Caterpillar Sustainability Report

2021 SUSTAINABILITY REPORT CATERPILLAR’S ENVIRONMENTAL, SOCIAL AND GOVERNANCE APPROACH

CONTENTS EXECUTIVE SUMMARY 3 REPORTING CHAIRMAN & CEO LETTER 3 ENVIRONMENTAL, SOCIAL AND SUSTAINABILITY HIGHLIGHTS 4 GOVERNANCE (ESG) DATA 56 GOALS AND PROGRESS 6 PRIORITIZATION AND MANAGEMENT SUSTAINABILITY AT CATERPILLAR 8 OF ESG ISSUES 60 CORPORATE GOVERNANCE 11 SUSTAINABILITY ACCOUNTING STANDARDS BOARD (SASB) INDEX 61 ENERGY, FUEL ECONOMY AND EMISSIONS 15 GLOBAL REPORTING INITIATIVE (GRI) INDEX 62 MATERIAL PROCUREMENT 31 DATA ASSURANCE 68 REMANUFACTURING 34 ABOUT THIS REPORT 69 PEOPLE 39 PHILANTHROPY 50 KEY: GO DIRECTLY TO CONTENT CORPORATE PROFILE With 2021 sales and revenues of $51.0 billion, Caterpillar Inc. is the world’s leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. For nearly 100 years, we’ve been helping customers build a better, more sustainable world and are committed and contributing to a reduced-carbon future. Our innovative products and services, backed by our global dealer network, provide exceptional value that helps customers succeed. Caterpillar does business on every continent, principally operating through three primary segments — Construction Industries, Resource Industries and Energy & Transportation — and providing financing and related services through our Financial Products segment. 2 CATERPILLAR 2021 SUSTAINABILITY REPORT

EXECUTIVE SUMMARY EXECUTIVE SUMMARY CHAIRMAN & CEO LETTER SUSTAINABILITY IN ACTION Our long-standing commitment to sustainability inspires us to set and achieve meaningful environmental, social and governance (ESG) goals and develop innovative products, technologies and services to support our customers on their sustainability journey. We believe the energy transition represents a significant opportunity for ENABLING OUR CUSTOMERS’ SUCCESS long-term profitable growth, leading us to add sustainability as a focus The addition of sustainability as a focus area, together with operational area of our enterprise strategy. excellence, expanded offerings and services, highlights our work to achieve Caterpillar’s and our customers’ climate-related objectives. To demonstrate the importance of transparent climate-related reporting Through investments in technology that facilitate fuel transition, and disclosure, we will further enhance our reporting in our Sustainability operational efficiency and reduced emissions, we are helping our Report released in 2023. This will include our first-ever Task Force on customers reduce their carbon footprint while also meeting their Climate-Related Financial Disclosures (TCFD) report and public disclosure requirements for performance, durability and economic value. of estimated Scope 3 greenhouse gas emissions. In 2021, a number of projects were announced that will allow Caterpillar to contribute to a reduced-carbon future. You can read about several examples of product innovation in our Sustainability Report. G & EXECUTIO OUR VALUES IN ACTION TIN N M Our ESG commitment extends beyond environmental sustainability. We RA OD continue to build a more diverse and inclusive workplace, as outlined in PE E our Diversity & Inclusion Report. We also demonstrate strong corporate O E OPERATIONAL PAR L citizenship through the Caterpillar Foundation, helping build stronger, L EXCELLENCE T OP N more resilient and sustainable communities around the world. PE ER S We are building on our legacy of providing products and services that EXPANDED PROFITABLE SERVICES advance sustainable progress and improve standards of living, supporting OFFERINGS GROWTH our customers throughout the energy transition as they build a better, more sustainable world. SUSTAINABILITY OU CUSTOMERS N R V TIO Jim Umpleby ALUES IN AC Chairman & CEO 3

EXECUTIVE SUMMARY CATERPILLAR TO BEGIN REPORTING SCOPE 3 GHG EMISSIONS DATA IN 2023 CATERPILLAR’S APPROACH TO GHG EMISSIONS Also in 2021, we further emphasized our commitment to reducing Caterpillar supports the goals of the Paris Agreement to limit global product-related emissions by disclosing an additional new goal temperature rise, and we are committed to contributing to a reduced- that 100% of our new products through 2030 will be more sustainable carbon future. We demonstrate our commitment by setting targets than the previous generation. and disclosing progress toward greenhouse gas (GHG) emissions In 2023, Caterpillar will provide our first-ever public disclosure of reduction goals. We announced our first sustainability goals in 2006 estimated Scope 3 emissions data (including for Category 11 – Use and refined them in 2013 to include a 50% reduction in Scope 1 and 2 of Sold Products), utilizing the Greenhouse Gas Protocol for reporting. GHG emissions intensity from 2006 to 2020. We actually achieved a Also of note, our first TCFD report will also be published in 2023. 51% reduction against this goal. We will continue to be transparent about our goals, progress and In 2021, we set seven new sustainability goals for 2030. Among them is innovations and are committed to continue enhancing our climate a new goal to further reduce absolute Scope 1 and 2 GHG emissions and sustainability disclosures. by 30% between 2018 and 2030. At Caterpillar, we have a legacy of providing products and services that continually improve the quality of life and the environment by fulfilling society’s need for infrastructure including shelter, clean water, transportation and reliable energy – in a sustainable way. In 2021, we released our Climate & Energy Statement, which reflects our commitment to contributing to a reduced-carbon future. Click here to read our updated CLIMATE & ENERGY STATEMENT. 4

EXECUTIVE SUMMARY SUSTAINABILITY GOVERNANCE SUSTAINABILITY CATERPILLAR RESTRUCTURES BOARD TO FURTHER SUSTAINABILITY GOVERNANCE 2021 EMPHASIZE SUSTAINABILITY AND ESG GOVERNANCE 2022 Sustainability oversight is conducted at Caterpillar’s highest levels, Caterpillar Board of Directors beginning with our board of directors. Given the importance Caterpillar Board of Directors of sustainability, the board restructured its committees, effective June 8, 2022, and created the new Sustainability and other Public Public Policy Policy Committee (SPPC). Among other responsibilities, the SPPC will Sustainability and other and Governance Committee have oversight over climate and sustainability. Public Policy Committee Management’s sustainability governance includes our Chief Executive Chief Executive Officer Officer (CEO) and all executive officers who report directly to the CEO, Chief Executive Officer including the Chief Sustainability & Strategy Officer. Executive Office Read more about our Corporate Governance Executive Office SHAREHOLDER ENGAGEMENT AND RESPONSIVENESS Caterpillar values the diverse perspectives and input of our shareholders. Through regular, ongoing shareholder engagement, we hear their interest in how Caterpillar is addressing and reporting on climate change, as well as how our company is contributing to a reduced-carbon future. We have responded to shareholder feedback by taking and announcing several key actions, including: • Disclosing our estimated Scope 3 GHG emissions data beginning in 2023; • Committing to utilize the TCFD framework to further enhance our sustainability reporting beginning in 2023; • Incorporating ESG performance into the 2022 incentive plan for executive officers; • Creating a new executive leadership position of Chief Sustainability & Strategy Officer, reporting directly to the Chief Executive Officer; and • Launching our annual Diversity and Inclusion Report, which also includes a link to the disclosure of our EEO-1 report. 5

EXECUTIVE SUMMARY 2030 GOALS AND PROGRESS KEY: Progress toward Progressing achieving 2030 goal Not on track On track Operations Energy & Emissions Operations Water GOAL: GOAL: We have set a science-based Scope 1 and 2 goal Implement water management strategies at 100% to reduce absolute greenhouse gas emissions from of facilities located in water high-risk areas by 2030. our operations by 30% from 2018 to 2030. 32% Reduction in absolute GHG emissions from 2018 11% Facilities achieved goal of water strategy implementation Goal Progress: Goal Progress: ✔ 24% of all energy at Caterpillar facilities provided ✔ Foundational year for defining and deploying water by renewable sources* management criteria in high-risk areas ✔ Implemented energy/GHG reduction initiatives, including ✔ Implemented water management elements, including machine replacements and production efficiency compliance, management strategy, leadership review, improvements, resulting in beneficial contributions and employee engagement to reduced emissions Operations Waste Remanufacturing GOAL: GOAL: Reduce landfill intensity by 50% from 2018 to 2030. Increase sales and revenues from remanufacturing offerings by 25% from 2018 to 2030. 34% Reduction in landfill intensity from 2018 -3% Decrease in sales and revenues from remanufactured products from 2018 Goal Progress: Goal Progress: ✔ Recycled 91% of waste due to waste reduction ✔ 127 million pounds of material taken back for and recycling projects remanufacturing through Cat Reman ✔ Reduced packaging waste due to increased utilization ✔ Progress anticipated with remanufacturing options of returnable shipping containers integrated into future product development Product Emissions & Energy Efficiency GOAL: 100% of Caterpillar’s new products through 2030 will be more sustainable than the previous generation through collaborating with customers, reduced waste, improved design for rebuild/remanufacturing, lower emissions or improved efficiency. 100% New products introduced in 2021 were more sustainable than previous generations Goal Progress: ® ✔ Reduced waste and fuel consumption as well as increased safety and operator ease-of-use features in the Cat M316 and M320 Wheel Excavators as compared to previous models ✔ Supported improved efficiency and productivity, such as the 992 Wheel Loader that provides optimized design resulting in 32% more productivity and 48% more efficiency, as compared to the 992K ✔ Reduced emissions through products such as the G3520 2.5MW gas generator set with retrofit kits allowing up to 25% hydrogen content, expected to be available in late 2022. *Renewable sources includes purchased and on-site generated renewable energy, and the renewable energy from grid-purchased electricity. 6

EXECUTIVE SUMMARY 2030 GOALS AND PROGRESS – continued Employee Health & Safety Customer Safety GOAL: GOAL: We aspire to prevent all injuries and will further Provide leadership in the safety of people who work in, on and our industry-leading safety results by reducing around our products. recordable injury frequency (RIF) by 50% from 2018 to 2030. 23% Decrease in recordable injury frequency from 2018 Our Qualitative Commitment Statement Goal Progress: For example, Caterpillar Safety Services highlights in 2021: ✔ Best safety performance on record for third year in a row ✔ Provided safety counseling for 7,200+ customer employees ✔ Facilities worldwide effectively managed enhanced ✔ Developed a National Safety Month campaign safety measures and vaccination opportunities to protect ✔ Hosted an Executive Leadership Safety Summit employees from COVID-19 ✔ Amplified focus on new hire safety training and mentorship The introduction of R1700 XE, a zero-emission battery electric loader, is the latest step in Caterpillar’s journey to electrification. A first of its kind for the ® mining industry, the Cat MEC500 Mobile Equipment Charger is a standalone fast charging system designed to charge quickly and safely wherever it’s needed. 7

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SUSTAINABILITY AT CATERPILLAR Nearly a century of sustainable innovation. Driving sustainable progress and helping customers build a better world through innovative products and services is not new to Caterpillar. Since our founding in 1925, sustainable innovation has powered our business. Today, with products from our Construction Industries, Resource Industries and Energy & Transportation segments in virtually every corner of the earth, we share the concerns of governments and the public about the risks of climate change. We support global efforts to mitigate climate change. We are committed to reducing Caterpillar’s GHG emissions while helping our customers meet their climate-related objectives as they build a better, more sustainable world. We support our customers during this energy transition through investments in new products, technologies and services. Providing what customers need, where and when they need it, has been a formula for success throughout Caterpillar’s history. Projects like the Panama Canal and the Apollo 11 mission to the moon are just two examples of big global challenges we’ve helped our customers tackle by bringing together innovative equipment, services and support. These milestones in our history were groundbreaking — and challenging. And now, we collectively face our next one — mitigating the effects of global climate change. Along with our customers, we’ve helped build the world we live in and embrace the challenge of helping build an even better one. 9 CATERPILLAR 2021 SUSTAINABILITY REPORT

SUSTAINABILITY AT CATERPILLAR AWARDS AND RECOGNITION BUSINESS AND INNOVATION Dow Jones Sustainability Indices World and North America, 22 years S&P Global WORKPLACE 2021 Sustainability Yearbook Wall Street Journal Forbes Magazine 100 Most Sustainably Managed World’s Best Employers 2021 (#108) Companies 2021 (#21) America’s Best Employers 2021 (#344) Best-Managed Companies of 2021 America’s Best Employers by State 2021 Best Employers for Veterans (#34) Fortune Best Employers for Diversity 2021 (#362) World’s Most Admired Companies (#101) Global 2000, 2021 ( #132) Fortune 500 Human Rights Campaign World’s Most Admired Companies (#78) Campaign Corporate Equality Index 2021 80% Ranking Newsweek America’s Most Responsible Great Place to Work Institute Companies 2022 (#203) 2021 Best Company to Work for in Brazil 10+ Interbrand Human Rights Campaign For more than 10 years, the Best Global Brands (#82) Equidad MX 2021 annual internal Sustainability Top major Mexican businesses and Excellence Awards have engaged multinationals for LGBT workplace our employees by recognizing inclusion, Caterpillar Nuevo Laredo Caterpillar teams or individuals Human Rights Campaign Foundation who develop more sustainable Corporate Equality Index products, services, solutions or processes. United Way Worldwide’s Global Corporate Leadership Program 10CATERPILLAR 2021 SUSTAINABILITY REPORT

2021 HIGHLIGHTS  Named first Caterpillar Chief Sustainability & Strategy Officer  Committed to reporting in alignment with Task Force on Climate-Related Financial Disclosures in 2023  Announced commitment to incorporate ESG performance into our 2022 incentive plan for Executive Officers 11CATERPILLAR 2021 SUSTAINABILITY REPORT

CORPORATE GOVERNANCE Governance creates value and builds trust. We believe a robust governance framework creates long-term value for our shareholders, strengthens board and management accountability, and builds trust in the company and our brand. Our board of directors has direct oversight of our climate and sustainability efforts. * In 2021, Caterpillar leadership regularly reported to the board’s Public Policy and GOVERNANCE HIGHLIGHTS Governance Committee (PPG) regarding sustainability and climate strategies, priorities, Size of Board 10 goals and performance. The PPG was also briefed on these and other ESG issues as well as the perspectives of investors, customers, employees and other stakeholders. Number of Independent Directors 9 The PPG also reviewed Caterpillar’s annual political contributions and recommended Average Age of Directors 64 the amount the company should contribute to the Caterpillar Foundation. The PPG provided regular updates to the board on these matters. Average Director Tenure 8 (in years) Recognizing the increasing complexity and stakeholder interest in climate, sustainability and other ESG issues, in April 2022, the board decided to restructure certain of its Annual Election of Directors Yes committees. The board created the Sustainability & other Public Policy Committee Mandatory Retirement Age 74 (SPPC) to oversee all of the public policy matters previously overseen by the PPG. In addition, the SPPC will have explicit oversight over sustainability, social and public Women 30% policy matters, including those related to the environment, climate change, human Diversity 20% rights and lobbying. This restructuring will be effective immediately following the annual shareholder meeting on June 8, 2022. Majority Voting in Director Elections Yes Independent Presiding Director Yes Code of Conduct for Directors, Yes Officers and Employees Supermajority Voting Threshold No for Mergers Proxy Access Yes Shareholder Action by No Written Consent Shareholder Ability to Call Yes Special Meetings Poison Pill No Stock Ownership Guidelines for Yes Directors and Executive Officers Anti-Hedging and Pledging Policies Yes Clawback Policy Yes ® * The information in this table reflects only the director nominees Cat generator sets installed at a landfill gas processing and power plant near Montreal, Canada, producing electricity from landfill gas. standing for re-election at the annual meeting of shareholders on June 8, 2022. 12CATERPILLAR 2021 SUSTAINABILITY REPORT

CORPORATE GOVERNANCE ETHICS & COMPLIANCE Caterpillar operates according to Our Values in Action — Caterpillar’s Code of Conduct. The Code defines our values — Integrity, Excellence, Teamwork, Commitment and ETHICS & COMPLIANCE HELPLINE Sustainability — which represent what we We hold ourselves to the highest standard stand for and how we conduct ourselves of integrity and ethical behavior. We promote with our customers, suppliers, communities and respect the rule of law and expect our and one another. employees and suppliers to do the same. We It guides our employees, affiliates and encourage individuals to report situations in board members in living our Values each which they have a good-faith belief that any day. Among the topics covered are avoiding circumstance or action has violated our Code conflicts of interest, fair competition, of Conduct, enterprise policy or applicable anti-bribery, trade compliance, employee law. Those who wish to report a concern can performance and development, non- do so confidentially and anonymously through harassment, non-discrimination, personal resources maintained by our Office of Business privacy, supplier expectations and Practices. These resources include: environmental responsibility. • Online reporting All Caterpillar employees are annually • Email reporting at required to complete Code of Conduct [email protected] training. As part of this training, employees • Telephone reporting with toll-free and must certify that they have read, understand call-collect dialing options that support and agree to comply with the Code of reporting in multiple languages and from Conduct. Additional compliance training is multiple countries also provided to employees based on risk Caterpillar will not take any action — or identified in their job roles. tolerate any reprisal — against any party for raising an issue in good faith. Learn more about our governance framework, corporate governance initiatives and board composition: • 2022 Caterpillar Proxy Statement • Board Committees • Caterpillar Code of Conduct 13CATERPILLAR 2021 SUSTAINABILITY REPORT

CORPORATE GOVERNANCE RISK MANAGEMENT Risk is an inherent part of conducting global business, and As risk management is fundamental to our culture, there managing risk is fundamental to the way we work. Through is strong engagement in risk management from the CEO, robust programs including Enterprise Risk Management, executives, and senior leaders. The company’s officers share Compliance and Audit, we engage across the enterprise to accountability for business risks, and the board has oversight of identify, prioritize and manage risks. the enterprise process. The board and its committees oversee Enterprise Risk Management and our enterprise strategy are risk and have regular updates on topics that are identified linked: To better inform our decision-making, we evaluate risks through the risk management process. Outputs from risk at both the business unit and enterprise levels, considering management drive strategic initiatives and disclosures. the likelihood and potential impact of each risk. These Our risk management culture enables us to critically evaluate evaluations guide our approach for risk management, allow risks to our business and identify opportunities to create us to understand the challenges these risks bring and position value for our employees, customers and shareholders. our business for the opportunities they present. Our commitment to sustainability is reflected in our risk We consider risks across many categories, including strategic, management practices as we strive to build a better world. operational, financial, compliance and hazard risks. We embed ESG risks into each risk category as part of our commitment to sustainability. We treat these ESG risks with the same priority and rigor as other risks across the business. POLITICAL CONTRIBUTIONS We advocate for policies, agreements, legislation and regulations CATPAC contributions are made only in U.S. federal and state that enable us to help our customers build a better, more elections. CATPAC is funded through voluntary contributions by sustainable world. eligible individuals. A steering committee comprised of Caterpillar Where allowable by law, Caterpillar may make corporate non-officer employees representing a diverse mix of U.S. contributions to campaigns, individual candidates or political locations and business units oversees all CATPAC disbursements committees to support public policies we believe will promote to ensure they promote the company’s business interests. our business interests. Any political contributions by Caterpillar Caterpillar also maintains memberships in trade associations must be approved by our vice president of Global Government and business groups that may advocate on behalf of business & Corporate Affairs. In addition, the board annually reviews the community segments. We are committed to supporting these company’s political spending policy and its political activities organizations, as they champion public policies that contribute including corporate political contributions, political contribution to the business community’s growth and success. activities of the Caterpillar Political Action Committee (CATPAC), trade association participation and Caterpillar’s significant Additional information regarding Caterpillar’s lobbying priorities. corporate contributions, CATPAC contributions and trade association memberships is available on our political engagement website. 14CATERPILLAR 2021 SUSTAINABILITY REPORT

2021 HIGHLIGHTS  Continued investment in alternative and renewable power generation sources to reduce our operational emissions  Supported customers in their sustainability and climate journey by introducing product innovations that are more fuel efficient and lower-carbon generating in their operation 15CATERPILLAR 2021 SUSTAINABILITY REPORT

ENERGY, FUEL ECONOMY & EMISSIONS Caterpillar supports global efforts to mitigate climate change. Caterpillar shares the concerns of governments and the public about the risks of climate change and supports global efforts to mitigate it. We are committed to a reduced-carbon future. We demonstrate this in many ways, including our significant progress in reducing GHG emissions from our operations and our continued investment in new products, technologies and services to help our customers achieve climate-related objectives. We have a legacy of providing products and services that continually improve the quality of life and the environment by fulfilling society’s need for infrastructure including shelter, clean water, transportation and reliable energy — in a sustainable way. Learn more about Caterpillar Climate and Energy Statement 16CATERPILLAR 2021 SUSTAINABILITY REPORT

ENERGY, FUEL ECONOMY & EMISSIONS ENERGY AND GHG MANAGEMENT Caterpillar manages hundreds of facilities worldwide, all of which require energy. Some of these operations, especially our manufacturing sites, are energy intensive. To reduce our energy consumption and our GHG emissions, we are improving energy efficiency, investing in alternative and renewable power generation sources, and considering new technologies as they become available. Likewise, we are making other environmental improvements to conserve water and manage waste. Our enterprise energy management team builds awareness, encourages action and develops improvements in energy efficiency and alternative/renewable power generation. These solutions include purchasing renewable energy certificates and installing renewable energy sources, such as photovoltaics (PV) or a microgrid installation that combines PV with battery storage to supplement and offset electricity generated with diesel fuel at an EHS off-grid location. One significant contribution to alternative energy consumption is the operation of combined heat and power (CHP) systems to power several manufacturing facilities. The energy MANAGEMENT management team evaluates opportunities for replication of CHP, PV and microgrids at other locations. We also continue to assess SYSTEM new ways to upgrade systems and make facilities more efficient. Our high-performance standards for environmental, health and safety (EHS) encourage going beyond merely complying with EHS laws and regulations. Our EHS assurance manual outlines Caterpillar’s EHS Management System and establishes fundamental requirements for all workplaces globally, including majority-owned subsidiaries and majority-owned joint ventures. Our facilities assess compliance with our requirements annually, and our EHS assessment team reviews those assessments while also conducting more in-depth reviews of select facilities each year. Beyond meeting standard expectations, facilities implement their own initiatives to improve safety, decrease energy use and increase productivity. As facilities evaluate potential environmental initiatives, they also consider annual investment required, total anticipated cost savings and average pay-back period. We also invite facilities to report emissions reduction activities through internal awards and recognition processes. 17CATERPILLAR 2021 SUSTAINABILITY REPORT

ENERGY, FUEL ECONOMY & EMISSIONS KEY PERFORMANCE METRICS: GHG EMISSIONS, ENERGY, WATER & WASTE GHG GOAL: We have set a science-based Scope 1 and 2 goal to reduce absolute greenhouse gas emissions from our operations by 30% from 2018 to 2030. Absolute GHG emissions GHG Emissions Intensity Million metric tons CO2e Absolute metric tons CO2e/  Scope 1  Scope 2 million dollars of revenue 0.94 40.6 0.91 33.0 35.0 32% 0.70 0.74 1.55 29.7 1.28 Reduction in absolute GHG emissions from 2018 0.87 0.77 0.77 through 2021 ’18 ’19 ’20 ’21 ’30 ’18 ’19 ’20 ’21 ENERGY Energy Intensity Total Energy Consumption Total Electricity Consumption Renewable Energy1 Absolute gigajoules energy Absolute energy use Sum of purchased and Renewable electrical use/million dollars of sales million gigajoules self-generated electricity energy use/total electrical and revenues in million MWh use x 100 461 445 463 25.2 2.55 2.38 24.2 404 23.9 2.09 2.25 21.2 21.0 19.3 20.6 17.4 ’18 ’19 ’20 ’21 ’18 ’19 ’20 ’21 ’18 ’19 ’20 ’21 ’18 ’19 ’20 ’21 WATER WASTE GOAL: GOAL: Implement water management strategies at 100% of facilities located Reduce landfill intensity by 50% from 2018 to 2030. in water high-risk areas by 2030. 34% 11% Reduction in landfill intensity from 2018 Facilities achieved goal of water strategy implementation 18CATERPILLAR 2021 SUSTAINABILITY REPORT

ENERGY, FUEL ECONOMY & EMISSIONS REGULATORY STANDARDS AND INDUSTRY ENGAGEMENT Caterpillar provides U.S. Environmental Protection Agency Tier 4 Final, European Union Stage V or equivalent products in North America, Europe and select regions around the world. These products provide up to a 90% reduction in emissions (nitrogen oxides and particulate matter) compared to Tier 3 or Stage IIIA emission standards. Product improvements in each segment provide customers with cost-saving benefits of improved fuel efficiency and fuel flexibility. Modular offerings allow customization of products to optimize technology and emissions profile that helps customers achieve their climate- related goals. As an industry leader, we have a talented and experienced team that constantly innovates to improve product emissions, efficiency and safety. Caterpillar continues to engage with regulators and other governmental entities, industry organizations and nongovernmental organizations around the world to share that expertise, which supports advanced technology and informs decisions. 19CATERPILLAR 2021 SUSTAINABILITY REPORT

ENERGY, FUEL ECONOMY & EMISSIONS ENABLING CUSTOMER SUCCESS We collaborate with dealers and customers to deliver customized solutions that help optimize energy use and provide training for operators on how to use our equipment more efficiently. For example, our efficiency experts can help customers evaluate and achieve emissions goals, reduce noise and dust, implement fuel- saving techniques, and optimize idle management practices and fuel and fluid usage. 2030 GOAL Customer Safety Making Safety Everyone’s Job Provide leadership in the safety of people Creating a lasting safety culture often requires an all-in who work in, on and around our products. approach — meaning everyone. Lehman-Roberts, a hot mix asphalt producer and paving contractor, partnered with Caterpillar’s commitment to safety goes beyond our Caterpillar Safety Services to foster ownership of safety at employees and facilities. Caterpillar Safety Services’ all levels of its organization. The company began measuring products, solutions and expertise support companies of leadership engagement as a leading indicator and conducted all sizes in many industries, helping achieve and sustain regular surveys of its front-line workers. Says Jeremy safety excellence. This team supports dealers, suppliers Ramberg, Senior Vice President of Construction at and customers using cultural assessment tools, Lehman-Roberts, “we truly believe safety is a 24/7/365 continuous improvement processes, technology that endeavor. Now that we have a plan, we must continually identifies and mitigates risk, and a wealth of industry- communicate it.” specific safety resources. Keeping People Safe at Work and at Home Partnering for Zero-Incident Performance Eighty-five percent of injuries that require medical Stacy and Witbeck is a construction contractor that treatment in the U.S. happen off the jobsite, according specializes in complex transportation and transit projects. to the National Safety Council. That’s why the work of They engaged with Caterpillar Safety Services more than Caterpillar Safety Services extends to keeping people safe two years ago to transform their safety culture, including at home. In 2021, we launched a Corporate Safety Campaign establishing safety steering teams to guide culture change. to educate workers on topics like talking to kids about Because they have three regional offices, geographic safety and developing a home safety plan. The campaign diversity was an important consideration. By ensuring Stacy received over 20 million views across a range of media. and Witbeck has representation from all regions on its safety steering teams, safety messages are shared with all employees. The company has since rebranded the Caterpillar safety program as its own to create buy-in and ownership. 20CATERPILLAR 2021 SUSTAINABILITY REPORT

ENERGY, FUEL ECONOMY & EMISSIONS SUPPORTING OUR CUSTOMERS Power is at the heart of our customers’ work. Innovation and integration are at the heart of ours. And we’re structured to deliver innovation and integration. Our engineers innovate at the component, system, product and worksite levels to develop integrated solutions to address customers’ specific goals — including lower GHG emissions, energy flexibility and 1. LOWER-CARBON INTENSITY FUELS business sustainability. Fuel choice is one way customers can Caterpillar’s approach to the energy transition reduce greenhouse gas emissions from is to offer multiple solutions made to match our in-use products. Many Caterpillar products customers’ work. Many of our advanced power are operating on lower-carbon alternatives to offerings are already at work on customer sites diesel and natural gas today, including in each of our primary business segments, biodiesel, renewable diesel, and biogas. either complementing our existing products For example, renewable liquid fuels like or as stand-alone solutions. Others are in hydrotreated vegetable oil (HVO) are being development. In order to continue to help our used in our C175-20 engines to provide customers achieve their climate-related goals, stand by power at a Microsoft data center our advanced power solution development is in Sweden. HVO can reduce carbon intensity focused in five technology areas: by 45% to 85% versus diesel. All Caterpillar diesel engines are capable of operating on 100% HVO right now. Caterpillar engines operating on natural gas blended with up to 80% hydrogen are being demonstrated in power generation projects today. Turbines Caterpillar’s approach to the energy can operate on up to 100% hydrogen. transition is to offer multiple solutions These and other projects are helping made to match our customers’ work. to demonstrate the viability of potential fuel sources like hydrogen while the infrastructure to support availability of renewable hydrogen is being developed. In 2021, we announced that some Caterpillar gas generator sets are being configured to use 100% hydrogen on a design-to-order basis, and some commercial sets will be configured to operate on natural gas blended 21 with up to 25% hydrogen. CATERPILLAR 2021 SUSTAINABILITY REPORT

ENERGY, FUEL ECONOMY & EMISSIONS 2. HYDROGEN FUEL CELL Fuel cells use renewable hydrogen fuel as a scalable electric power source for stationary and mobile equipment. We announced a three-year project through a collaboration with Microsoft and Ballard Power Systems to demonstrate a power system incorporating large-format hydrogen fuel cells to produce reliable and sustainable backup power for 4. BATTERY-STORED POWER Microsoft data centers. The project is Batteries power work with stored electrical supported and partially funded by the U.S. energy, instead of, or in addition to, an engine. Department of Energy under the H2@Scale In 2021, we debuted our first 100% battery- initiative and backed by the National Renewable powered electric drive mining machine and Energy Lab. Caterpillar is providing the overall made-to-match charger. We’ve also designed system integration, power electronics and a worksite power solution for a land-drilling controls that form the central structure of the operation that pairs a G3512 Natural Gas power solution. In addition, Progress Rail Generator with the Cat Energy Storage announced a memorandum of understanding System with fully integrated controls. The with BNSF Railway and Chevron to advance combination allows the customer to make the demonstration of a locomotive powered use of readily available field gas reducing the by hydrogen fuel cells. operation’s fuel costs and carbon intensity. 3. ELECTRIFICATION 5. MICROGRIDS Electric drivetrains and hybrid powertrains Microgrids integrate renewable energy sources employ an electric drive transmission with into electric power systems. These worksite power components to improve energy installations are particularly valuable in remote efficiency and productivity. The D6E XE locations where renewable energy sources high-drive dozer, for example, offers up like solar or hydropower are readily available to 35% better fuel efficiency and up to and electrical grids may deliver inconsistent 23% less fuel usage than previous models. power. Barrick Gold Corporation collaborated The 795 electric drive mining truck with a with Cat dealer Tractafric to install 7.5 MW of diesel-electric drivetrain has been paired with battery energy storage capacity for its microgrid a trolley-assist system that allows the truck at the Kibali gold mine in the Democratic to use electric power while traveling uphill, Republic of the Congo. Now operational, and then switch back to diesel operation if Tractafric’s solution deploys the battery energy electricity isn’t readily available. The trolley storage and Cat bi-directional power inverters system reduces fuel burn by more than to provide grid stability, while the Cat Microgrid 90% while on trolley. Controller seamlessly integrates up to 45 MW of power generated by three hydroelectric power stations and 36 Cat 3512 diesel generator sets. 22CATERPILLAR 2021 SUSTAINABILITY REPORT

ENERGY, FUEL ECONOMY & EMISSIONS PRODUCT INNOVATION We provide the products and services needed to build a better, more sustainable world. We are proud to support our customers in their sustainability and climate journey. Our teams are developing some of Caterpillar’s most fuel-efficient, lower carbon-emitting products. We began 2030 GOAL offering generator sets configured to use 100% hydrogen Product Emissions & Energy Efficiency and automated fleets of mining machinery. Already, these solutions are improving safety, productivity and sustainability, Our customers’ needs align with our own goal for 100% with many product and service solutions still in development. of new Caterpillar products to be more sustainable than Here are a few of the products and collaborations the previous generation. Specifically, products that meet we announced in 2021 to help our customers meet one or more of these four criteria: their bold business and sustainability goals and • reduced waste or improved safety for our customers our 2030 sustainability goal for new products with (e.g., less maintenance waste) sustainability benefits. • improved design for rebuild/remanufacturing, providing our customers options to extend the life of their machine • lower emissions and/or • improved efficiency. That goal requires a relentless focus on product innovation, shared by a diverse team of driven and experienced Caterpillar employees. 23CATERPILLAR 2021 SUSTAINABILITY REPORT

ENERGY, FUEL ECONOMY & EMISSIONS BUILDING BETTER JOBSITES — CONSTRUCTION INDUSTRIES The construction industry demands sustainable solutions that are tough, reliable and versatile. From navigating narrow doorways to climbing rocky hills, our range of fuel- efficient products help our customers get the job done. COMMITMENT TO MORE SUSTAINABLE PRODUCTS Customers can reduce emissions up to 45% utilizing products with advanced technology such as the D6 XE, 966 XE, 972 XE, 980 XE, 982 XE, 320 or 336. Further, customers can utilize low-carbon intensity fuels in a majority of our Construction Industries products allowing for an opportunity to reduce lifecycle emissions up to 85%. What’s next? We are integrating advanced power sources into the next generation of products to help customers continue to meet their sustainability goals while also delivering the requirements of the jobsite and application. HELPING CONSTRUCTION CUSTOMERS REDUCE EMISSIONS TODAY For the first time in the 10- to 12-ton medium wheel loader size class, the Cat 980 XE and 982 XE models now feature the Caterpillar designed and manufactured continuous variable transmission (CVT). Introduced in mid-2021, these medium wheel loaders include an expanded technology platform helping customers lower emissions with improved fuel efficiency and reduced maintenance costs. Deep system integration of the Cat CVT, engine, hydraulic and cooling systems significantly improve fuel efficiency up to 35%. The Next Gen Cat 966 XE and 972 XE Wheel Loaders — updated in late 2021—also improve fuel efficiencies up to 35% compared to the previous powershift models. Prolonged service intervals plus efficiencies gained through integration of the CVT powertrain result in even lower maintenance costs further reducing operating costs. 24CATERPILLAR 2021 SUSTAINABILITY REPORT

ENERGY, FUEL ECONOMY & EMISSIONS EXPANDING CAT COMMAND, ENHANCING SAFE MACHINE OPERATION The expansion of Cat Command for Excavating and Command for Dozing provides remote-control operation for select Cat excavators and dozers. Removing the operator from the machine and operating environments, Cat Command enhances safe machine operation, while reducing operator fatigue to increase productivity. Deeply integrated with machine electronics, Command controls allow users to experience the same machine response as if they were operating from inside the cab, allowing a high level of productivity to be maintained from a safe distance. DESIGNING FOR THE FUTURE As our customers know, the point of purchase is only the first step in a Caterpillar product’s lifecycle. We leverage data analytics, remote monitoring, annual product updates and other services to keep products running smoothly and build in value along the way. Our engineers design products to reduce waste and enable a more circular economy. That’s why we offer to restore products to like-new condition through our cost-saving and life-extending remanufacturing offerings and Cat Certified Rebuild programs. 25CATERPILLAR 2021 SUSTAINABILITY REPORT

ENERGY, FUEL ECONOMY & EMISSIONS REVOLUTIONIZING RESOURCE INDUSTRIES Our technology-dependent world relies on mined minerals — especially when it comes to powering emerging renewable energy solutions. In 2021, we focused on supporting sustainable mining with new battery electric and automated equipment options. We continue to evolve our portfolio through partnerships and acquisitions. FIRST OF ITS KIND IN UNDERGROUND MINING Recognizing the demand for a battery electric vehicle in deep, difficult-to-ventilate underground mines, we have introduced a diesel-electric underground loader, along with the forward-looking R1700 XE — a high productivity, zero exhaust emissions loader with the industry’s only onboard battery and a portable equipment charger. It will complement a first-of-its-kind battery electric, zero exhaust emissions underground truck to provide a fully electric underground load and haul solution. FUEL EFFICIENT LARGE DOZERS The D11 XE large dozer is our highest producing, most fuel-efficient Cat dozer ever. Equipped with an electric drive powertrain, it reduces fuel consumption by up to 25% with a machine lifespan up to 20% longer. We also updated our D10 series dozers, which now use 4% less fuel while offering a 3% boost in productivity. REDUCED EMISSIONS LARGE WHEEL LOADERS The Cat 992 Large Wheel Loader has set the standard in its size class for more than 50 years. In 2021, we raised the bar with our new 992, which has been demonstrated to produce up to 32% less emissions than its 992K counterpart. 26CATERPILLAR 2021 SUSTAINABILITY REPORT

ENERGY, FUEL ECONOMY & EMISSIONS ™ CAT MINESTAR SOLUTIONS In 2021, we unveiled the first electric drive model to join our expanding Command for autonomous haulage fleet, the 794 AC. This mining truck/haul truck offers up to 8% better payload and faster speed-on-grade. We also introduced the 777G autonomous water truck, which helps operators keep access roads safe while cutting water consumption by up to 50%. CUTTING CARBON THROUGH CUSTOMER COLLABORATIONS Nouveau Monde Graphite announced its plans to build the world’s first zero-emissions, open-pit mine in Canada. It’s a transformative project we’re supporting as the exclusive supplier of an all-electric mining fleet. We’re also supporting customers BHP and Rio Tinto in their goals to achieve net-zero carbon emissions by 2050. BHP will have the opportunity for first access to Caterpillar zero-emissions trucks at various development stages, and hands on learning opportunities to ensure successful deployment at their sites. For Rio Tinto, the opportunity to purchase the world’s first operational deployment of approximately 35 new Caterpillar 793 zero-emissions autonomous haul trucks once development is complete. For our customer Newmont, we entered into a strategic alliance which will deliver a fully connected, automated, zero carbon emitting end-to-end mining system. The agreement includes the rapid deployment of an all-electric autonomous haulage fleet to support their operations on two continents. And we’re also developing our first battery electric zero exhaust emissions underground truck, which will complete our fully electric underground load and haul solution. 27CATERPILLAR 2021 SUSTAINABILITY REPORT

ENERGY, FUEL ECONOMY & EMISSIONS POWERING THE ENERGY TRANSITION — ENERGY & TRANSPORTATION As industries from transportation to technology embrace renewable energy, we’re delivering market-driven solutions to meet customers’ sustainability needs. We continue to evolve our portfolio through partnerships and acquisitions. HYDROGEN DEMONSTRATION We’re working with Chevron to develop hydrogen demonstration projects in transportation and stationary power applications, including prime power. Together, we are confirming the feasibility and performance of hydrogen for use as a commercially viable alternative to traditional fuels for line-haul rail and marine vessels. As part of the collaboration, we are also working to demonstrate a hydrogen- fueled locomotive and associated hydrogen-fueling infrastructure. GREENHOUSE GAS EMISSIONS REDUCTION By combining CarbonPoint Solutions’ patented technology with Caterpillar Oil & Gas solutions, we can further reduce GHG emissions while helping our customers meet their climate-related objectives. CarbonPoint Solutions provides technology to concentrate and capture CO2 for utilization or sequestration, with applications including engines and turbines at oil and gas sites, distributed power and industrial plants, and waste-to-energy sites. 28CATERPILLAR 2021 SUSTAINABILITY REPORT

ENERGY, FUEL ECONOMY & EMISSIONS HYDROGEN-FUELED GENSETS In response to customer interest in hydrogen, we announced that some Caterpillar gas generator sets are being configured to use 100% hydrogen on a design-to-order basis. We’ll also have some commercial sets configured to operate on natural gas blended with up to 25% hydrogen. EXPLORING LOW-CARBON SOLUTIONS We entered a memorandum of understanding with Certarus to explore opportunities to bring lower carbon energy solutions to our customers. We are working together to advance the use of lower carbon fuels, including conventional and renewable natural gas and hydrogen. PROVIDING SUSTAINABLE ENERGY SOLUTIONS AROUND THE WORLD We are providing companies and communities around the world with innovative, sustainable solutions. In Sweden, Microsoft is progressing toward its carbon-negative goal with new data centers powered by 100% renewable energy. Yet, in case of maintenance or a grid outage, they need sustainable standby power. Enter our Cat C175-20 and C18 generator sets, which run on locally refined Preem Evolution Diesel Plus — the world’s first eco-labeled liquid fuel, which contains over 50% renewable raw materials. In Rwanda, methane gas at the bottom of Lake Kivu posed a serious risk of rising to the surface and triggering a gas explosion. In response, we partnered with local private and public officials to deliver 19 MWM branded gas generator sets that are transforming the methane gas-water mixture into a sustainable energy resource. The power plant supported by the generator sets will go live in 2022. 29CATERPILLAR 2021 SUSTAINABILITY REPORT

ENERGY, FUEL ECONOMY & EMISSIONS Innovation is Key to a Sustainable Future Our 97-year history of sustainable innovation fuels our vision and determination to enable our customers’ success. Our goal to make each product more sustainable than the last has no finish line. We’re thinking bigger and broader about the solutions we can deliver, and we’re looking further into the future to anticipate the challenges and opportunities ahead. Our commitment to sustainability goes beyond reducing emissions, and includes prioritizing safety, reducing waste and fulfilling society’s need for infrastructure. We are inspired to deliver for our customers and communities each step of the way. Together, we can build a better, more sustainable world for generations to come. 30CATERPILLAR 2021 SUSTAINABILITY REPORT

2021 HIGHLIGHTS  Continued to support the Responsible Minerals Initiative to encourage greater supply chain transparency around conflict minerals  With a strong base of diverse suppliers already in place, we are investing in tools that will help identify diverse suppliers for new business opportunities 31CATERPILLAR 2021 SUSTAINABILITY REPORT

MATERIAL PROCUREMENT Caterpillar responsibly sources the raw materials used to build our products. As the world’s leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives, Caterpillar responsibly sources the raw materials used to build our products. Our supply base includes approximately 27,000 suppliers around the world providing raw materials and manufactured components across broad categories and technologies for aftermarket and production parts. These purchases include a variety of unformed steel products, cut or formed to shape and machined in our facilities; steel and iron castings and forgings, machined to final specification; and finished components, made to Caterpillar or supplier-developed specifications. We also help keep those materials in circulation for as long as possible. We maintain global strategic sourcing models to meet our global facilities’ production needs while building long-term supplier relationships. We look for suppliers and business allies who demonstrate strong values and commit to the ethical principles outlined in the Caterpillar Supplier Code of Conduct. We also expect suppliers to comply with the sound business practices we embrace, follow the law and conduct activities in a manner that respects human rights. Learn more about the Caterpillar Supplier Code of Conduct 32CATERPILLAR 2021 SUSTAINABILITY REPORT

MATERIAL PROCUREMENT SUPPLIER DIVERSITY Supplier diversity continues to be a focus for our strategic procurement team. With a strong base of diverse suppliers already in place, we are investing in tools that will help identify diverse suppliers for new business opportunities. This is key to delivering on our commitment to foster and increase business purchases with diverse suppliers. RESPONSIBLE MINERAL SOURCING Many considerations go into the responsible sourcing of minerals used in our products. Tin, tungsten, tantalum and gold (3TG), collectively known as “conflict minerals,” have been associated with human rights violations in the Democratic Republic of the Congo and adjoining countries. Our Conflict Minerals Position Statement contains clear expectations for our suppliers regarding their sourcing of these materials. We have established a process that identifies areas of risk on an ongoing basis, and corrective action plans to mitigate or remediate such risks relating to conflict minerals. A supplier’s failure to take corrective actions when required may lead to additional actions, up to and including the termination of our business relationship. Caterpillar supports the Responsible Minerals Initiative to help influence smelters’ engagement to support supply chain transparency and leverage industry collaboration toward greater business intelligence. Year over year, we strive for an increased supplier response rate, emphasizing 3TG priority suppliers. Caterpillar also publicly discloses the results of our Reasonable Country of Origin process and any necessary due diligence in Form SD and Conflict Minerals Report as required by the Securities and Exchange Commission, which discloses metrics and results of inquiries we execute within our first-tier suppliers. In these reports, we describe our due diligence efforts, including risk mitigation and process improvements we expect to implement in the following year. Learn more about our Conflict Minerals Position Statement 33CATERPILLAR 2021 SUSTAINABILITY REPORT

2021 HIGHLIGHTS  Introduced new Cat Reman parts that supported more than 400 unique engine and machine models  127 million pounds of end-of-life material returned in 2021 34CATERPILLAR 2021 SUSTAINABILITY REPORT

REMANUFACTURING Nearly 50 years of providing 2030 GOAL high-quality equipment Remanufacturing Increase sales and revenues with lower owning and from remanufacturing offerings by 25% from 2018 to 2030. operating costs. 25% Caterpillar’s remanufacturing and rebuild operations have provided customers with quality equipment that helps deliver lower owning N/A 2% -14%-3% and operating costs. Our engineering and manufacturing expertise, field population and dealer organization ’18 ’19 ’20 ’21 ’30 make it possible for us to offer remanufactured products and components through many of our brands and rebuild options through our dealers. Remanufacturing and rebuild options deliver multiple sustainability benefits and help Sustainability Benefits of * Caterpillar contribute to the circular economy. Through these activities, we recycle Remanufacturing millions of pounds of end-of-life products annually. Because we are in the business of 85% returning end-of-life components to like-new condition, we reduce waste and minimize the need for raw material, energy and water associated with producing new parts. less energy use Through remanufacturing, we contribute to sustainable development — extending the value of the energy and water consumed in a component’s original manufacture and 61% keeping high-value nonrenewable resources in circulation for multiple lifecycles. The less GHG emissions company’s enterprise strategy focused heavily on increasing services that offer superior customer value. With steady customer demand for remanufacturing products and components, we are well-positioned to help achieve this enterprise goal. Reducing waste 85% through remanufacturing and rebuilding can provide benefits to the environment, less material used customers and the enterprise. 127 million lbs 88% 85% less water used 7, 8 7, 8 of material returned in 2021 end-of-life eligible returns collected * Represents environmental impacts from remanufacturing process for a Cat Reman engine and components as compared to manufacturing a new, comparable engine and components. Does not include impacts elsewhere in our value chain. Based on a 2006 study done by Caterpillar on the 3412 cylinder head. 35CATERPILLAR 2021 SUSTAINABILITY REPORT

REMANUFACTURING REMANUFACTURING ACROSS OUR BRANDS Caterpillar machines and components are built to last. They are designed to withstand heavy-duty operating conditions and to be restored and used for multiple lifecycles. Designing products and components to be used throughout multiple service lifecycles is the essence of our remanufacturing approach, which takes many different forms across our brands. CAT REMAN The Cat Reman process returns component products at the end of their initial serviceable lives to like-new condition. Engineers use design guidelines to build key products with remanufacturing in mind, ensuring they are highly durable, even under heavy-use conditions. When a component reaches the end of its initial serviceable life, dealers can return the used component, referred to as core, to Caterpillar, where it is cleaned, inspected, salvaged and remanufactured to original factory specifications, including any relevant engineering updates. Cat Reman uses state-of-the-art salvage techniques, strict reuse guidelines, and advanced remanufacturing processes and quality controls to ensure remanufactured products provide like-new performance, coupled with a same-as-new warranty. We charge a deposit along with the purchase of each Cat Reman product, which gives customers an incentive to return their used components so that we can continue to give materials new life. 36CATERPILLAR 2021 SUSTAINABILITY REPORT

REMANUFACTURING SOLAR TURBINES Solar Turbines remanufactures turbine components and gas compressor components. Through advanced remanufacturing processes, components are returned to like-new condition. Once components have been certified, they are placed back into service, typically through an exchange program. This allows customers to exchange major components in days rather than months of downtime. The exchange equipment is tested and certified to the same performance and emission specifications, as well as implementing the latest design improvements. Solar continues to expand remanufacturing capabilities and invest in condition-based engineering, which allows for more finite determination of remaining useful life. Condition-based engineering improves reman content and extends overhaul cycles while ensuring quality at every step. Solar continues to invest in facilities around the world to expand capabilities with the goal of reducing transportation and provide a faster customer response. PROGRESS RAIL Progress Rail extends the use of existing locomotives by providing rebuild, overhaul and repower options. These modernization programs upgrade electrical and mechanical systems and other components to extend locomotive life by 10 years or more with appropriate maintenance. Repower upgrades meet or exceed current emissions standards in certain regions while improving reliability, reducing exhaust emissions and maximizing fuel economy. We also offer reconditioning or repair services for freight cars and a wide range of components, ensuring value-added returns are available for customers, reducing annual maintenance cost. When locomotives and railcars finally reach the end of their usable lives, they can be recycled for other uses through Progress Rail’s scrap management services. We also provide rail take-up and inspection services, including grading of previously used rail, which is then recycled, repurposed for other non-rail uses or relayed into track. In 2021, Progress Rail processed about 95,000 gross tons of material. 37CATERPILLAR 2021 SUSTAINABILITY REPORT

REMANUFACTURING CATERPILLAR ENERGY SOLUTIONS X-CHANGE The X-Change program is a parts replacement program for medium and large MWM branded engines and a perfect example of circular economy principles. By remanufacturing and selling X-Change parts, engines and gensets, customers benefit from quick and cost-effective overhauls and repair services on-site. This maximizes uptime of the power and heat-generating power plants for both MWM and Cat branded product lines. The replaced parts that reached the initial serviceable lifetime are returned to Caterpillar Energy Solutions where they are cleaned, disassembled, inspected and remanufactured to like- new condition. Technology updates that reduce emissions and increase efficiency while improving reliability are included. In this way significant lifecycle extension, including greenhouse gas emission reduction, is achieved. CATERPILLAR DEFENSE During disaster response or aid delivery, amid surge or rapid deployment, in wartime or peacetime, Caterpillar Defense responds to each operation’s needs, including offering solutions that extend the lifecycle of products. Through the military Service Life Extension Program, Cat dealers give machines a complete second lifecycle at a fraction of new replacement cost. We also have Caterpillar trained, qualified technicians who conduct repairs on military bases and customize replacement parts to local needs. CAT CERTIFIED REBUILD In the same spirit as Cat Reman, Cat Certified Rebuild programs increase the lifespan of equipment by providing customers with product updates at a fraction of the cost of buying a new machine, enabling us to extend the life of materials. A complete Cat Certified Rebuild includes more than 350 tests and inspections, automatic replacement or reconditioning of approximately 7,000 parts and a like-new machine warranty. Trained dealer service professionals perform rebuild work using genuine equipment and parts while incorporating the latest engineering updates. Caterpillar provides information, data, training and service tools to help dealers decide which parts to reuse to achieve the expected longevity of rebuilt components. Since 1985, Caterpillar and our dealers have rebuilt more than 37,000 machines, powertrains and components. 38CATERPILLAR 2021 SUSTAINABILITY REPORT

2021 HIGHLIGHTS  Delivered our best recordable injury frequency (RIF) performance on record for the third year in a row  Offered 1,720 new virtual training courses on topics ranging from safety to lean to leadership with more than 1.8 million courses completed  Increased or maintained scores on our employee experience and engagement surveys 39CATERPILLAR 2021 SUSTAINABILITY REPORT

PEOPLE We strive to create an environment where our employees can reach their full potential. Our Values-driven culture reflects our commitment to the health, safety, integrity, excellence, teamwork and diverse backgrounds and experiences of our 107,700 employees. Our values unite us across our many cultural, language, geographic and business boundaries, making us a stronger team. We encourage employee feedback and continually make improvements to help our team members do the work that matters. 40CATERPILLAR 2021 SUSTAINABILITY REPORT

PEOPLE EMPLOYEE HEALTH AND SAFETY The health and safety of our employees is an important focus at Caterpillar, and we strive to continuously reduce injuries. Safety is forefront in our strategic goals and metrics, with visible commitment and support by leadership. In addition to metrics, we believe the best way to drive a culture of safety excellence is to create an environment where our team is accountable for their own safety and the safety of those around them. We relentlessly strive to ensure our workforce returns home safely every day. OUR GLOBAL RESPONSE TO THE PANDEMIC Protecting the health of our employees is ingrained in Caterpillar’s culture at every level. In 2021, our safety-first culture led the company’s continued response to the COVID-19 pandemic by maintaining a global, enterprise-level task force comprised of business, environmental, health and safety (EHS), medical, human resources, facilities, legal and communications leaders. The task force further strengthened our response to the existing enhanced safety measures and improved CREATING ACCOUNTABILITY benefits by increasing vaccination opportunities in many workplaces FOR EVERYONE and paid time off to receive vaccinations away from work. The task We track enterprise metrics and targets force also developed and implemented a playbook for our businesses as well as individual business unit goals. to support a limited, voluntary return to the workplace for some of our Common enterprise targets create structure employees who were working remotely. This helped ensure employees and accountability, while business unit returned to the office in a consistent and safe manner. strategies focused on safety culture Supervisors, managers and leaders in every region of the world delivered and involving leaders and employees in frequent communication with employees to help facilitate resiliency developing their culture create opportunities throughout the year. In return, our employees responded by focusing for innovation. We drive clear accountability on driving business results, despite the challenges created by and have an EHS management system, the pandemic. as described on page 17, that establishes expectations worldwide. From day one, we In 2020, the Caterpillar Foundation donated $10 million to support provide every newly hired employee with the response efforts and organizations directly impacted by COVID-19. knowledge they need to perform their job The Foundation donated an additional $3.8 million in 2021 to relief safely, and leaders regularly receive training on organizations to provide essential medical supplies and support their role in safety compliance and setting an increased access to vaccines. In addition, many employees also example for our strong safety culture. These continued to help fight the spread of COVID-19 in the communities actions help us manage risk while creating a where they live and work through donations to local families and culture focused on worker health and safety. volunteer work supporting local efforts. 41CATERPILLAR 2021 SUSTAINABILITY REPORT

PEOPLE OUR PROGRESS REPORT CARD SETTING THE BAR HIGHER In 2021, driven on by our relentless focus on safety, we delivered As we pursue our 2030 goal, business unit leaders are engaged our best recordable injury frequency (RIF) performance on record in the evolution of our safety vision. Our plan includes further for the third year in a row. We improved our RIF rate by 23% strengthening our safety-first culture by continuing to involve from our 2018 base year and by 2% from the previous year. We employees in developing solutions, listening to their concerns accomplished this result while leading our organization through and ensuring they feel comfortable talking to their peers about the global pandemic, effectively deploying enhanced safety potential hazards or unsafe behaviors. Continuing to provide measures and encouraging and making available vaccinations. safety learning opportunities for our leaders, safety professionals While we are proud of our progress, we are also very saddened and employees will enhance our efforts. We know the journey that a contractor suffered a fatal workplace injury at one of our ahead will be challenging but vitally important as we continue to facilities in 2021. This incident highlights that safety must always prioritize the safety of our employees and their families. remain the number one focus of all workers, and it further Here are some ways our various locations have helped us strengthens our safety resolve. achieve a safer work environment. United States 2030 GOAL Safety is a priority starting on day one. Within our Large Power Safety Systems Division in East Peoria, Illinois, we incorporated feedback from operators, manufacturing engineers and subject We aspire to prevent all matter experts to define the key skills for each job, improved injuries and will further our standard work and provided job-specific training by validated industry-leading safety results trainers to certify new hires prior to releasing them to perform by reducing RIF by 50% from their jobs. Since this change, recordable injuries to newly hired 2018 to 2030. employees have been dramatically reduced. Recordable Injury Frequency (RIF) Europe Recordable injuries per 200,000 Practicing good ergonomics protects employees against hours worked injury. Our Grenoble, France, facility implemented several 0.53 innovative approaches to ergonomic design. This included 0.43 0.42 0.41 evaluation of traditional ergonomic risks, as well as an 0.27 assessment of the work environment within the area and operator feedback about the work. These approaches identified several ways we could use technology to perform a task and protect employees from potential harm. This facility recently ’18 ’19 ’20 ’21 ’30 celebrated one year free from ergonomic-related injuries. 42CATERPILLAR 2021 SUSTAINABILITY REPORT

PEOPLE India Global The Caterpillar facility in Thiruvallur produces structures for The development of our Product Support & Logistics Division’s off-highway truck frames. We formed a diverse team of line Safety Application Suite has allowed for a one-stop location operators, line section facilitators, section managers, manufacturing where facilities can access all available safety resources in engineers and the operations excellence team to review the risk a multitude of languages. Translated materials have helped analyses for the various stations. As a result of the project, we drive a better understanding of the materials and improved the implemented a collaborative robot in two stations to eliminate fall quality of data accrued from non-English speaking locations. We risks, bending at the waist, pinch points and repetitive motions increased participation now that the suite is accessible from any of loading and unloading the station manually. In another station, mobile device or computer. The project has increased diversity we installed a common adapter to eliminate the need for manual and inclusion within our safety programs and provided our sites change-out in between models, reducing the risk for pinch points, with an enhanced ability to engage directly with employees, slips and trips, as well as grip force injuries. These improvements regardless of location or language. not only improved safety, but they also engaged employees with the workstations to identify issues and develop solutions. Safety, efficiency and employee fatigue all improved substantially. 43CATERPILLAR 2021 SUSTAINABILITY REPORT

PEOPLE TALENT DEVELOPMENT AND TRAINING Our employees are encouraged to explore opportunities, pursue their interests and enjoy many fulfilling careers. We make this investment in employee development to help our business meet its ever-changing needs. Through continual learning, our employees will help us innovate and drive business results. Beginning with onboarding and with each assignment, our employees have access to robust learning and development resources. Many of our employees enjoy multiple career opportunities within our businesses, and we credit the hands-on learning opportunities we provide as well as our focus on development and career planning. As the pandemic continued for a second year, on-demand and virtual learning became central to our menu of courses. We are regularly expanding the options on critical topics — ranging from safety to lean to leadership — so employees can access their desired training whenever and wherever they need it. We also continue to offer our production employees access to certification programs, ongoing learning and career development opportunities. Virtual Learning by the Numbers 1,720 new programs >1.8M courses completed 71% apply learning to their work 44CATERPILLAR 2021 SUSTAINABILITY REPORT

PEOPLE Nearly 25% of our 2021 intern class were returning interns. INVESTED IN EARLY CAREER TALENT In 2021, we welcomed more than 300 interns from  We hire high school and college students directly into  student programs that provide in-person and experiential 79 colleges and universities to our Caterpillar family and learning to sharpen their skills and develop hands-on provided opportunities aligned with their career interest knowledge of our business. and/or field of academic study. In addition to online learning, Caterpillar offers development opportunities for employees to lead challenging projects, take on stretch assignments, serve on committees, join Employee Resources Groups, work with mentors and job shadow others — all aimed at fostering collaboration and learning. With a business case for investment and their manager’s sponsorship, hundreds of employees each year deepen their knowledge, pursue new career paths and add to their credentials by taking advantage of our tuition assistance program, which covers most of their expenses for tuition, fees and books. Through deliberate succession planning, we identify and prepare leaders for new opportunities across the company. Intentional development planning helps our employees identify and work on the skills they need now and in the future. DEVELOPMENT OPPORTUNITIES • Cust omized training programs in Acuna, Mexico, met the increase in demand for welders by developing locally customized training programs aimed at the need for more specialized workers. Through a partnership with CONALEP, a local technical school, we developed a customized training program that increased class sizes and reduced the lead time for new welders to join our production line, resulting in 117 new welding certifications. • Developing front-line leaders is an increased focus through a new Leadership Development (LD) program called LD200, based on real-life challenges and opportunities leaders face. The program is offered through on-demand and in-person sessions. In 2022, an estimated 2,000 leaders in multiple countries will experience the inaugural program. 45CATERPILLAR 2021 SUSTAINABILITY REPORT

PEOPLE DEVELOPMENT OPPORTUNITIES (continued) • Sharing best practices is one of the best ways our employees learn. In 2021, Caterpillar’s Excavation Division held a competition between European work tools and fabrication facilities where teams competed based on their ideas for implementing lean approaches to their work. Throughout the competition, facilities shared their best practices for operational and transactional lean approaches, resulting in improvements like inventory optimization, re-work time reduction and higher production stability. • Intentional career planning and self-directed learning helps our employees own their careers. We invested in establishing dynamic career development models targeted at attracting and retaining our commercial workforce. Global leaders representing 18 divisions partnered together to establish the core skills, competencies and career paths for marketing, sales and product support employees. This gave the 6,000 employees in these roles a clear roadmap to develop and advance their careers. • Speaking up about diversity and inclusion is critical to our inclusive culture. Solar employees and leaders participated in a series of interactive, virtual diversity and inclusion training sessions covering topics on the importance of diversity, equity and inclusion to business success and tips for engaging in meaningful diversity dialogue. • A new onboarding program lays the foundation for success for anyone joining the Construction Industries Services Division. The four-month program is offered to internal transfers or external hires to set the tone for the employee experience, help drive networking across departments and bring the division strategy to life through group discussion. The 150 employees who completed the program in 2021 report greater understanding of our strategy, development expectations and customer needs, as well as a strong feeling of inclusion within the division. Since this program was offered, the employee experience score on the division’s annual Employee Insights Survey for employees with less than one year of service increased to 92%. • Developing leaders locally is a focus in our China facilities and offices. The China Leadership Development Program is aimed at developing leaders from within and includes classroom training, external visits to other facilities and hands-on learning projects. Our leaders teaching leaders approach allows participants to interact with senior leaders from every aspect of our business to improve their business acumen, understand enterprise priorities, enable cross function sharing and encourage innovation. To date, over 175 leaders have completed the program. 46CATERPILLAR 2021 SUSTAINABILITY REPORT

PEOPLE HEALTH AND WELL-BEING At Caterpillar, our success starts with Employee Assistance Program (EAP)  High Employee Utilization of our people. Our focus on health and — A free, voluntary and completely Our Well-Being Offerings well-being represents Caterpillar’s confidential service provided to commitment to build and sustain a high- employees and their eligible family 125 employees, on average, performing team. We demonstrate this members to help meet many challenges commitment to our employees and the at home and work. The EAP also aims attended our monthly U.S. extended Caterpillar family by offering a to engage employees while removing Financial Health webinars — wide range of benefits and programs that the stigma surrounding mental health and attendance keeps growing. support their health and well-being. by delivering webinars, web content When our employees are healthy, they and educational materials on a variety perform their best at work, at home of health emotional/social health topics. 2,000 employees attended and in their communities. Our Total OUR TOTAL REWARDS OFFERINGS one of 26 training sessions Health strategy focuses on all aspects of Our commitment to health and well- on becoming a Mental Health well-being, including financial, physical being not only includes our employees, First Responder. and emotional/social health as well as but also their families. We offer a variety promoting a sense of purpose. of benefits to both our full- and part- Major programs include: time global workforce that extends to 300 employees in the employees’ spouses, same-sex domestic Monthly U.S. Financial Health webinar UK participated in a month-  partners and dependents. Benefits vary series — Covers topics that help our by country, but may include: long, at-home physical employees budget, save, plan and fitness program and over Healthcare coverage including medical, invest for their futures.  150 employees regularly prescription drug, dental, vision and Total Health Highlights campaign — attended webinars on various  preventive exams and testing Builds awareness and provides mental health topics. education on a variety of well-being  Tax-savings accounts topics. Helpful resources are published  Parental and adoption leave and online and delivered worldwide within infertility benefits Over 750 employees the workplace through our “Total  Life and disability insurance participated in our Health Champions,” a global network Prepare for Returning to of employee volunteers who share  Retirement savings plans their passion for wellness. This team the Workplace webinar.  Time-off benefits, including vacation, coordinates programs and events that holiday and paid volunteer time educate and emphasize the importance  of good health. Additional voluntary benefits, such as accident insurance, legal services and identify theft  Employee Assistance Program 47CATERPILLAR 2021 SUSTAINABILITY REPORT

PEOPLE 2021 Annual Employee Insights EMPLOYEE EXPERIENCE Survey Snapshot Our employees know best how to deliver innovative solutions and their perspectives 82% and suggestions matter. We make it a priority to solicit employee feedback so we can response rate improve upon their work experience and create an environment where everyone can do their best work. Each year, every employee is invited to participate in the confidential Employee Insights Year over year, we have Survey and provide feedback and perspectives. Though 2021 was another challenging increased year, we saw leaders committed to listening to employee needs. Leaders partnered with employees and created an even stronger employee experience. or maintained scores on every index. We embrace continuous improvement and do so by developing robust action plans and continuous, year-round listening approaches. In 2021, Resource Industries conducted nearly 300 “Stay Interviews” with employees to understand how they feel Scores were above benchmark about their work environment, collaboration with peers, career development, why they on almost all survey items. stay with Caterpillar and how we can make their experience even better. Inclusion index scores have increased for four years in a row. 48CATERPILLAR 2021 SUSTAINABILITY REPORT

PEOPLE DIVERSITY AND INCLUSION We are proud of our journey and continue to take actions and make important progress to create an even more diverse and inclusive workforce. In our Resource Industries segment, for example, a partnership with our Women’s Initiative Network employee resource group generated the ability to achieve 100% diverse interview panels, which increased the percentage of diverse candidates hired by Resource Industries. We invite you to learn more about our progress by visiting our Diversity & Inclusion webpage. Visit our Diversity & Inclusion webpage HUMAN RIGHTS In accordance with Our Values in Action, Caterpillar is committed to respecting internationally recognized human rights principles throughout our global operations. Our Code of Conduct, Human Rights Policy, Slavery and Human Trafficking Statement and Supplier Code of Conduct represent our commitment that we will not condone and strive to eliminate all forms of forced labor, child labor and discrimination in the workplace. We also commit to establish safe and healthy working conditions. We value diversity as a foundational key to the success of our business strategy and seek to compensate our employees fairly and competitively where they work. We respect the principles of freedom of association and the right to collective bargaining. We have compassion for all persons affected by conflict wherever it occurs and we expect our directors, officers, employees, business partners and suppliers, including in conflict-affected areas, to comply with all applicable laws and conduct activities in a manner that respects human rights. Read our Human Rights Policy 49CATERPILLAR 2021 SUSTAINABILITY REPORT

2021 HIGHLIGHTS  Invested more than $41 million in 2021 to improve the lives of people in 39 countries  Participated in a campaign to establish natural infrastructure by planting 290,000 trees in 95 communities 50CATERPILLAR 2021 SUSTAINABILITY REPORT

PHILANTHROPY Since 1952, the Caterpillar CATERPILLAR Foundation has been on a FOUNDATION mission to improve lives by focusing on the human, Through the Caterpillar Foundation we have been on a mission to improve lives since its founding in 1952. As a Foundation, we natural and basic services focus on the human, natural and basic services infrastructure needed for individuals to thrive and communities to be resilient. Our philanthropic purpose builds on Caterpillar’s historical legacy infrastructure needed for of improving lives — finding new ways to tackle modern issues individuals to thrive and and identifying room for continuous improvement. FOUNDATION FOCUS AREAS communities to be resilient. The Foundation invests in the skills people need to join the modern workforce, and the natural and vital infrastructure they Caterpillar works alongside our dealers and rely upon. customers to build the social infrastructure needed Empowering the workforce of the 21st century to make the world run. Our success contributes to We invest in skills development and STEM (science, the stability of regions around the world. technology, engineering and mathematics) to equip people with the skills required for tomorrow’s economy, putting them on a path to prosperity. Skills-based education leads to better jobs, and better jobs lead to better futures. Building resilient communities to address critical environmental challenges We support natural infrastructure development and access to basic services, such as water resource management and energy. Giving back in our communities Caterpillar’s global team helps build a better world using their passion, time and talent to give back, maximizing impact through the Foundation’s disaster and matching gifts programs, United Way and volunteer efforts. Nearly $851 million invested in global communities since 1952. 51CATERPILLAR 2021 SUSTAINABILITY REPORT

PHILANTHROPY In 2021, the Foundation invested more than $41 million helping improve the lives of people in more than 39 countries around the world. Together with the help of the Foundation’s partners:  3.3 million individuals will have better access to industry-aligned STEM education programs.  Over 530,000 acres will be restored through reforestation, ecosystem restoration and more sustainable land use management practices.  Nearly 15,000 individuals are projected to enter the workforce after successful completion of technical and vocational education programs.  Approximately 500 water ESTABLISHING system interventions are projected to be installed to connect communities with NATURAL reliable water sources.  Around 12,000 individuals INFRASTRUCTURE will earn one or more industry- recognized credentials.  More than 2.5 million short The ‘It Starts with a Tree’ campaign aims to plant 290,000 trees in 95 communities. tons of carbon are projected to Along with Foundation partner One Tree Planted, we are addressing individual be removed, sequestered communities’ natural and economic infrastructure needs on a global scale. This or captured. innovative campaign serves as a launch pad to establish natural infrastructure that protects and strengthens communities.  Over $4 million in disaster Some of these impacted communities include the 40 beekeepers who work in the damage costs reduced. Biobio region near Santiago, Chile, whose local businesses suffered due to recent brushfires. With 4,000 new trees planted, the habitat will be protected — allowing for the reproduction of bees. This will enable the beekeepers of Santiago to reactivate their businesses, putting them on a path toward economic success and financial independence. 52CATERPILLAR 2021 SUSTAINABILITY REPORT

PHILANTHROPY CREATING THE WORKFORCE OF THE 21ST CENTURY To thrive in our changing world, individuals and communities Caterpillar Foundation partner need the skills, resources and services. Investments in workforce International Youth Foundation training readiness and STEM aim to create human infrastructure through students for 21st century workforce. an empowered, prepared and skilled workforce. Across Latin America, unemployment and a lack of education among young people are critical problems. Through a program that teaches students skills that align with the most relevant and profitable in-country sectors such as advanced manufacturing, agriculture, automotive, IT and logistics, Adriana enrolled in a welding course provided by International Youth Foundation. DISASTER She was hired by a company that valued her skills and abilities and is now happily working as a computer numerical controlled RELIEF machine operator. The Caterpillar Foundation is a member of the Red Cross Annual Disaster Giving Program (ADGP). Our $1 million annual global investment helps provide a funding base, allowing the Red Cross to provide immediate relief to those impacted by disasters. This model ensures that the Red Cross has funds to prepare for disasters before they occur. In addition to the Foundation’s initial investment, Caterpillar team members eager to help in a time of crisis contributed more than $20,000, which was matched by the Foundation to make an even greater impact. The Foundation’s support enabled the Red Cross to respond to disasters such as the Mayfield, Kentucky area when tornadoes ripped through the center of the United States, catastrophic Coordinated effort by Caterpillar, Caterpillar Foundation, Assist International flooding in several European countries and the Category 4 and Convoy of Hope resulted in a donation of 100 generators for those impacted by the tornadoes in Mayfield, Kentucky. hurricane that made landfall near Port Fourchon, Louisiana. 53CATERPILLAR 2021 SUSTAINABILITY REPORT

PHILANTHROPY SOCIAL JUSTICE Caterpillar believes communities are strongest when there is equality for all. Partnerships with the Legal Defense Fund, U.S. Chamber of Commerce Foundation and Aspen Institute support community programs that address the destructive effects of racism and the fight for equal justice. Through its partnerships and initiatives, the Foundation is creating pathways for underserved and underresourced individuals to gain 21st century jobs through workforce readiness, vocational training and STEM education. In 2021, the Foundation announced the creation of the first-ever Caterpillar Curator of African American Innovation and Entrepreneurship at the Smithsonian National Museum of African American History and Culture (NMAAHC). Through a $2 million grant, this position will direct initiatives to help NMAAHC advance new conversations and understanding of diversity and inclusion through the lens of African American innovation and entrepreneurship in science and technology. CATERPILLAR FOUNDATION AND THE UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS (UN SDGs) The Caterpillar Foundation’s investments align with several of the UN SDGs. The Caterpillar Foundation works to build resilient communities in the places where we live and work and where there is need. 54CATERPILLAR 2021 SUSTAINABILITY REPORT

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ESG DATA 2018 2019 2020 2021 GOAL PERSPECTIVE 2030 PEOPLE DATA Total number of employees 104,000 102,300 97,300 107,700 N/A Number of employees outside U.S. 59,400 58,700 57,000 63,400 N/A Women in enterprise 20% 20% 20% 23% 29% (2022) Caterpillar is committed to increasing female representation throughout the company and has an aspirational goal of 29% women in the Women in leadership 19% 20% 20% 21% 25% enterprise and 25% women in leadership. (2022) We respect the right of our employees to form, join or not to join any Collective bargaining 40% 41% 40% 40% N/A lawful organization of their choice without fear of reprisal, interference, % of employees covered intimidation or harassment. We believe it is important for individuals to exercise that right with the benefit of available information. SAFETY Lost-time case frequency rate Over the last two years, our lost-time case frequency has been impacted (LTCFR) /A/ 0.16 0.15 0.20 0.18 N/A by the COVID-19 pandemic. Our continued focus on enhanced safety Worker-related injuries resulting in lost measures during the pandemic resulted in a 10% improvement from time per 200,000 hours worked 2020 to 2021. Recordable injury frequency We strive for all team members to go home safely, every day. In 2021, (RIF) /A/ thanks to our relentless focus on safety, we delivered our best Recordable injuries per 200,000 0.53 0.43 0.42 0.41 0.265 recordable injury frequency (RIF) performance on record, improving hours worked on our previous record set in 2020. We have improved our RIF rate by 23% from our 2018 base year, and by 2% from 2020 to 2021. Employee fatalities 1 0 0 0 N/A While we are proud of our safety progress, we are also very saddened that a contractor suffered a fatal workplace incident at one of our Contractor fatalities 1 1 2 1 N/A facilities in 2021. These incidents highlight that safety must always remain the number one focus of all our workers. ENERGY — OPERATIONS Total energy use /A/ 25,160,000 23,950,000 19,340,000 20,600,000 N/A gigajoules We remain focused on improving energy efficiency and reducing energy Total electricity /A/ consumption. million MWh 2.55 2.38 2.09 2.25 N/A N/A = Not Applicable /A/ Data assured by ERM CVS. Please see our data assurance statement. 56CATERPILLAR 2021 SUSTAINABILITY REPORT

2018 2019 2020 2021 GOAL PERSPECTIVE 2030 ENERGY — OPERATIONS (continued) Grid electricity N/A 83.8 87.3 86.7 N/A % 1, 2 Renewable energy 17.4 21.2 21.0 24.2 N/A In 2021, over 35% of our electrical energy was obtained from renewable % or alternative sources. 3 Alternative energy 15.1 14.3 12.0 13.0 N/A % Energy intensity /A/ absolute gigajoules energy 461 445 463 404 N/A In 2021, we reduced our energy intensity by 12% from our 2018 use/million dollars of sales baseline. and revenues Absolute greenhouse gas 5, 12 2.22 1.78 1.47 1.51 1.55 (GHG) emissions /A/ million metric tons CO2e 12 Scope 1 Direct emissions /A/ 0.94 0.91 0.70 0.74 N/A million metric tons Scope 2 /A/ Market-based indirect Our absolute GHG emissions decreased 32% from 2018 to 2021. emissions from purchased electricity, 1.28 0.87 0.77 0.77 N/A 4, 12 heat or steam million metric tons 4 Scope 2 /A/ Location-based 1.32 0.93 0.83 0.85 N/A million metric tons 5, 12 GHG intensity /A/ In 2021, we reduced our GHG emissions intensity by 27% from our 2018 absolute metric tons of CO2e/million 40.6 33.0 35.0 29.7 N/A baseline. dollars of sales and revenues WATER — OPERATIONS Water management strategies /A/ % of in-scope facilities that meet all N/A N/A N/A 11% 100% Water management strategies is a new goal for Caterpillar and data nine management elements collection began in 2021. Previous years are listed as N/A as this is a Water management strategies newly composed goal. In this first year of implementation, we are % of management elements completed N/A N/A N/A 27% N/A pleased to see foundational progress begin toward our 2030 goal. by in-scope facilities Total water /A/ 3.85 3.74 3.38 3.70 N/A billion gallons Total water consumption by source Cooling water from foundry 32.8% 35.2% 35.2% 37.4% N/A operations /A/ In 2021, we reduced our absolute water consumption by nearly 3% Municipal water/A/ 30.6% 30.8% 29.6% 28.8% N/A since 2018. Surface water /A/ 18.3% 18.0% 20.4% 19.4% N/A Other water /A/ 0.4% 0.7% 0.6% 0.5% N/A Groundwater /A/ 17.9% 15.4% 14.2% 13.9% N/A 13 Water consumption intensity /A/ absolute thousand gallons of 70.4 69.4 80.9 72.6 N/A Through 2021, we have reduced water consumption intensity at our water/million dollars of sales facilities by a total of 5% from our baseline year of 2018. and revenues N/A = Not Applicable /A/ Data assured by ERM CVS. Please see our data assurance statement. 57CATERPILLAR 2021 SUSTAINABILITY REPORT

2018 2019 2020 2021 GOAL PERSPECTIVE 2030 WASTE — OPERATIONS Total waste 635,000 587,000 554,000 567,000 N/A metric tons Waste intensity absolute metrics tons of by-product 11.6 10.9 13.3 11.1 N/A materials/million dollars of sales and In 2021, we reduced our landfill intensity by 34% from our revenues 2018 baseline. Landfill intensity 1.49 1.36 1.09 0.98 0.74 Waste recycled 86.8 87.1 91.5 90.8 N/A % PRODUCTS New products that are more sustainable than the previous generation through collaborating Caterpillar has a long history of and a strong process for innovation in with customers, reduced waste, 89% 95% 97% 100% 100% the research and development of products and solutions. improved design for rebuild/ remanufacturing, lower emissions or improved efficiency. STRATEGIC PROCUREMENT Since 2016, Caterpillar has proactively surveyed our priority supply base Supplier Code of Conduct to confirm alignment to Caterpillar’s published Supplier Code of self-assessments 39% 67% 94% 96% N/A Conduct. Caterpillar uses assessment response data to address supply chain risk through a collaborative approach with responding suppliers. The 2021 target reflects continued focus on this initiative. REMANUFACTURING 6 Growth in remanufacturing business N/A 2% -14% -3% 25% sales since 2018 7, 8 Our remanufacturing and rebuild businesses provide customers Product take-back by weight with immediate cost savings, help extend product lifecycles and millions of pounds of end-of-life 155 153 131 127 N/A use materials more efficiently. We seek to continue to grow material received these businesses. 7, 8 Product take-back by percentage % of actual end-of-life returns/eligible 92% 91% 89% 88% N/A returns PHILANTHROPY Community investments Since 1952, the Caterpillar Foundation has contributed nearly $851 millions of dollars $27 $28.6 $37.9 $41 N/A million to help make sustainable progress possible around the world by building resilient communities that thrive in a rapidly changing world. 9 Matching gifts $4.1 $3.5 $9.8 $22.6 N/A The Caterpillar Foundation is proud to match contributions to eligible millions of dollars organizations given by our U.S. employees, retirees and board members. Caterpillar has supported the United Way for more than 10 United Way $11.8 $12.2 $12.3 $12.9 N/A 60 years through our annual campaign. The Foundation matches millions of dollars employee and retiree gifts during the campaign, amplifying our impact on the communities where we live and work. N/A = Not Applicable /A/ Data assured by ERM CVS. Please see our data assurance statement. 58CATERPILLAR 2021 SUSTAINABILITY REPORT

ESG ENDNOTES 1. Renewable energy percent includes purchased and on-site generated 7. Data does not include Progress Rail or Solar Turbines. renewable energy, as well as calculating the percentage of renewable 8. Product returned for remanufacture (called “core”) is not always energy from grid-purchased electricity using data obtained from the returned within the same calendar year as sold. International Energy Agency. 2. Renewable Energy: Caterpillar defines renewable energy as 9. The Caterpillar Foundation changed its Matching Gift payout energy resources that are naturally replenishing over a short process in 2021. This data represents employee and retiree period of time and virtually inexhaustible. Power generation donations made in the calendar year 2020 and the match made examples include wind, solar, hydro, geothermal, tidal, wave, in the calendar year 2021 in addition to employee and retiree biomass and biogas from anaerobic digestion. donations made in the calendar year 2021 and the Caterpillar Foundation’s match made in 2021 (Q1-3). This also includes 3. Alternative Energy: Caterpillar defines alternative energy as any 2:1 employee and retiree donations made in the calendar year source of usable energy that offers substantial environmental 2021 and the Caterpillar Foundation’s match made in 2021. benefits compared to the conventional sources of energy that it 10. This includes employee and retiree pledges during the 2021 replaces. Power generation examples include landfill gas, coal campaign, and the Foundation match for the campaigns in the mine and abandoned mine methane, combined heat and power, United States, Canada and Mexico paid in 2021/2022. coal with carbon sequestration and localized power generation. 4. Location-based Scope 2 GHG emissions are provided in 11. Data includes Caterpillar and agency employees. Data does not accordance with the GHG Protocol Scope 2 guidance (2015). include contractor employees. Our market-based Scope 2 emissions are calculated using the 12. Base year GHG data has been amended per guidance provided by Scope 2 Quality Criteria. The following instruments were used in the Science-based Target Initiative Criteria and Recommendations calculating our market-based Scope 2 emissions: Renewable Version 4.1 April 2020. Other prior year data have been revised for Energy Guarantees of Origin, energy contracts, supplier-specific improved accuracy. emission rates, Caterpillar-owned power generation facilities and, 13. Water intensity data prior to 2021 had been reported based on for the remainder of our facilities, grid average emission factors our 2020 target that did not include non-contact cooling water. from USEPA’s eGRID (2019) and the International Energy Agency’s We have updated our reporting for 2021 and prior years to include data (2018). For 2021 calculations, Caterpillar did not use residual this additional water use. mix factors. 5. GHG emissions intensity is based on our combined Scope 1 (direct) and Scope 2 (indirect, market-based) GHG emissions. Likewise, Note: Photos in this report reflect different periods of the COVID-19 total absolute GHG emissions are a sum of Scope 1 and Scope 2 pandemic, complying with various safety protocol requirements. (market-based) emissions. 6. Data includes remanufacturing offerings provided by Cat Reman, Progress Rail, Solar Turbines, Caterpillar Energy Solutions, and Cat Defense. 59CATERPILLAR 2021 SUSTAINABILITY REPORT

PRIORITIZATION AND MANAGEMENT OF ESG ISSUES In 2020, we prioritized ESG topics by reviewing Caterpillar’s strategies, risks and future plans, and examining the external industry landscape to understand both evolving trends as well as expectations of leading ESG standards, frameworks and disclosures. We prioritized topics based on interviews with Caterpillar leadership, external research, benchmarking of industry peers and input from third-party consulting expertise, including: • Potential impact the topic may have on Caterpillar’s business • Level of awareness and concern about the topic by business stakeholders (e.g., customers, dealers, suppliers, investors, nongovernmental organizations, and others) • Degree to which Caterpillar has influence over the topic Our final step was to select issues that were highest priority. These issues guide our initiatives and decision-making throughout our global operations and are closely aligned with topics covered by the Sustainability Accounting Standards Board (SASB), Resource Transformation sector and Industrial Machinery & Goods industry. We will continue to analyze and update these topics periodically as the ESG landscape and our business continues to evolve. We are committed to demonstrating shareholder responsiveness as we strive for continuous improvement throughout our sustainability journey. ISSUE RELEVANCE Employee Health & Safety The health and safety of our employees is an important focus at Caterpillar, and we relentlessly strive to ensure our workforce returns home safely every day. Customer Health & Safety Our commitment to safety includes people who work in, on and around our products — from designing products for safe operations to providing safety services for our customers. With more than 4 million products operating globally, Caterpillar is committed to contributing to a reduced-carbon future. We Product Emissions & Energy Efficiency continue to invest in new products, technologies and services to help our customers achieve their climate-related objectives as they build a better, more sustainable world. Operations Energy & Efficiency Operations within our manufacturing facilities are energy-intensive and account for most of our Scope 1 and 2 emissions. While less water intensive than some industries, we are focused on reducing water consumption and ensuring good Operations Water water management practices, particularly in areas determined to be the most at risk for water scarcity or quality concerns. Operations Waste We strive to eliminate waste in our processes where possible, and to recycle those materials that remain, to reduce materials sent to landfills around the world. Remanufacturing Through our remanufacturing and rebuild offerings, we help keep materials in circulation for as long as possible, reducing waste, extending equipment life and providing lower-cost options for our customers. We source raw materials and manufactured components from a global network of suppliers across broad categories and Material Sourcing technologies for aftermarket and production parts; approximately 27,000 suppliers in total. Our Supplier Code of Conduct and supporting initiatives help ensure we responsibly source the raw materials used to build our products. Human Capital Management We attract and recruit the best talent to develop advanced technologies, meet customer needs and grow our business. The diverse thinking and decision-making of our people in an inclusive work environment strengthens us and drives our progress. 60CATERPILLAR 2021 SUSTAINABILITY REPORT

SASB INDEX TOPIC SASB CODE METRIC UNIT OF MEASURE RESPONSE/COMMENT RT-IG-000.A Number of units produced by product category Number Sales data is provided in Caterpillar's annual Accounting Metrics report to shareholders on Form 10-K. RT-IG-000.B Number of employees Number 107,700 (1) total energy consumed Gigajoules (GJ) Total energy consumed in GJ for 2021 is 20,600,000. Energy RT-IG-130a.1 (2) Percentage grid electricity % 86.7% Management (3) Percentage renewable % 24.2% (1) total recordable incident rate (TRIR) Rate 0.41 11 (2) fatality rate Number 0 employees , 1 contractor Employee Health RT-IG-320a.1 and Safety Caterpillar emphasizes the importance of (3) near miss frequency rate (NMFR) Rate reviewing all work-related environmental, health and safety incidents, including near misses. Near misses are communicated and managed locally. RT-IG-410a.1 Sales-weighted fleet fuel efficiency for medium- Gallons per Not applicable to Caterpillar. and heavy-duty vehicles 1,000 ton-miles RT-IG-410a.2 Sales-weighted fuel efficiency for Gallons per hour non-road equipment We continue to invest in research and development Fuel Economy & Sales-weighted fuel efficiency for aimed at products that generate fewer direct Emissions in Use- RT-IG-410a.3 stationary generators Watts per hour emissions. Read more about our focus on energy, Phase fuel economy and emissions. Given the diversity Sales-weighted emissions of: of our products and applications in which our (1) nitrogen oxides (NOx) and products are used, as well as the lack of industry RT-IG-410a.4 (2) particulate matter (PM) for: Grams per kilowatt-hour standards to estimate on a per unit of work basis, (a) marine diesel engines, (b) locomotive diesel Caterpillar does not calculate sales-weighted fuel engines, (c) on-road medium- and heavy-duty efficiency or emissions in this manner. engines, and (d) other non-road diesel engines Description of the management of risks associat- Caterpillar responsibly sources the raw materials Materials Sourcing RT-IG-440a.1 ed with the use of critical materials N/A used to build our products. Please see the material procurement section of this report. Remanufacturing RT-IG-440b.1 Revenue from remanufactured products and Reporting currency Our remanufacturing sales and revenues have Design & Services remanufacturing services reduced 3% since 2018. 61CATERPILLAR 2021 SUSTAINABILITY REPORT

GRI INDEX GENERAL DISCLOSURES DISCLOSURE DISCLOSURE TITLE RESPONSE NUMBER GRI 102: GENERAL DISCLOSURES ORGANIZATIONAL PROFILE 102-1 Name of the organization Caterpillar Inc. 102-2 Activities, brands, products, and services 2021 Form 10-K, pgs. 1-9 102-3 Location of headquarters Deerfield, Illinois, USA 102-4 Location of operations 2021 Form 10-K, pgs. 21-23 102-5 Ownership and legal form Caterpillar is a publicly held corporation incorporated in the state of Delaware. Our shares trade on the New York Stock Exchange under the trading symbol CAT. 102-6 Markets served 2021 Form 10-K, pgs. 1-7 102-7 Scale of the organization 2021 Form 10-K, pgs. 8, 63 102-8 Information on employees and other workers Reporting > ESG Data 102-9 Supply chain 2021 Form 10-K, pg. 6 Material Procurement 102-10 Significant changes to the organization and its supply chain None 102-11 Precautionary Principle or approach Caterpillar regularly identifies and manages business risks through a robust internal management system. See also Corporate Governance > Risk Management Caterpillar Inc., our subsidiaries and the Caterpillar Foundation work with diverse 102-12 External initiatives organizations in order to advance economic, environmental and social issues and share best practices across industries. See GRI 102-13 for a list of affiliations. Caterpillar is affiliated with a number of organizations. The most recent list of U.S. trade 102-13 Membership of associations associations to which Caterpillar has contributed $50,000 per year or more, updated on a semiannual basis, can be found here. STRATEGY 102-14 Statement from senior decision-maker Executive Summary > Chairman and CEO Letter ETHICS AND INTEGRITY 102-16 Values, principles, standards, and norms of behavior Corporate Governance > Ethics & Compliance Caterpillar.com > Company > Governance 62CATERPILLAR 2021 SUSTAINABILITY REPORT

GENERAL DISCLOSURES DISCLOSURE DISCLOSURE TITLE RESPONSE NUMBER GOVERNANCE 102-18 Governance structure 2022 Proxy, pg. 10 STAKEHOLDER ENGAGEMENT 102-40 List of stakeholder groups Our stakeholders include customers, employees, shareholders, dealers, suppliers, nongovernmental organizations and trade organizations. 102-41 Collective bargaining agreements Reporting > ESG Data 102-42 Identifying and selecting stakeholders Reporting > Prioritization and Management of ESG Issues 102-43 Approach to stakeholder engagement Reporting > Prioritization and Management of ESG Issues 102-44 Key topics and concerns raised Reporting > Prioritization and Management of ESG Issues REPORTING PRACTICE 102-45 Entities included in the consolidated financial statements 2021 Form 10-K, Exhibit 21 102-46 Defining report content and topic Boundaries Reporting > Prioritization and Management of ESG Issues 102-47 List of material topics Reporting > Prioritization and Management of ESG Issues 102-48 Restatements of information Any restatements are footnoted as applicable throughout the report. 102-49 Changes in reporting Reporting > Prioritization and Management of ESG Issues 102-50 Reporting period The reporting period is the 2021 calendar year, which is also Caterpillar’s fiscal year. 102-51 Date of most recent report Caterpillar's 2020 Sustainability Report was released in 2021. 102-52 Reporting cycle Annual 102-53 Contact point for questions regarding the report https://www.caterpillar.com/en/contact.html 102-54 Claims of reporting in accordance with the GRI Standards This report has been prepared in accordance with Global Reporting Initiative (GRI) Standards: Core option. 102-55 GRI content index Reporting > GRI Index 102-56 External assurance Reporting > About this Report GRI 300: ENVIRONMENTAL GRI 301: MATERIALS 103-1 Explanation of the material topic and its Boundary Reporting > Prioritization and Management of ESG Issues Material Procurement, Remanufacturing 103-2 The management approach and its components Executive Summary > Goals and Progress Material Procurement, Remanufacturing 103-3 Evaluation of the management approach Material Procurement, Remanufacturing 301-3 Reclaimed products and their packaging materials Reporting > ESG Data 63CATERPILLAR 2021 SUSTAINABILITY REPORT

GENERAL DISCLOSURES DISCLOSURE DISCLOSURE TITLE RESPONSE NUMBER GRI 302: ENERGY 103-1 Explanation of the material topic and its Boundary Reporting > Prioritization and Management of ESG Issues Energy, Fuel Economy & Emissions 103-2 The management approach and its components Executive Summary > Goals and Progress Energy, Fuel Economy & Emissions 103-3 Evaluation of the management approach Energy, Fuel Economy & Emissions 302-1 Energy consumption within the organization Reporting > ESG Data 302-3 Energy intensity Reporting > ESG Data GRI 303: WATER AND EFFLUENTS 103-1 Explanation of the material topic and its Boundary Reporting > Prioritization and Management of ESG Issues 103-2 The management approach and its components Executive Summary > Goals and Progress 103-3 Evaluation of the management approach Energy, Fuel Economy & Emissions > EHS Management System Reporting > Prioritization and Management of ESG Issues, Executive Summary > Goals 303-1 Interactions with water as a shared resource and Progress Remanufacturing Philanthropy Reporting > Prioritization and Management of ESG Issues, Executive Summary > Goals 303-2 Management of water discharge-related impacts and Progress Material Procurement > Responsible Mineral Sourcing 303-5 Water consumption Reporting > ESG Data GRI 305: EMISSIONS 103-1 Explanation of the material topic and its Boundary Reporting > Prioritization and Management of ESG Issues Energy, Fuel Economy & Emissions 103-2 The management approach and its components Executive Summary > Goals and Progress Energy, Fuel Economy & Emissions 103-3 Evaluation of the management approach Energy, Fuel Economy & Emissions 305-1 Direct (Scope 1) GHG emissions Reporting > ESG Data 305-2 Energy indirect (Scope 2) GHG emissions Reporting > ESG Data 305-4 GHG emissions intensity Reporting > ESG Data GRI 306: WASTE 103-1 Explanation of the material topic and its Boundary Reporting > Prioritization and Management of ESG Issues 103-2 The management approach and its components Executive Summary > Goals and Progress 103-3 Evaluation of the management approach Energy, Fuel Economy & Emissions > EHS Management System Remanufacturing 306-1 Waste generation and significant waste-related impacts Remanufacturing 64CATERPILLAR 2021 SUSTAINABILITY REPORT

GENERAL DISCLOSURES DISCLOSURE DISCLOSURE TITLE RESPONSE NUMBER 306-2 Management of significant waste-related impacts Remanufacturing 306-3 Waste generated Reporting > ESG Data 306-4 Waste diverted from disposal Reporting > ESG Data GRI 308: SUPPLIER ENVIRONMENTAL ASSESSMENT 103-1 Explanation of the material topic and its Boundary Reporting > Prioritization and Management of ESG Issues Material Procurement 103-2 The management approach and its components Material Procurement 103-3 Evaluation of the management approach Material Procurement 308-1 New suppliers that were screened using environmental criteria Reporting > ESG Data GRI 400: SOCIAL GRI 401: EMPLOYMENT 103-1 Explanation of the material topic and its Boundary Reporting > Prioritization and Management of ESG Issues People 103-2 The management approach and its components People 103-3 Evaluation of the management approach People 401-2 Benefits provided to full-time employees that are not provided to People > Health & Well-Being temporary or part-time employees GRI 403: OCCUPATIONAL HEALTH AND SAFETY 103-1 Explanation of the material topic and its Boundary Reporting > Prioritization and Management of ESG Issues People > Employee Health and Safety 103-2 The management approach and its components Executive Summary > Goals and Progress People > Employee Health and Safety 103-3 Evaluation of the management approach People > Employee Health and Safety 403-1 Occupational health and safety management system People > Employee Health and Safety 403-2 Hazard identification, risk assessment, and incident investigation People > Employee Health and Safety 403-3 Occupational health services People > Employee Health and Safety 403-4 Worker participation, consultation, and communication on People > Employee Health and Safety occupational health and safety 403-5 Worker training on occupational health and safety People > Employee Health and Safety 403-6 Promotion of worker health People > Employee Health and Safety 403-7 Prevention and mitigation of occupational health and safety People > Employee Health and Safety impacts directly linked by business relationships 65CATERPILLAR 2021 SUSTAINABILITY REPORT

GENERAL DISCLOSURES DISCLOSURE DISCLOSURE TITLE RESPONSE NUMBER 403-8 Workers covered by an occupational health and safety People > Employee Health and Safety management system 403-9 Work-related injuries Reporting > ESG Data 403-10 Work-related ill health Reporting > ESG Data GRI 404: TRAINING AND EDUCATION 103-1 Explanation of the material topic and its Boundary Reporting > Prioritization and Management of ESG Issues People > Talent Development & Training 103-2 The management approach and its components People > Talent Development & Training 103-3 Evaluation of the management approach People > Talent Development & Training 404-2 Programs for upgrading employee skills and transition People > Talent Development & Training assistance programs GRI 405: DIVERSITY AND EQUAL OPPORTUNITY Reporting > Prioritization and Management of ESG Issues 103-1 Explanation of the material topic and its Boundary People > Health & Well-Being, Diversity & Inclusion, Human Rights & Employee Experience 103-2 The management approach and its components People > Health & Well-Being, Diversity & Inclusion, Human Rights & Employee Experience 103-3 Evaluation of the management approach People > Health & Well-Being, Diversity & Inclusion, Human Rights & Employee Experience 405-1 Diversity of governance bodies and employees Reporting > ESG Data 2022 Proxy, pg. 11 GRI 412: HUMAN RIGHTS ASSESSMENT Reporting > Prioritization and Management of ESG Issues 103-1 Explanation of the material topic and its Boundary Material Procurement People > Health & Well-Being, Diversity & Inclusion, Human Rights & Employee Experience Material Procurement 103-2 The management approach and its components People > Health & Well-Being, Diversity & Inclusion, Human Rights & Employee Experience Material Procurement 103-3 Evaluation of the management approach People > Health & Well-Being, Diversity & Inclusion, Human Rights & Employee Experience All Caterpillar employees are annually required to complete Code of Conduct training. 412-2 Employee training on human rights policies or procedures As part of this training, employees must certify that they have read, understand and agree to comply with the Code of Conduct. Additional compliance training is also provided to employees based on risk identified in their job roles. 66CATERPILLAR 2021 SUSTAINABILITY REPORT

GENERAL DISCLOSURES DISCLOSURE DISCLOSURE TITLE RESPONSE NUMBER GRI 414: SUPPLIER SOCIAL ASSESSMENT Reporting > Prioritization and Management of ESG Issues 103-1 Explanation of the material topic and its Boundary Material Procurement People > Health & Well-Being, Diversity & Inclusion, Human Rights & Employee Experience Material Procurement 103-2 The management approach and its components People > Health & Well-Being, Diversity & Inclusion, Human Rights & Employee Experience Material Procurement 103-3 Evaluation of the management approach People > Health & Well-Being, Diversity & Inclusion, Human Rights & Employee Experience 414-1 New suppliers that were screened using social criteria Reporting > ESG Data GRI 416: CUSTOMER HEALTH AND SAFETY 103-1 Explanation of the material topic and its Boundary Reporting > Prioritization and Management of ESG Issues Energy, Fuel Economy & Emissions > Enabling Customer Success 103-2 The management approach and its components Executive Summary > Goals and Progress Energy, Fuel Economy & Emissions > Enabling Customer Success 103-3 Evaluation of the management approach Energy, Fuel Economy & Emissions > Enabling Customer Success 416-1 Assessment of the health and safety impacts of product and Caterpillar positively impacts the safety of our customers through product design and service categories safety services offerings. 67CATERPILLAR 2021 SUSTAINABILITY REPORT

Independent Assurance Statement to Caterpillar Inc. ERM Certification and Verification Services, Inc. (ERM CVS) was engaged by Caterpillar Inc. to provide assurance in relation to the information set out below and presented in the Caterpillar 2021 Sustainability Report. Engagement summary Whether the 2021 information and data for the specified indicators listed below are fairly presented in accordance with the reporting criteria. The data covered by the assurance will relate to year ending 31 December 2021. Environmental Data • Facilities located in water high risk areas with implemented water management strategies [%] Absolute and intensity • Scope 1 GHG emissions [million metric tons CO2e and million metric tons CO2e/million dollars of sales and revenues*] • Scope 2 GHG emissions (by market-based method) [million metric tons CO2e and million metric tons CO2e/million dollars of sales and revenues*] • Total GHG emissions [million metric tons CO2e and million metric tons CO2e/million dollars of sales and revenues*] • Total energy consumption [GJ and GJ/million dollars of sales and revenues*] • Total water consumption [billion gallons and absolute thousand gallons of water/million dollars of sales and Scope of our revenues*] engagement Absolute only • Scope 2 GHG emissions (by location based method) [million metric tons CO2e]; • Total electricity [MWH] • Total water consumption by source [%]: • Cooling water from foundry operations ∙ Groundwater • Municipal water ∙ Surface water • Scope 1 GHG emissions 2018 baseline recalculation [million metric tons CO2e] • Scope 2 GHG emissions (by market-based method) 2018 baseline recalculation [million metric tons CO2e] Safety Indicators • Lost Time Case Frequency Rate (LTCFR); • Recordable Injury Frequency rate (RIF) per 200,000 hours worked. * We place reliance on the financial assurance conducted on sales and revenues dollars as they are presented in the 2021 10-K filing. Reporting The WBCSD/WRI GHG Protocol (2004, as revised January 2015) for the Scope 1 and 2 GHG emissions and Caterpillar criteria internal reporting criteria and definitions for the other indicators. Assurance ERM CVS’ assurance methodology, based on the International Standard on Assurance Engagements ISAE 3000 standard (Revised). Assurance level Limited assurance Caterpillar is responsible for preparing the data and for its correct presentation in reporting to third parties, including Respective disclosure of the reporting criteria and boundary. responsibilities ERM CVS’s responsibility is to provide conclusions on the agreed scope based on the assurance activities performed and exercising our professional judgement. Our conclusions Based on our activities, as described below, nothing has come to our attention to indicate that the 2021 data and information for the disclosures listed under ‘Scope of our Engagement’ above are not fairly presented, in all material respects, with the reporting criteria. Our assurance activities A multi-disciplinary team of sustainability and assurance specialists performed a range of assurance procedures which varied across the disclosures covered by our assurance engagement, as follows:  Interviews with relevant staff to understand and evaluate the data management systems and processes used for collecting and reporting the selected data (environmental and safety);  A review of the internal indicator definitions, reporting guidelines and emission and conversion factors;  An analytical review of the data from all sites and a check on the completeness and accuracy of the corporate data consolidation, including recalculation of base year emissions due to acquisitions and divestments;  Virtual visits to eight sites to review local reporting processes and consistency of reported annual data with selected underlying source data for select environmental and safety indicators. We interviewed relevant staff, reviewed site data capture and reporting methods, checked calculations and assessed the local internal quality assurance processes;  Desk-based review of source data for the significant contributing sites to each key corporate EHS metrics (e.g. energy, water, hours worked) including a sample of invoices and local incident logs, among others. The limitations of our engagement The reliability of the assured information is subject to inherent uncertainties, given the available methods for determining, calculating or estimating the underlying information. It is important to understand our assurance conclusions in this context. Our independence ERM CVS is a member of the ERM Group. The work that ERM CVS conducts for clients is solely related to independent assurance activities and auditor training. Our processes are designed and implemented to ensure that the work we undertake with clients is free from bias and conflict of interest. ERM CVS and the staff that have undertaken work on this assurance exercise provide no consultancy related services to Caterpillar Inc. in any respect. Beth Wyke, Head of Corporate Assurance Services 21 April 2022 ERM Certification and Verification Services, Malvern www.ermcvs.com Email: [email protected] 68CATERPILLAR 2021 SUSTAINABILITY REPORT

ABOUT THIS REPORT The reporting period is the 2021 purpose with contributions to the U.N. represented. Caterpillar and subsidiary calendar year, which is also Caterpillar’s Sustainable Development Goals (UN brands are listed on our website. fiscal year. Caterpillar is headquartered SDGs). Further, we have committed to Caterpillar’s environmental and safety in Deerfield, Illinois, USA. enhancing our reporting in alignment with metrics for operations are consolidated the framework provided by the Task Force based on the Greenhouse Gas Protocol Contact Us on Climate-related Financial Disclosures “operational control” approach. (TCFD) starting in 2023. Environmental data excludes office This report has been prepared in Given the breadth of our products, locations with fewer than 500 employees accordance with the Sustainability services and solutions, our advocacy and minor operations with fewer than 50 Accounting Standards Board (SASB) on behalf of policies that enable employees that will not have a significant Standards and the Global Reporting sustainable development and the impact on reported metrics. Safety data Initiative (GRI) Standards: Core option. Caterpillar Foundation’s effort to build includes employees and agency workers SASB publishes sector-specific reporting resilient communities, Caterpillar and in all workplaces within Caterpillar’s standards based on expert input and our customers are helping build a more reporting boundary. GRI publishes reporting standards based sustainable future. Report content ERM Certification and Verification Services on company-conducted materiality represents 100% of the products and (ERM CVS) has conducted independent assessments, both designed to allow operations of Caterpillar Inc. and its assurance of selected 2021 environmental businesses to identify the sustainability subsidiaries where we have a controlling and safety data. To understand the scope, issues of highest importance to investors financial interest. Where noted, activities and conclusions of the assurance and most relevant in their industry. We Caterpillar’s independent dealer network process, please see the ERM CVS are also working toward a common global and supplier network are also Assurance Statement. 69CATERPILLAR 2021 SUSTAINABILITY REPORT

FORWARD-LOOKING STATEMENTS Certain statements in this press release relate to future events and expectations and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “believe,” “estimate,” “will be,” “will,” “would,” “expect,” “anticipate,” “plan,” “forecast,” “target,” “guide,” “project,” “intend,” “could,” “should” or other similar words or expressions often identify forward-looking statements. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding our outlook, projections, forecasts or trend descriptions. These statements do not guarantee future performance and speak only as of the date they are made, and we do not undertake to update our forward-looking statements. Caterpillar’s actual results may differ materially from those described or implied in our forward-looking statements based on a number of factors, including, but not limited to: (i) global and regional economic conditions and economic conditions in the industries we serve; (ii) commodity price changes, material price increases, fluctuations in demand for our products or significant shortages of material; (iii) government monetary or fiscal policies; (iv) political and economic risks, commercial instability and events beyond our control in the countries in which we operate; (v) international trade policies and their impact on demand for our products and our competitive position, including the imposition of new tariffs or changes in existing tariff rates; (vi) our ability to develop, produce and market quality products that meet our customers’ needs; (vii) the impact of the highly competitive environment in which we operate on our sales and pricing; (viii) information technology security threats and computer crime; (ix) inventory management decisions and sourcing practices of our dealers and our OEM customers; (x) a failure to realize, or a delay in realizing, all of the anticipated benefits of our acquisitions, joint ventures or divestitures; (xi) union disputes or other employee relations issues; (xii) adverse effects of unexpected events; (xiii) disruptions or volatility in global financial markets limiting our sources of liquidity or the liquidity of our customers, dealers and suppliers; (xiv) failure to maintain our credit ratings and potential resulting increases to our cost of borrowing and adverse effects on our cost of funds, liquidity, competitive position and access to capital markets; (xv) our Financial Products segment’s risks associated with the financial services industry; (xvi) changes in interest rates or market liquidity conditions; (xvii) an increase in delinquencies, repossessions or net losses of Cat Financial’s customers; (xviii) currency fluctuations; (xix) our or Cat Financial’s compliance with financial and other restrictive covenants in debt agreements; (xx) increased pension plan funding obligations; (xxi) alleged or actual violations of trade or anti-corruption laws and regulations; (xxii) additional tax expense or exposure, including the impact of U.S. tax reform; (xxiii) significant legal proceedings, claims, lawsuits or government investigations; (xxiv) new regulations or changes in financial services regulations; (xxv) compliance with environmental laws and regulations; (xxvi) the duration and geographic spread of, business disruptions caused by, and the overall global economic impact of, the COVID-19 pandemic; and (xxvii) other factors described in more detail in Caterpillar’s Forms 10-Q, 10-K and other filings with the Securities and Exchange Commission. 70CATERPILLAR 2021 SUSTAINABILITY REPORT

©2022 Caterpillar. All Rights Reserved. CAT, CATERPILLAR, READ MORE ONLINE LET’S DO THE WORK, their respective logos, “Caterpillar Corporate Yellow”, the “Power Edge” and Cat “Modern Hex” Visit caterpillar.com/sustainability trade dress as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used to learn more about how we’re helping without permission. our customers build a better world. 71CATERPILLAR 2021 SUSTAINABILITY REPORT