CAT Appoints its First Chief Sustainability Officer, Ties ESG to Executive Compensation

Mark Segal October 18, 2021

Leading construction and mining equipment, engine, turbine and locomotive manufacturer Caterpillar announced today a series of ESG-focused initiatives, including the appointment of Julie Lagacy as the company’s first Chief Sustainability & Strategy Officer.

The company also announced that it will begin incorporating ESG factors in its executive incentive plan in 2022 (more detail to follow in the company’s 2023 Proxy Statement), and that it will begin to utilize the TCFD framework to enhance its sustainability reporting starting in 2023.

The company stated that today’s announcements reflect stakeholder feedback and illustrate the company’s longstanding commitment to sustainability.

Lagacy has been with Caterpillar for over 30 years, and served in a variety of senior roles at the company, including Chief Information Officer and Vice President – Global Information Services, Chief Financial Officer – Global Mining, and Vice President – Finance Services Division. She currently serves as vice president of the Enterprise Strategy Division. In her new role, she will report directly to Caterpillar Chairman & CEO Jim Umpleby.

Umpleby said:

“Sustainability is an important element of our long-term strategy for profitable growth. 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.”

Mark founded ESG Today following a 20 year career in investment management and research. Prior to founding ESG Today, Mark worked at Delaney Capital Management (DCM) in Toronto, Canada, most recently as the firm’s head of U.S. equities. While at DCM, Mark was part of the firm’s ESG team, responsible for evaluating and tracking the sustainability factors impacting portfolio companies, and assessing the suitability of companies for portfolio inclusion. Mark also spent several years in the sell-side research industry, covering the technology and services sectors. Mark holds an MBA from Columbia University in New York, a BBA from the Schulich School of Business at York University in Toronto, and is a CFA charterholder.