MAKING PROGRESS POSSIBLE

SHAPING A MORE SUSTAINABLE WORLD

SYED GHAZANFAR HABIB
Director (Construction Equipment)
Jan 25 - 31, 20
10

Infrastructure and energy development are placing a high demand on natural resources worldwide. Caterpillar∆ understands that the company's business interests and these critical global issues are inextricably linked. To that end, the enterprise has entered into a "sustainable development journey".

The development of ACERT Technology began with the search of new ways to reduce diesel engine emissions, but it culminated in a revolutionary engine design that does more than help clean the air. ACERT Technology actually enhances diesel engine performance. Cat engines with ACERT ultimately run cleaner because they burn fuel more precisely and more efficiently - while maintaining engine performance and offering proven reliability with long-term durability. And ACERT offers a key advantage over solutions aimed at meeting only today's emissions standards. ACERT has a clear path to meeting even tougher standards in the future - so it won't become obsolete as emissions regulations tighten.

"To sustain" means to be able to maintain (at a certain rate) the ecological balance, by avoiding depletion of our critical natural resources.

Says Caterpillar∆ Chairman Jim Owens regarding sustainability, "Today, we are more informed and engaged then ever. We recognize the substantial business opportunities sustainable development presents and [we] better comprehend the magnitude of the challenges it entails. As our understanding grows, however, so does our realization that making development truly sustainable requires dramatic changes in how society in general-and business in particular-operates".

According to the 2007 Sustainability Report, Caterpillar Vision 2020 enterprise goals clarify our role and further drive a focus on sustainability in every aspect and sector of our business. In fact, our Vision 2020 goals for products, services and solutions include a 20 percent reduction in greenhouse gas emissions, a 20 percent increase in customer energy efficiency, and a 20 percent increase in customer material efficiency.

Within the next five years, the world's population is expected to reach 7 billion. This places an ever-increasing strain on our planet's resources, and asks businesses around the world to play a major role in seeking sustainable solutions. Caterpillar understands that the challenge becomes one of balance...meeting the global need for raw materials and energy with sustainable solutions. Engaging in sustainable business development is nothing new to Caterpillar, but today's more intensive focus is.

Our leadership role in the area of sustainability sets us apart from the competition. As the largest remanufacturer in the world, Cat∆ Reman recycled 2.7 billion pounds of material last year alone. In the mining sector, caterpillar has been limiting the impact on the environment through efficient technologies that increase the efficiencies in the extraction of natural resources. And, through its partnership with the Tropical Forest Foundation, Caterpillar has played the major role in developing and teaching Reduced Impact Logging (RIL) techniques. Here, the demands of both the environment and of the marketplace can be met, while leaving behind a healthier forest in the process.

Reman's current and political impact on material usage, combined with efficient mining technologies, efforts to promote environmentally sustainable forestry techniques, and on-going work in the field of power generation, have placed Caterpillar∆ in a leading role. This role and our evolving world require us to change how we think about, use and protect the world's natural resources.

For eight straight years, Caterpillar has been named to the Dow Jones sustainability World Index (DJSI) and has retained the leadership position in the Industrial Engineering sector for a third year. "We have worked diligently to hold our company to a higher standard, particularly in the area of greenhouse gas emissions, by establishing an absolute greenhouse gas reduction target at Cat Facilities worldwide," says Cat Director of social Responsibility, Jody Howard

Caterpillar∆ literally stunned the industry by unveiling the first-of-its-kind electric-drive track-type tractor (dozer). The Caterpillar D7E will offer "significant productivity increases, and reduced ownership and [lifetime] operating costs. From an environmental sustainability perspective, the Caterpillar∆ D7E uses substantially less fuel per hour - dramatically reducing the amount of carbon dioxide emissions. "This mid-range machine, backed by over 100 patents, is slated for full-scale production and introduction to select markets in 2009.

So how does Global Paving, our dealers and customers, play a part in the sustainable solution?

Paving is the ultimate sustainable industry. Global Paving plays a leading role in efficient road construction, rehabilitation, and asphalt reclamation/recycling around the world. Our innovative solutions (like pavers, compactors, cold planers and rotary mixers) are changing the way roads are built around the world. We offer advanced technologies (like AccuGrade∆ Compactor GPS Mapping and Measurement and Product Link technologies) and Solutions & Services (including best practices training) that allow crews to become more efficient. With our solutions, paving crews will consistently produce the most durable and smooth asphalt pavements, constructing roads that stand up to increasing traffic year-after-year.

The Mobile-Trac- System (MTS rubber track) option of our track-type pavers reduces base course disturbance to the jobsite and surrounding environment. Further risk to the environment can be avoided when our machines are factory-equipped with Cat eco-friendly (biodegradable) bio-hydraulic oil. Bio-hydraulic oil is an option growing in popularity that provides superior wear protection, excellent cold flow characteristics, and a high viscosity index for operation over a broad temperature range. In the case of accidental spills, bio-hydraulic decomposes (biodegrades) back to CO2 through soil or water microorganisms, with little or no deposits.

In addition, our paving experts are contributing to corporate initiatives working to meet ever-increasing emissions standards. These efforts will significantly reduce emission in the future, keeping the air we breathe clean and our Earth cooler. And, across the globe facilities are embarking upon aggressive reduce, reuse and recycle programs that will positively impact the way we do business, our employees, and the communities in which we live, work and play.

"We promote safety, energy, and materials efficiency, the reduction of adverse environmental impacts, well being of society within our operations and customers. As these issues continue to shape our business, we continue to explore how we can enrich the discussions, collaborate on solutions and, ultimately help shape a more sustainable world.