Caterpillar Inc., also known as “CAT”, is a corporation based in Peoria, Illinois, USA which designs, manufactures, markets and sells machinery and engines and sells financial products and insurance to customers via a worldwide dealer network. Caterpillar is the world’s largest manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. With more than US$ 70 billion in assets, Caterpillar was ranked number one in its industry and number 44 overall in the 2009 Fortune 500.
Caterpillar’s global reach and presence in unmatched in the industry. We serve customers in more than 180 countries around the globe with more than 300 products. More than half of our sales are outside the United States. Our manufacturing, marketing, logistics, service, R&D and related facilities along with our dealer locations total more than 500 locations worldwide, insuring that we remain geographically close to our global customer base.
Global Climate Change
Global climate change has many environmental and commercial implications, and a number of governmental and intergovernmental organizations are implementing mechanisms in an attempt to reduce greenhouse gas emissions. We support intelligent, responsible public policies addressing climate and energy policies and are:
- Investing in emissions reduction technologies that are important to our customers and represent significant areas of opportunity for our business.
- Committed to development and deployment of technologies such as combined heat and power (CHP), waste gas conversion to useful energy, clean diesel engines and carbon capture and sequestration (CCS).
- An active supporter of policies and flexible mechanisms that harness the marketplace to drive innovation, mobilize investment and allow the sharing of clean, efficient technologies.
- Encouraging the coordination of domestic and international programs to maximize the use of flexible, proven mechanisms to reduce emissions.
Through these activities, Caterpillar will continue making significant contributions to efforts designed to reduce greenhouse gas emissions.
Energy consumption is rising rapidly, driven by worldwide population growth, swiftly developing economies, improving global living standards and the burgeoning use of ever more energy-dependent technologies. The global demand for energy is expected to increase dramatically over the next twenty years. There is no one single solution to providing globally abundant, secure, clean and reasonably priced energy. Leadership is required to forge consensus and a commitment to providing global energy needs that address economic development, stability and environmental impacts.
We promote a policy atmosphere in which the best companies, experts, researchers, inventors and entrepreneurs have the freedom, the flexibility and the resources to develop cleaner, more secure energy – and more of it. We encourage innovation that leads to new sources of energy and improved and more efficient use of existing, abundant resources.
Caterpillar subsidiary, Solar Turbines, serves as a member of the Board of Directors of the Business Council for Sustainable Energy (BCSE), which advocates for the deployment of clean energy technologies, including renewable energy, energy efficiency and natural gas. The Council promotes the development of state, regional, federal and international energy and environmental policies that encourage the use of existing clean energy technologies as an immediate measure to meet the world’s growing energy demand in an environmentally sound manner.
Some 3.6 billion people today do not have adequate access to energy and approximately 1.6 billion people do not have any access to electricity. So how do we get it to them? Today, the technology and the natural resources exist to rapidly expand energy access, but how is this accomplished in a fundamentally more efficient manner?
The Copenhagen Accord affirms that social and economic development and poverty eradication are the primary goals of developing nations. One of the biggest differences between a developing nation and a developed nation is access to electricity – so let’s increase that access, help economies grow and reduce energy poverty where it hits the hardest.
Energy, or the lack thereof, is a key element for sustainable progress and development. So we need to focus our talents on reducing emissions while increasing energy access. Caterpillar does this every day by leveraging technology to help society while at the same time limiting environmental impact. With distributed generation solutions, utilizing diesel and natural gas engines – and alternative fuels – Caterpillar is positioned to get power where it needs to be. Cat® equipment helps meet the demands of the mining and resources industries, getting raw materials to where they need to be to create increased access to power. Coal is an important fuel – both today and for the future. Coal is available in the quantity and locations needed to satisfy the world’s energy needs. All energy sources are important and should be developed, but coal is abundantly available and has the scale to meet the primary energy needs of the world’s rising population and expected economic growth over the next several decades.
The facts show that coal is about 70 percent cleaner burning today (from a particulate matter (PM), oxides of nitrogen (NOx) and mercury perspective) than just a couple of decades ago. New coal-fired power plants are 15-45 percent more efficient than the oldest ones in operation around the world today. Carbon capture and sequestration technologies (CCS) that can remove most of the CO2 emissions are being demonstrated today. Efforts are needed to commercialize this technology around the globe as part of a path for low carbon-emitting energy. This energy can help the largest populations that don’t have reliable energy today. Add new nuclear build outs (carbon-free electricity), new natural gas reserves, plus renewables like wind, photovoltaic, tidal and others, and you start to see a portfolio of power that helps eliminate energy poverty, raise standards of living and propel economic growth with less impact on the environment. This leads to more R&D for new technologies that develop cleaner and more efficient fuel sources. Eliminating energy poverty is a vision that can be achieved.
Operating in a Carbon-Constrained World
At Caterpillar we believe in the importance of providing energy-efficient products and technologies for our customers and our facilities, as well as advocating for policy solutions that are both environmentally and economically sustainable.
Caterpillar works with policymakers on developing economy-wide emissions reduction programs in the United States that work in conjunction with international efforts to reduce greenhouse gas emissions.
Many countries already control greenhouse gas emissions, and more jurisdictions are evaluating plans to do so. Just as business cannot operate efficiently under 50 different sets of state standards in the U.S., business will struggle with vastly differing approaches around the world. That is why we’ll continue to advocate a comprehensive international approach that encompasses emissions reduction commitments from all major economies. We know we cannot reduce carbon emissions in a vacuum. We must look at the issue with an eye toward energy security, energy availability, technology, price and global competitiveness.
Innovation will be key to developing new energy sources, and we continue to call for policies that encourage innovation to improve the use of existing energy resources – particularly coal, oil and natural gas. We cannot afford to overlook any solution.
Despite the divergent proposals under discussion worldwide – everything from carbon caps and carbon taxes to strict regulatory control of emissions – we all agree that technology plays a key role in any successful strategic approach to reduce emissions. The private sector must take the lead in developing and deploying technology solutions to reduce greenhouse gas emissions.
We believe it’s too soon to disparage any solution that hasn’t been fully developed. Done right, placing a price on carbon will provide an incentive to stimulate investment and innovation in the technologies we need to meet our environmental goals.
Ultimately, no unilateral action to reduce greenhouse gas emissions will be successful. We need policies that integrate well into a global system of emissions reduction initiatives. We support legislation that’s both environmentally effective and economically sustainable. And we encourage both a constructive dialogue and a proactive approach to providing energy safely, efficiently and affordably to the billions of people that inhabit our planet.
It’s a tall order – but one that’s critical to the future of business.
Advocating Free and Open Markets
Caterpillar has long believed that the pursuit of business excellence and profit in a climate of free enterprise, free trade and unencumbered competition is the best means for efficient development and distribution of goods and services. Further, we believe such international exchange promotes better understanding across borders and cultures, leading to a more peaceful world. The enormous rise in post-World War II gross national product and living standards in countries participating significantly in international commerce has demonstrated such benefits. In contrast, countries that have been isolated as a result of lack of infrastructure, protectionist policies or economic sanctions have not enjoyed these advantages.
The economic growth brought about by international trade is essential for poverty reduction, but it doesn’t come without challenges.
Chief among them is the need to balance economic, environmental and social policies in support of sustainable development. When this happens, sustainable development can become a shared objective and provide a common frame of reference – allowing environmental and trade policymakers to engage stakeholders, analyze issues and evaluate policy more efficiently.
Caterpillar has a long history of advocacy for free trade. Our support comes not from the perspective of any one country, but from a global context. We believe that companies compete best in a free trade environment. When trade barriers are removed, we can better meet our global customerneeds and grow more efficiently. Our suppliers benefit because they can more efficiently satisfy our global sourcing requirements. Our employees benefit from a higher standard of living as they have access to more product choices at lower prices. Because open markets lead to improved competitiveness, we believe free trade also allows us to provide more and better job opportunities.
Caterpillar will continue to promote policies that reduce – or better yet, eliminate – trade and investment barriers. At the same time, we will continue to speak out against protectionist policies. We believe that the United States, European Union and Japan should adopt policies that allow the benefits of the global economy to be extended to developing countries. Caterpillar also recognizes that in many of the world’s poorest countries, humanitarian and development assistance is necessary to fight disease, improve living conditions, combat corruption and provide the know-how to drive economic growth and trade. We support the goals of initiatives aimed at increasing economic growth and reducing poverty in developing countries.
Harmonizing Global Standards
On an international level, Caterpillar is actively involved in developing International Standards Organization (ISO) criteria and chairs the committee that develops industry consensus standards for earthmoving equipment, including standards for visibility, rollover protection structures and braking. Our global standards and regulations team works closely with these organizations to enhance machine safety standards worldwide. Caterpillar provides input to regulatory agencies to help ensure the smooth introduction of new technologies. We design products and services that help people and communities as they strive to create better lives for themselves. As the global population continues to grow, the availability of natural resources may diminish; and the need for Cat® products and services as enablers of sustainable development becomes even more important.
Caterpillar regularly makes its management and technical expertise available to regulatory bodies in advisory roles and to provide technical assistance as new product standards are developed. These activities include participation and leadership roles in organizations such as the ISO; membership in governmental and nongovernmental delegations to international bodies such as the International Maritime Organization (IMO) and the United Nations Framework Convention on Climate Change (UNFCCC); participation in formal European Union industry expertise panels and participation in Federal Advisory Committees chartered under the U.S. Environmental Protection Agency.
Caterpillar is dedicated to the long-term health and safety of everyone at Caterpillar. Caterpillar also offers the SAFETY.CAT.COM™ website for environmental, health and safety training. This site provides access to a wide range of interactive online training courses for safety, health and the environment – in full support of our vision: Safely home. Everyone. Every day.™ The low-cost solutions offered through this safety training library help users of industry-specific equipment create a culture of safety and sustainability on any job site.
The safety of people is primary in everything Caterpillar does. Caterpillar’s safety vision is to be recognized as a leader in its industry for creating and maintaining an accident- and injury-free workplace. Caterpillar believes accidents and injuries are preventable; therefore, the goal is to reduce them to zero. Caterpillar believes that continually improving its safety practices, processes and performance supports the business excellence for which Caterpillar people worldwide are known. Caterpillar continues to strengthen processes to help all its facilities succeed – in ensuring employees return home as safe and healthy as when they came to work.
Caterpillar contributes to a safe environment in communities where we operate. We establish and adhere to environmentally sound policies and practices in product design, engineering and manufacturing in all of our facilities worldwide. Caterpillar’s Environmental Protection Program helps ensure that Caterpillar complies with applicable laws and regulations, as well as remains an upstanding corporate citizen and good neighbor. Successfully identifying and managing our environmental issues protects the environment we all live in and makes good business sense.
- Asia-Pacific Partnership on Clean Development and Climate : Solar Turbines is a task force member for the Asia-Pacific Partnership on Clean Development and Climate, an innovative effort to accelerate the development and deployment of clean energy technologies.
- Business Council for Sustainable Energy: Solar Turbines is a member of the Business Council for Sustainable Energy, which promotes clean energy technologies as solutions to economic, environmental and national security challenges.
- Business Roundtable: Caterpillar is a member of the Business Roundtable, which supports sustainable development through its task force on environment, technology and the economy that sponsors the S.E.E. Change initiative (Society, Environment, Economy) and through Climate RESOLVE (Responsible Environmental Steps, Opportunities to Lead by Voluntary Efforts).
- Diesel Technology Forum: Caterpillar is a member of the Diesel Technology Forum, a leading resource and educator on the importance and unique value of diesel engines, fuels, equipment and emissions control technology.
- Energy Technologies Institute: Caterpillar is a member of the Energy Technologies Institute, a U.K.-based public-private organization focused on projects that create affordable, reliable, clean energy for heat, power and transport.
- The Nature Conservancy : Caterpillar has an active role on the International Leadership Council and became the lead corporate donor in the Great Rivers Partnership Project in 2005.
- Opportunity International: Through the Caterpillar Foundation, Caterpillar collaborates with Opportunity International to provide microfinance loans, savings, insurance and training to over two million people working their way out of poverty in the developing world.
- Tropical Forest Foundation: Caterpillar became a founding member of the Tropical Forest Foundation in 1990. The Tropical Forest Foundation works to advance environmental stewardship, economic prosperity and social responsibility through sustainable forest management.
- U.S. Green Building Council: In the U.S., Caterpillar is a member of the U.S. Green Building Council, a non-profit community of leaders working to make green buildings available to everyone within a generation.
- Woody Biomass Coalition: Caterpillar is a member of the Woody Biomass Coalition which provides advocacy, education, information and outreach to public and private entities to promote research, development and funding for sustainable woody biomass utilization and markets in the U.S.
- World Business Council for Sustainable Development (WBCSD): Caterpillar is a member of the World Business Council for Sustainable Development, a CEO-led, global association of some 200 companies dealing exclusively with business and sustainable development.
- World Food Programme : Through the Caterpillar Foundation, Caterpillar collaborates with the World Food Programme, the world’s largest humanitarian agency, to fight hunger worldwide, delivering food wherever and whenever it is needed most.
- World Resources Institute: Caterpillar’s Chairman and CEO is a member of the Board of Directors of the World Resources Institute, an environmental think tank that goes beyond research to find practical ways to protect the earth and improve people’s lives.