THE
POWER
OF
EVERYONE.
BUILDING A BETTER WORLD
Caterpillar Diversity and Inclusion Report

MARCH 2021

CONTENTS
Our Why
A Message from our Chairman and Chief Executive Officer
United by Our Values
One Global TeamOur RepresentationB oard of Directors and Executive Office
U.S. Employee Representation
Gender Representation

Our Actions
	Developing Future Generations of Women For STEM Careers
Doing The Work That Matters
Cultivating an Inclusive Environment Through Learning
Employee Resource Groups
Working with Our Partners
Caterpillar Foundation – Together, We Are Stronger

Our Partners
Our Commitment

1Our Why

Our Representation

Our Actions

Our Partners

Our Commitment

WHY DIVERSITY AND
INCLUSION MATTERAT CATERPILLAR

A message from
our Chairman andChief Executive Officer
At Caterpillar, we are proud of our 95-year history of facing and overcoming challenges. We celebrate
our global, diverse team that has built our company through hard work, innovation and an unwavering
focus on helping our customers succeed.
Our first Caterpillar Global Diversity and Inclusion Report describes our journey to build a moreglobally diverse workforce and inclusive environment to support our employees and the communities
where we live and work. We value diverse perspectives and strive to ensure our global team reflects
the many communities and customers we serve around the world. Caterpillar welcomes people of allraces, ethnic groups, genders, religions, national origins, ages, sexual orientations, levels of ability
and veteran statuses.
The report includes data and insights into our U.S. racial diversity as well as our global gender diversity,and describes our journey to build a workplace where everyone can succeed.
Our commitment to diversity and inclusion starts at the top. We are proud of our progress in the diversityof our Board of Directors and executive leadership team and our programs that foster an inclusive
environment and fuel innovation.
We understand meaningful work remains. Caterpillar faces every challenge with one simple response:
let’s do the work! We are committed to doing the important work of improving diversity at every levelof our business to create positive and sustainable progress by leveraging our employees uniquebackgrounds and experiences.
Our increasingly diverse global team’s capabilities and commitment make me confident Caterpillar’s
best years lie ahead.
– Jim Umpleby

Chairman and Chief Executive Officer

Women in Leadership Conference
Jim Umpleby, Chairman and Chief Executive Officer
Cheryl Johnson, Chief Human Resources Officer

Notable Milestones

2

2002

2004

2006

2008

2014

2015

2016

2019

2020

Caterpillar African
American Network ERG

Our Values In Action

Latino Connection,
Women’s Network,
Lambda Network,
ERGs

Diversity Champions,First Senior Leader
Diversity Summit

First Women in
Leadership Caterpillar
Dealer Conference

Safe Space Program,
Women in Leadership Program

Men as Allies Program,First Annual
D&I Award

Power ofEveryone Campaign

OneTenFounding MemberOur Why

Our Representation

UNITED BY
OUR VALUES
Caterpillar has long drawn on the diversity of its
people as a source of innovation and competitive
advantage. We are proud that our people comefrom across the globe, with diverse backgrounds,
experiences and perspectives. Despite ourdifferences – in geography, culture, language andbusiness – we are one Caterpillar, one company
united by these common principles with a sharedcommitment to the highest standards of conduct.

Our Actions

Our Partners

Our Commitment

OUR
DIFFERENCES
MAKE USSTRONGER

We are committed to our purpose: Helping ourcustomers build a better world. Our diversity
and inclusion principles are embedded in
Our Values In Action, which define what westand for and how we conduct ourselves withour customers, partners and one another.
We are a team that shares our unique talents to
help those with whom we work, live and serve.
The diverse thinking and decision making of ourpeople strengthens us. We respect and value
people with different opinions, experiences andbackgrounds. We know that by working together,
we can produce better results than any of us canachieve alone. The full value of each individual’scontribution can be realized only when we treat
one another with the respect, trust and dignity
we ourselves expect. Caterpillar insists on a work
environment free of intimidation and harassment.
As individual employees, we have the right toexpect a positive working environment, alongwith the responsibility to speak out and ask
for change if we observe conduct that runs
contrary to our principles. We build and maintaina productive, motivated workforce by treating
all employees fairly and equitably.

OUR VALUES IN ACTION

INTEGRITY
The Power of Honesty

EXCELLENCE
The Power of Quality

TEAMWORKThe Power of Working Together

COMMITMENT
The Power of Responsibility“Caterpillar has a well-earned reputation for the best products
and services; our global team of diverse and dedicatedemployees protects our reputation and our future by living
Our Values In Action and winning the right way.”– Suzette Long

Chief Legal Officer and General Counsel

SUSTAINABILITY
The Power of Endurance

21
YEARS
3

Dow Jones Sustainability Indices, World and North America

Our Why

Our Actions

Our Representation

Our Partners

Our Commitment

ONE GLOBAL TEAM

76

97,300 Employees

DIFFERENTLANGUAGES

North America

42%

Latin America

66

COUNTRIES

Europe,Africa,Middle East,
Eurasia18%

22%

Asia-Pacific

17%

150

LOCATIONS

1.8 % OTHER*Percentages represent employees per region
4

Our Why

Our Representation

Our Actions

Our Partners

Our Commitment

OUR BOARD OF DIRECTORSAND EXECUTIVE OFFICEINDEPENDENT DIRECTORS OF THE BOARD

55%
4

WOMEN
AND/ORRACIALLY
DIVERSEINDEPENDENT DIRECTORS ADDED SINCE JANUARY 2015

ARE WOMEN OR RACIALLY DIVERSECEO DIRECT REPORTS

63%
63%
2020

5

WOMEN
AND/ORRACIALLY
DIVERSEWOMEN AND/OR RACIALLY DIVERSE
DIRECT REPORTS TO THE CEOFROM ZERO SINCE JANUARY 2015

America’s Best Employers for Diversity – Forbes Magazine

Our Why

Our Representation

Our Actions

Our Partners

Our Commitment

U.S. EMPLOYEE REPRESENTATIONEXECUTIVES
88%

6%

2% 3%

50%

MANAGERS AND PROFESSIONALS
79%

10%

4%

OF EMPLOYEESUNDER AGE 35
ARE WOMEN AND/OR
RACIALLY DIVERSE*22% RACIALLY DIVERSE MEN, 16% WHITE WOMEN,
12% RACIALLY DIVERSE WOMEN

6%PRODUCTION
66%

2%

13%

19%

57%

TOTAL U.S. WORKFORCE
73%

6%

11%

100%

WHITE

ASIAN

BLACK

LATINXOTHER*Additional racial or ethnic groups comprise <1% of our employees.
AS OF DECEMBER 2020

Caterpillar 2020 EE01 Report6*26% RACIALLY DIVERSE MEN, 16% WHITE WOMEN,
15% RACIALLY DIVERSE WOMEN

9%

50%

OF EMPLOYEES WHO WERE
HIRED IN THE PAST 3 YEARS
ARE WOMEN AND/OR
RACIALLY DIVERSE

7%

VETERANS3%PERSONS WITHDISABILITIESOur Why

Our Representation

Our Actions

GENDERREPRESENTATION
Since 2015, our global representation of women has
increased to 20% from 18%, while the representation of
women in leadership roles* has increased to 20% from
16%. We remain committed to achieving our aspirational
goal of 29% global representation and 25% women in
leadership roles.

Our Partners

Our Commitment

TOTAL GLOBAL WORKFORCEPRODUCTION

MANAGERS / PROFESSIONALSEXECUTIVES

%
20
WOMEN

%
16
WOMEN

WOMEN

27%

%
19
WOMEN

Women represented in professional roles within our Legal,
Finance and Human Resources corporate functions combined
is 61%. We have also made important strides in technicalroles in logistics, procurement, digital and IT where we areclose to or exceed 30% female representation.
We continue to focus on improving representation in our
manufacturing, sales, product support and engineeringfunctions. We will achieve this through our ongoingcommitment to providing development and career
opportunities to retain our current talent. To help us attractand hire more women, we will also continue to foster our
long-standing strategic partnerships with organizations likethe Society of Women Engineers.
Supporting women with programs, role models, mentors andpeers, are all ways that we are working to help attract andretain talent at Caterpillar. We provide a wide array ofhealth, wellness and support programs that address thefull employee life cycle, from early career to retirement.
Our Women’s Initiative Network is an integral part of that
support system. It has more than 75 chapters globally, andhas experienced a 200% growth in the last 5 years. Their
active involvement in the networking, mentorship and crucial
professional development is an important element of what
helps drive success in the development and retention of
our female workforce.
* Women in leadership roles defined as women who havedirect reports

7

GENDER DIVERSITY ACROSS FUNCTIONS
MEN

WOMEN

WOMEN
EXECUTIVESFINANCE, HR, LEGAL61%

LOGISTICS

37 %

7%

PURCHASING

30 %INFORMATIONANALYTICS

30 %DIGITAL

28 %INFORMATIONTECHNOLOGY

27 %SALES/PROD SUPPORTMARKETING

22 %OPERATIONS/MANUFACTURING

18 %ENGINEERING

11%

5 -YEAR AVERAGEGROWTH RATE

2020

Best Employers for Women – Forbes

Our Why

Our Representation

Our Actions

Our Partners

Our Commitment

DEVELOPING FUTURE
GENERATIONS OF WOMENFOR STEM CAREERS
Research shows that early exposure to STEM activities helps shape children’s attitudes and influences theircareer choices. We not only think about today’s talent pipeline, but we also are actively engaged in preparing
the next generation for important STEM careers. Our commitment extends beyond Caterpillar’s four walls andinto the communities where our employees, partners and customers live and work. We provide global informal
learning environments that expose girls to a variety of STEM career options to cultivate their interest, increase
their math and science literacy, inspire critical thinking and fuel the next generation of women innovators.

Our female leaders
Empower Women in STEM
Prathima Gollapudi is a senior design engineer who was the only female engineer on
her immediate team when she joined Caterpillar in 2006. That’s no longer the case as
she takes an active role in inspiring other women to enter STEM professions. She is
the professional development chair for the Society of Women Engineers in Tucson,
Arizona, U.S., and a Caterpillar liaison for Junior Achievement, a global non-profit
that fosters work-readiness, entrepreneurship and financial literacy skills.

Girls Experience Mining Day
at Tinaja Hills Demonstration &Learning Center. High school girls
from underserved schools in
Tucson, Arizona, U.S., learned
about the wide variety of career
opportunities in the mining
industry. The event focused onCat® equipment demonstrations
and showed how STEM skills
are used to resolve miningrelated challenges.

“Being equipped with the basics of mathematics, engineering and sciences
have constantly given me an edge while translating the customer needs
into the technical specifications needed to define and set the new design
and manufacturing parameters. We cannot afford to exclude any genderin this quest for a better tomorrow.”

The Wee Caterpillar programin Northern Ireland encourages
interest in STEM careers. Students“suit up” for a day at our facility,
where they are led by female
leaders and see women intechnical roles.

“Our teams are passionate about STEM outreach. In 2020, nearly 1,000 Caterpillar
engineers – male and female – volunteered for K-12 STEM activities like FIRST Lego
League and FIRST Robotics, as well as student outreach activities through professional
associations. Exposing young people to the possibilities, mentors and excitement in
STEM careers, particularly girls, leads them to discover their interest in STEM
fields and to visualize themselves as future engineers.”– Prathima Gollapudi
Senior Design Engineer

The Engine Systems &Controls Development teamat Bangalore, India, facility
hosts students teaching themhow STEM skills can be appliedin product development. Examples
in use of augmented reality inperforming virtual product design
validation helps tie the virtualand physical worlds together
using 21st century skills.

– Lou Balmer-Millar

General Manager, Engineering

John Do

8

Our Why

Our Representation

Our Actions

Our Partners

Our Commitment

DOING THE WORKTHAT MATTERS
Investing in Working Smarter
At Caterpillar, our employees do work that matters. We have been transforming how wework, to simplify employees’ routine tasks and amplify their ability to manage their careers.
This includes investments that provide our employees a more contemporary work environment, creates transparency in opportunities and gives them the platform to display
their skills. Our approach allows employees to continually learn. Intentional assignments
to broaden functional and technical skills, formal development programs, on-demandlearning, and leadership competencies are essential for the future.

Acquiring Talent
Maintaining our competitive advantage requires us to attract, recruit and retain individuals
from the widest talent pool possible. At Caterpillar, we are focused on expanding our global
diverse candidate pools at all levels of our organization. Our talent initiatives are aimed at
improving the internal pipeline of diverse and underrepresented talent through intentional
development and learning opportunities that positively impact retention. We have expanded
our reach into talent markets that strengthen our pipeline’s diversity through strategic talentsourcing enabled by technology. We are creating engaging, personalized experiences toattract top talent.
We are proliferating the use of diverse interview and selection teams to help provide
a comprehensive perspective on the candidate’s experience and skills in support of objective
selection. As an added benefit, our candidates receive a more well-rounded view of ourorganization and have a better overall perception of Caterpillar. We also partner with
not-for-profit organizations teaching and coaching potential candidates on interviewing skills
as we contribute to developing the communities around us.

“It’s important as leaders that we focus on building the best team, and that means we haveto be more intentional about how we strengthen our talent pipeline. We are expanding theuse of diverse candidate slates and diverse interview panels to gather an array of opinions
that helps us get the best outcomes when selecting a candidate. Having a diverse, highperforming team results in broader perspectives, different ideas and improved decision
making. That’s how we bring value to our customers and help them build a better world.”– Denise Johnson

Group President, Resource Industries

9Our Why

Our Representation

Our Actions

Our Partners

Our Commitment

DOING THE WORK THAT MATTERS
Leveraging Strategic Talent Partnerships
We intentionally leverage a variety of both internal and external partnerships to help increase the diversity of our talentpipelines. Our ERGs actively participate in recruiting events and make referrals to help our Human Resources and businessteams identify candidates for hire. We also partner and build relationships with community leaders and other organizations
to help us find and hire diverse talent. We identify, engage and partner with universities around the world to ensure wehave access to underrepresented talent.

Over the years we have built key relationships with professional
membership organizations to help us attract diverse talent,share best practices and foster new ways of thinking.
These organizations are:›› National Society of Black Engineers›› Thurgood Marshall College Fund›› Society of Professional Hispanic Engineers›› Society of Women Engineers“Our longstanding relationship with Historically Black Colleges and Universities(HBCUs) has been an instrumental part in how we have attracted talented Black
employees to Caterpillar. As a graduate of Southern University and scholar of
the Thurgood Marshall College Fund, it has been my privilege to maintain theconnection between these important educational institutions. Our employeesthat have joined us from HBCUs are important to our ability to innovate,
problem solve and help create value for our customers.“– Domenic Albert
Senior Engineer

Historically Black Colleges and Universities(HBCUs) also help us gain access to a wider talentbase. In 2020, our team and the Caterpillar African
American Network ERG in Nashville, Tennessee,
U.S. was recognized for their collaboration with Fisk
University, a local HBCU. Together, they identified
and placed diverse candidates from internships into
our full-time finance foundational program (a 4-yearrotational program) and direct hire positions inbusiness and finance.
Our E4Life program connects business leaders withpublic schools in Peoria, Illinois, U.S. The programprovides hands-on manufacturing experience tounderserved and underrepresented high school
students and has led to full-time employment forsome participants. We partner with high schools,
colleges and communities in the areas we operate.
We are intentional in the ways that we foster
interest in careers in our manufacturing operations
by supporting and sponsoring STEM programs,
and providing internships and scholarships.
In 2020, Caterpillar joined a coalition of 36 major
corporations committed to upskilling, hiring andpromoting one million Black Americans over the
next 10 years into family-sustaining jobs with
opportunities for advancement. The coalition formed
OneTen, an organization whose goal is to makemeaningful, measureable and lasting impact on
racial and economic justice.

10– LaNessa Jackson
IT Engagement Manager
Grambling State University, 2002

Our Why

Our Representation

Our Actions

Our Partners

Our Commitment

DOING
THE WORKTHAT
MATTERS
Developing Leaders
We know our employees have many choices in the market and we are proud so many havechosen careers at Caterpillar. They use their unique skills and are engaged, motivated andfocused on delivering value for our customers. Their diversity brings a more comprehensive
array of ideas that allow collaboration and sustains innovation. We take important steps toretain our talent.
We provide opportunities for employees to continuously develop the skills and capabilities
necessary to lead formally and informally. Employees have access to on-demand learning
programs on key topics ranging from emotional intelligence to building trust, enabling
employees to build skills needed for professional success in current and future roles.
Our mid to senior level leadership development programs, LD300 and LD400, are formal
by-invitation programs. Program participants benefit from gaining insights from executive
leaders, from the experiences of their colleagues and former participants, and from passingon what they learn as developers of their teams. Since 2018, more than 50% of the over 300
participants have been gender and/or racially diverse.
In 2020, we launched the Emerging Markets Emerging Leaders (EMEL) program, sponsoredby our Group Presidents to develop in-region future leaders and equip them with the righttools, network and capabilities to lead in an emerging market environment. Over 100 young
professionals, 35% women, representing 29 different nationalities from Africa, the Middle East,
Eurasia and India participated in the inaugural program.
Leaders and employees are all encouraged to have ongoing career and development
discussions to stay aligned on career aspirations, development opportunities, and future roles.
Most job opportunities are visible to our employees when considering their next opportunity
for career growth and advancement.
“I personally needed the training, from the EMEL program – it challenged my thinking andcharacter on how I relate with others, and how to lead with authenticity. The reflection andfeedback sessions were so key for me, they provided an opportunity to step back and reallythink of the situation and how one would have navigated it differently. I have started practicing
this and try to reflect after a day’s work on how the day went, and what I could have done
differently. I would definitely recommend the training to anyone who is keen on becoming
a leader and individuals who are already in leadership roles.”– Ennie Mampe Ndweni
Digital Operations Consultant

11

Our Why

Our Representation

Our Actions

Our Partners

Our Commitment

DOING THE WORKTHAT MATTERS
Experiential learning that is actively supported by engaged
leaders is an important avenue for high-impact learning.
Our Latino Connection ERG created our Building Diversity
Corporate Achievers program (BDCA). The program is designed
to connect high-performing, diverse talent with leaders who
can support the employee’s career goals through on-the-job
project experience and leadership development. Participants
complete capstone projects and provide report-outs to seniorleadership. This experience provides participants increased
opportunity to connect with members of senior leadership who
can provide development by offering performance-enhancing
feedback and career guidance.
Our skill-based programs are designed to upskill our
manufacturing employees with the purpose of preparing
them for future promotional opportunities. These programs
are developed locally and tailored to the specific needs of thebusiness. In China, we continue to invest in programs thatencourage women to pursue engineering management andleadership roles.

“The BDCA program gave me insight on actions I can take to move mycareer forward, and I continue to meet with a mentor to receive feedback
and track my progress. The discussions with leadership and my peers
have helped me make valuable connections across the business.”– Christopher Perez
Product Support Operations Representative

Ongoing Talent Reviews
and Succession Planning
Our strategic talent review
process and succession
planning occur at a minimum,
annually, and reflect ourbusiness needs and improve
our ability to achieve
our business objectives.
This includes increasing
the diversity of our talentpools and succession

12plans for advancement ofunderrepresented talent.
Ongoing talent discussions
paired with succession
planning provides ourleaders with more frequent
opportunities to get toknow our employees,
evaluate their capability,and facilitate development

moves essential for building
critical experiences and deep
expertise. Talent analytics
support our on-ongoing talent
discussions, inform decisions
and help us understand future
opportunities to build diverse
talent pipelines.

Our Why

Our Representation

Our Actions

Our Partners

Our Commitment

Mentoring

Mentoring is another key to development.
Building capabilities, gaining career guidanceand seeking advice in addressing businesschallenges are all needed for professional
growth. Everyone has room to grow – everyone
has unique skills, talents and perspectives that
can help others to grow as well. We have several
distinct mentoring programs designed to reflect
the specific characteristics of the cultures of thebusiness or regions of the world. Reverse mentoring between leaders, young professionals,
female and racially diverse employees provides
deep insights for leaders into an employee’s
specific experiences.
With recent investments, we are using technology
to offer a more empowered way of connecting
mentors and mentees. Our recently launchedmentoring program is an open, more inclusive
way of mentoring. The program encourages
employees to consider what type of mentor theyneed to support their individual development
and enables employees to seek out mentors
throughout the company. Mentors and mentees
are able to access on-demand learning to support
them along the way.

“Solar Turbines mentoring programs provide opportunities to foster diverse
talent throughout our business. By consciously including a wide cross-sectionof talent in our cohorts of 50+ participants each year, we are able to strengthen
our pipeline of future leaders, enhance our corporate culture and drive
excellent business outcomes.”– Aditi Salvi
Vice President Global HR, Solar Turbines

13

DOING
THE WORKTHAT
MATTERS

Retaining TalentThrough Engagement

At Caterpillar, we believe people thrive when theirperspectives are valued, their work has purpose
and they see opportunities to grow. This is whyeach year we survey employees for their voluntary feedback on strategy execution, engagement
and inclusion. In 2020, our Employee Insights
Survey yielded over 80% employee participation.
Employees shared more than 160,000 comments.
Our employees consistently share that our greatest
strength is providing challenging and meaningful
work. By incorporating our Inclusion Index, we
also gain unique insights into how each employee
segment experiences inclusion at Caterpillar.
At the enterprise level in 2020, our employees
across the company scored us higher on every
item in our inclusion index than prior years.

Our Why

Our Representation

Our Actions

Our Partners

Our Commitment

CULTIVATING AN
INCLUSIVE ENVIRONMENTTHROUGH LEARNING“Education is the most powerful weapon we can use to change
the world,”said Nelson Mandela. At Caterpillar, diversity and inclusion
training not only creates awareness of issues of bias, but also provides
tools for how to take action and address them. We insist that all individuals
within our work environment should expect a workplace free of intimidationand harassment. Individuals have the right to expect a positive working
environment, along with the responsibility to speak out and ask for change
if we observe conduct that runs contrary to this principle.
Our Breakthrough Leadership for Women Program, sponsored by our
Women’s Initiative Network (WIN) ERG, helps women identify personal
strengths and address barriers to becoming a leader. Globally, over 3,000
women have participated in this program focused on networking skills,
negotiating conditions for leadership success, gender dilemmas and coaching
to overcome leadership challenges. Now in its fifth year, we have also
refreshed the content and extended availability to all women.
Men as Allies Program, also sponsored by WIN, was designed to provide
tools that develop self-awareness of unconscious bias and how to promotea gender inclusive culture. Over 4,000 men have participated in the workshop.
Our Safe Space Program, sponsored by Caterpillar’s Lambda ERG, promotes
LGBTIQ+ inclusion in the workplace by guiding employees on how to haveeffective cultural conversations through person-to-person dialogue that
includes inclusive language and respect for cultural nuances.

Inclusion Infusion
Inclusion Infusion is an interactive forum hosted by our Global Diversity andInclusion team, providing timely diversity and inclusion topics that include
learning paths for our employees, globally. Beginning in 2016, the program
covers important concepts including unconscious bias, skills for communicating
across cultures and skills for inclusive conversations to help develop an understanding about why diversity and inclusion are important to our culture and ourbusiness. Over 15,000 participants have attended these sessions.
As part of our company-wide, broader learning and development strategy, weoffer My D&I Acumen, a library of virtual resources developed for employees
and leaders to help improve understanding of why diversity is important to ourbusiness, how to be inclusive of others, and how to contribute to an inclusive
culture at Caterpillar. It covers topics on workplace culture, bias, allies, mental
health, disability awareness and generational diversity to address how to work
together effectively.

“Understanding and including different perspectives is critical to maintaining
and evolving a successful corporate culture and fostering diverse talent. Having
participated in the program during my time as Group President, I can confirm that
Men as Allies helped enhance my understanding of gender dynamics
and conscious and unconscious bias.”– Tom PellettePresident, Solar Turbines“Going through this training as well as leading it has given me
a better understanding of how people might feel like an outsider.
It’s made me more deliberate in the language that I use and helps
me to make sure that everyone feels as though there’s a seat forthem at the table. It’s less of a skill and more of a way of thinking
but I think it’s made me a better teammate.”– Kaila Judkins
Remarketing & Sales Analyst and Lambda Member

14

Our Why

Our Representation

Our Actions

Our Partners

Our Commitment

14
175
11,500
GROUPSEMPLOYEE RESOURCE GROUPS
For nearly 20 years, Caterpillar’s Employee Resource Groups (ERGs) have added value for our
employees and businesses. Our ERGs are company sponsored and employee led, and promote theunique cultural differences representative of our global community. They build communities oncommon backgrounds and experiences that provide opportunities for personal and professional
development, while welcoming all employees to learn, connect and foster a sense of belonging.
Promoting collaboration across cultures, genders, and abilities is the strength that our ERGs’ bring.

CHAPTERSEMPLOYEES• Africa Business Resource Group - ABRG
• Active Caterpillar Team - ACTivate• Abled and Disabled Employees Partnering Together - ADEPT• Armed Forces Support Network - AFSN• Caterpillar African American Network - CAAN
• Caterpillar Asian Indian Community - CAIC• Caterpillar Chinese Resource Group - CCRG
• Caterpillar Lambda Network - Lambda• Caterpillar Latino Connection - CLC• Experienced Professionals - EP
• Korean Resource Group - KRG• Middle Eastern Resource Group - MERG
• Women’s Initiative Network - WIN• Young Professionals of Caterpillar - YP

Caterpillar Diversity and Inclusion Excellence Award

Each year, the Excellence Awards spotlight Caterpillar teams from around the world
delivering the best of the best in a wide range of categories: Innovation, Product Quality,
Sustainability, Operations and Process Excellence and Diversity & Inclusion. The D&I
Award recognizes actions by our business units and ERGs to improve workforce diversity,
inclusion and engagement while delivering value to the business. Our annual D&I Awardwinner is chosen by our CEO. Since the inception of the award, the winners have become
positive role models that are emulated by others in our business.

“As a visible LGBTIQ leader at Caterpillar it is my hope that I can continue to inspireother LGBTIQ employees to give them confidence that career progression is possible evenwhen Out at Caterpillar. The Lambda Network ERG provides a way for all employees toadvocate on behalf of LGBTIQ employees by Being Visible on behalf of the Invisible.”– Phill Jones
Lambda Network, Global Chair

15

2020

Chile’s 20 Best Places to Work for LGBTQ Equality PwC Human Rights Campaign

Our Why

Our Representation

Our Actions

Our Partners

Our Commitment

INCLUSION
DRIVES INNOVATIONDisability inclusion is a priority. Keith Edgerton, a senior staff accountant in Victoria, Texas,
is visually impaired. He asked our Abled & Disabled Employees Partnering Together ERG
for help solving technical issues he was having that affected his ability to perform his job.
A team of representatives from Accounting and IT joined forces to deliver innovative andinclusive solutions to improve his experience and pave the way for others with similar needs.

“At Caterpillar our approach to inclusion is not an initiativeor project, it’s a continuum. When you have that approach,
you are moving towards sustainable behavior.”– J ohanna Hladun
Executive Director of Compliance Review
Women’s Initiative Network, Global Chair“As an ERG, we work hard not just to be visionaries, but to do real
work to support our inclusive culture and make an impact for our fellow
employees, dealers and customers. We are actively involved in recruiting,hiring, career planning and advancement and our goal is to ensure ourefforts make a measurable and sustainable difference.”–K enneth JacksonQ uality Analyst
Caterpillar African American Network, Global Chair“Learning and awareness has been a big part of our journey.
Our learning modules help people understand that intent and impact
can be very different as we all learn what inclusive behaviors look
like and why having an inclusive culture is key to getting the bestfrom our diverse, global employees.”–S herilyn Weaver
Inclusion and Diversity Lead

16

2020

Best Places to Work for Disability Inclusion - Disability Equality Index

Our Why

Our Representation

Our Actions

Our Partners

Our Commitment

Inspiring the Next Generation

WORKING WITHOUR PARTNERS
Our Caterpillar independent dealer network* is key to helping us build
and maintain close relationships with customers and gain insight into
how we can improve our products and services to better suit their needs.
We also partner with our dealers to make important and lasting impact in
the communities in which we live and work. By building up underserved
communities, empowering women and inspiring a new generationof future workers, together we make sustainable change happen.

The relationship between Pearl-Cohn Entertainment Magnet High School
in Nashville, TN, U.S. and the Cat Financial local chapter of CAAN (Caterpillar African
American Network) runs 15 years deep. With a 98% minority enrollment, Pearl-Cohn
helps the local Cat dealer develop a pipeline of hard-to-find, diverse talent. In 2019,
Caterpillar dealer Thompson Machinery, Cat Financial and Pearl-Cohn partnered toprovide a “day in the life” tour for students to understand the job of a skilled technician.
Following the tour, students from the school’s robotics program, in which Caterpillar is asponsor, were identified to participate in a technical college program focused on diesel
technology. Today, two students are in their second year of the program.
In March 2021, Cat Financial established a scholarship with Pearl-Cohn to honor Frank
Woodlee, who was instrumental in establishing the relationship with Pearl-Cohn and CAAN.
“This scholarship and the opportunities it affords to our students is right in alignment toother leading school initiatives,” says Dr. Harrington, Executive Principal. “We are forevergrateful for the long-standing partnership with Caterpillar Financial.”

Investing in Local Skill Development
The African Business Resource Group of Caterpillar leveraged their personal andprofessional networks in Ghana to help establish Technicians for Africa. This online
program provided at no cost to participants, educates and trains aspiring African service
technicians. The program is a partnership between Caterpillar, local technical institutions
and independent Caterpillar dealer Mantrac to build a sustainable talent pool oftechnicians for the future. Since September 2016, more than 4,300 African service
technicians have completed the program.

17*Caterpillar’s global dealer network consists of 161 independently
owned Cat dealers serving 192 countries.

Our Why

Our Representation

DEALERSEMPOWERINGWOMEN AROUNDTHE GLOBE

Our Actions

Our Partners

Our Commitment

Mary Katherine Harbin is the Area Manager/EEO Officer, for Maymead,a Caterpillar customer and asphalt construction services provider.
Mary Katherine was inspired to create an all-female road paving crew
after attending the Caterpillar Women In Leadership (WIL) Conference.
The WIL event, launched in 2014, was designed to connect Caterpillar
women leaders, peers from Caterpillar dealers and key customers for
inspiration and action. Maymead was struggling to fill open paver
positions. Armed with the knowledge that women make up just 2% of
the employee base in “construction, Harbin began running ads geared
toward women and created a hardworking team that delivers results.
The creation of the team is one small step in a journey to bring more
females into the industry.

“We reaffirm our commitment to offering equal opportunities, without stereotypes,
promoting respect for all, and recognizing our differences. At Ferreyros, we value
diversity, legacy and experience. We don’t use labels – we believe and generate
equal opportunities because our differences add up.”–M ariela Garcia
Dealer Principal, Ferreyros

At Ferreyros, our Cat dealer in Peru, the employee
population is 13% female and growing. Their “He forShe” Program was developed in partnership with
Caterpillar and held 27 times over the past two years
to show male leaders what they can do to create
equitable opportunities for all employees. Other female
initiatives include women’s mentoring programs,
workshops on unconscious bias, gender stereotypes
and sexual harassment, as well as inclusive language
and content in corporate communications.

In 2020, the China Engineers Limited,a Sime Darby group company and Cat dealer,hosted the third WIL conference in China. The“Power of Growth” conference was attended bymore than 100 leaders from dealers and Caterpillar,
and broadcast live to over 8,000 dealer employees.
These dealer-led WIL conferences began in 2018
and each of the four dealers in the Greater China
region took turns to host this annual event. The
ultimate goal of these WIL conferences is to build
a high-performing team that delivers businessresults and drives positive change in diversity andinclusion. Over the years, more females are in
leadership and frontline roles within the dealerships.

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Our Why

Our Representation

Our Actions

Our Partners

Our Commitment

TOGETHER,WE ARESTRONGER
Prepared For WorkWe help students pursue and enter STEM careers, equippedwith the right skills and knowledge to thrive. Our programs work
to close the opportunity gap while improving youth employability
so that nobody is left behind in the high-skilled 4.0 economy.
That’s precisely what happens at the Athens Community
Career Academy (ACCA) in Georgia, where the majorityof students in the Clarke County School District represent
underserved populations (49% Black, 25% Hispanic, 20%
Caucasian, 4% Multi-Racial and 2% Asian). ACCA is a uniqueand innovative environment, providing expansive opportunities
for students to achieve educational and career goals while meeting local and regional workforce needs. Through our partnershipwith the Athens Area Community Foundation, we helped funda state-of-the-art welding lab for students to develop key skills
and are also fostering the next generation of workers witha new advanced manufacturing and welding pathway.
Nationwide, basic digital skills are critical for individuals to meet
employment criteria. Employees who lack these skills are limitedin their ability to be productive, get promoted and advance.
Through the Foundation’s partnership with Goodwill Industries
International, more than 500 individuals will receive the digitaltraining necessary to secure and retain employment in a variety
of industries. In a diverse community like Victoria, Texas – where
nearly 50% of the population is Hispanic – this program levels
the playing field and shrinks the digital skills gap, which not
only provides economic opportunities for the individual, but also
benefits the local economy.

19

Also, to help prepare transitioning U.S. service
members, veterans, National Guard, reservists
and military spouses for careers in manufacturing, we are investing $2.25 million to expand the
Manufacturing Institute’s Heroes MAKE America
initiative. Through this partnership, we will build
connections and career pathways between the
military and manufacturing communities.

Around the WorldThe Foundation joined forces with theInternational Youth Foundation to
support EquipYouth, a program toprovide 8,000 young people worldwide
with market-relevant life skills training along with internships, on-the-job
training and employment placement
services. The program benefits youth
in Brazil, China, India, Indonesia, Jordan,
Mexico, Panama, Peru, Russia, Singapore, South Africa, and South Korea.

In Brazil, we partnered with
Associação Feminina Estudos
Sociais E Universitários Arios(AFESU) to create the STEM
Maker’s Lab. Through this program,students enhance their skills inmechanical, electrical and software
engineering, as well as data science.

In Indonesia, our partner, Mercy Corps’
Empowering Women Entrepreneurs
program, has provided financial literacy
and business development training tomore than 500 women-led micro andsmall entrepreneurs. This program aims
to increase financial literacy and inclusion
for Indonesian women, helping to placethem on a path to prosperity.

Our Why

Our Representation

Our Actions

Our Partners

Our Commitment

TOGETHER, WE ARE STRONGER"The resilience test of any community is how we lift up one another,in good times and bad. That's why we support programs and seek
partners who can help do the hard work of creating more equity,
inclusivity and opportunity for those in greatest need, at home andaround the world."

For nearly 70 years, the Caterpillar Foundation’s vision has been consistent to support the communities
where we live and work to be stronger, more resilient and more sustainable. Through our partnerships
and initiatives, the Foundation is creating pathways for underserved and under-resourced individuals
to gain 21st century jobs with workforce readiness, vocational training and STEM education.

– Asha Varghese

President, Caterpillar Foundation

STEM From K to Careers
We are committed to bridging theaccess gap in STEM education bypromoting diversity, equity and inclusion in STEM within the Caterpillar
communities that need it most.

In 2020, the Caterpillar Foundation
announced a commitment to help
fight racism and social injustice by
donating $1 million split equally
between the Equal Justice Initiative (EJI) and the NAACP Legal
Defense and Educational Fund,
Inc. (NAACP LDF).

20

EJI is committed to ending mass
incarceration and excessive punishment in the United States, tochallenging racial and economic
injustice, and to protecting basic
human rights for the most vulnerable
people in American society. With
our support, NAACP LDF is focusedon seeking structural changes toexpand democracy, eliminate disparities, and achieve racial justicein a society that fulfills the promiseof equality for all Americans.
We would like to thank theCaterpillar team, employees andretirees who have submitted
approximately $14,000 in matching
requests to EJI and the NAACP LDF
to date since 2020. We are appreciative of their continued generosity.

In partnership with Discovery Education and the National Afterschool
Association, the Foundation joined
the STEM Careers Coalition, the firstof-its kind, national STEM initiative
powered by corporate leaders toaddress the development of a diverse
STEM workforce by bridging industry
and classrooms at an unprecedented
scale. The STEM Careers Coalition
connects K-12 students to STEM
futures through a comprehensive arrayof relevant and standards-aligned
content. Through this initiative, overthe next three years, we will standalongside peers across industries toempower educators with the resources
they need to activate STEM instruction
effectively wherever learning takes
place, all at no cost to any school. The
Coalition fosters equitable access toquality education while building thenext generation of diverse solution
seekers and STEM professionals,
including opportunities to connect
students to Black professionals leading
STEM innovations.

In celebration of Manufacturing Day
2020, we proudly supported Discovery
Education in recognizing diverse educators in STEM in the United States
who are committed to advancing thenext generation of doers in STEM
fields through the launch of the
Meet The Innovative Teachers
in STEM campaign.
Girls around the world need accessto STEM training in order to compete
in this increasingly STEM-focused job
market. When girls have access to theknowledge and tools to support theircareer development, the benefits arewidely felt. To address this gap, theFoundation partners with Girl Up –a leadership development initiative
founded by the United Nations Foundation that provides girls with the skills
and resources to create tangible socialchange – and positions girls to be global
leaders in STEAM and other areas
where women are underrepresented.
Through our investment, we support
the creation of new STEM resources,
virtual STEM bootcamps, and WiSci(Women in Science) Camps – animmersive camp experience that aims
to bridge the gap through access to
education, mentorship opportunities
and transformational leadershiptraining for girls across the globe.

Our Why

Our Representation

Our Actions

Our Partners

Our Commitment

OUR COMMITMENT
Thank you for taking the time to read our first Diversity and Inclusion Report representing
the work of our Caterpillar team. Our team creates innovative products and services so
our customers can build the basic infrastructure that enables higher standards of living –providing access to water, electricity, roads, bridges, hospitals, schools and more. Our mission
is to help our customers build a better world - it is the desire of our globally diverse
workforce, and we are committed to making a difference.
This past year we were all confronted with unimaginable turbulence and unrelenting conflictthat tested our resilience. At Caterpillar, we are emerging from 2020 stronger and resolved
to live out our mission, and “Do the Work” that our customers rely on.
Innovation is one of our strengths. It requires throwing out old assumptions and self-limiting
beliefs, challenging yourself to see things from a different perspective, looking for connections,and creating an environment that triggers the imagination. Diversity and inclusion are
fundamental to innovation.
All races, ethnic groups, genders, religions, national origins, ages, sexual orientations, levelsof ability and veteran statuses are integral to our ability to successfully innovate to meet
our customers evolving needs.
We have transparently shared our diverse representation, the current work of our global
employee communities, and the actions that we have taken in our journey thus far.
As we look to the future, we understand that work remains, and that additional progress
must be made in diverse representation at every level of our organization reflecting thecommunities where we live and work. An inclusive environment where all employees feel thatthey belong, are heard, valued, and appreciated requires a spirit of continuous improvement.
We are committed to continual learning and taking definitive actions that result in talented
people choosing us as their employer, customers choosing us as their partner, and investors
choosing us to provide value.

WE ARECOMMITTED TO
MAKING MEANINGFULAND INTENTIONALPROGRESS ALONG
THE WAY21

We recognize that these commitments are importantbuilding blocks in our continuing journey of building
a more diverse and inclusive workplace.

– Cheryl H. Johnson

Chief Human Resources Officer

GLOSSARY OF TERMS
As a global company headquartered in the United States, Caterpillar recognizes
that diversity varies among different countries and cultures. We define diverse
representation in alignment with applicable law, racial and ethnic groups andmilitary veterans (U.S. only). In the U.S. and other countries where appropriate,
we provide our employees the opportunity to confidentially self disclose informationsuch as disability, veteran’s status, gender identity and race/ethnicity.
Unless otherwise noted, the data shared is representative of Caterpillar’s workforce
as of December 2020.

Definitions:
Race and Ethnicity
Asian: A person having origins in any of the original peoples of the Far East,
Southeast Asia, or the Indian subcontinent including, for example, Cambodia,
China, India, Japan, Korea, Malaysia, Pakistan, the Philippine Islands, Thailand,
and Vietnam.
Black: A person having origins in any of the Black racial groups of Africa.
Latinx: A person of Cuban, Mexican, Puerto Rican, South or Central American orother Spanish culture or origin regardless of race.
White: A person having origins in any of the original peoples of Europe, the Middle
East, or North Africa.
Additional racial or ethnic groups referenced on page 6, include: Native Hawaiian
or Other Pacific Islander, a person having origins in any of the original peoplesof Hawaii, Guam, Samoa, or other Pacific Islands; and American Indian or Native
Alaskan, a person having origins in any of the original peoples of North and SouthAmerica (including Central America) and who maintains tribal affiliation or community attachment.
*U.S. Census Bureau definitions

Caterpillar Employee Categories
Executives: Senior-most leaders who are accountable for company strategy.
Encompasses the top 1% of all active employees.
Managers and Professionals: Non-executive managers and individual
contributor professionals.
Production Employees: Hourly front-line employees who are directly involvedin the manufacturing or distribution.
Total Global Workforce: Total number of Caterpillar employees worldwide.

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