ABOUT THIS REPORT The information in this report is ... - Cummins

Environmental Stewardship // Practices
Cummins demonstrates good environmental stewardship
through our products, practices and our partnerships.
Here’s a look at our activity in all three areas:
140%
100%
CMI Revenue (2005 constant $)
Practices
50%
ENVIRONMENT
Cummins doesn’t just talk about environmental stewardship.
The Company puts its words into action. Here are some
of the ways we ensure that “everything we do leads
to a cleaner, healthier, safer environment.”
ENVIRONMENTAL SUSTAINABILITY currently working independently into a
0%
-50%
-70%
Normalized GHG Emissions (intensity)
-28% ACHIEVED
Actual GHG Emissions
Normalized Emissions Goal
GHG reduction
goal of -40%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
ENVIRONMENT
Cummins has the ability to make a
significant impact on the environment.
Our employees have a passion for it and
want to make a difference at work, at home
and in their communities. The Company
understands it is our responsibility as a
good corporate citizen to also be a good
steward of our air, land and water. We have
demonstrated our commitment by achieving
significant reductions in our greenhouse gas
(GHG) emissions, our generation of waste
and in our use of water.
Cummins is expanding the scope of
the Climate Change Working Group to
include all aspects of the environment
and in the process changed its name to
the Action Committee for Environmental
Sustainability, or ACES, to reflect the
larger sphere of influence and directive
in environmental matters.
This leadership group – which will involve all
businesses, all functions and all locations –
will bring together many successful efforts
comprehensive work plan for environmental
sustainability. The committee will evaluate
Cummins’ overall impact on the
environment and establish a global strategy
to reduce the Company’s environmental
footprint. ACES will give us one global
voice and ensure accountability.
AIR / ENERGY
Cummins has extended its GHG reduction
goal from the 28 percent reduction achieved
in 2010 as part of the U.S. Environmental
Protection Agency’s Climate Leaders
Program to a 40 percent reduction by
2015, again using 2005 as a baseline.
The greenhouse gas reduction correlates
to the 25 percent energy efficiency intensity
goal Cummins has set as part of the
Department of Energy’s Better Buildings,
Better Plants Challenge program.
“We are ensuring we have a sound
investment plan to meet this aggressive
goal, which equates to double the energy
efficiency improvements made over the first
five-year period,” said Alan Resnik, Director
of Corporate Environmental Management.
Cummins exceeded its first goal
of a 25 percent reduction in GHG
emissions per dollar of revenue, achieving
a 28 percent reduction. Revenue increased
67 percent between the start of 2009
and the end of 2011.
Based in part on that accomplishment,
Cummins was named a winner in the GHG
goal achievement category of the Inaugural
Climate Leadership Awards sponsored
by the EPA, the Association of Climate
Change Officers, the Center for Climate
and Energy Solutions (formerly the Pew
Center on Global Climate Change) and
The Climate Registry.
The award recognizes corporate,
organizational and individual leadership
in addressing climate change and
reducing carbon emissions. One
individual and 20 organizations were
recognized earlier in 2012. In naming
Cummins, the award sponsors said:
“The Company made the business case
for reducing emissions to its employees and
has created a culture of energy saving and
sustainability that is now part of how the
company does business. Other activities
included the establishment of an energy
efficiency team, as well as a capital fund
that helped create dedicated, annual
funding for energy efficiency improvements.
“Cummins also created a corporate-wide
challenge to involve all employees in saving
energy, and its Energy Champions Program
trained employees to find energy savings at
their sites.”
In 2011, Cummins saw nearly flat absolute
GHG emissions from 2010 on a 36 percent
revenue increase, which equates to a
16 percent intensity reduction. The
Company achieved a 46 percent intensity
reduction from our base year of 2005.
Cummins reduced its GHG
emissions by 28 percent
per dollar of revenue from
2005 to 2010, exceeding
the 25 percent reduction
goal it set with the U.S. EPA.
32 SUSTAINABILITY REPORT 2011–2012 SUSTAINABILITY REPORT 2011–2012 33