2Sustain

Last week, Caterpillar released its fourth annual sustainability report. Caterpillar, headquartered in Peoria, Illinois, is the world’s leading manufacturer of construction and mining equipment and posted sales and revenues of $51.324 billion in 2008.

The 51-page report, titled “Big Picture,” outlines Caterpillar’s economic, environmental, and social accomplishments, and it lays out the company’s overall commitment to sustainability. For instance, a graphic on page 9 shows the six elements of Caterpillar’s sustainability strategy:

• Promote and protect individual safety and well-being

• Provide employment, education, and training

• Minimize the use of energy, materials, water, and land

• Maximize recycling

• Minimize emissions

• Optimize the use of renewable resources

Caterpillar has an enormous global reach. The company manufactures more than 300 products in 23 countries and serves customers in nearly 200 countries. So, it’s great to see that Caterpillar is committed to reducing GHG emissions, improving efficiencies, and developing operations, products, and services that run on renewable or alternative fuels. Here are just a few examples:

• In May 2008, the PG Wilson facilities in Northern Ireland became the first Caterpillar production site to get all of its electricity from renewable sources (wind). By 2020, the company wants to use alternative or renewable resources to meet 20% of its energy needs, increase energy efficiencies by 25%, and reduce GHG emissions from existing facilities by 25%.

• Caterpillar has developed a remanufacturing process that returns end-of-life parts to their original condition. With 17 manufacturing facilities world-wide, this “Cat Reman” business model has been incredibly successful, resulting in an end-of-life parts return rate of 93%.

• In addition, the company is creating innovative, recyclable, and safer packaging systems for its parts and supplies. One new system was put to work in a plant in France, and it reduced handling by a remarkable 90%. That dramatically reduced ergonomic risks for employees, reduced truck trips by 23% (saving $67,000 a year), and cut packaging costs by $10,000 annually.

This year, Caterpillar released its sustainability report exclusively in electronic format –a decision that the company says will result in both cost savings and environmental benefits. You can download your copy here.

Spend a few minutes with this new report. It’s a worthwhile read that includes numerous examples of innovation and goal-setting –the kind of thinking that is fundamental to any comprehensive sustainability plan.

Note: Caterpillar is one of the company's recognized in Ethisphere Magazine's list of the world's most ethical companies in 2009.