Heavy Equipment



501 Southwest
Jefferson Avenue,
Peoria, IL 61630
United States

Tel: +1 (309) 675-2337







Kirsten Mauritzson


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Report created by Sagarika Deshmukh


SECTIONS :  Sustainability    Evaluation  •  Progress  •  Watch  •  Overview

Company Activity

Caterpillar Inc. is an American Fortune 100 corporation which designs, develops, engineers, manufactures, markets, and sells machinery, engines, financial products, and insurance to customers via a worldwide dealer network. It is the world’s largest construction equipment manufacturer.

Caterpillar, Inc. engages in the manufacture of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. It operates through the following segments: Construction Industries, Resource Industries, Energy and Transportation, Financial Products, and All Other.

  • The Construction Industries segment supports customers using machinery in infrastructure and building construction applications.
  • The Resource Industries segment is responsible for supporting customers using machinery in mining and quarrying applications and it includes business strategy, product design, product management and development, manufacturing, marketing and sales and product support.
  • The Energy and Transportation segment supports customers in oil and gas, power generation, marine, rail, and industrial applications.
  • The Financial Products segment offers a range of financing alternatives to customers and dealers for Caterpillar machinery and engines, solar gas turbines, as well as other equipment and marine vessels.
  • The All Other segment includes activities such as the business strategy, product management and development, and manufacturing of filters and fluids, undercarriage, tires and rims, engaging tools, and fluid transfers.

The company was founded on April 15, 1925 and is headquartered in Deerfield, IL.

Company Sustainability Activity

Caterpillar’s strategy contains three elements: operational excellence, expanded offerings and services, and is underpinned by Caterpillar’s Values in Action. Those Values, including Sustainability, are guidelines for the way they act with each other, our suppliers, and their customers every day.


  • 19% reduction in recordable injury frequency
  • 20% absolute greenhouse gas reduction 
  • 35% electrical energy generated/obtained from renewable resources
  • 32% energy intensity reduction since 2006
  • 37% absolute water consumption reduction since 2006
  • 27% sales from products, services and solutions demonstrated an improved sustainability benefit over prior offerings
  • 91% eligible end-of-life returns collected for remanufacturing
  • 14 employee resource groups
  • 153M pounds of returned material collected by Cat® Reman
  • Invested $28.6M in communities through the Caterpillar Foundation



  • Reduce energy intensity by 50% from 2006 to 2020
  • Use alternative/renewable sources to meet 20% of their energy needs by 2020


  • Reduce greenhouse gas emissions intensity by 50% from 2006 to 2020.


  • Reduce water consumption intensity by 38.2%


  • Reduce waste consumption intensity by 38.2%



  • In 2019, 35.5% of their electrical energy was obtained from renewable or alternative sources, exceeding their 2020 goal.
  • In 2019, Caterpillar began reporting grid electricity data based on SASB recommendations. 
  • In 2019 we reduced their energy intensity by 32% from our 2006 baseline.


  • Caterpillar’s absolute GHG emissions decreased by 20% from 2018 to 2019 and decreased by 41% from 2006 to 2019.
  • In 2019 Caterpillar reduced their GHG emissions intensity by 54% from their 2006 baseline, achieving their 2020 goal.


  • In 2019 Caterpillar reduced their absolute water consumption by 37% from their baseline year of 2006 and 3% from 2018 to 2019.
  • Through 2019, Caterpillar has reduced water consumption intensity at their facilities by a total of 41% from 2006, and 5% from 2018 to 2019.


  • Generation of total absolute by-product materials increased 2% from 2006 to 2019 but decreased 8% from 2018 to 2019.
  • In 2019, they reduced their waste intensity by 21% from their 2006 baseline and decreased 6% from the previous year.


United Nations Sustainable Development Goals

United Nations SDGs Compliance


  • Caterpillar offers a full range of Cat® Microgrid systems from 10 kW to 100 MW.
  • Increased energy efficiency

SDG 13

  • Pursuing energy-efficiency and GHG-reduction goals for their operations.
  • Investing in energy-efficiency and GHG-reduction technologies for their products that are important to their stakeholders and represent significant areas of opportunity for their business.
  • Committing to the development and deployment of advanced technologies that capture and store GHG emissions.
  • Supporting policies and mechanisms that harness the marketplace to drive innovation, mobilize investment and facilitate sharing these technologies.
  • Encouraging the coordination of domestic and international programs that maximize the use of flexible, proven mechanisms to sequester carbon in soils, plants and ecosystems

SDG 15

  • Help to grow investments and embed NII influence in active projects
  • Develop and promote new tools, processes, and capabilities which support Natural Infrastructure uses and investments
  • Advocate for policy and legislation which increases the quantity and accelerates the development of Natural Infrastructure projects
  • Create awareness to support the benefits and uses of Natural Infrastructure


Caterpillar is only meeting three of the seventeen UN Sustainable Development Goals. Additionally, their targets are very minimal, making it difficult to determine Caterpillar’s progress across various sustainability issues.

They don’t have longer term goals beyond 2020. As a result, it is difficult to determine whether the company is implementing operational improvements to ensure long term sustainability.

Caterpillar Inc is rated as C.

Analyst Outlook: Negative

With no long term goals, Caterpillar Inc. demonstrates a lack of commitment towards sustainability.

Key Points

  • Employee relations have become strained at some of its global facilities, and a slump in global product sales is forcing CAT to lay off more employees. Additionally, due to the nature of the construction industry, it can be challenging to maintain good environmental practices.
  •  CAT’s major challenge beyond its internal operations is to manage the risks that come with selling large products and working with third parties. CAT must be diligent in maintaining proper oversight, ensuring that customers are aware of the safety implications of its products, complying with—and even exceeding—environmental laws, and maintaining solid relationships with employees, customers, and regulators.
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