales
and revenues

17.3

13.7

11.1

10.2

11.3

Scope 3 Emissions Energy &Transportation Segment9
use of sold products emissions,million metric tons CO2e

794

464

428

462

623

Scope 3 Emissions Construction
Industries Segment9
use of sold products emissions,million metric tons CO2e

82

64

84

83

75

Scope 3 Emissions Resource
Industries Segment9
use of sold products emissions,million metric tons CO2e

53

43

52

61

61

PERSPECTIVEPRODUCT

New products that are moresustainable than the previous
generation through collaborating withcustomers, reduced waste, improved
design for rebuild/ remanufacturing,
lower emissions or improved
efficiency%10

Caterpillar Inc.

89%

95%

97%

100%

100%

100%

Caterpillar is represented by durable, reliable and innovative
products that are built to last. See the Understanding Our
Scope 3 Emissions of this report to learn more.

Caterpillar has a long history of and a strong process forinnovation in the R&D of products and solutions. Examplesof recent innovations are highlighted in the Helping Our
Customers Build a Better, More Sustainable World sectionof this report.

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THE POWER OF EVERYONEOUR VALUES IN ACTIONREPORTINGESG DATA & ENDNOTES
2018 BASELINE(2030 GOALS)

2019

2020

2021

2022

2023

N/A

2%

-14%

-3%

19%

31%

Product take-back by weight12, 13
millions of pounds of end-of-lifematerial received

153

131

127

140

147

Product take-back by %12, 13% of actual end-of-life returns/
eligible returns

91%

89%

88%

89%

88%

Community investments
millions of dollars

$28.6

$37.9

$41.0

$42.3

$49.1

Caterpillar directly and through the philanthropic organization,
Caterpillar Foundation, contributes to helping makesustainable progress possible around the world.

Matching gifts14
millions of dollars

$3.5

$9.8

$22.6

$21.1

$23.3

The Caterpillar Foundation is proud to match our global
employees, U.S. retirees, and the Caterpillar Inc. board of
directors’ contributions to eligible organizations.

$14.8

Caterpillar has supported the United Way for more than 60
years through our annual campaign. The Foundation matches
employee and retiree gifts during the campaign, amplifying
our impact on the communities where we live and work.

PERSPECTIVE

REMANUFACTURING
Growth in remanufacturing business11% business sales growth since 2018

Our remanufacturing and rebuild businesses provide
customers with immediate cost savings, help extend productlifecycles, and use materials more efficiently.

PHILANTHROPY

United Way15
millions of dollars

$12.2

$12.3

$12.9

$13.8

/A/ Data assured by ERM CVS. Please see our data assurance statement.
N/A = Not Applicable

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THE POWER OF EVERYONEOUR VALUES IN ACTIONREPORTINGESG DATA & ENDNOTES
1.
2.

Women In Leadership data reflects all women with responsibilities for managing employees as part of their job scope. Data excludes Progress Rail.
Renewable energy percent includes purchased and on-site generated renewable energy, as well as calculating the percentage of renewable energy from grid-purchased electricity using data obtained from theInternational Energy Agency.
3. Renewable Energy: Caterpillar defines renewable energy as energy resources that are naturally replenishing over a short period of time and virtually inexhaustible. Power generation examples include wind, solar,hydro, geothermal, tidal, wave, biomass and biogas from anaerobic digestion.
4. GHG emissions intensity is based on our combined Scope 1 (direct) and Scope 2 (indirect, market-based) GHG emissions. Likewise, total absolute GHG emissions are a sum of Scope 1 and Scope 2 (marketbased) emissions.
5. Results may not add to the total due to rounding.
6. Location-based Scope 2 GHG emissions are provided in accordance with the GHG Protocol Scope 2 guidance (2015). Our market-based Scope 2 emissions are calculated using the Scope 2 Quality Criteria. The
following instruments were used in calculating our market-based Scope 2 emissions: Renewable Energy Guarantees of Origin, energy contracts, supplier-specific emission rates, and, for the remainder of ourfacilities, grid average emission factors from USEPA’s eGRID (eGRID2021, released on January 31, 2023; state annual CO2 equivalent total output emission rate (lb/MWh)) and the International Energy Agency’s
data (IEA CO2 emissions factors for 2023 were obtained from IEA’s Emission Factors 2022 Database, 2020 emission factors for CO2, CH4, and N2O; does not account for trade adjustments due to imported
electricity to the country nor for losses in transmission and delivery). For 2023 calculations, Caterpillar did not use residual mix factors.
7. Data prior to 2023 has been revised for improved accuracy.
8. High-risk locations are identified using World Resources Institutes Water Risk Atlas 3.0. The nine criteria for facilities to incorporate in their water management strategies include a compliance plan, business
continuity planning, developing a water consumption inventory identifying opportunities for improvement, setting a water consumption goal, employee education and involvement and annual management reviewof the entire strategy.
9. The annual estimates for lifetime use of sold products GHG emissions are calculated from the GHG Protocol expression: ∑ (total lifetime expected uses of product X number of products sold in reporting period X
fuel or electricity consumed per use (kWh) X emission factor for fuel/electricity (kg CO2e/kWh)). The inputs to this equation are specific to construction machines, mining machines, off-highway diesel and natural gas
engines, industrial gas turbines, and diesel-electric locomotives, applied at the product-level to calculate lifetime emissions, then aggregated across the full enterprise portfolio. Included in the calculation are GHG
emissions from combustion of fuels and/or use of electric power until the estimated point of final disposal covering rebuild, remanufacturing and overhaul events that extend the service life of the product. While
we continue to grow lower-carbon intensity, alternative fuel offerings, given the difficulty predicting customer fuel switching, all liquid fuel is assumed to be diesel and all gaseous fuel is assumed to be natural gas.
Excluded from this calculation are emissions from upstream production of fuel consumed in Caterpillar products, fuel efficiency and emission factor changes through the life of the product, refrigerant emissions,and others considered insignificant to Caterpillar’s enterprise number. The inputs to perform this calculation were integrated from many data sources including but not limited to: Operation and Maintenance Manuals(OMM), product design data, telemetry data, public data sources (U.S. EPA, IEA, industry data), and internal engineering, product, marketing, and other subject matter expertise. These inputs are refined yearly as
needed based on telemetry data, product design data, and/or internal expertise, considering industry best practices, consistency and accuracy, data maturity and regulatory/policy change. Data for prior years has beenrevised to reflect updated product life and energy consumption estimates. Our company’s total enterprise Scope 3 use of sold products emissions calculation was verified by a third-party assurance firm (ERM CVS);
see the assurance statement.
10. For this goal, new products include new or improved prime product such as machines, engines, generator sets, upper powertrain and other complete solutions sold directly to a customer, OEM or dealer under any
majority-owned brand. Exclusions from the goal include, but are not limited to, new source introduction programs, work tools, component development programs for prime product, defense products, aftermarket
kits or site solutions. Collaborating with customers is key to Caterpillar’s identification of sustainability criteria. To meet the goal requirements, products must meet one or more of the four criteria in comparison to
the previous generation: reduced waste, improved design for rebuild/remanufacturing, lower emissions or improved efficiency.
11. Data includes remanufacturing offerings provided by Cat Reman, Progress Rail, Solar Turbines, Caterpillar Energy Solutions and Caterpillar Defense.
12. Data does not include Progress Rail, Solar Turbines, Caterpillar Energy Solutions and Caterpillar Defense.
13. Represents Cat Reman customers’ end-of-life components (“core”) returned to Caterpillar by dealers, as a percentage of core returned plus unreturned core eligible for credit no later than 2023.
14. This data represents employee and retiree donations and the match payments made in the calendar year 2023. This also includes 2:1 employee and retiree donations made in the calendar year 2023. 2:1 and theremaining Q4 match payments will occur in the 2024 calendar year.
15. This includes employee and retiree pledges during the 2023 campaign, and the Foundation match for the campaigns in the United States, Canada, Panama and Mexico paid in 2023.
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Independent Limited Assurance Statement to Caterpillar Inc.
ERM Certification and Verification Services, Inc. (ERM CVS) was engaged by Caterpillar Inc. to provide limited assurance in relation to the selected information set out below and presented in the2023 Sustainability Report and Task Force on Climate-related Financial Disclosures (TCFD) Report (the “Reports”).
Engagement summary
Whether the 2023 data for the following selected disclosures are fairly presented in the Reports, in all material respects, in accordance with the reporting criteria.
Environmental Data

Scope of our
assuranceengagement

•
•
•
•
•
•
•
•
•
•
•
•

Scope 1 Direct GHG emissions [million metric tons CO2e]
Scope 2 Indirect GHG emissions (location-based) [million metric tons CO2e]
Scope 2 Indirect GHG emissions (market-based) [million metric tons CO2e]
Total Scope 1 and Scope 2 GHG emissions [million metric tons CO2e]
Total Scope 1 and Scope 2 GHG emissions intensity [million metric tons CO2e/million dollars of sales and revenues*]
Total energy consumption [GJ]
Total energy consumption intensity [GJ/million dollars of sales and revenues*]
Total electricity [MWH]
Scope 3 Enterprise GHG emissions Category 11 (Use of Sold Products) [million metric tons]
Scope 3 Enterprise GHG emissions Category 11 (Use of Sold Products) intensity [million metric tons CO2e/thousand dollars of sales and revenues*]
Total water consumption [billion imperial gallons]
Total water consumption intensity [thousand gallons of water/million dollars of sales and revenues*]

Safety Indicators••

Lost Time Case Frequency Rate (LTCFR);
Recordable Injury Frequency rate (RIF) per 200,000 hours worked.

* We place reliance on the financial assurance conducted on dollars of sales and revenues as they are presented in the 2023 10-K filing.
Reporting periods
Reporting criteria

Assurance standard
and level ofassurance

Respective
responsibilities

Caterpillar Inc.

January 1, 2023 –December 31, 2023•••

WBCSD/WRI GHG Protocol: A Corporate Accounting Standard (2004, as updated January 2015)
The WBCSD/WRI GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard (2011)
Caterpillar’s Basis of Reporting

We performed a limited assurance engagement, in accordance with the International Standard on Assurance Engagements ISAE 3000 (Revised) ‘Assurance Engagements other than
Audits or Reviews of Historical Financial Information’ issued by the International Auditing and Assurance Standards Board.
The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent than for a reasonable assurance engagement and consequently,
the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement
been performed.
Caterpillar is responsible for preparing the Reports and for the collection and presentation of the information within it, and for the designing, implementing and maintaining of internal
controls relevant to the preparation and presentation of the Reports.
ERM CVS’ responsibility is to provide conclusions to Caterpillar on the agreed scope based on our engagement terms with Caterpillar, the assurance activities performed andexercising our professional judgement. We accept no responsibility, and deny any liability, to any party other than Caterpillar for the conclusions we have reached.

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Our conclusion
Based on our activities, as described below, nothing has come to our attention to indicate that the data for the disclosures listed under ‘Scope’ above are not fairly presented in the Reports, in all material respects, inaccordance with the reporting criteria.
Our assurance activities
Considering the level of assurance and our assessment of the risk of material misstatement of the Reports a multi-disciplinary team of sustainability and assurance specialists performed a range of procedures that
included, but was not restricted to, the following:•

Assessing the appropriateness of the reporting criteria for the Reports.

•

Interviewing relevant staff to understand and evaluate the relevant management systems and processes (including internal review and control processes) used for collecting and reporting the selectedenvironmental and safety disclosures.
Conducting a review at corporate level of a sample of qualitative and quantitative evidence supporting the reported information.
Performing an analytical review of the year-end data submitted by all locations included in the consolidated 2023 group data for the selected disclosures which included testing the completeness andmathematical accuracy of conversions and calculations, and consolidation in line with the stated reporting boundary.
Conducting virtual visits to four Caterpillar sites to review local reporting processes and consistency of reported annual data with selected underlying source data for select environmental and safety
indicators. We interviewed relevant staff, reviewed site data capture and reporting methods, checked calculations and assessed the local internal quality assurance processes.
Reviewing source data for significant contributing sites and products to each key corporate EHS metric (e.g. energy, water, hours worked) including a sample of invoices and local incident logs, among
others.
Confirming conversion and emission factors and assumptions used.

•
•
•
•
•

The limitations of our engagement
The reliability of the assured information is subject to inherent uncertainties, given the available methods for determining, calculating or estimating the underlying information. It is important to understand our
assurance conclusions in this context.
Our independence, integrity and quality control
ERM CVS is an independent certification and verification body accredited by UKAS to ISO 17021:2015. Accordingly we maintain a comprehensive system of quality control, including documented policies andprocedures regarding compliance with ethical requirements, professional standards, and applicable legal and regulatory requirements. Our quality management system is at least as demanding as the relevant
sections of ISQM-1 and ISQM-2 (2022).
ERM CVS applies a Code of Conduct and related policies to ensure that its employees maintain integrity, objectivity, professional competence and high ethical standards in their work. Our processes are designed
and implemented to ensure that the work we undertake is objective, impartial and free from bias and conflict of interest. Our certified management system covers independence and ethical requirements that are atleast as demanding as the relevant sections of the IESBA Code relating to assurance engagements.
ERM CVS has extensive experience in conducting assurance on environmental, social, ethical and health and safety information, systems and processes, and provides no consultancy related services to Caterpillar
in any respect.

Heather Moore
Partner, Corporate Assurance Services
Malvern, PA
April 1, 2024
ERM Certification & Verification Services Incorporated
www.ermcvs.com | post@ermcvs.com

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EXECUTIVE SUMMARYSUPPORTING A LOWER-CARBON FUTUREPRIORITIZATION &MANAGEMENT OF
ESG ISSUES
We have assessed and prioritized ESG topics by examining
the external industry landscape to understand evolving
trends and expectations of leading ESG standards,
frameworks and guidelines and aligning expectations with
Caterpillar’s enterprise strategies, risks and future plans.
We prioritized topics through interviews with Caterpillar
leadership, external research, third-party review, andbenchmarking of industry peers, including:•Potential impact the topic may have on
Caterpillar’s business•

Level of awareness and concern about the topic bybusiness stakeholders (e.g., customers, dealers,
suppliers, investors, nongovernmental organizations
and others)•

Degree to which Caterpillar has influence over the topic

Our final step was to select issues that were highest priority.
These issues guide our initiatives and decision making
throughout our global operations and are closely alignedwith topics covered by the SASB Industrial Machinery &Goods industry.
We continue to analyze and update these topics periodicallyas the ESG landscape and our business continue to evolve.

THE POWER OF EVERYONEOUR VALUES IN ACTIONREPORTINGISSUE

RELEVANCE

Customer Health & Safety

Our commitment to safety includes people who work in, on and around our products, from designing
products for safe operations to providing safety services for our customers.

Employee Health & Safety

The health and safety of our employees is an important focus at Caterpillar, and we relentlessly strive toensure our workforce returns home safely every day.

Human Capital Management

We attract and recruit the best talent to develop advanced technologies, meet customer needs, andgrow our business. The diverse thinking and decision-making of our people in an inclusive work
environment strengthens us and drives our progress.

Material Sourcing

We source raw materials and manufactured components from a global network of suppliers acrossbroad categories and technologies for aftermarket and production parts, approximately 27,000 suppliers
in total. Our Supplier Code of Conduct and supporting initiatives help us to responsibly source the raw
materials used to build our products.

Operations Energy & Efficiency

Operations within our manufacturing facilities are energy-intensive and account for most of our Scope 1
and 2 emissions.

Operations Waste

We strive to eliminate waste in our processes where possible and to recycle the materials that remain
to reduce materials sent to landfills around the world.

Operations Water

While less water intensive than some industries, we are focused on reducing water consumption andensuring good water management practices, particularly in areas determined to be the most at risk forwater scarcity or quality concerns.

Product Emissions &Energy Efficiency

Remanufacturing
Caterpillar Inc.

RETURNING PEOPLE HOME SAFELY

Caterpillar is committed and contributing to a reduced-carbon future. We continue to invest in new
products, technologies and services to help our customers achieve their climate-related objectives as
they build a better, more sustainable world.

Through our remanufacturing offerings, we help keep materials in circulation for continued use,
reducing waste, extending equipment life, and providing lower-cost options for our customers.
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SASB INDEX
TOPIC
Accounting Metrics

Energy Management

Employee
Health & Safety

Fuel Economy & Emissions

SASB CODE

Design & Services

RESPONSE/COMMENT

Number of units produced by product category

NumberSales data is provided in Caterpillar’s annual report to shareholders on
2023 Form 10-K

RT-IG-000.B

Number of employees

Number

113,200 global employees(1) Total energy consumed

Gigajoules (GJ)

Total energy consumed in GJ for 2023 is 19,465,000(2) Percentage grid electricity

%

88.9%

(3) Percentage renewable%

27.6%1(1) Total recordable incident rate (TRIR)

Rate

0.40

(2) Fatality rate

Rate

0 employee, 0 contractors(3) Near miss frequency rate (NMFR) for (a) direct
employees and (b) contract employees

Rate

Caterpillar emphasizes the importance of reviewing all work-related
environmental, health and safety incidents, including near misses.
Near misses are communicated and managed locally.

RT-IG-410a.1

Sales-weighted fleet fuel efficiency for mediumand heavy-duty vehicles

Litres per 100
tonnekilometres

RT-IG-410a.2

Sales-weighted fuel efficiency for nonroad
equipment

Litres per hour

RT-IG-410a.3

Sales-weighted fuel efficiency for stationary
generators

Kilojoules per litre

RT-IG-130a.1

RT-IG-320a.1

Sales-weighted emissions of: (1) nitrogen oxides(NOx) and (2) particulate matter (PM) for:
RT-IG-410a.4

Remanufacturing

UNIT OF MEASURE

RT-IG-000.A

in Use - Phase

Materials Sourcing

METRIC(a) marine diesel engines, (b) locomotive diesel
engines, (c) on-road medium- and heavy-duty
engines and (d) other non-road diesel engines

Grammes per kilojoule

Read more about our focus on product emissions in the Helping Our
Customers Build a Better, More Sustainable World section of the report.
Given the diversity of our products and applications in which our
products are used, as well as the lack of industry standards to estimate
on a per unit of work basis, Caterpillar does not calculate sales-weighted
fuel efficiency or emissions in this manner.

RT-IG-440a.1

Description of the management of risks
associated with the use of critical materials

N/A

Caterpillar responsibly sources the raw materials used to build our
products. Please see the Responsible Sourcing section of this report.

RT-IG-440b.1

Revenue from remanufactured products andremanufacturing services

Presentation currency

31% increase in sales and revenues from remanufactured products
from 20182

1 Renewable sources includes purchased and on-site generated renewable energy, and the renewable energy from grid-purchased electricity.
2 Data includes remanufacturing offerings provided by Cat Reman, Progress Rail, Solar Turbines, Caterpillar Energy Solutions and Caterpillar Defense.

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THE POWER OF EVERYONEOUR VALUES IN ACTIONREPORTINGGRI INDEX
GENERAL DISCLOSURESDISCLOSURE NUMBERDISCLOSURE

LOCATION/RESPONSE

GRI 2: GENERAL DISCLOSURES 2021
THE ORGANIZATION AND ITS REPORTING
2-1

Organizational details: Legal name and location of headquarters

Caterpillar Inc.
Irving, Texas, USA

2-2

Entities included in the organization’s sustainability reporting:
List all its entities discussed in sustainability reporting

2023 Form 10-K, pgs. 1-9

2-3

Reporting period, frequency and contact point: Specify the reporting period for
its financial reporting, if it does not align with the period explain reason and add
a point of contact

Annually
Year end: December 31, 2023
CATir@CAT.com

2-4

Restatements of information: Reason and effect of restatements, restatementof information when it has learned that the previously reported informationneeds to be revised

Restatements are noted as footnotes in the ESG Data table in the Reporting section of this report.

2-5

External assurance: Describe its policy and practice for seeking external
assurance, including whether and how the highest governance body and senior
executives are involved

ERM Certification and Verification Services, Inc. (ERM CVS) was engaged by Caterpillar Inc.
to provide assurance in relation to the information presented in the Caterpillar 2023
Sustainability Report.

2-6

Activities, value chain and other business relationships: Describe value chain

2023 Form 10-K, pgs. 6-7

2-7

Employees: Total number of employees, and a breakdown of this total by genderand by region

2023 Sustainability Report>Reporting>ESG Data>People
Caterpillar D&I Report

2-8Workers who are not employees: Total number of workers who are not
employees and whose work is controlled by the organization

Based on HRIS data available, 12,610 workers who are not employees may perform work activity at
the direction of Caterpillar personnel.

ACTIVITIES AND WORKERS

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GENERAL DISCLOSURESDISCLOSURE NUMBERDISCLOSURE

LOCATION/RESPONSE

GRI 2: GENERAL DISCLOSURES 2021
GOVERNANCE
2-9

Governance structure and composition: Describe the governance structure, list
the committees of the highest governance body that are responsible for decision- 2024 Proxy Statement>Board Election & Leadership Structure, p. 26
making on and overseeing the management of the organization’s impacts on the2024 Proxy Statement>Board Committees, p. 28
economy, environment and people

2-10

Nomination and selection of the highest governance body: Describe the criteria
used for nominating and selecting highest governance body members, views of
stakeholders, diversity, independence and competencies relevant to the impactsof the organization

2-11

Chair of the highest governance body: Report whether the chair of the highest
governance body is also a senior executive in the organization, explain their2024 Proxy Statement>Board Election & Leadership Structure, p. 26
function within the organization’s management, the reasons for this arrangement,
and how conflicts of interest are prevented and mitigated

2-12

Role of the highest governance body in overseeing the management of impacts:
Describe the role of the highest governance body and of senior executives indeveloping, approving, and updating the organization’s purpose, value or mission
statements, strategies, policies and goals related to sustainable development

2024 Proxy Statement>Board’s Role in Risk Oversight, p. 12

2-13Delegation of responsibility for managing impacts: Describe how the highest
governance body delegates responsibility for managing the organization’s
impacts on the economy, environment and people

2024 Proxy Statement>Board Committees, p. 28

2-14

Role of the highest governance body in sustainability reporting: Responsible forreviewing and approving the reported information, including the organization’smaterial topics. Describe the process for reviewing and approving

2024 Proxy Statement>Board Committees, p. 28

2-15

Conflicts of interest: Processes to ensure that conflicts of interest are prevented
and mitigated

2-16

Communication of critical concerns: How concerns are communicated to thehighest governance body, report the total number and the nature of criticalconcerns during the reporting period

Caterpillar Inc.

2024 Proxy Statement>Director Nominations and Evaluations, p. 132024 Proxy Statement>Anonymous Reporting of Accounting and Other Concerns, p. 35
Caterpillar’s Code of Conduct, p. 82024 Proxy Statement>Communication with the Board, p. 30

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GENERAL DISCLOSURESDISCLOSURE NUMBERDISCLOSURE

LOCATION/RESPONSE

GRI 2: GENERAL DISCLOSURES 2021
GOVERNANCE (CONT.)
2-17

Collective knowledge of the highest governance body: Measures taken toadvance collective knowledge and skills for the highest governance body onsustainable development

2-18

Evaluation of the performance of the highest governance body: Overseeing
the management of the organization’s impacts on the economy, environment
and people

2024 Proxy Statement>Director Nominations and Evaluations, p. 13

2-19

Remuneration policies: Describe how the remuneration policies for members of
the highest governance body and senior executives relate to their objectives andperformance in relation to the management of the organization’s impacts on theeconomy, environment and people

2024 Proxy Statement>Director Compensation, p. 24

2-20

Process to determine remuneration: Process for designing its remuneration
policies and for determining remuneration

2024 Proxy Statement>Compensation Discussion and Analysis, p. 38

2-21

Annual total compensation ratio: Ratio of the annual total compensation for theorganization’s highest-paid individual to the median annual total compensation
for all employees, ratio of the percentage increase2024 Proxy Statement>CEO Pay Ratio, p. 61

Caterpillar Inc.

2024 Proxy Statement>Diversity of Skills and Expertise, p. 102024 Proxy Statement>Director Continuous Education and Development, p. 122023 Sustainability Report

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GENERAL DISCLOSURESDISCLOSURE NUMBERDISCLOSURE

LOCATION/RESPONSE

GRI 2: GENERAL DISCLOSURES 2021
STRATEGY, POLICIES AND PRACTICES
2-22

Statement on sustainable development strategy: CEO Letter or message

2023 Sustainability Report>Executive Summary>Chairman & CEO Letter
Examples of relevant policies, include:
Caterpillar Worldwide Code of Conduct
Climate and Energy Statement

2-23

Policy commitments: List of all policy commitments for business conduct

Supplier Code of Conduct
Human Rights Policy
Slavery and Human Trafficking Statement
Global Data Privacy Statement
Conflict Minerals Statement and Compliance2023 Sustainability Report>Executive Summary

2-24

Embedding policy commitments: How is it allocated or integrated responsibility
to the commitments across different levels within the organization

2023 Sustainability Report>Supporting a Lower-Carbon Future2023 Sustainability Report>Our Values in Action>Strategic Procurement and Responsible Sourcing
2023 Sustainability Report>Our Values in Action>Human Rights

2-25

Processes to remediate negative impacts: Identify and address grievances

2023 Sustainability Report>Our Values in Action>Ethics & Integrity

2-26

Mechanisms for seeking advice and raising concerns: Process in raisingconcerns about the organization's code of conduct

2023 Sustainability Report>Our Values in Action>Ethics & Integrity

2-27

Compliance with laws and regulations: Report the total number of
non-compliance instances with laws and regulations

2023 Form 10-K>Environmental and Legal Matters p. 9

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GENERAL DISCLOSURESDISCLOSURE NUMBERDISCLOSURE

LOCATION/RESPONSE

GRI 2: GENERAL DISCLOSURES 2021
STRATEGY, POLICIES AND PRACTICES
2-28

Membership associations: List of membership associations

Memberships include those identified in 2023 Lobbying Report, p. 10.

STAKEHOLDER ENGAGEMENT
2023 Sustainability Report>Our Values in Action>Shareholder Engagement
2-29

2-30

Approach to stakeholder engagement: Describe how to engage and identify
stakeholders

Collective bargaining agreements: How the organization engages in collective
bargaining with its employees

2023 Sustainability Report>The Power of Everyone>Employee Experience
2023 Sustainability Report>Supporting a Lower-Carbon Future>Helping Our Customers Build a
Better, More Sustainable World
We respect the right of our employees to form, join or not to join any lawful organization of theirchoice without fear of reprisal, interference, intimidation or harassment. We believe it is importantfor individuals to exercise that right with the benefit of available information.
2023 Sustainability Report>Reporting>ESG Data

GRI 3: MATERIAL TOPICS 2021
GRI 3: MATERIAL TOPICS
3-1

Process to determine material topics: Process in how to determinematerial topics

2023 Sustainability Report>Reporting>Prioritization & Management of ESG Issues

3-2

List of material topics: List of organizations material topics, i.e. Materiality Matrix

2023 Sustainability Report>Reporting>Prioritization & Management of ESG Issues

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GENERAL DISCLOSURESDISCLOSURE NUMBERDISCLOSURE

LOCATION/RESPONSE

3-3

Management of material topic

2023 Sustainability Report>Supporting a Lower-Carbon Future>Supporting a Circular Economy

301-2

Recycled input materials used: Percentage of recycled input materials used for
products and services

2023 Sustainability Report>Supporting a Lower-Carbon Future>Supporting a Circular Economy

301-3

Reclaimed products and their packaging materials: Percentage of reclaimed
products and their packaging materials

2023 Sustainability Report>Reporting>ESG Data>Remanufacturing

3-3Management of material topic

2023 Sustainability Report>Supporting a Lower-Carbon Future

302-1

Energy consumption within the organization: Total fuel consumption within theorganization from non-renewable and renewable sources

2023 Sustainability Report>Reporting>ESG Data>Energy-Operations

302-2

Energy consumption outside of the organization: Upstream and downstream
2023 Sustainability Report>Supporting a Lower-Carbon Future>Carbon in Our Value
categories and activities from the ‘GHG Protocol Corporate Value Chain (Scope 3) Chain>Understanding Our Scope 3 Emissions

302-3

Energy intensity: Types of energy included in the intensity ratio; whether fuel,electricity, heating, cooling, steam or all

2023 Sustainability Report>Reporting>ESG Data>Energy-Operations

302-4

Reduction of energy consumption: Reductions in energy consumption achieved
as a direct result of conservation and efficiency initiatives

2023 Sustainability Report>Executive Summary>2030 Goals & Progress

302-5

Reductions in energy requirements of products and services: Example, theenergy requirements of a car or a computer

2023 Sustainability Report>Executive Summary>2030 Goals & Progress

GRI 300: ENVIRONMENTAL
GRI 301: MATERIALSGRI 302: ENERGY

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RETURNING PEOPLE HOME SAFELY

THE POWER OF EVERYONEOUR VALUES IN ACTIONREPORTINGGRI INDEX
GENERAL DISCLOSURESDISCLOSURE NUMBERDISCLOSURE

LOCATION/RESPONSE

GRI 300: ENVIRONMENTAL
GRI 303: WATER AND EFFLUENTS
2023 Sustainability Report>Executive Summary>2030 Goals & Progress
2023 Sustainability Report>Supporting a Lower-Carbon Future>Carbon in Our Value Chain
While our manufacturing operations are not as water-intensive as those of other industries, wenonetheless recognize the far-reaching economic, social and environmental implications that water
scarcity may have in the future — and are taking steps to reduce our consumption.
3-3Management of material topic

We continue to implement conservation strategies to:• Reduce water use in our operations• Explore water-treatment technologies• Introduce water-recycling processes• Train employees about water resources to raise their awareness of the issue
Around the world, Caterpillar facilities implement water management strategies, with increased
emphasis in areas of water scarcity aligned with our 2030 goal.

303-1

Interactions with water as a shared resource: Interactions with water,
how and where water is withdrawn, consumed, and discharged and thewater-related impacts

2023 Sustainability Report>Executive Summary>2030 Goals & Progress
2023 Sustainability Report>Supporting a Lower-Carbon Future>Carbon in Our Value Chain
2023 Sustainability Report>Beyond Caterpillar: Investing In Communities> Diversity & Inclusion

303-3

Water withdrawal: Surface water; Groundwater; Seawater; Produced water;
Third-party water2023 Sustainability Report>Reporting>ESG Data>Water-Operations

303-5

Water consumption: Water consumption measures water used by anorganization such that it is no longer available for use by the ecosystem or
local community

2023 Sustainability Report>Reporting>ESG Data>Water-Operations

Caterpillar Inc.

2023 Sustainability Report

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EXECUTIVE SUMMARYSUPPORTING A LOWER-CARBON FUTURE

RETURNING PEOPLE HOME SAFELY

THE POWER OF EVERYONEOUR VALUES IN ACTIONREPORTINGGRI INDEX
GENERAL DISCLOSURESDISCLOSURE NUMBERDISCLOSURE

LOCATION/RESPONSE

GRI 300: ENVIRONMENTAL
GRI 305: EMISSIONS
2023 Sustainability Report>Supporting a Lower-Carbon Future

3-3Management of material topic

305-1

Direct (Scope 1) GHG emissions

2023 Sustainability Report>Supporting a Lower-Carbon Future>Carbon in Our Value Chain

305-2

Energy indirect (Scope 2) GHG emissions

2023 Sustainability Report>Supporting a Lower-Carbon Future>Carbon in Our Value Chain

305-3

Other indirect (Scope 3) GHG emissions

2023 Sustainability Report>Supporting a Lower-Carbon Future>Carbon in Our Value
Chain>Understanding Our Scope 3 Emissions

305-4

GHG emissions intensity: Types of GHG emissions included in the intensity ratio;
whether direct (Scope 1), energy indirect (Scope 2) and/or other indirect (Scope 3)

305-5

Reduction of GHG emissions: Scopes in which reductions took place; whether
direct (Scope 1), energy indirect (Scope 2) and/or other indirect (Scope 3)

Caterpillar Inc.

2023 Sustainability Report>Executive Summary>2030 Goals & Progress

2023 Sustainability Report>Reporting>ESG Data>Energy-Operations
2023 Sustainability Report>Reporting>ESG Data>Product2023 Sustainability Report>Reporting>ESG Data>Energy-Operations
2023 Sustainability Report>Supporting a Lower-Carbon Future2023 Sustainability Report>Executive Summary>2030 Goals & Progress

2023 Sustainability Report

62

EXECUTIVE SUMMARYSUPPORTING A LOWER-CARBON FUTURE

RETURNING PEOPLE HOME SAFELY

THE POWER OF EVERYONEOUR VALUES IN ACTIONREPORTINGGRI INDEX
GENERAL DISCLOSURESDISCLOSURE NUMBERDISCLOSURE

LOCATION/RESPONSE

GRI 300: ENVIRONMENTAL
GRI 306: WASTE
2023 Sustainability Report>Supporting a Lower-Carbon Future> Carbon in Our Value Chain
3-3

Management of material topic

2023 Sustainability Report>Supporting a Lower-Carbon Future>Supporting a Circular Economy
2023 Sustainability Report>Executive Summary>2030 Goals & Progress

306-1

Waste generation and significant waste-related impacts: Impacts relate to waste
generated in the organization’s own activities or to waste generated upstream or
downstream in its value chain. Types of inputs and outputs can include raw
2023 Sustainability Report>Supporting a Lower-Carbon Future>Supporting a Circular Economy
materials, process and manufacturing materials, leaks and losses, waste,by-products, products or packaging

306-2

Management of significant waste-related impacts: Circularity measures, taken to 2023 Sustainability Report>Supporting a Lower-Carbon Future> Carbon in Our Value Chain
prevent waste generation in the organization’s own activities and upstream and2023 Sustainability Report>Supporting a Lower-Carbon Future>Supporting a Circular Economy
downstream in its value chain

306-3

Waste generated

2023 Sustainability Report>Reporting>ESG Data>Waste-Operations

306-4

Waste diverted from disposal

2023 Sustainability Report>Reporting>ESG Data>Waste-Operations

306-5

Waste directed to disposal

2023 Sustainability Report>Reporting>ESG Data>Waste-Operations

GRI 400: SOCIALGRI 401: EMPLOYMENT
2023 Sustainability Report>Reporting>Prioritization & Management of ESG Issues

3-3Management of material topic

401-2

Benefits provided to full-time employees that are not provided to temporary or
part-time employees

2023 Sustainability Report>The Power of Everyone>Health & Well-Being

401-3

Parental leave

2023 Sustainability Report>The Power of Everyone>Health & Well-Being

Caterpillar Inc.

2023 Sustainability Report>The Power of Everyone

2023 Sustainability Report

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EXECUTIVE SUMMARYSUPPORTING A LOWER-CARBON FUTURE

RETURNING PEOPLE HOME SAFELY

THE POWER OF EVERYONEOUR VALUES IN ACTIONREPORTINGGRI INDEX
GENERAL DISCLOSURESDISCLOSURE NUMBERDISCLOSURE

LOCATION/RESPONSE

GRI 400: SOCIALGRI 403: OCCUPATIONAL HEALTH AND SAFETY
3-3

Management of material topic

2023 Sustainability Report>Returning People Home Safely
2023 Sustainability Report>Returning People Home Safely

403-1

Occupational health and safety management system: A description of the scopeof workers, activities, and workplaces covered by the occupational health andsafety management system, and an explanation of whether and, if so, why any
workers, activities or workplaces are not covered

403-2

Hazard identification, risk assessment, and incident investigation: A descriptionof the processes for workers to report work-related hazards and hazardous
situations, and an explanation of how workers are protected against reprisals

2023 Sustainability Report>Returning People Home Safely

403-3

Occupational health services: A description of the occupational health services’
functions that contribute to the identification and elimination of hazards andminimization of risks

2023 Sustainability Report>Returning People Home Safely

403-4

Worker participation, consultation, and communication on occupational health and2023 Sustainability Report>Returning People Home Safely
safety: Participation in the occupational health and safety management system

403-5

Worker training on occupational health and safety: Occupational health andsafety training provided to workers

403-6

Promotion of worker health: How the organization maintains the confidentiality of
Employee Assistance Program
workers’ personal health-related information

403-7

Prevention and mitigation of occupational health and safety impacts directly
linked by business relationships: A description of the organization’s approach topreventing or mitigating significant negative occupational health and safety
impacts that are directly linked to its operations, products or services

403-8

Workers covered by an occupational health and safety management system: The
100% of Caterpillar employees and workers at Caterpillar who are not employees but whose
number and percentage of all employees and workers who are not employees but
workplace is directed by Caterpillar are covered by an occupational health and safety
whose work and/or workplace is controlled by the organization, who are covered
management system.
by such a system

403-9Work-related injuries

2023 Sustainability Report>Reporting>ESG Data>People Data403-10Work-related ill health2023 Sustainability Report>Reporting>ESG Data>People Data

Caterpillar Inc.

2023 Sustainability Report>Supporting a Lower-Carbon Future>Carbon in Our Value
Chain>EHS Management System

2023 Sustainability Report>Returning People Home Safely

2023 Sustainability Report>Returning People Home Safely

2023 Sustainability Report64

EXECUTIVE SUMMARYSUPPORTING A LOWER-CARBON FUTURE

RETURNING PEOPLE HOME SAFELY

THE POWER OF EVERYONEOUR VALUES IN ACTIONREPORTINGGRI INDEX
GENERAL DISCLOSURESDISCLOSURE NUMBERDISCLOSURE

LOCATION/RESPONSE

GRI 400: SOCIALGRI 404: TRAINING AND EDUCATION
3-3

Management of material topic

2023 Sustainability Report>The Power of Everyone>Developing Our People

404-2

Programs for upgrading employee skills and transition assistance programs:
Programs implemented and assistance provided to upgrade employee skills

2023 Sustainability Report>The Power of Everyone>Developing Our People

404-3

Our talent processes guide us to provide 100% of employees with performance and development
Percentage of employees receiving regular performance and career development feedback informally and/or formally, throughout the course of the year. In addition to receiving
reviews: Percentage of total employees by gender and by employee category
performance feedback from leaders and/or colleagues, employees are encouraged to share
who received a regular performance and career development review during theperformance feedback as well. Employees use performance feedback as one of the inputs toreporting period
inform career and development conversations, which they’re encouraged to have on an ongoingbasis with their leaders.

GRI 416: CUSTOMER HEALTH AND SAFETY
3-3

Management of material topic

2023 Sustainability Report>Returning People Home Safely>Helping Customers Return Home Safely

416-1

Assessment of the health and safety impacts of product and service categories:
Efforts to address health and safety across the life cycle of a product or service

2023 Sustainability Report>Returning People Home Safely>Helping Customers Return Home Safely

Caterpillar Inc.

2023 Sustainability Report

65

EXECUTIVE SUMMARYSUPPORTING A LOWER-CARBON FUTUREFORWARD-LOOKING
STATEMENTS
Certain statements in this press release relate tofuture events and expectations and are forwardlooking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Words suchas “believe,” “estimate,” “will be,” “will,” “would,”“expect,” “anticipate,” “plan,” “forecast,” “target,”“guide,” “project,” “intend,” “could,” “should” orother similar words or expressions often identify
forward-looking statements. All statements otherthan statements of historical fact are forward-looking
statements, including, without limitation, statements
regarding our outlook, projections, forecasts or trend
descriptions. These statements do not guarantee
future performance and speak only as of the date they
are made, and we do not undertake to update ourforward-looking statements.

Cat 908 Compact Wheel Loader

RETURNING PEOPLE HOME SAFELY

THE POWER OF EVERYONE

Caterpillar’s actual results may differ materially from thosedescribed or implied in our forward-looking statements
based on a number of factors, including, but not limited to:(i) global and regional economic conditions and economic
conditions in the industries we serve; (ii) commodity pricechanges, material price increases, fluctuations in demandfor our products or significant shortages of material; (iii)
government monetary or fiscal policies; (iv) political andeconomic risks, commercial instability and events beyond ourcontrol in the countries in which we operate; (v) international
trade policies and their impact on demand for our products
and our competitive position, including the imposition of
new tariffs or changes in existing tariff rates; (vi) our ability todevelop, produce and market quality products that meet ourcustomers’ needs; (vii) the impact of the highly competitiveenvironment in which we operate on our sales and pricing;(viii) information technology security threats and computer
crime; (ix) inventory management decisions and sourcing
practices of our dealers and our OEM customers; (x) a failure
to realize, or a delay in realizing, all of the anticipated benefitsof our acquisitions, joint ventures or divestitures; (xi) union
disputes or other employee relations issues; (xii) adverse
effects of unexpected events; (xiii) disruptions or volatility in

OUR VALUES IN ACTIONREPORTING

global financial markets limiting our sources of liquidity or
the liquidity of our customers, dealers and suppliers; (xiv)failure to maintain our credit ratings and potential resulting
increases to our cost of borrowing and adverse effects on
our cost of funds, liquidity, competitive position and accessto capital markets; (xv) our Financial Products segment’s
risks associated with the financial services industry; (xvi)changes in interest rates or market liquidity conditions; (xvii)
an increase in delinquencies, repossessions or net losses of
Cat Financial’s customers; (xviii) currency fluctuations; (xix)
our or Cat Financial’s compliance with financial and otherrestrictive covenants in debt agreements; (xx) increased
pension plan funding obligations; (xxi) alleged or actual
violations of trade or anti-corruption laws and regulations;(xxii) additional tax expense or exposure, including the impactof U.S. tax reform; (xxiii) significant legal proceedings, claims,
lawsuits or government investigations; (xxiv) new regulations
or changes in financial services regulations; (xxv) compliancewith environmental laws and regulations; (xxvi) catastrophic
events, including global pandemics such as the COVID-19
pandemic; and (xxvii) other factors described in more detailin Caterpillar’s Forms 10-Q, 10-K and other filings with the
Securities and Exchange Commission.

2023 Sustainability Report66

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