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