2010 Sustainability Report - Cummins.com

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About this report About the cover The information in this report is presented in the spirit of the Global Reporting Initiative (GRI). The goal of the initiative is to develop a consistent way for companies around the world to voluntarily report on the economic, environmental and social components of their businesses. The GRI was started in 1997 by the Coalition for Environmentally Responsible Economies and then became independent in 2002 and today works in collaboration with the United Nations Environment Program and the UN Secretary- General’s Global Compact. Cummins takes pride in the positive impact our people and products have on society. As a global company, Cummins wants to make a difference today and for future generations as well. This report was published in July 2010 and is the Company’s seventh annual edition. The cover of this year’s Sustainability Report feels and looks different because it is made out of a blend of banana stalk fibers and post-consumer paper at Cummins-supported EARTH University in Costa Rica. Typically, after the fruit is harvested the banana stalk is disposed of in landfills or by other means. In Costa Rica alone, hundreds of thousands of tons of banana stalks are disposed of annually. Paper is only one of several ways the university is putting banana stalks to work. EARTH has also pioneered the use of a fertilizer made from banana stalks for fruit growers in Central America. To learn more about EARTH University, go to page 14. Contacts: Jean Blackwell Executive Vice President – Corporate Responsibility Chief Executive Officer, The Cummins Foundation One American Square, Suite 1800 Indianapolis, IN 46282 Mark D. Land Executive Director – Corporate Communications One American Square, Suite 1800 Indianapolis, IN 46282 Office: (317) 610-2456 Marya M. Rose Vice President – General Counsel One American Square, Suite 1800 Indianapolis, IN 46282 2 Cummins Inc. Sustainability Report 2010
Table of contents This year’s Sustainability Report celebrates Cummins’ significant Corporate Responsibility partnerships starting on page 14 with a story about the Company’s involvement in EARTH University. Other partnerships are profiled throughout the report. Introduction Letter from the chairman ...................04 Cummins by the numbers ..................06 Our commitment .........................08 History ................................10 Recognition .............................12 Corporate responsibility Building stronger communities ..............64 Philanthropy: A track record of commitment ....68 Responding to disasters ...................69 Rising to our environmental challenges ........70 Corporate responsibility funding .............78 EARTH University . .........................14 Courage Center . ..........................82 Environment Raising the stakes .......................18 Environmental stewardship: Products .........22 India’s green ambassador ..................28 Environmental stewardship: Practices .........30 Seven ways our sites save energy ............32 Cummins and climate change: Q&A ..........37 Darlington’s big year ......................38 Environmental stewardship: Partnerships ......40 Collaborating with customers ...............42 Combined heat and power .................43 Employee “envolvement” campaign ..........44 Employee relations Creating a safe working environment. . . . . . . . . . 84 A dramatic change for the better .............86 Cell phone use banned: driver safety. . . . . . . . . . 87 Connecting diversity to the bottom line ........88 Putting diversity into action .................92 Taking diversity to the next level .............93 Company recommits to $1 billion goal ........94 Smaller suppliers play critical role ............97 Creating a sustainable workforce ............98 LeMoyne-Owen College ....................102 Cummins College of Engineering for Women .....46 Governance / Risk management Foundation for business success ............50 Cummins Board of Directors ................54 Dr. Franklin Chang-Diaz ...................56 Managing risks ..........................58 H1N1 response ..........................61 Finance Cummins remains strong in 2009 ...........104 Six Sigma is 10 years old .................107 Our new strategic principle ................109 Operating segments .....................110 Ithemba Institute of Technology . ..............62 Introduction 3
Page 1 and 2: Cummins Inc. Sustainability Report
Page 3: Who we are Vision Making people’s
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 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
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Cummins started an Internet-based c
Page 63 and 64:
Flu outbreak puts pandemic plan int
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Cummins has been working with Ithem
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Employees from the Dongfeng Cummins
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Challenges ahead: Corporate respons
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Audit Committee Chairman Marsha Hu
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A generator set operating on vegeta
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Lokesh Agrawal, Customer Interface
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Cummins employees regularly visit P
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Other Environmental Challenge grant
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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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