Caterpillar Sets Aggressive Greenhouse Gas Reduction Target

PEORIA, Ill., Jan. 18 /PRNewswire-FirstCall/ -- Caterpillar Inc. has pledged to reduce its global greenhouse gas (GHG) emissions 20 percent by 2010. The company has committed to the reduction target as part of the United States Environmental Protection Agency (EPA) Climate Leaders GHG program, which Caterpillar joined in 2003.

The 20 percent target would cover global greenhouse gas emissions on a revenue-normalized basis for the period between 2002 and 2010.

"Our commitment is yet another solid example of Caterpillar's involvement in a program that makes great business sense while also demonstrating our company's continued leadership in environmental stewardship," said Caterpillar Group President Douglas R. Oberhelman.

Between 1990 and 2001, Caterpillar reduced direct GHG emissions from its facilities by 450,000 tonnes. The reduction resulted from fuel switching, process changes, and energy conservation programs.

"By setting an aggressive target for the reduction of greenhouse gas emissions, Caterpillar is leading efforts to improve our global environment and showing what can be accomplished in partnership with the EPA," said EPA Assistant Administrator Jeff Holmstead.

According to EPA guidelines, setting a revenue-normalized target for GHG reductions allows a company to account for increases or decreases in production over time. Those companies can then focus on GHG emissions per unit of production as the key performance indicator to measure GHG intensity.

Started in 2002, Climate Leaders is a voluntary program in which the EPA works with companies to set aggressive long-term emissions reduction goals. Partners set a corporate-wide GHG reduction goal and inventory their emissions to measure progress. By reporting inventory data to EPA, partners create a lasting record of their accomplishments.

In many cases, Caterpillar has used its own products to dramatically reduce greenhouse gas emissions at its facilities. Examples of such efforts include using natural gas-fired combined heat and power units featuring Solar(R) Turbines in conjunction with units that recover waste heat. Such systems are not only more cost efficient, but they also have substantially reduced GHG emissions at those Caterpillar facilities.

In addition, dozens of 6 Sigma teams have implemented energy conservation projects that can be replicated across the globe at Caterpillar facilities, not only saving money, but also continuing to reduce emissions.

The company is an active participant in other environmental stewardship initiatives in addition to the Climate Leaders program. Examples include the U.S. EPA Clean School Bus initiative and Caterpillar's participation as a founding member and supporter of the Health Effects Institute, an industry and EPA organization designed to facilitate dialogue and fund research on emissions-related issues. For four straight years, Caterpillar has also been named to the Dow Jones Sustainability World Index, which recognizes companies that lead their industries in corporate social responsibility.

Caterpillar's commitment to the environment is also evident in its product development programs. Cat clean diesel engines with breakthrough ACERT(R) Technology have dramatically reduced emissions for on-highway trucks and vehicles as well as in the company's off-road machines.

In addition, Caterpillar is a founding member of the Engine Manufacturers Association, which enables industry to interact with federal and state regulators on the development of environmental regulations. The company is also a founding member of the Diesel Technology Forum, which raises awareness about the advances in fuel efficiency and economic contributions of clean diesel technology.

About Caterpillar

For more than 75 years, Caterpillar Inc. has been building the world's infrastructure and, in partnership with its worldwide dealer network, is driving positive and sustainable change on every continent. With 2003 sales and revenues of $22.76 billion, Caterpillar is a technology leader and the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. More information is available at http://www.cat.com/ .

More information on EPA's Climate Leaders program is available at http://www.epa.gov/climateleaders/ .