Caterpillar announces first ever sustainability officer
By Andy Brown15 October 2021
Construction giant Caterpillar has announced that it is creating the position of chief sustainability and strategy officer as it looks to enhance its environmental, social and governance (ESG).
Caterpillar is also tying a portion of executive compensation to ESG as it seeks to increase the company’s longstanding commitment to sustainability.
Julie Lagacy, vice president of the Enterprise Strategy Division, will assume additional responsibilities as the chief sustainability and strategy officer effective November 1, 2021.
The move is further evidence of the acceleration of construction’s move towards sustainability and environmentally friendly practices.
“Sustainability is an important element of our long-term strategy for profitable growth,” said Caterpillar Chairman and CEO, Jim Umpleby.
“Caterpillar is committed to contributing to a reduced-carbon future and helping our customers achieve their climate-related objectives as they build a better, more sustainable world.”
It was also announced that the Caterpillar Board of Directors will incorporate ESG in the 2022 incentive plan for Executive Officers and that the company will continue to analyse the disclosure recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). Cat said it would begin to utilise the TCFD framework to enhance its sustainability reporting starting in 2023.
In 2021 Caterpillar introduced seven new sustainability goals for 2030; five are centred on climate and the environment, and two focus on employee and customer safety.