Jody Howard Director, Social Responsibility Making ... · Page 1 | CATERPILLAR CONFIDENTIAL: GREEN...

Page 1 | CATERPILLAR CONFIDENTIAL: GREEN

Making Sustainable Progress PossibleJody HowardDirector, Social ResponsibilityCaterpillar, Inc.


Making Sustainable Progress Possible

Caterpillar:

• Founded 1925

• Broadest footprint in industry

• Over 100,000 employees

• 500 locations in 50 countries & 6 continents

Caterpillar: A Global LeaderMaking Sustainable

Progress Possible

2007 : $45 Billion

Outside

North

America

56%

North

America

44%

1997 : $19 Billion

Outside

North

America

44%

North

America

56%

Caterpillar Dealers:

• 181 independently owned &

operated dealers

• 3,600+ branches & rental stores

• Over 120,000 employees



Caterpillar Products



This is CaterpillarYellow Iron, Clean Power, Diversified Services



Integral to our Strategic Vision

Page 5 | CATERPILLAR CONFIDENTIAL: YELLOW

SCALING NEW HEIGHTS IN EXECUTION



Our Vision, Mission and Strategy

VisionOur vision is a world in which all people’s basic

requirements – for shelter, clean water, effective sanitation and reliable power – are not only met but provided in a way

that sustains our environment

MissionOur 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 It Real: Products and Services

Customer Safety

Safety.cat.com

Increasing material

efficiency

Reducing

greenhouse gas Increasing energy

efficiency

Defined attributes that determine how to design for and improve

a machine’s level of Sustainability.

Sustainability in NPI



Product Lifecycle Analysis

Raw Materials

End of Life

Use

97%

Design

Fabrication

Assembly

• 966H Medium Wheel Loader

• Life Cycle Analysis (LCA)

• Results• Majority of Impact from Use

• Impact benefits from Recycle

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.

Considering a life of 8 years

-1% Impact from Recycling

Steel parts from 1 MWL



35-70% lower undercarriage operating cost

50% better steering performance

25% morematerial moved per gallon of fuel

Up to 20% lessfuel consumed per hour

60% fewer moving partsin the electric drive train

35% more visibility

50% lessoperator noise

Less fluids used

Innovative From the Inside Out



Making It Real: Operations

2020 Goals for Operations



Operational Results To Date

Energy Efficiency

Measure TBD

Safety (July)

RIF = 1.68

LTCFR= 0.49

Absolute GHG

1.45 million MT CO2

(June)

Alternative/

Renewable Fuel

Measure TBD

Zero Waste to

Landfill

75.7% waste

recycled (June)

Water Consumption

2.44 billion gallons

through June

LEED

8 new projects under

construction



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 company’s CO2

footprint

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.

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.

Paint Plant



Best Practice: Heat Treat Energy Reduction

No

meters

installed

18%

Furnaces

with

Meters

Installed

82%

Projected End 2009

Installed Elec

Meter

5%

No Elec

Meter

63%

Installed Gas

Meter

7%

No Gas

Meter

25%

US Operations Division

East Peoria, ILMay 2008

Project

• Focus on energy use and reduction

• Establish energy vs. production metrics

• Establish energy baseline

• Deploy meters

Results

• 15% improvement from tuning

• $2.5 million / yr energy savings



Best Practice: Paint Plant Upgrades

Electric Power Division’s Springvale Facility

Northern Ireland

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

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



Best Practice: Virtual Engine Development

Technology and Solutions Division’s Technical CenterMossville, 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



Awards & Recognition

Making strides externally

Reporting & Accountability Partners in the dialogue

http://www.epa.gov/climateleaders/index.html




“Our commitment to being a leader in

sustainable development will keep us

focused on what really matters—making the

intelligent choices that will drive the growth

of our business and help create a more

sustainable world.”

--Jim Owens, Caterpillar Chairman and

CEO

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