Judy Crandell, Division EHS Manager Sustainability @ Caterpillar Building Healthy Communities Today for Tomorrow’s Success Judy Crandell, Division EHS Manager

Today’s Agenda Caterpillar – Our History Sustainability – Our Approach Healthy Communities – Our Efforts Business Case – Our Rewards Building Construction Products

THIS is Caterpillar Our Legacy: World’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. 2013 sales and revenues of $55.7 billion Product in more than 180 countries Dow Jones Industrial Average Fortune 50 company 90 year history

Caterpillar & North Carolina... Partners in Success Our People: Caterpillar employs +2,000 people and has nearly 400 retirees across the state of North Carolina Our facilities offer employees comprehensive wages, benefits and training opportunities which consistently rank among the BEST IN THE REGION Our Network: Dealers: Carolina Tractor, Gregory Poole Number of suppliers: 728 Caterpillar Foundation Giving: $308,860

Products Manufactured in North Carolina Hose Axles Seals Couplings Oil coolers Piston pins Heat exchangers Skid steer loaders Multi terrain loaders Small wheel loaders Compact track loaders Let’s show what we make here in NC List language of what we make. Matthew to send a mining pic Remove BCP products that we don’t make here

Sustainability – Our Approach Why are healthy communities important to Caterpillar? We need skilled, local talent and resources Employees, dealers, suppliers We live in the communities where we work Environmental stewardship, volunteerism It’s good for business Brand image Being seen as a sustainable company At CAT, we call this “sustainability” … Building Construction Products

Our Sustainability VALUE Profit (Economic) Remanufacturing Increased Machine Efficiency AND Emissions Reduction Planet (Environmental) LEED Silver Certification Waste GHG Water Use People (Social) External Talent Apprenticeships Partnerships with local colleges Internships Engineering Development Program Internal Talent Tuition Assistance Leadership Training Community Involvement Volunteerism Financial Assistance Partnerships Employee Safety List what we do, choose a few to talk to Building Construction Products

2020 Goals for Sustainability

Our Sustainability VALUE Profit (Economic) Remanufacturing Increased Machine Efficiency AND Emissions Reduction Planet (Environmental) LEED Silver Certification Waste GHG Water Use People (Social) External Talent Apprenticeships Partnerships with local colleges Internships Engineering Development Program Internal Talent Tuition Assistance Leadership Training Community Involvement Volunteerism Financial Assistance Partnerships Employee Safety List what we do, choose a few to talk to Building Construction Products

Apprenticeship program – Sanford Our Commitment to Talent Development Apprenticeship program – Sanford Building Construction Products

Welding Apprenticeship Program Program Details: 2-year program Welding and welding-related classes at Central Carolina Community College 3 days/week Work/train at Caterpillar 2 days/week during their high school junior and senior years Caterpillar pays enrolled students during the school year for the time spent working/training and up to 32 hours per week during the summer between their junior and senior year

Program Benefits Earn a Welding Certificate from Central Carolina Community College for 24 college credit hours Earn a 10-hour OSHA Safety Card Earn a certificate from the NC Department of Labor indicating that they have completed the youth apprenticeship Complete 80-hour Caterpillar Accelerated Training program

Program Benefits Earn a CRC WorkKeys Credential Complete on the job training (OJT) hours Work part-time at Caterpillar for 2 years Preferred employment opportunity at Caterpillar Replicated in Clayton with Johnston Community College

Leed silver certification – Winston salem Our Commitment to the Environment Leed silver certification – Winston salem Building Construction Products

LEED ® Features of the Facility Sustainable Sites Protected, restored, and created new habitat in over 80% of the available open space. Parking provided for alternative vehicles and bicycles. Water Efficiency Low flow fixtures reduce potable water consumption by over 45% Local and adaptive plants that do not require irrigation and minimize maintenance Energy and Atmosphere Mechanical equipment is 12% more efficient than required Air Conditioning units use non-chloroflourocarbon refrigerants Indoor Environmental Quality Low VOC materials used throughout the building interior. Mechanical systems are designed for maximum comfort and adjustable lighting levels Materials and Resources 90% of all construction waste was diverted from local landfills 34% of building material content used in construction was made from recycled materials

Giving & volunteerism Our Commitment to Our Community Building Construction Products

Think GLOBALLY. $12.8M in 2014 Caterpillar Foundation Transforming lives in the communities where we live and work Building Construction Products

Act LOCALLY. Building Construction Products

Investing in OUR Community Building Construction Products

Creating Healthy communities makes business sense Our Company’s Future Creating Healthy communities makes business sense Building Construction Products

Proof of the Business Case… Triangle Business Journal’s 2014 NC Manufacturer of the Year Award 2014 Governor’s Award for Excellence in Workforce Development Women in Manufacturing STEP Award Carolina Parent’s “Family-Friendly 50” Award Triangle Business Journal’s “Best Places to Work” Award Alliance for Work-Life Progress “Seal of Distinction” Award Business Carolina’s North Carolina’s “Best Employers” of 2014 Largest LEED ® certified manufacturing facility in North Carolina Burke County Cornerstone Award – Large Business of the Year Building Construction Products