2010 Sustainability Report - Cummins.com

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Seven ways our sites save energy These themes provide structure for our energy reduction efforts. Energy Recovery Waste heat captured from welding can be used elsewhere Power Management Powering down equipment for energy savings Lighting More efficient lighting reduces operating costs Fuel Usage Using less fuel in test cells adds to GHG reduction Building Envelope Insulation keeps heat from escaping Machinery & Equipment Reducing compressed air use when possible Heating & Cooling Recirculating fan projects Cummins Environmental Management System Certified EMS enterprise sites Cummins Environmental Management System (EMS) ensures a common approach to implementing Cummins’ environmental standards at its sites worldwide. 2010 – 2011 all 71 facilities in scope The EMS drives regulatory compliance and ongoing environmental improvement projects reflecting site, business unit and corporate priorities. Cummins has incorporated the elements of the international industry environmental standard ISO 14001 into its EMS and submits the EMS registration to independent third party auditing and verification with our global registrar, Bureau Veritas Certification. By the end of 2009, Cummins had 55 sites and the corporate entity registered to the ISO 14001 standard and expects to have the remainder of in-scope sites registered by the end of 2011. 2009 2008 2007 2006 2005 2004 55 47 38 25 20 13 certified facilities 32 Cummins Inc. Sustainability Report 2010
Environmental objectives and targets Each year, the Health, Safety and Environmental Council agrees on objectives and targets for the organization to ensure the improvement of Cummins’ environmental performance. These corporate objectives are in addition to business unit initiatives that are of special importance and address a unique risk exposure or opportunity for that group. In 2009, each business was asked to use Six Sigma tools on a reduction project of their choice and to begin to develop a water balance by identifying key uses of water onsite. The water balance analysis will help identify reduction opportunities that support Cummins’ continuing focus on water conservation. In addition, objectives and targets have been set to generate organizational and other support for GHG reduction and energy efficiency initiatives across the organization. At the end of 2009, the EMS was able to quantify $2 million in savings and the following environmental improvements as a result of the objectives and targets completed: 8 metric tons of waste reduced 47 million gallons of water conserved 1,000,000 BTUs (British Thermal Unit) of natural gas reduced 2.5 megawatts of electricity reduced 4,000 pounds of solvent usage reduced Cummins Southern Plains implements integrated Environment Safety System Many sites at Cummins are developing integrated health, safety and environmental systems to meet both environmental and safety standards. Cummins has developed a number of tools to support these activities including integrated Corporate Health, Safety and Environmental procedures. Cummins Southern Plains, headquartered in Texas with 10 branch locations, is our first distributor in the corporate enterprise to implement such an integrated system. Having multiple locations across two states required good communications and common systems to achieve consistency and excellence for health, safety and the environment. Implementation teams set up at all branch locations helped make the process smoother. “Since all of our branches perform the same basic functions, deploying the HSEMS (Health, Safety and Environmental System) to all branches added a lot of value for little additional effort at Southern Plains,” said Charles Glynn – Southern Plains Health, Safety and Environmental Leader. “Implementing a formal HSEMS has allowed us to identify gaps in our approach and significantly improved our safety and environmental performance.” “The environmental and safety management system provides standardized processes to drive continual improvement, while retaining site level flexibility that is critical to address the diverse challenges in the Distribution Business Unit,” said Adam Tucker, Cummins Distribution Business Unit HSE leader. “The achievement of Southern Plains is significant as more distributors will move to these systems.” Environment
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 and 32: ReCon plant opens in India Cummins
Page 33: Partnering with others Our own prod
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
Page 83 and 84: GRANTEE ORGANIZATION COMMUNITY GRAN
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Mary Kate (left), can only move her
Page 87 and 88:
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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