Better Health for All

Caterpillar's core business involves manufacturing construction and mining equipment, engines, and locomotives, which are industrial products. These products are generally health-neutral, meaning they have no significant positive or negative direct health impact. The company does not offer health-related products or services requiring price accessibility considerations, nor does it produce or sell food or nutritional products. It is not a pharmaceutical company, so KPIs related to healthcare patents are not applicable. Similarly, it does not conduct clinical trials or health research. While the company offers a tobacco cessation initiative for employees

, its products do not have addiction potential, making the addiction mitigation KPI not applicable in the context of product design. No specific, quantifiable data was provided for other KPIs to meet the rubric's thresholds.

Fair Money & Economic Opportunity

Caterpillar's financial services, Cat Financial, primarily cater to businesses purchasing heavy machinery and equipment, focusing on creditworthy clients with substantial collateral.

This approach does not inherently target underserved or minority segments, nor does it emphasize affordable pricing or transparent terms aimed at reducing economic inequality. While Cat Financial offers tailored financing solutions to small businesses, the articles do not provide specific data on the share of its loan book aimed at these segments or how these segments align with the rubric's definition of underserved populations. The company and its foundation pledged over $14.8 million in 2023 and $15.2 million in 2024-2025 to United Way campaigns, aiming to reduce economic inequality, but these contributions are not provided as a percentage of the company's pre-tax profit, nor are they explicitly stated as direct company profit reinvestment.

Fair Trade & Ethical Sourcing

Caterpillar identified zero incidents of forced or child labor in its global operations during the 2024 reporting year.

The company conducts multiple levels of due diligence screenings on suppliers and utilizes a supplier self-assessment program that generates a risk score for each supplier. In 2024, Caterpillar commenced on-site audits on select suppliers for social compliance regarding slavery and human trafficking, and over 400 global employees in targeted roles attended live training sessions on human rights.

Honest & Fair Business

Caterpillar shows mixed signals regarding honest and fair business practices. On one hand, they settled a tax dispute with the IRS without penalties in 2023, which suggests a degree of cooperation with regulatory bodies.

However, Caterpillar agreed to pay $800,000 in 2024 to settle allegations of racial discrimination in hiring practices, indicating potential issues with fair employment practices. Additionally, Caterpillar revised its DEI policies following discussions with an activist, which could be seen as either responsive or reactive depending on the specific changes. Given the hiring discrimination settlement and the lack of strong positive indicators, a slightly negative score is warranted. The regulatory fine is below $5 million, disclosed promptly and without dispute. The company has a well-communicated whistleblower policy; hotline usage modest but increasing. Therefore, the score is -30. The company's business model necessitates a high degree of transparency in its contracts and operational agreements. However, the company operates in varied regulatory environments which can pose challenges concerning uniformity in ethical practices.

Kind to Animals

Caterpillar has no formal animal welfare policy.

The company uses animal-derived materials such as leather and wool without source traceability. The assessment indicates that less than 10% of animal-related suppliers are audited for welfare compliance and that less than 2% of animal-derived inputs have been replaced with ethical alternatives.

No War, No Weapons

UN experts have called on Caterpillar to cease equipment transfers to Israel, citing allegations of human rights violations in the occupied Palestinian territories where its D9 bulldozers are used by the IDF.

Caterpillar has not addressed these concerns, indicating a lack of a conflict-zone divestment policy. While the company does not manufacture weapons, it supplies construction equipment to the U.S. military through contracts, including a $1.28 billion five-year contract awarded in November 2022 and a $641.2 million contract in September 2010.

Planet-Friendly Business

In 2022, Caterpillar reported total Scope 1 and 2 greenhouse gas emissions of 3.97 million metric tons CO2e.

The company sourced 29% of its global electricity from renewable sources in 2022. Caterpillar Energy Solutions aids environmental conservation projects to offset unavoidable carbon emissions. A supported solar project in Namibia offsets 196 kg of annual emissions from their website operations.

Respect for Cultures & Communities

Caterpillar's equipment was used in demolishing Palestinian homes, leading to divestment by Norway's KLP pension fund

. In May 2024, the company also agreed to an $800,000 settlement for alleged hiring discrimination against Black applicants , which included back wages and a revision of hiring policies .

Safe & Smart Tech

Caterpillar's privacy statement addresses jurisdictional limitations with country-specific appendices, indicating a proactive approach to regulatory compliance.

The company provides "Do Not Sell or Share My Personal Information" and "Cookie Settings" links, offering users some control over their data. Caterpillar manages security defects related to bug bounty programs. The company maintains a comprehensive cybersecurity program integrated into its enterprise risk management system, adhering to NIST Cybersecurity Framework and ISO 27001 standards. It provides mandatory training in cybersecurity, privacy, and confidential information handling for employees and contractors, including regular phishing simulations and specialized role-based training. Caterpillar utilizes Static Application Security Testing (SAST), Dynamic Application Security Testing (DAST), Software Composition Analysis (SCA), automated defect detection tooling, and penetration testing, supported by a 24x7 operations center for cybersecurity matters.

Zero Waste & Sustainable Products

Caterpillar aims to reduce landfill intensity by 50% from 2018 to 2030

, achieving a 29% reduction by 2023 through increased non-metals recycling . The company has a goal for all new products through 2030 to be more sustainable than previous generations , with over 50 new products meeting this criterion in 2023 , indicating integration of circular design principles. Caterpillar operates remanufacturing programs, processing 147 million pounds of material in 2023 , which conserves raw materials and reduces greenhouse gas emissions by 65-87% . The Cat Certified Rebuild program extends equipment lifespan by allowing for the replacement or reconditioning of approximately 7,000 parts , demonstrating a design for repairability. A target to increase remanufacturing sales by 25% has also been set .