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IROs: Machinery & Equipment (MME)
Jasper Akkermans avatar
Written by Jasper Akkermans
Updated over 4 months ago

ESRS E1 - Climate change

Topic

Climate change

Sub-topic

Climate change adaptation

Sub-sub-topic

IRO

Risk

Location

Own operations

Time-frame

Medium-term

Title

Risk of failure when transitioning to low-carbon technologies.

Example

Transitioning to low-carbon technologies poses risks (financial, efficiency, failure) for machinery and equipment manufacturers. Caterpillar is investing in R&D for sustainable products in an attempt to mitigate this risk.

Reference

Caterpillar Sustainability Report, 2023

ESRS E5 - Circular economy

Topic

Circular economy

Sub-topic

Resource inflows, including resource use

Sub-sub-topic

IRO

Opportunity

Location

Own operations

Time-frame

Medium-term

Title

Efficient material use allows for cost-savings.

Example

Efficient and sustainable material use in machinery manufacturing can reduce costs and waste. Caterpillar is optimising its material use to enhance resource efficiency.

Reference

Caterpillar Sustainability Report, 2023

ESRS S1 - Own workforce

Topic

Own workforce

Sub-topic

Working conditions

Sub-sub-topic

Work-life balance

IRO

Impact - potential positive

Location

Own operations

Time-frame

Medium-term

Title

Work-life balance increases business productivity.

Example

Promoting work-life balance can improve employee satisfaction and productivity. The New York Times offers flexible working arrangements to support work-life balance.

Reference

The New York Times Sustainability Report, 2023

ESRS S2 - Workers in the value chain

Topic

Workers in the value chain

Sub-topic

Other work-related rights

Sub-sub-topic

Child labour

IRO

Impact - potential negative

Location

Supply chain (upstream)

Time-frame

Short-term

Title

Monitoring labor rights in the supply chain reduces the risk of exploitation.

Example

Without strict labor rights being enforced throughout the supply chain, there is potential for the exploitation of workers, including children. Caterpillar has programs to monitor and enforce labor rights at its suppliers' factories.

Reference

Caterpillar Sustainability Report, 2023

ESRS G1 - Business conduct

Topic

Business conduct

Sub-topic

Corruption and bribery

Sub-sub-topic

Prevention and detection including training

IRO

Impact - potential negative

Location

Own operations

Time-frame

Medium-term

Title

Corruption in the media has the potential to cause widespread harm.

Example

Corruption in the media holds great potential to negatively impact employees, customers, and wider communities. Unethical media and communication practices can have significant negative impacts on politics, the economy, and the environment.

Reference

Coolset, 2024

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