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2010 Sustainability Report - Cummins.com

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Greenhouse gas emissions<br />

<strong>Cummins</strong> has achieved dramatic reductions in<br />

greenhouse gas emissions due in large part to a<br />

structured approach to energy efficiency. From<br />

the end of 2005 to the end of 2009, <strong>Cummins</strong><br />

has decreased its actual greenhouse gas emissions<br />

by 167,000 tons.<br />

Our reduction goal, however, is an intensity goal,<br />

which expresses GHG reduction per unit of sales.<br />

Meeting an intensity reduction goal is typically harder<br />

during a period of declining sales, which occurred<br />

during the economic downturn starting at the end<br />

of 2008, as plants were not running at full capacity.<br />

Still, <strong>Cummins</strong> has achieved a 19.4 percent GHG<br />

reduction since base year 2005, and is on track to<br />

meeting its 25 percent goal.<br />

In addition to energy reduction, site specific<br />

reduction initiatives through the Environmental<br />

Management System have yielded performance<br />

improvements relative to non-GHG emissions, as<br />

well as in wastes generated and resources used.<br />

Total GHG emissions<br />

in thousands of metric tons CO 2<br />

e<br />

These metrics have generally held steady in spite<br />

of substantial increases in production and sales<br />

from 2006 through 2008 coupled with an increasing<br />

number of reporting sites each year.<br />

The year 2009 saw sharply declining sales from the<br />

prior year. Although 2009 sales totals were similar to<br />

sales in 2006, total water use and waste placed in<br />

landfills were substantially lower in 2009 — evidence<br />

that the Company improvement efforts are paying<br />

dividends beyond any reductions associated with<br />

decreases in production.<br />

Water use in particular has been cut in half over<br />

the reporting time-frame. Although recycled materials<br />

are difficult to trend for improvements due to the<br />

various influences on materials used in product and<br />

packaging, <strong>Cummins</strong> has well-developed recycling<br />

programs in all 55 Environmental Management System<br />

(EMS) sites and most other non-manufacturing sites.<br />

Efforts at better management of packaging are being<br />

implemented within <strong>Cummins</strong>’ supply chain, which<br />

will contribute to efforts to minimize wastes generated<br />

associated with <strong>com</strong>pany operations.<br />

1000<br />

800<br />

600<br />

400<br />

200<br />

0<br />

2005 2006 2007 2008 2009<br />

Electricity 444,905 450,784 451,597 433,211 388,415<br />

Stationary <strong>com</strong>bustion 169,264 177,671 177,961 190,938 171,412<br />

Fugitive SF6, CO 2<br />

120,506 130,786 165,417 170,140 6,316<br />

Mobile sources, other 29,199 30,460 30,494 31,772 30,880<br />

34 <strong>Cummins</strong> Inc. <strong>Sustainability</strong> <strong>Report</strong> <strong>2010</strong>

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