2010 Sustainability Report - Cummins.com

Practices
Cummins doesn’t just talk about environmental stewardship. The Company
puts its words into action. Here’s a look at some of the ways we ensure that
“everything we do leads to a cleaner, healthier and safer environment.”
Climate change
Early in 2007, Cummins formed a climate change
team to take both a strategic and tactical view of
climate change and sustainability at Cummins.
The team’s members, from across business units
and functions, represent facilities, product planning,
corporate strategy, environmental policy, supply chain
and government relations, among others.
The team has evolved into an active working group
that takes a very structured and results-oriented
approach to our 10 climate change principles developed
to meet the challenges of climate change going forward.
Six of these principles direct company actions for our
products, businesses, employees and communities,
while four of them shape our partnerships with
legislative and regulatory entities to develop sound
public policy. The outreach of the corporate group is
expanding to include forming business-specific and
regional working groups to address climate change.
Many examples of the working group’s efforts are
included elsewhere in this report:
The support of greenhouse gas regulation (GHG)
in commercial vehicles and collaborative work with
the EPA in developing future GHG regulation;
Engaging employees to reduce their carbon
footprints both at work and at home;
Energy efficiency
The EPA’s Climate Leaders program offers a
rigorous approach to greenhouse gas reduction
that yields credible and consistently measurable
results. When Cummins committed to a 25 percent
GHG intensity reduction goal by 2010 from a 2005
baseline, we took the most comprehensive stance
possible, choosing to include in our baseline audit
all management-controlled entities worldwide.
A corporate Energy Efficiency Team with leaders
from each business unit and related environmental
functions drives the Company’s efforts to meet its
Climate Leaders goal.
The team manages the capital fund allocated
specifically for energy efficiency, analyzes proposed
capital projects for energy efficiency and greenhouse
gas reduction and tracks our progress toward our
Climate Leaders goals. Capital projects in our seven
identified energy efficiency themes have resulted in
annual energy savings of $11 million.
The team was also important in developing the
Company’s Energy Champions program and training
materials. Energy Champions and Energy Leaders are
energy experts at their sites and seek and carry out
low or no cost energy improvements. It is estimated
those improvements could save Cummins $10 million
to $15 million per year.
Closing in on our 25 percent facility GHG reduction
goal; and
Pursuing new business opportunities like hybrids
and combined heat and power systems.
30 Cummins Inc. Sustainability Report 2010