Human Rights Risk Assessment

2019 – Caterpillar Inc.



WHEREAS, Caterpillar is committed to respecting internationally recognized human rights throughout its global operations and considered principles in the Universal Declaration of Human Rights (UDHR) in developing its Human Rights Policy;


Caterpillar envisions a world in which all people's basic needs - shelter, clean water, sanitation, food and reliable power - are fulfilled in a sustainable way and a company that improves the quality of the environment and the communities where its employees live and work;


Business activities in conflict-affected areas may cause or contribute to violations of international humanitarian law (IHL) and human rights, such as the UDHR, and voluntary corporate commitments, such as Caterpillar's human rights policy, entailing an array of legal, financial, and reputational risks for the companies involved;


Caterpillar is committed to not knowingly providing support to, contributing to, assisting with, or facilitating armed conflict in the Democratic Republic of Congo through the extraction and trade of "conflict minerals" in the DRC and adjoining countries and following due diligence procedures, which are consistent with a nationally or internationally recognized due diligence framework. 1


As shareholders we believe that in an increasingly unstable world, it is prudent for Caterpillar to ensure that any business it conducts in conflict-affected areas, including international armed conflicts (e.g., Iraq2, internal armed conflicts (e.g., Myanmar 3), and military occupations (e.g., Occupied Palestinian Territory4), also avoids providing support to, contributing to, assisting with, or facilitating armed conflict and follows due diligence procedures consistent with these frameworks;


RESOLVED, Shareholders request that Caterpillar assess and report to shareholders, at reasonable expense and excluding proprietary information, on the company's approach to mitigating the risks associated with business activities in conflict-affected areas other than areas already addressed through its conflict minerals policy.


Supporting Statement: We believe that it is in Caterpillar's best interest, advancing its corporate reputation and human rights leadership, to establish such policies that would be applicable to any conflict-affected area in which the company and its brands and subsidiaries may operate. In particular, the report should assess whether additional policies are needed to supplement Caterpillar's current Human Rights Policy to avoid causing or contributing to violations of human rights, such as:


• Displacement of individuals and/or unlawful appropriation or destruction of their property; and

• Exploitation of the territory's natural resources without the people of the territory's consent or for purposes other than their benefit.


Please vote your proxy FOR this proposal.




1 Caterpillar, "Conflict Minerals Position Statement," https ://www.catcmiTlar .com/en/company/sustainability/conflict-rninerals.html (accessed on November 8,2018).

2 The following article notes the use of 16 Caterpillar D9 bulldozers in Iraq. Sawyer, Tom and Andrew Wright, "Battlefield Commanders Review Lessons from Iraq," Engineering News Record, September 22, 2013.

3 The following article references significant investment by Caterpillar in Myanmar. Jennings, Ralph, "Why Ethnic Violence Has Gripped Myanmar Again and Investors Don't Mind," Forbes, January 19, 2017, jennings/2017/0l/ 19/why-ethnic­violence-has-gripped-myanmar-again-and-investors-dont-mind/#5acfbrn420Qd (accessed on November 8, 2018).

4 Los Angeles Times, "Caterpillar cut from investment lists; Israeli role cited," June 27, 2012, controversy.html (accessed on November 8, 2018).