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

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WATER<br />

global <strong>is</strong>sue of water and has for several<br />

and a water scorecard that comb<strong>in</strong>es<br />

what water use means to our bus<strong>in</strong>ess,<br />

Water conservation has been a critical <strong>is</strong>sue<br />

at Cumm<strong>in</strong>s for some time. S<strong>in</strong>ce 2008,<br />

the Company has collected water-use data<br />

to support water conservation efforts at<br />

sites throughout Cumm<strong>in</strong>s. In 2012, the<br />

Company will further strengthen its water<br />

management efforts by assess<strong>in</strong>g r<strong>is</strong>ks at<br />

priority locations <strong>in</strong> water-stressed areas <strong>in</strong><br />

addition to sett<strong>in</strong>g a company-wide water<br />

conservation goal.<br />

S<strong>in</strong>ce more than 60 percent of the<br />

Company’s bus<strong>in</strong>ess <strong>is</strong> <strong>in</strong> <strong>in</strong>ternational<br />

markets, Cumm<strong>in</strong>s recognizes the<br />

challenges associated with the r<strong>is</strong><strong>in</strong>g<br />

years focused on conserv<strong>in</strong>g water and<br />

reduc<strong>in</strong>g wastewater d<strong>is</strong>charges.<br />

<strong>The</strong> Company cont<strong>in</strong>ues to accelerate<br />

our efforts <strong>in</strong> effective water management,<br />

recogniz<strong>in</strong>g the grow<strong>in</strong>g significance of <strong>th<strong>is</strong></strong><br />

resource throughout our global footpr<strong>in</strong>t.<br />

Last year, Cumm<strong>in</strong>s identified three<br />

focus areas for water conservation at our<br />

locations: grounds, facilities, and processes.<br />

Cumm<strong>in</strong>s sites focused on these areas<br />

for conservation opportunities and aga<strong>in</strong><br />

achieved positive results by calculat<strong>in</strong>g<br />

their water balances (a formal exerc<strong>is</strong>e that<br />

def<strong>in</strong>es water <strong>in</strong>takes, uses, and d<strong>is</strong>charges)<br />

lead<strong>in</strong>g and lagg<strong>in</strong>g metrics.<br />

In 2011, Cumm<strong>in</strong>s reduced water use<br />

normalized for labor hours by 18 percent<br />

from 2010 levels. That brought our total<br />

labor-normalized water-use reduction to<br />

45 percent s<strong>in</strong>ce 2008.<br />

Of perhaps even greater significance,<br />

Cumm<strong>in</strong>s reduced absolute water use<br />

<strong>in</strong> 2011 by approximately 5 percent or<br />

60 million gallons.<br />

However, the Company’s accelerated effort<br />

<strong>in</strong> effective water management <strong>is</strong> about<br />

more than just successful conservation<br />

results. It <strong>is</strong> also about understand<strong>in</strong>g<br />

our communities and our environment.<br />

In 2011, Cumm<strong>in</strong>s made significant strides<br />

<strong>in</strong> develop<strong>in</strong>g <strong>th<strong>is</strong></strong> understand<strong>in</strong>g by<br />

conduct<strong>in</strong>g water management surveys<br />

of sites across the Cumm<strong>in</strong>s’ enterpr<strong>is</strong>e.<br />

By pair<strong>in</strong>g local site knowledge with<br />

global water availability data, Cumm<strong>in</strong>s<br />

<strong>is</strong> able to prioritize efforts that will have<br />

the greatest impact.<br />

<strong>The</strong> Company <strong>is</strong> now conduct<strong>in</strong>g a<br />

series of water source assessments at<br />

our highest priority sites located <strong>in</strong> both<br />

India and Mexico, two regions that face<br />

water scarcity challenges.<br />

ENVIRONMENT<br />

Recycled metals<br />

Recycled metals<br />

<strong>in</strong> thousands of metric tons<br />

<strong>in</strong> thousands of metric tons<br />

Other recycled materials<br />

Other recycled materials<br />

<strong>in</strong> thousands of metric tons<br />

<strong>in</strong> thousands of metric tons<br />

Total water use<br />

<strong>in</strong> billions of gallons<br />

Landfill waste<br />

<strong>in</strong> thousands of metric tons<br />

Process hazardous waste<br />

<strong>in</strong> thousands of pounds<br />

120<br />

50<br />

2.0<br />

Total water use<br />

<strong>in</strong> billions of gallons<br />

Hour normalized<br />

water use<br />

50%<br />

25<br />

Waste generated<br />

<strong>in</strong> thousands<br />

of metric tons<br />

25%<br />

Hour normalized<br />

landfill waste<br />

500<br />

Waste generated<br />

<strong>in</strong> thousands<br />

of metric pounds<br />

Hour normalized<br />

hazardous waste<br />

60%<br />

100<br />

40<br />

1.5<br />

30%<br />

20<br />

15%<br />

400<br />

40%<br />

80<br />

20%<br />

30<br />

10%<br />

15<br />

5%<br />

300<br />

60<br />

1.0<br />

0%<br />

20<br />

-10%<br />

10<br />

-5%<br />

200<br />

40<br />

-20%<br />

20<br />

10<br />

0.5<br />

-30%<br />

5<br />

-15%<br />

100<br />

-40%<br />

0<br />

2008 2009 2010 2011<br />

0<br />

2008 2009 2010 2011<br />

0.0<br />

1.38 B<br />

1.15 B<br />

1.14 B<br />

1.08 B<br />

2008 2009 2010 2011<br />

-50%<br />

0<br />

18,895<br />

17,168<br />

19,237<br />

22,107<br />

2008 2009 2010 2011<br />

-25%<br />

0<br />

439,378<br />

351,582<br />

216,831<br />

221,453<br />

2008 2009 2010 2011<br />

-60%<br />

Copper & brass 0.67 0.58 0.73 1.00<br />

Alum<strong>in</strong>um 1.08 0.75 0.68 0.87<br />

Iron 104.89 78.84 97.25 106.29<br />

Paper 0.44 0.51 0.39 0.58<br />

Plastic 0.93 0.80 1.10 1.33<br />

Wood 17.87 13.47 18.55 24.50<br />

Total water use<br />

Normalized water use (gallons/employee hour)<br />

Total landfill waste<br />

Landfill waste normalized to hours worked<br />

Total hazardous waste<br />

Hazardous waste normalized to hours worked<br />

Cardboard 10.99 10.70 13.83 16.29<br />

36 SUSTAINABILITY <strong>REPORT</strong> 2011–2012 SUSTAINABILITY <strong>REPORT</strong> 2011–2012 37

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