DEERFIELD, Ill. (Oct. 19, 2021) — Caterpillar Inc. is creating the position of chief sustainability & strategy officer, enhancing its environmental, social and governance (ESG)-related disclosures and tying a portion of executive compensation to ESG. These actions reflect stakeholder feedback and illustrate the company’s longstanding commitment to sustainability.
“Sustainability is an important element of our long-term strategy for profitable growth,” said Caterpillar chairman and CEO Jim Umpleby. “Caterpillar is committed to contributing to a reduced-carbon future and helping our customers achieve their climate-related objectives as they build a better, more sustainable world.”
The company is announcing three key actions:
- Caterpillar is establishing the new leadership position of chief sustainability & strategy officer reporting directly to the chairman & CEO. Julie Lagacy, current vice president of the Enterprise Strategy Division, will assume additional responsibilities as the chief sustainability & strategy officer effective November 1, 2021.
- The Caterpillar board of directors will incorporate ESG in the 2022 incentive plan for executive officers. More information will be disclosed in the company’s 2023 proxy statement.
- Caterpillar will continue to analyze the disclosure recommendations of the task force on climate-related financial disclosures (TCFD) and begin to utilize the TCFD framework to enhance its sustainability reporting starting in 2023.
The company first introduced sustainability accounting standards board (SASB) reporting standards in its 2019 Sustainability Report. In 2021, the company also introduced seven new sustainability goals for 2030; five are centered on climate and the environment and two focus on employee and customer safety.