Climate Progress at Caterpillar After Shareholder Engagement

FOR IMMEDIATE RELEASE

MEDIA CONTACT: Stefanie Spear, sspear@asyousow.org, 216-387-1609

BERKELEY, CA—MAY 10, 2023—Following As You Sow’s and Amalgamated Bank’s 2022 management-supported shareholder proposal (96.5% vote) on net zero target setting and continued engagement from investor initiative Climate Action 100+, Caterpillar Inc. has released its first annual “Taskforce on Climate-related Financial Disclosures Report” report and an estimate of the company’s Scope 3 (value chain) greenhouse gas emissions.

While the proposal’s request for Paris-aligned near and long-term emission reduction targets, inclusive of all value chain emissions, remains unfulfilled, the new disclosures are an important first step in demonstrating the company’s responsiveness to investor concerns.

“These disclosures are a move in the right direction to meet shareholder expectations on climate risk management,” said Ivan Frishberg, Amalgamated Bank's chief sustainability officer. “We will continue to advocate for Caterpillar to fully align with a net zero economy.”

While climate-related financial disclosures reporting has become fundamental to corporate climate risk analysis and disclosure, Caterpillar’s calculation of Scope 3 emissions is a significant step forward. As the leading manufacturer of construction and mining equipment, an estimated 95% of the company’s total emissions inventory lies in its supply chain, including its customers’ use of products.

“The materiality of Caterpillar’s Scope 3 emissions highlights the company’s significant challenge and opportunity — to develop a business plan responsive to global climate imperatives and a decarbonizing economy,” said Bill Davis, Stance Capital managing director and Climate Action 100+ lead for Caterpillar.

Shareholders from the Climate Action 100+ will continue to engage Caterpillar on fulfilling the 2022 proposal and creating a climate transition plan that fully aligns with the expectations of both shareholders and the Climate Action 100+ Net Zero Company Benchmark.

“We are pleased to see Caterpillar’s disclosure of Scope 3 emissions,” said Daniel Stewart, As You Sow’s energy and climate program manager. “It is essential that the company now take the next step and include these emissions in their emission reduction targets.”

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As You Sow is the nation’s leading shareholder advocacy nonprofit, with a 30-year track record promoting environmental and social corporate responsibility and advancing values-aligned investing. Its issue areas include climate change, ocean plastics, pesticides, racial justice, workplace diversity, and executive compensation. Click here for As You Sow’s shareholder resolution tracker.

Amalgamated Bank, the wholly owned banking subsidiary of Amalgamated Financial Corp. (Nasdaq: AMAL), is a mission-driven New York-based full-service commercial bank and a chartered trust company with a combined network of six branches in New York City, Washington D.C., San Francisco, and Boston. Amalgamated Bank provides commercial banking and trust services nationally and offers a full range of products and services to both commercial and retail customers.

Stance Capital is a Boston-based firm specializing in quantitative ESG asset management and research. Our Mission: To outperform the market, invest in good companies.