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Cummins Inc. 2007 Sustainability Report

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Other Significant Direct Air Emissions<br />

Category (Metric Tons) 2004 2005 2006<br />

NOx 2,490 2,556 2,855<br />

CO 553 564 629<br />

PM10 167 171 192<br />

VOC<br />

Number of <strong>Report</strong>ing sites<br />

854 791 2,537<br />

NOx, CO and PM10 79 229 229<br />

Number of <strong>Report</strong>ing sites VOCs 38 38 53<br />

Data for NOx, CO, PM and CO 2 for 2005 and 2006 were developed from the 229 sites reporting fuels and electricity<br />

for the GHG inventory. Totals for VOC for these same years are based on data from the manufacturing and larger<br />

non-manufacturing sites, of which, 38 reported in 2005 and 53 in 2006.<br />

Emissions from diesel fuel used in product testing applications and No. 2 fuel oil, propane and natural gas used in boilers<br />

and furnaces were derived using EPA AP-42 Compilation of Air Pollutant Emission Factors, 1996.<br />

AP-42 emissions conversions used for large diesel engines are based on obsolete technology, so emissions data is overstated.<br />

Energy and Emissions<br />

Direct and Indirect Energy Use<br />

The energy data provided represent electricity used<br />

at the Company’s facilities to generate power for<br />

manufacturing operations, power produced and<br />

sold to the regional grid and power used for facility<br />

heating and cooling purposes. These data are<br />

derived from 229 sites in scope of <strong>Cummins</strong> Climate<br />

Leaders GHG inventory, which are the sources of the<br />

greenhouse gas emissions in the <strong>Cummins</strong> inventory<br />

presented in the table on pages 64 and 65.<br />

Historical energy and fuels use data indicate that<br />

<strong>Cummins</strong> achieved an absolute GHG emissions<br />

reduction of 2.3 percent in 2005 versus the year<br />

2000. This equates to a 28 percent overall and a 20<br />

percent, inflation adjusted, GHG intensity reduction<br />

expressed in tons of CO 2e (equivalents) per million<br />

dollars in net sales.<br />

This significant emissions reduction has been<br />

accomplished through increases in efficiency in<br />

part associated with environmental improvement<br />

projects at <strong>Cummins</strong> that employ Six Sigma tools<br />

and methodology. Similarly, fuel-use reductions<br />

tied to engine-testing efficiencies initiatives, which<br />

themselves yield substantial environmental benefits,<br />

represent supplemental benefits from what is<br />

primarily a quality assurance tool.<br />

Fuels, electricity use and other sources and their<br />

resultant emissions, in general, have increased<br />

from 2005 to 2006. Total direct and indirect<br />

US emissions increased by 5.1% over the same<br />

timeframe, whereas total non-US emissions<br />

increased by 5.5%. Total worldwide emissions in<br />

absolute terms increased by 5.2%. The company<br />

experienced sales growth of 14.5% from 2005 to<br />

2006, yielding an 8% GHG intensity reduction. The<br />

GHG intensity reduction based on inflation adjusted<br />

2006 sales in 2005 constant dollars was 4.8%.<br />

Environment<br />

67

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