Jody Sustainable Progress Possible Howard Making Director, Social Responsibility Page 1 | CATERPILLAR CONFIDENTIAL: GREEN Caterpillar, Inc.
Caterpillar: A Global Leader
Caterpillar:
Founded 1925 Broadest footprint in industry
Making Sustainable Progress Possible
Over 100,000 employees
500 locations in 50 countries & 6 continents
Outside North America 56%
North America 44%
Outside North America 44%
North America 56%
2007 : $45 Billion
1997 : $19 Billion
Caterpillar Dealers:
181 independently owned & operated dealers 3,600+ branches & rental stores Over 120,000 employees
Making Sustainable Progress Possible
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Caterpillar Products
Making Sustainable Progress Possible
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Yellow Iron, Clean Power, Diversified Services
This is Caterpillar
Making Sustainable Progress Possible
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Integral to our Strategic Vision
SCALING NEW HEIGHTS IN EXECUTION Making Sustainable Progress Possible
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Our Vision, Mission and Strategy
Vision
Our vision is a world in which all peoples basic requirements for shelter, clean water, effective sanitation and reliable power are not only met but provided in a way that sustains our environment
Mission
Our missio n is to enable economic growth through infrastructure and energy development and to provide solutions that protect people and preserve the planet.
Strategy
Our strategy is to provide work environments, products, services, and solutions that make wise use of the world's natural resources and reduce harmful impacts on people and nature. This means we leverage assets including technology and innovation to:
Promote & protect individual safety Provide employment, education, & training Minimize use of energy, materials & water Maximize recycling (remanufacturing) Minimize harmful emissions, H2O discharges, waste, & use of hazardous substances Optimize use of renewable sources
Making Sustainable Progress Possible
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Making It Real: Products and Services
Customer Safety
Safety.cat.com
Increasing material efficiency
Sustainability in NPI
Reducing greenhouse gas
Increasing energy efficiency
Defined attributes that determine how to design for and improve a machines level of Sustainability.
Making Sustainable Progress Possible
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Product Lifecycle Analysis
-1% Impact from Recycling
Steel parts from 1 MWL
Raw Materials
Design
966H Medium Wheel Loader Life Cycle Analysis (LCA) Results
Majority of Impact from Use Impact benefits from Recycle
End of Life
Fabrication Use 97% Assembly
1.8% of Impact from
MWL Production
97.5% of Impact from Engine Use 1.0% of Impact from Consumables excluding Tires 0.7% of Impact from Tires maintain/replace for 24900hr op. Making Sustainable Progress Possible
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Considering a life of 8 years
Innovative From the Inside Out
35% more visibility 50% less operator noise 35-70% lower undercarriage operating cost 60% fewer moving parts in the electric drive train Making Sustainable Progress Possible
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50% better steering performance Up to 20% less fuel consumed per hour Less fluids used 25% more material moved per gallon of fuel
Making It Real: Operations
2020 Goals for Operations
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Operational Results To Date
Safety (July)
RIF = 1.68 LTCFR= 0.49
Alternative/ Renewable Fuel
Measure TBD
Water Consumption
2.44 billion gallons through June
Energy Efficiency
Measure TBD
Absolute GHG
1.45 million MT CO2 (June)
Zero Waste to Landfill
75.7% waste recycled (June)
LEED
8 new projects under construction
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Making It Real: Operations
Heat Treat
Technical guidance was needed to implement energy reduction in heat treat operation as well as: Cut the cost of energy Sustain heat treat operation Reduce the companys CO2 footprint
Paint Plant
Within the Springvale facility approx 99% of product is powder coated. It is imperative that the powder paint plants run efficiently to ensure associated running costs are minimized.
Engine Development
Engine development and validations were traditionally performed through multiple trial-and-error tests requiring tremendous material, energy, and labor resulting in significant waste, fumes, and emissions.
Making Sustainable Progress Possible
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Best Practice: Heat Treat Energy Reduction
US Operations Division East Peoria, IL May 2008
No Gas Meter 25% Installed Elec Meter 5%
Projected End 2009
No meters installed 18%
Installed Gas Meter 7%
No Elec Meter 63%
Project Focus on energy use and reduction Establish energy vs. production metrics Establish energy baseline Deploy meters
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Furnaces with Meters Installed 82%
Results
15% improvement from tuning
$2.5 million / yr energy savings
Best Practice: Paint Plant Upgrades
Electric Power Divisions Springvale Facility Northern Ireland
Project 90% of plant natural gas consumption was for paint Upgraded paint booth recycles powder at a 95% rate Automatic spray guns increased efficiency Change pre curing to electric infra red Results
Cost savings of $500,000 per year
30% reduction in greenhouse gas emissions 40% reduction in energy consumption Significant reductions in waste from the process and water consumption
Making Sustainable Progress Possible
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Best Practice: Virtual Engine Development
Technology and Solutions Divisions Technical Center Mossville, IL Project
Virtual engine development incorporating computer simulations, advanced analysis tools and leading measurement technology to plan, predict and analyze the outcome of engine development processes.
Results
Fosters innovative development and validation processes as engineers are able to study many what if scenarios
Preserves natural resources Limits emissions Reduced time and cost of overall engine development
Making Sustainable Progress Possible
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Making strides externally
Awards & Recognition Reporting & Accountability Partners in the dialogue
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Making Sustainable Progress Possible
Our commitment to being a leader in sustainable development will keep us focused on what really mattersmaking the intelligent choices that will drive the growth of our business and help create a more sustainable world.
--Jim Owens, Caterpillar Chairman and CEO
Making Sustainable Progress Possible
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