Construction and mining equipment manufacturer Caterpillar has released its first annual Taskforce on Climate-related Financial Disclosures report and disclosed its Scope 3 (value chain) greenhouse gas emissions. The move follows the management-supported shareholder proposal presented by As You Sow and Amalgamated Bank in 2022, which received a 96.5% vote in favour of net zero target setting, and continued engagement from investor initiative Climate Action 100+ (CA100+). The disclosures are seen as a positive step forward, although they fall short of the proposal’s request for Paris-aligned near– and long-term emission reduction targets, including all value chain emissions. Ivan Frishberg, Chief Sustainability Officer of Amalgamated Bank, said: “These disclosures are a move in the right direction to meet shareholder expectations on climate risk management. We will continue to advocate for Caterpillar to fully align with a net-zero economy.” Caterpillar’s calculation of Scope 3 emissions is a significant development, as an estimated 95% of the company’s total emissions inventory lies in its supply chain, including its customers’ use of products. “The materiality of Caterpillar’s Scope 3 emissions highlights the company’s significant challenge and opportunity – to develop a business plan responsive to global climate imperatives and a decarbonizing economy,” said Bill Davis, Stance Capital Managing Director and CA100+ Lead for Caterpillar. While welcoming Caterpillar’s disclosure of Scope 3 emissions, Daniel Stewart, As You Sow’s Energy and Climate Programme Manager, said: “It is essential that the company now take the next step and include these emissions in their emission reduction targets.” Shareholders from CA100+ will continue to engage Caterpillar in fulfilling the 2022 proposal and creating a climate transition plan that aligns with their expectations and the CA100+ Net Zero Company Benchmark.
Engagement Nudges Caterpillar in “Right Direction” on Climate
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