Caterpillar names chief sustainability and strategy officer
October 20, 2021 By Rock to Road Staff
Caterpillar has appointed Julie Lagacy to the new position of chief sustainability and strategy officer.
Lagacy, currently vice-president of the enterprise strategy division, will assume the additional responsibilities of her new role effective Nov. 1.
She will report to chair and CEO Jim Umpleby.
In a statement, the company says it is boosting its environmental, social and governance (ESG)–related disclosures and tying a portion of executive compensation to ESG in response to stakeholder feedback,.
“Sustainability is an important element of our long-term strategy for profitable growth,” says Umpleby. “Caterpillar is committed to contributing to a reduced-carbon future and helping our customers achieve their climate-related objectives as they build a better, more sustainable world.”
The Caterpillar board of directors will incorporate ESG in the 2022 incentive plan for executive officers. More information will be disclosed in the company’s 2023 proxy statement.
Caterpillar will continue to analyze the disclosure recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and begin to use the TCFD framework to enhance its sustainability reporting starting in 2023.
The company first introduced Sustainability Accounting Standards Board (SASB) reporting standards in its 2019 Sustainability Report. In 2021, the company also debuted seven new sustainability goals for 2030; five are centred on climate and the environment, and two focus on employee and customer safety.
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