2010 Sustainability Report - Cummins.com

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Raising the stakes on our environmental performance Highlights Cummins successfully meets 2010 EPA emission regulations for on-highway diesel engines in the United States. Company sees producing cleaner, more efficient products as a strategic advantage. Cummins partners with employees to address climate change, reduce environmental footprint. Other accomplishments include: Greenhouse gas reduction at Cummins’ facilities since 2005 has reached 167,000 tons, a reduction of 19 percent. Product remanufacturing recycled more than 50 million pounds of material in the past year. The energy savings from this reclamation is equivalent to the consumption of about 10,000 homes in the United States. Eight more sites were certified to Cummins Demanding that everything we do leads to a cleaner, healthier environment has been part of Cummins’ Mission Statement for many years. In practice, it means the Company is unwavering in our commitment to produce the cleanest products in the world and reduce the Company’s environmental footprint. Environmental Management System, which drives regulatory compliance and ongoing environmental improvement. Cummins has raised the stakes on many environmental fronts in the past year. Because we have invested significantly in new products and technologies to further lower exhaust emissions from our products, the Company was able to successfully launch our 2010 diesel engines, meeting even more stringent U.S. Environmental Protection Administration regulations. Dr. Steven Chu, U.S. Secretary of Energy, visits with John Wall, Cummins Chief Technical Officer, at Cummins’ Columbus Technical Center earlier this year. 18 Cummins Inc. Sustainability Report 2010
Chairman and CEO Tim Solso (fourth from right) stands behind President Barack Obama this spring as he signs an order to develop the first-ever fuel efficiency standards for medium and heavy-duty commercial vehicles. Going forward, more of Cummins’ annual investment in research and development will be focused on improving the efficiency of our engines and reducing greenhouse gases (GHGs), specifically carbon dioxide (CO 2 ), to the mutual benefit of our customers and the environment. We see our ability to produce cleaner, more fuel efficient products as a key strategic advantage in the future. Greater fuel economy, reduced product emissions In January 2010, U.S. Secretary of Energy Dr. Steven Chu chose Cummins’ Columbus, Ind. Technical Center as the setting to announce the awarding of $187 million to nine projects across the country dedicated to improving fuel efficiency, reducing waste energy, and cutting emissions. Cummins was awarded $54 million, by far the highest award, for two projects aimed at improving fuel efficiency in heavy-duty and light-duty vehicles. The Company’s 20-year partnership with the Department of Energy has helped Cummins bring evolutionary and break-through clean diesel technology to the market faster and at a lower cost than we could have on our own. We are also partnering with the government to establish the first-ever standards governing greenhouse gas emissions and fuel efficiency for medium- and heavy-duty commercial vehicles. Cummins wrote a white paper at the request of the National Academy of Sciences (NAS) on the regulation of greenhouse gases in commercial vehicles following a site visit by academy leaders to Cummins in May 2009. The paper details Cummins’ perspective on a regulatory framework that could also provide a useful structure for technology assessment, improved fuel efficiency and greenhouse gas reduction from medium- and heavy-duty commercial vehicles. The regulatory framework has been part of the Company’s ongoing dialogue with regulators and lawmakers about the need for a consistent and responsible set of standards to address GHGs. Cummins Chairman and Chief Executive Officer Tim Solso stood with U.S. President Barack Obama in May 2010 as the president signed an order at the White House for the development of these standards. Environment 19
Page 1 and 2: Cummins Inc. Sustainability Report
Page 3 and 4: Who we are Vision Making people’s
Page 5 and 6: Table of contents This year’s Sus
Page 7 and 8: To address the global challenges we
Page 9 and 10: Environment 9,000 tons of CO 2 emis
Page 11 and 12: The Cummins Operating System The Cu
Page 13 and 14: Clessie Cummins was known for his b
Page 15 and 16: Social issues, diversity and people
Page 17 and 18: The university’s emphasis on educ
Page 19: Cummins is a major participant in t
Page 23 and 24: Challenges ahead: The environment I
Page 25 and 26: Global on-highway standards 4.5 4.0
Page 27 and 28: Remanufacturing Cummins products Re
Page 29 and 30: Non-road useful life emissions tota
Page 31 and 32: ReCon plant opens in India Cummins
Page 33 and 34: Partnering with others Our own prod
Page 35 and 36: Environmental objectives and target
Page 37 and 38: 25% Percent change in revenue Since
Page 39 and 40: Cummins and climate change Here are
Page 41 and 42: Cummins accepted into U.K. Carbon T
Page 43 and 44: In December 2009, Cummins became a
Page 45 and 46: Combined heat and power 45% 85% ene
Page 47 and 48: India campus wins Chairman’s Awar
Page 49 and 50: Inside a classroom at Cummins Colle
Page 51 and 52: Partnering with Purdue, Rose Hulman
Page 53 and 54: Indiana Gov. Mitch Daniels (left) a
Page 55 and 56: Challenges ahead: Governance and Ri
Page 57 and 58: Robert J. Bernhard Vice President f
Page 59 and 60: Dr. Franklin Chang-Diaz Title: Chai
Page 61 and 62: Cummins started an Internet-based c
Page 63 and 64: Flu outbreak puts pandemic plan int
Page 65 and 66: Cummins has been working with Ithem
Page 67 and 68: Employees from the Dongfeng Cummins
Page 69 and 70: Challenges ahead: Corporate respons
Page 71 and 72:
Audit Committee Chairman Marsha Hu
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A generator set operating on vegeta
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Lokesh Agrawal, Customer Interface
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Cummins employees regularly visit P
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Other Environmental Challenge grant
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GRANTEE ORGANIZATION COMMUNITY GRAN
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GRANTEE ORGANIZATION COMMUNITY GRAN
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Mary Kate (left), can only move her
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The Cummins Power Generation Plant
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“Satisfaction has increased withi
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Create a workplace population with
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Cummins’ definition of diversity
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Taking diversity to the next level
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Council plays key role The Diversit
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Smaller diverse suppliers can play
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Cummins workforce Here’s a quick
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President and COO Tom Linebarger sp
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The investment is paying off. Becau
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Pat Ward, Vice President - Chief Fi
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Six Sigma delivers for Cummins Ten
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Our new strategic principle Cummins
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Components Sales: $2.4 billion EBIT
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Production Notes Design and writing
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