Caterpillar Inc

The report, which the company issues annually, provides greater transparency and disclosure of the company's U.S. political engagement strategy, including a description of the governance oversight and management of these activities. Caterpillar's shareholders have demonstrated interest in more transparency and a better understanding of our political engagement strategy. We value their input and diverse perspectives and have implemented a number of key changes based on shareholder feedback. Our Values in Action, governing laws and strategy for profitable growth continue to guide how we act and manage, with whom we engage, and our areas of focus. [...] Based on shareholder feedback, in 2022, we lowered the reporting threshold of our U.S. trade and industry association memberships from $50,000 to $25,000 and provided additional information on the percentage of members' dues used for federal lobbying. We have further enhanced our disclosures for 2023 to include a tiered reporting of the dollar amount of Caterpillar's membership dues paid to all U.S. trade and industry associations and the percentage of those dues used for federal lobbying activities, as reported by each organization. To facilitate this reporting function, we have instituted measures designed to ensure that any payments of trade association dues and corporate political contributions are processed in compliance with our political spending policies and tracked to support our disclosures in the Lobbying Report.

Our commitment to a reduced-carbon future extends to our public policy efforts. Our Lobbying Report outlines how we advocate for a policy and regulatory environment that supports our long-term success and provides value to shareholders.

Our commitment to a reduced-carbon future extends to our public policy efforts as we advocate for a thoughtful approach to identifying and advancing policies that support our customers during the energy transition. Our Lobbying Report, issued earlier this year, provides greater transparency and disclosure of our advocacy efforts and political engagements, including climate lobbying, as well as a description of the oversight and management of these activities.

Sustainability oversight is conducted at Caterpillar's highest levels, beginning with our board of directors. Given the importance of sustainability, the board created the new Sustainability and other Public Policy Committee (SPPC) in 2022. Among other responsibilities, the SPPC has oversight of climate and sustainability. Our sustainability governance also includes our CEO and all Executive Officers who report directly to the CEO, including the Chief Sustainability Officer (CSO). [...] Our commitment to a reduced-carbon future extends to our public policy efforts as we advocate for a thoughtful approach to identifying and advancing policies that support our customers during the energy transition. Click here to learn more in our Lobbying Report: The Purpose of Engagement – a report we plan to issue annually – which provides greater transparency and disclosure of our advocacy efforts and political engagements, including Climate Lobbying, as well as a description of the oversight and management of these activities.