2010 Sustainability Report - Cummins.com

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Cummins employees embrace “envolvement” Cummins employees are working to reduce their carbon footprint both at work and at home. What started as a voluntary commitment to the EPA to reduce greenhouse gases in 2006 has led to a series of initiatives to improve energy efficiency that depend on the skill and passion of Cummins employees. Two successful Unplugged Challenge campaigns to keep energy use to a minimum over site holiday shutdowns at the end of 2008 and 2009 saved a combined 1,900 tons of greenhouse gases from being emitted and $1.2 million. Smart capital expenditures on energy efficiency projects have yielded excellent returns, but in a tough economic climate, Cummins has excelled in creating a culture of energy champions to do low or no cost energy improvements. The Company now has 85 trained Energy Champions and their deputies who provide leadership, coaching and mentoring on energy efficiency to site Energy Leaders. The Energy Leaders are the energy experts at their particular locations. In addition, Cummins leaders have been on the road, talking personally to employees about the Company’s many opportunities to improve energy efficiency both at its facilities and in its products. Tower conserves millions of gallons of water Cummins is no longer discharging millions of gallons of water used to cool the Company’s corporate headquarters into a Columbus, Ind. waterway. The Corporate Office Building (COB) occupies three city blocks and can hold about 1,000 workers. When the building was completed in 1982, three ground water wells were installed around the perimeter of the building. The extracted groundwater was circulated through the building’s heating and cooling system to support the three chillers for air conditioning. The original plan to re-inject the ground water back into the aquifer failed, but since there was no cooling tower to conserve and re-circulate the water, the water was redirected to a storm sewer that empties into a nearby river. This solution was far from ideal. Not only did it use a lot of water, it took a lot of time and effort to monitor the discharges to meet the requirements of the site’s discharge permit. In addition, the well water caused the air conditioning system’s mechanical equipment to deteriorate more quickly. Cummins officials considered building a tower several times, but cost and design challenges proved too much to overcome until a more aesthetically pleasing tower design was suggested. The tower was completed in May of 2009 – 27 years after the COB opened. The wells have been closed and no more ground water – an estimated 22 million gallons per month – is being discharged to the river. Cummins is now purchasing water from the city of Columbus to cool the COB, and that water is recirculated, reducing volumes significantly. With the new cooling tower, water use is on pace to being reduced to an average of 500,000 gallons per month. 44 Cummins Inc. Sustainability Report 2010
India campus wins Chairman’s Award for energy efficiency The Cummins India Limited (CIL) campus in Pune, which is primarily engine business manufacturing, won the 2010 Cummins Energy Efficiency Award for its body of energy savings projects over the past two years. Those projects delivered a greenhouse gas reduction of 1,507 tons and energy savings of $118,000. The team also completed an energy audit using Six Sigma tools that could save an additional $122,000. The CIL team was recognized for its work in particular on two innovative projects – turning waste heat into air conditioning for the shop floor and the use of canteen waste by the biogas plant. CIL installed a waste heat recovery system that runs on exhaust heat coming from generators. The system reduces water temperature to 7°C. This water is circulated through fan coil units installed in the machine shop areas to produce an air conditioning effect. The team also used the biogas generated from thrown away, cooked food to fuel the cooking of more food. As part of the Envolved campaign, John Wall, Cummins Chief Technical Officer, met with more than 4,000 employees at 24 town hall meetings in the first half of 2010 to share Cummins’ views on climate change, reducing energy consumption and opportunities for employees to become more engaged. In addition, his presentation was videotaped and distributed to Cummins locations around the world this spring. I’m John, and I’m Envolved. The campaign is also helping employees become aware of energy use in their own homes and transportation. A tool on the Company’s Energy Efficiency Web site allows employees to measure their personal carbon footprint. Speaking to employees at the Cummins facility in Fridley, Minn. this spring, Wall said, “Climate change is a global problem that will affect everyone and we won’t solve it unless everyone gets involved.” I was “unplugged” before it was cool to unplug. To find out how you can become Envolved in the fight against climate change, go to MyCummins Our Company > Environment > Energy Efficiency. The “Envolved” campaign poster featuring John Forte, Business Manager of Cummins Television Network. Environment 45
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 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: Combined heat and power 45% 85% ene
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
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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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