jody howard director, social responsibility making ... · product lifecycle analysis raw materials...
TRANSCRIPT
Page 1 | CATERPILLAR CONFIDENTIAL: GREEN
Making Sustainable Progress PossibleJody HowardDirector, Social ResponsibilityCaterpillar, Inc.
Page 2 | CATERPILLAR CONFIDENTIAL: GREEN
Making Sustainable Progress Possible
Caterpillar:
• Founded 1925
• Broadest footprint in industry
• Over 100,000 employees
• 500 locations in 50 countries & 6 continents
Caterpillar: A Global LeaderMaking Sustainable
Progress Possible
2007 : $45 Billion
Outside
North
America
56%
North
America
44%
1997 : $19 Billion
Outside
North
America
44%
North
America
56%
Caterpillar Dealers:
• 181 independently owned &
operated dealers
• 3,600+ branches & rental stores
• Over 120,000 employees
Page 3 | CATERPILLAR CONFIDENTIAL: GREEN
Making Sustainable Progress Possible
Caterpillar Products
Page 4 | CATERPILLAR CONFIDENTIAL: GREEN
Making Sustainable Progress Possible
This is CaterpillarYellow Iron, Clean Power, Diversified Services
Page 5 | CATERPILLAR CONFIDENTIAL: GREEN
Making Sustainable Progress Possible
Integral to our Strategic Vision
Page 5 | CATERPILLAR CONFIDENTIAL: YELLOW
SCALING NEW HEIGHTS IN EXECUTION
Page 6 | CATERPILLAR CONFIDENTIAL: GREEN
Making Sustainable Progress Possible
Our Vision, Mission and Strategy
VisionOur vision is a world in which all people’s basic
requirements – for shelter, clean water, effective sanitation and reliable power – are not only met but provided in a way
that sustains our environment
MissionOur missio n is to enable economic growth through
infrastructure and energy development and to provide
solutions that protect people and preserve the planet.
Strategy
Our strategy is to provide work environments, products, services, and solutions that make wise use of the world's natural
resources and reduce harmful impacts on people and nature. This means we leverage assets including technology and innovation
to:
Promote & protect individual safety
Provide employment, education, & training
Minimize use of energy, materials &
water
Maximize recycling (remanufacturing)
Minimize harmful emissions, H2O
discharges, waste, & use of hazardous
substances
Optimize use of renewable sources
Page 7 | CATERPILLAR CONFIDENTIAL: GREEN
Making Sustainable Progress Possible
Making It Real: Products and Services
Customer Safety
Safety.cat.com
Increasing material
efficiency
Reducing
greenhouse gas Increasing energy
efficiency
Defined attributes that determine how to design for and improve
a machine’s level of Sustainability.
Sustainability in NPI
Page 8 | CATERPILLAR CONFIDENTIAL: GREEN
Making Sustainable Progress Possible
Product Lifecycle Analysis
Raw Materials
End of Life
Use
97%
Design
Fabrication
Assembly
• 966H Medium Wheel Loader
• Life Cycle Analysis (LCA)
• Results• Majority of Impact from Use
• Impact benefits from Recycle
1.8% of Impact from
MWL Production
97.5% of Impact from Engine Use
1.0% of Impact from Consumables excluding Tires
0.7% of Impact from Tires maintain/replace for 24900hr op.
Considering a life of 8 years
-1% Impact from Recycling
Steel parts from 1 MWL
Page 9 | CATERPILLAR CONFIDENTIAL: GREEN
Making Sustainable Progress Possible
35-70% lower undercarriage operating cost
50% better steering performance
25% morematerial moved per gallon of fuel
Up to 20% lessfuel consumed per hour
60% fewer moving partsin the electric drive train
35% more visibility
50% lessoperator noise
Less fluids used
Innovative From the Inside Out
Page 10 | CATERPILLAR CONFIDENTIAL: GREEN
Making Sustainable Progress Possible
Making It Real: Operations
2020 Goals for Operations
Page 11 | CATERPILLAR CONFIDENTIAL: GREEN
Making Sustainable Progress Possible
Operational Results To Date
Energy Efficiency
Measure TBD
Safety (July)
RIF = 1.68
LTCFR= 0.49
Absolute GHG
1.45 million MT CO2
(June)
Alternative/
Renewable Fuel
Measure TBD
Zero Waste to
Landfill
75.7% waste
recycled (June)
Water Consumption
2.44 billion gallons
through June
LEED
8 new projects under
construction
Page 12 | CATERPILLAR CONFIDENTIAL: GREEN
Making Sustainable Progress Possible
Making It Real: Operations
Heat Treat
Technical guidance was
needed to implement energy
reduction in heat treat
operation as well as:
• Cut the cost of energy
• Sustain heat treat operation
• Reduce the company’s CO2
footprint
Engine Development
Engine development and
validations were traditionally
performed through multiple
“trial-and-error” tests requiring
tremendous material, energy,
and labor resulting in
significant waste, fumes, and
emissions.
Within the Springvale facility
approx 99% of product is
powder coated. It is
imperative that the powder
paint plants run efficiently to
ensure associated running
costs are minimized.
Paint Plant
Page 13 | CATERPILLAR CONFIDENTIAL: GREEN
Making Sustainable Progress Possible
Best Practice: Heat Treat Energy Reduction
No
meters
installed
18%
Furnaces
with
Meters
Installed
82%
Projected End 2009
Installed Elec
Meter
5%
No Elec
Meter
63%
Installed Gas
Meter
7%
No Gas
Meter
25%
US Operations Division
East Peoria, ILMay 2008
Project
• Focus on energy use and reduction
• Establish energy vs. production metrics
• Establish energy baseline
• Deploy meters
Results
• 15% improvement from tuning
• $2.5 million / yr energy savings
Page 14 | CATERPILLAR CONFIDENTIAL: GREEN
Making Sustainable Progress Possible
Best Practice: Paint Plant Upgrades
Electric Power Division’s Springvale Facility
Northern Ireland
Results
• Cost savings of $500,000 per year
• 30% reduction in greenhouse gas
emissions
• 40% reduction in energy consumption
• Significant reductions in waste from
the process and water consumption
Project
90% of plant natural gas consumption
was for paint
• Upgraded paint booth – recycles
powder at a 95% rate
• Automatic spray guns increased
efficiency
• Change pre curing to electric infra red
Page 15 | CATERPILLAR CONFIDENTIAL: GREEN
Making Sustainable Progress Possible
Best Practice: Virtual Engine Development
Technology and Solutions Division’s Technical CenterMossville, IL
Project
Virtual engine development incorporating computer simulations, advanced analysis tools and leading measurement technology to plan, predict and analyze the outcome of engine development processes.
Results
• Fosters innovative development and validation processes as engineers are able to study many “what if” scenarios
• Preserves natural resources
• Limits emissions
• Reduced time and cost of overall engine development
Page 16 | CATERPILLAR CONFIDENTIAL: GREEN
Making Sustainable Progress Possible
Awards & Recognition
Making strides externally
Reporting & Accountability Partners in the dialogue
Page 17 | CATERPILLAR CONFIDENTIAL: GREEN
Making Sustainable Progress Possible
Making Sustainable Progress Possible
“Our commitment to being a leader in
sustainable development will keep us
focused on what really matters—making the
intelligent choices that will drive the growth
of our business and help create a more
sustainable world.”
--Jim Owens, Caterpillar Chairman and
CEO