2010 Sustainability Report - Cummins.com

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Greenhouse gas emissions Cummins has achieved dramatic reductions in greenhouse gas emissions due in large part to a structured approach to energy efficiency. From the end of 2005 to the end of 2009, Cummins has decreased its actual greenhouse gas emissions by 167,000 tons. Our reduction goal, however, is an intensity goal, which expresses GHG reduction per unit of sales. Meeting an intensity reduction goal is typically harder during a period of declining sales, which occurred during the economic downturn starting at the end of 2008, as plants were not running at full capacity. Still, Cummins has achieved a 19.4 percent GHG reduction since base year 2005, and is on track to meeting its 25 percent goal. In addition to energy reduction, site specific reduction initiatives through the Environmental Management System have yielded performance improvements relative to non-GHG emissions, as well as in wastes generated and resources used. Total GHG emissions in thousands of metric tons CO 2 e These metrics have generally held steady in spite of substantial increases in production and sales from 2006 through 2008 coupled with an increasing number of reporting sites each year. The year 2009 saw sharply declining sales from the prior year. Although 2009 sales totals were similar to sales in 2006, total water use and waste placed in landfills were substantially lower in 2009 — evidence that the Company improvement efforts are paying dividends beyond any reductions associated with decreases in production. Water use in particular has been cut in half over the reporting time-frame. Although recycled materials are difficult to trend for improvements due to the various influences on materials used in product and packaging, Cummins has well-developed recycling programs in all 55 Environmental Management System (EMS) sites and most other non-manufacturing sites. Efforts at better management of packaging are being implemented within Cummins’ supply chain, which will contribute to efforts to minimize wastes generated associated with company operations. 1000 800 600 400 200 0 2005 2006 2007 2008 2009 Electricity 444,905 450,784 451,597 433,211 388,415 Stationary combustion 169,264 177,671 177,961 190,938 171,412 Fugitive SF6, CO 2 120,506 130,786 165,417 170,140 6,316 Mobile sources, other 29,199 30,460 30,494 31,772 30,880 34 Cummins Inc. Sustainability Report 2010
25% Percent change in revenue Since 2005, Cummins has implemented 202 capital projects, reducing annual GHG emissions by 219,812 tons of CO 2 e, for an annual savings of $11 million. Actual GHG emissions 0% Normalized GHG emissions ON TRACK GHG reduction GOAL -25% 2005 2006 2007 2008 2009 2010 GHG emissions by country GHG emissions by business unit Europe 2 % Emission Solutions 2 % Other 6 % Mexico 3 % Corporate 3 % China 4 % Turbo Technologies 4 % Distribution 6 % Fuel Systems 7 % India 6 % Power Generation 10 % United Kingdom 9 % United States 70 % Filtration 11 % Engine 56 % Environment 35
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 and 34: Partnering with others Our own prod
Page 35: Environmental objectives and target
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
Page 85 and 86: Mary Kate (left), can only move her
Page 87 and 88:
The Cummins Power Generation Plant
Page 89 and 90:
“Satisfaction has increased withi
Page 91 and 92:
Create a workplace population with
Page 93 and 94:
Cummins’ definition of diversity
Page 95 and 96:
Taking diversity to the next level
Page 97 and 98:
Council plays key role The Diversit
Page 99 and 100:
Smaller diverse suppliers can play
Page 101 and 102:
Cummins workforce Here’s a quick
Page 103 and 104:
President and COO Tom Linebarger sp
Page 105 and 106:
The investment is paying off. Becau
Page 107 and 108:
Pat Ward, Vice President - Chief Fi
Page 109 and 110:
Six Sigma delivers for Cummins Ten
Page 111 and 112:
Our new strategic principle Cummins
Page 113 and 114:
Components Sales: $2.4 billion EBIT
Page 115 and 116:
Production Notes Design and writing
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2010 Sustainability Report - Cummins.com

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