At the beginning of 2024, at the world’s largest technology event, the International Consumer Electronics Show (CES), Caterpillar exhibited products and solutions including battery-powered underground loaders, construction site solutions, energy storage and charging solutions, batteries, power system solutions, digital insights and customer solutions. These advances in the field of energy transformation highlight Caterpillar’s leading position. Caterpillar’s continued increase in investment in unmanned driving, alternative fuels, connectivity and digitalization, and electrification not only reflects its commitment to helping global customers achieve sustainable goals, but also fully confirms that sustainable development is Caterpillar’s long-term action value. Carbon reduction goals are driving global energy transformation. Caterpillar continues to develop and provide a diverse portfolio of products, services and solutions for global customers to support them in achieving climate-related goals. From mechanical equipment using low-carbon intensity fuels, hydrogen fuels and electricity, to Cat® Reman (Carter Remanufacturing) that extends the life cycle of equipment and materials and reduces carbon emissions in the manufacturing process, to increased investment in unmanned driving, connectivity and digitalization, Caterpillar’s new products and services are steadily promoting sustainable development in various fields. Innovative equipment promotes energy conservation and emission reduction More and more industries are beginning to spontaneously control and reduce carbon emissions to achieve sustainable development. At present, Caterpillar has launched battery-powered mining trucks, engines and generators using biodiesel and biogas, and complete solutions for hydrogen-rich fuel power generation. These innovative products and solutions are used in mining, infrastructure and clean power generation, helping to reduce greenhouse gas emissions. The mining industry with higher emissions has turned its attention to electrification, expecting electric mining equipment to promote the sustainable development of the industry. In 2022, Caterpillar successfully tested its first battery-powered 793 large mining truck, which has the ability to capture energy during downhill. In the same year, Caterpillar launched its first zero-emission electric loader under its Shangong Machinery brand in China. At the end of 2023, Caterpillar took another step forward to apply battery-driven technology to its underground mining truck prototype. Generator sets and engines are Caterpillar’s fist business. Various types of generator sets can be widely used in clean energy power generation, garbage disposal and other fields, as well as backup power for important facilities such as data centers and hospitals. At the 2023 CIIE, Caterpillar exhibited a gas generator set under its MWM (Mannheim) brand, which can use various types of fuels such as natural gas, biogas, coalbed methane and hydrogen (up to 25% hydrogen), and the unit has an electrical efficiency of up to 43.1%. Previously, Caterpillar released a dynamic gas blending (DGB) engine with a diesel replacement rate of up to 85%, which can use the associated gas escaped from the oil and gas site (usually directly burned or discharged into the atmosphere). Compared with traditional diesel engines, in actual application scenarios, this equipment can reduce greenhouse gas emissions by up to 50% and save up to 40% of fuel costs. This engine can be used for fracturing fleets in the oil and gas industry, and similar dual-fuel technology can also be applied to power equipment in the mining and marine fields. Today, many large industrial facilities have increased their requirements for low carbon while requiring reliable electricity and heat. Zhejiang Huatai Shengfu used three Caterpillar Solar brand gas turbine generator sets in the propane dehydrogenation project, and its fuel mainly came from high-hydrogen tail gas generated during industrial production. This project is also the first time that Solar’s SoLoNOX™ dry low-emission technology has been applied to high-hydrogen fuel power generation. This technology can effectively reduce nitrogen and carbon monoxide emissions while achieving efficient use of energy. Caterpillar’s generator sets are also used in many domestic waste treatment and industrial projects, such as the country’s largest food waste treatment project-the Guangzhou Likeng Comprehensive Treatment Plant, which will be connected to the grid at the end of 2021. The treatment plant is equipped with three Mannheim biogas generators, which use biogas generated from food waste to produce clean electricity. After commissioning, it is expected to generate about 48 million kWh of electricity per year and reduce carbon dioxide emissions by 15,000 tons per year. According to the data released by the National Bureau of Statistics that the annual per capita household electricity consumption is 869 kWh, this power generation can meet the annual household electricity needs of 55,000 people. In addition to traditional industries, high-tech industries are also using Caterpillar products to improve the sustainability of their own facilities in terms of energy use. In Sweden, Microsoft’s world-leading data center uses Caterpillar’s full set of backup power solutions, in which Cat generator sets can use Preem upgraded diesel synthesized from 50% renewable raw materials.

As a completely clean new energy, hydrogen energy is also one of Caterpillar’s main areas of focus Quality service practices circular economy While continuously launching new equipment to help customers achieve sustainable goals, Caterpillar is also exploring carbon reduction potential in terms of services. Caterpillar has more than 50 years of experience in the field of remanufacturing. CatReman (Caterpillar Remanufacturing) dismantles, cleans, repairs, tests, assembles, paints, and packages old equipment parts to eventually form remanufactured products. Compared with manufacturing new products, CatReman products can reduce energy consumption by 65%-87%, raw material consumption by 80%-90%, and greenhouse gas emissions by 65%-87% in the process. While helping many customers save valuable time and operating costs, carbon emissions are greatly reduced compared to manufacturing new products. What is particularly rare is that, under the premise of having the same quality, performance and warranty commitment, the price of remanufactured products can be reduced by up to 60% compared to similar new parts. In addition, under the guidance of sustainability, various services including Cat certified refurbishment and Cat new power solutions have also helped many Chinese customers improve production efficiency and meet relevant sustainable standards in recent years. Through the Cat Certified Retrofit Program, customers can get product upgrades provided by Caterpillar at a price lower than that of buying a new machine. In addition, after the certified retrofit program is completed, the refurbished machine enjoys the same warranty service as the new machine. The Cat® New Power Program, which was first released in China in 2021, provides a series of optional emission upgrade solutions for some of the customers’ in-service machinery and equipment, including engine, cooling system, wiring harness, and software upgrades, so that the emissions of these equipment can be upgraded from China’s non-road National Phase II to National Phase III, and meet the national standards for non-road smoke in China. 2024 marks the 20th anniversary of the establishment of Cat (Carter) Finance, the earliest financial leasing service company in China’s construction machinery industry. In recent years, Cat (Carter) Finance has expanded its service scope to old equipment refurbishment and new power upgrades, so that companies and individual users who lack funds can also enjoy more sustainable services and avoid the waste of resources caused by the scrapping of old equipment. These innovative services have been widely recognized by customers, allowing Cat (Carter) Finance to achieve the highest customer loyalty since its establishment in 2023.

Manufacturing is an important way for Caterpillar to practice sustainable development Join hands with the industry to move towards a sustainable future Sustainable development is one of Caterpillar’s action values. In 2021, Caterpillar pledged to achieve seven sustainable development goals by 2030; in 2022, sustainability became one of the four major focuses of Caterpillar’s corporate strategy. Throughout 2022, Caterpillar’s “direct emissions” and “indirect emissions” of greenhouse gases decreased by 33% compared with 2018. By providing innovative products and services in the construction, resources, energy and transportation industries, Caterpillar helps customers build infrastructure in a sustainable way and continuously improve the quality of life and the environment. In 2021 and 2023, Caterpillar successively reached cooperation with Canadian mining customers NMG (NouveauMondeGraphite) and Albemarle Corporation of the United States, and will provide them with all-electric mining fleets, equipment, and a combination of solutions including solutions and technologies to help the two mining pioneers achieve the “zero emission” goal. Recently, the underground mining truck prototype demonstrated by Caterpillar for Newmont Mining will form a fully interconnected and zero-emission mining system with other equipment, making underground mining operations more efficient and safer while achieving zero emissions. From zero-emission mines to data centers, from products to services, in the face of energy transformation and growing global energy demand, Caterpillar has always been at the forefront of the industry. As global clean energy consumption increases, Caterpillar’s exploration in these areas will be transformed into feasible practices and expertise, playing an important role in many industries. These industries will favor Caterpillar’s products, services and technologies to reduce their own emissions, improve energy flexibility and production efficiency. Caterpillar will also help customers build a better and more sustainable future.