Growth from Sustainability
Caterpillar’s Experiences plus Wishes for Collaboration with Singapore-based Companies
Page 1 | CATERPILLAR CONFIDENTIAL: GREEN
AGENDA
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Caterpillar sustainability strategy and goals
Cat Reman, services and technology
Waste Reduction
New Parts Usage (NPU)
Conclusion
Page 2 | CATERPILLAR CONFIDENTIAL: GREEN
VIEW FROM THE TOP
“Our customers are being challenged to do their
work more efficiently and with less impact on the
environment. In a few cases, their very right to
do that work is being questioned. So only by
making our customers more sustainable in
their respective industries will our own
business prosper.”
- Doug Oberhelman, Caterpillar CEO, Chairman
Page 3 | CATERPILLAR CONFIDENTIAL: GREEN
SUSTAINABLE DEVELOPMENT
STRATEGY
Vision
Our vision is a world in which all people’s basic requirements –
such as shelter, clean water, sanitation and reliable power – are
fulfilled in a way that sustains our environment.
Strategy
We provide work environments, products, services and solutions
that make efficient use of the world’s natural resources and reduce
unnecessary impacts on people, the environment and the
economy. This means that we leverage resources including
technology and innovation to:
1. Promote & protect individual safety and well-being
2. Minimize the use of energy, materials, water and land
3. Maximize recycling
4. Provide employment, education and training
5. Optimize the use of renewable sources
6. Optimize the use of renewable resources
Page 4 | CATERPILLAR CONFIDENTIAL: GREEN
2020 SUSTAINABLE DEVELOPMENT
GOALS
Page 5 | CATERPILLAR CONFIDENTIAL: GREEN
EFFICIENT OPERATIONAL
FOOTPRINT
LEED Gold Certification, New Construction Category
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Research & Development Center - Wuxi China
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Asia Power Systems - Tianjin, China
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Suzhou, China
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Lafayette, Indiana, USA
LEED Gold Certification, Existing Building
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Corporate HQ - Peoria, Illinois, USA
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Cat Financial HQ - Nashville, Tennessee, USA
LEED Certified
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Forest Products HQ, LaGrange, Georgia, USA
2010 Caterpillar Motoren in Kiel, Germany (engine manufacturing) was awarded an Environmental
Award from the Economic Association of Schleswig-Holstein. The award recognizes the enormous
efforts on reducing energy consumption, resource reduction and elimination of green house
emissions through the manufacturing process.
2010 Caterpillar Singapore’s new 20,000 meter2 remanufacturing and components facility received the
"Green Mark Gold Plus" award from Singapore’s Building Construction Authority. Green Mark Gold
Plus requires a 25 percent reduction in energy consumption achieved through building design,
materials used and equipment efficiency.
Page 6 | CATERPILLAR CONFIDENTIAL: GREEN
TRANSPARENT REPORTING
Sustainability
Report
www.Cat.com/sd2009
Air
External Reporting
Water
CARBON DISCLOSURE PROJECT
Page 7 | CATERPILLAR CONFIDENTIAL: GREEN
REMANUFACTURING
Inspection, Disassembly,
Reman Technology,
Engineering Updates,
Production & Assembly
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2.5M products recycled annually
200M pounds recycled per year
Approaching zero-landfill status
Same-as-new quality and warranty
Priced at 50-60% of new
Page 8 | CATERPILLAR CONFIDENTIAL: GREEN
REMAN COVERAGE
Page 9 | CATERPILLAR CONFIDENTIAL: GREEN
CAT REMAN CUSTOMERS
Industrial
Automotive/Truck
Components
Page 10 | CATERPILLAR CONFIDENTIAL: GREEN
Rail/Marine
Military
REMAN PROCESS
Input
Output
Core
New Parts
Reman Parts
Manpower
Energy
Water
Consumables
Page 11 | CATERPILLAR CONFIDENTIAL: GREEN
Product
Reman Parts
Scrap
Costs
Waste
REDUCE WASTE
Input
Output
Core
Product
New Parts
Reman Parts
Manpower
Energy
Water
Consumables
Page 12 | CATERPILLAR CONFIDENTIAL: GREEN
Reman Parts
Reduce
Reduce
Water
Chemical
Consumption
Energy
Cost
Waste
Scrap
Costs
Waste
REDUCE WASTE & COST
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Scrap Metals – Improved Segregation
Oil – Local Recycler
Metal Spray Dust – Local Recycler
Washing Chemicals – Reduce Volumes / Alt Process
Paper & Wood – Segregation / Local Recycler
Consumables – Move to More Environmentally Friendly
Energy – Reduce Consumption
Water – Reduce Consumption
Manpower – Improve Productivity
Page 13 | CATERPILLAR CONFIDENTIAL: GREEN
NEW PARTS USE (NPU)
Core
Product
New Parts
Reman Parts
Reman Parts
Use More
Reduce
Reman
NPU
Parts
Scrap
Manpower
Costs
Energy
Waste
Consumables
Page 14 | CATERPILLAR CONFIDENTIAL: GREEN
SALVAGE STRATEGY
• Develop Salvage Strategy
– Pareto Parts by Value
– Identify Existing Opportunities for Replication
– Identify Opportunities for Localization
– Establish 3 Year Plan
– Leverage Local Industry & SIMTech
• Engage Internal & External Partners
– Identify Internal SME’S & Best Practice
– Identify External Potential External Partners
Page 15 | CATERPILLAR CONFIDENTIAL: GREEN
PARETO BY VALUE
Engine
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Power Train
BLOCK AS-CYL
CRANKSHAFT AS
Turbo Charger Gp Basic
HEAD GP-CYL BSC
ROD AS-CONN
Injector GP Fuel
CAMSHAFT’S
PISTON AS
CORE GP-O CLR
PUMP GP-SCAV OIL
CORE AS-AFTCLR
PUMP GP-ENG OIL
HOUSING-FLYWHEEL
CORE GP-O CLR
PAN AS-OIL
Cont GP (ECM)
HOUSING-FRONT DR
LINER-CYLINDER
Use Reman Current Plan
Page 16 | CATERPILLAR CONFIDENTIAL: GREEN
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HOUSING
PUMP GP
CARRIER-CLUTCH
No
SHAFT-OUTPUT
VALVE GP-LCL&SOL
CASE AS-XMSN
CASE AS-TRANSFER
VALVE GP-TEST(3)
Clutch Housings & Pistons
GEAR-TRANSFER
GEAR-TRANSFER
No
GEAR-PLANET
GEAR AS. RING
CARRIER-PLANET
Additional
Process
Process
SALVAGE OPPORTUNITIES
Gen 1
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Cylinder Block
Crankshaft
Camshaft
Pan As Oil
TC Pumps
TC/TM Valves
Gears
Large Housings
Bolts / Studs
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Thermal Spray / Machine
Re-grind
Re-grind
Re-Machine
New Parts (Assy Only)
New Parts (Assy Only)
NDT & Dim Inspection
Thermal Spray / Machine
Inspect
Page 17 | CATERPILLAR CONFIDENTIAL: GREEN
Gen 2
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Crack Repair
Laser Cladding
Welding
Welding
Parts Salvage
Parts Salvage
Parts Salvage
Crack Repair
Re-plate
ACTIONS
Environment & Cost
• Cleaning Process – Develop processes that produce
less hazardous waste.
• Alternative Cleaning Process – Investigate
• Zero Land Fill – Continue to Progress to “Zero”
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NPU
Work with SIMTech to Develop Local Technology
Work with Local Suppliers & Sub-contractors
Work with US SME’S & Tech Center
Develop Local Processes & Expand Parts Coverage
Page 18 | CATERPILLAR CONFIDENTIAL: GREEN
Remanufacturing
• Sustainability = Profitability
Page 19 | CATERPILLAR CONFIDENTIAL: GREEN