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