Cummins Inc. 2007 Sustainability Report

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Significant emissions reductions have been accomplished at Cummins through increased efficiencies resulting from Six Sigma projects. 2006 GHG % Relative Share by Business Unit, in Scope Facilities Materials 47% Engine Business 29% Filtration 8% Power Generation 5% Distribution 5% Fuel Systems These charts illustrate the relative share of 2006 emissions by business unit and by country. Cummins materials data collection includes process compounds commonly used in the Company’s manufacturing processes. In addition, quarterly data is reported and compiled for wastes, recycled materials, utilities and other key measures. Cummins has increased the population of facilities reporting sustainability and GHG emissions data substantially. In future years, all controlled sites will systematically report all metrics, which will simplify data trend analysis. Materials use from 2004 to 2005, based on a similar data set for both years, was generally consistent and in several cases actually decreased in spite of continued growth of the business. Data from an additional 16 facilities was compiled 66 Cummins Inc. 2007 Sustainability Report 3% Turbo Technologies 2% Cummins Business Services 1% Emission Solutions 2006 GHG Emissions by Country 77% United States 7% United Kingdom 5% India 3% Mexico 2% China 1% Other Europe 5% Other in 2006. The substantially larger data set, better measurement processes and continued company growth are collectively responsible for the increases for all metrics in 2006. Totals for recycled paper, plastic and wood are understated because at several locations load weights are unavailable. Significant discharges to water also are estimated because these are not directly measured at all worldwide locations. Reused liquid wastes represent estimated quantities of industrial process wastes reclaimed for re-use or otherwise returned to process as feedstock in cement kilns or blended fuels. These include oil, coolants, solvents and thinners and residual fluids primarily from painting processes.
Other Significant Direct Air Emissions Category (Metric Tons) 2004 2005 2006 NOx 2,490 2,556 2,855 CO 553 564 629 PM10 167 171 192 VOC Number of Reporting sites 854 791 2,537 NOx, CO and PM10 79 229 229 Number of Reporting sites VOCs 38 38 53 Data for NOx, CO, PM and CO 2 for 2005 and 2006 were developed from the 229 sites reporting fuels and electricity for the GHG inventory. Totals for VOC for these same years are based on data from the manufacturing and larger non-manufacturing sites, of which, 38 reported in 2005 and 53 in 2006. Emissions from diesel fuel used in product testing applications and No. 2 fuel oil, propane and natural gas used in boilers and furnaces were derived using EPA AP-42 Compilation of Air Pollutant Emission Factors, 1996. AP-42 emissions conversions used for large diesel engines are based on obsolete technology, so emissions data is overstated. Energy and Emissions Direct and Indirect Energy Use The energy data provided represent electricity used at the Company’s facilities to generate power for manufacturing operations, power produced and sold to the regional grid and power used for facility heating and cooling purposes. These data are derived from 229 sites in scope of Cummins Climate Leaders GHG inventory, which are the sources of the greenhouse gas emissions in the Cummins inventory presented in the table on pages 64 and 65. Historical energy and fuels use data indicate that Cummins achieved an absolute GHG emissions reduction of 2.3 percent in 2005 versus the year 2000. This equates to a 28 percent overall and a 20 percent, inflation adjusted, GHG intensity reduction expressed in tons of CO 2e (equivalents) per million dollars in net sales. This significant emissions reduction has been accomplished through increases in efficiency in part associated with environmental improvement projects at Cummins that employ Six Sigma tools and methodology. Similarly, fuel-use reductions tied to engine-testing efficiencies initiatives, which themselves yield substantial environmental benefits, represent supplemental benefits from what is primarily a quality assurance tool. Fuels, electricity use and other sources and their resultant emissions, in general, have increased from 2005 to 2006. Total direct and indirect US emissions increased by 5.1% over the same timeframe, whereas total non-US emissions increased by 5.5%. Total worldwide emissions in absolute terms increased by 5.2%. The company experienced sales growth of 14.5% from 2005 to 2006, yielding an 8% GHG intensity reduction. The GHG intensity reduction based on inflation adjusted 2006 sales in 2005 constant dollars was 4.8%. Environment 67
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Cummins Inc. 2007 Sustainability Re
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Cummins Inc. About this Report The
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“Corporate responsibility and wor
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The power of our Company is not jus
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“On any given day, there are appr
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As of the end of 2007, Cummins was
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“Cummins can create an advantage
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Cummins uses a voice of the custome
Page 18 and 19: Cummins has launched a focused effo
Page 20 and 21: We continuously work with customers
Page 22 and 23: “We rely on our core values to gu
Page 24 and 25: Going back to its earliest days, Cu
Page 26 and 27: “Cummins has created an environme
Page 28 and 29: In 2007, Internal Audit issued more
Page 30 and 31: “Cummins leverages the expertise
Page 32 and 33: The primary mission of the Board of
Page 34 and 35: “Every employee at Cummins should
Page 36 and 37: As a result of our outstanding tech
Page 38 and 39: “We believe we can’t be success
Page 40 and 41: Having the ability to meet a broade
Page 42 and 43: Cummins has worldwide experience an
Page 44 and 45: “We believe the right technology
Page 46 and 47: “We take pride in our work and ar
Page 48 and 49: “Being a lowcost producer is esse
Page 50 and 51: Emission Solutions offers exhaust a
Page 52 and 53: “The best way to have great emplo
Page 54 and 55: “Cummins’ future is based on ho
Page 56 and 57: The Cummins Science and Technology
Page 58 and 59: By the end of 2007, Cummins had 42
Page 60 and 61: “I am honored to work at a compan
Page 62 and 63: Manufacturing Operations For perspe
Page 64 and 65: Materials Category 2004 2005 2006 M
Page 66 and 67: “Working for a winning organizati
Page 70 and 71: Ozone Depleting Substances In 1995,
Page 72 and 73: “We view our vendors and supplier
Page 74 and 75: Our goal is to make Cummins a best-
Page 76 and 77: “The safety and well-being of our
Page 78 and 79: Entities are recognized at four dis
Page 80 and 81: “Creating a great place to work i
Page 82 and 83: “Every person must be treated wit
Page 84 and 85: “Being a successful company means
Page 86 and 87: Cummins Named Among Top 50 Companie
Page 88 and 89: “At Cummins, we strive to foster
Page 90 and 91: Cummins’ focus on corporate respo
Page 92 and 93: From raking leaves to reading to ch
Page 94 and 95: “Six Sigma is an indispensable im
Page 96 and 97: The Cummins Foundation Report Cummi
Page 98 and 99: The Cummins Foundation - 2007 Grant
Page 100 and 101: Grantee Community Purpose Amount Pa
Page 102: Cummins Inc. 500 Jackson Street Col
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Cummins Inc. 2007 Sustainability Report

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