2010 Sustainability Report - Cummins.com

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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
Partnering with others Our own products and processes Grow and develop new businesses Support community efforts Collaborate with suppliers and customers Public policy efforts Develop responsible regulations Improve product efficiency In 2007, Cummins formed a Climate Change Working Group to take both a strategic and tactical Climate Change Principles Promote technology development view of climate change Harness the energy of employees and sustainability. Create a balanced global approach Make work spaces green spaces Accelerate progress through incentives Six principles direct our company actions for products, businesses, employees and communities. Four principles shape our efforts toward sound public policy. Business Unit Working Groups focus on business-specific climate change initiatives. Policy advocacy in U.S. and globally to develop sound public policy to address climate change. Regional Working Groups will tailor climate change strategies to their regions. Environment 31
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 and 20: Cummins is a major participant in t
Page 21 and 22: Chairman and CEO Tim Solso (fourth
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: ReCon plant opens in India Cummins
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
Page 73 and 74: A generator set operating on vegeta
Page 75 and 76: Lokesh Agrawal, Customer Interface
Page 77 and 78: Cummins employees regularly visit P
Page 79 and 80: Other Environmental Challenge grant
Page 81 and 82: 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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2010 Sustainability Report - Cummins.com

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