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

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AUDITOR CERTIFICATION PROGRAM<br />

Green build<strong>in</strong>g <strong>is</strong> forward look<strong>in</strong>g<br />

Let the sun sh<strong>in</strong>e <strong>in</strong>!<br />

ENVIRONMENT<br />

Environmental goals are measured through<br />

a structured audit process. A third party<br />

auditor, Bureau Veritas Certification (BVC),<br />

certifies our enterpr<strong>is</strong>e system and the<br />

data we collect. Cumm<strong>in</strong>s supplements<br />

the audit sampl<strong>in</strong>g conducted by BVC by<br />

conduct<strong>in</strong>g annual audits us<strong>in</strong>g <strong>in</strong>ternally<br />

tra<strong>in</strong>ed HSE auditors. Every site <strong>is</strong> audited<br />

on an annual bas<strong>is</strong>.<br />

S<strong>in</strong>ce the launch of our <strong>in</strong>ternal auditor<br />

certification program <strong>in</strong> 2006, we have<br />

tra<strong>in</strong>ed more than 100 persons and certified<br />

more than 45 HSE leaders as certified HSE<br />

auditors. Th<strong>is</strong> structured audit program<br />

validates performance and provides a<br />

mechan<strong>is</strong>m for sites to share best practices.<br />

Through these practices, Cumm<strong>in</strong>s <strong>is</strong> not<br />

only improv<strong>in</strong>g sites – it <strong>is</strong> build<strong>in</strong>g our<br />

next generation of HSE leaders.<br />

Cumm<strong>in</strong>s new facility <strong>in</strong> Izmir, Turkey <strong>in</strong>corporates many of<br />

the green features now specified as standard <strong>in</strong> Cumm<strong>in</strong>s<br />

new construction, such as ra<strong>in</strong> water harvest<strong>in</strong>g, skylights<br />

and motion sensors to control light<strong>in</strong>g.<br />

<strong>The</strong> facility, which opened earlier <strong>th<strong>is</strong></strong> year and will <strong>in</strong>itially<br />

be home to employees of Cumm<strong>in</strong>s Generator Technologies<br />

and Cumm<strong>in</strong>s Filtration, was designed with expansion <strong>in</strong><br />

m<strong>in</strong>d. <strong>The</strong> <strong>in</strong>frastructure for future efficiency (compressed<br />

air and build<strong>in</strong>g management system) <strong>is</strong> modular and<br />

expandable so any future addition will not require an<br />

<strong>in</strong>vestment <strong>in</strong> base <strong>in</strong>frastructure.<br />

For the first time, Cumm<strong>in</strong>s facilities <strong>in</strong><br />

2011 were powered <strong>in</strong> part by solar energy.<br />

As of May 2012, five solar arrays, or<br />

An eng<strong>in</strong>e plant <strong>in</strong> Daventry, U.K. and a<br />

groups of solar panels, had been <strong>in</strong>stalled Cumm<strong>in</strong>s Generator Technologies plant<br />

at Cumm<strong>in</strong>s’ facilities around the world, <strong>in</strong> Stamford, U.K. complete the l<strong>is</strong>t of<br />

capable of generat<strong>in</strong>g up to 230 kilowatts facilities now us<strong>in</strong>g energy from the sun<br />

(kW) of power. <strong>The</strong>y replaced carbon-based <strong>in</strong> a significant way for their operations.<br />

sources of energy.<br />

Attractive tax, rebate and feed-<strong>in</strong>-tariff<br />

While still modest compared to the Company’s <strong>in</strong>centives (which require utilities to pay a set<br />

use of other sources of electricity, these price for power generated by private solar<br />

solar arrays have energized Cumm<strong>in</strong>s’ <strong>in</strong>stallations), comb<strong>in</strong>ed with the f<strong>in</strong>ancial<br />

exploration of solar energy as one way to and project-management support from the<br />

help shr<strong>in</strong>k the Company’s carbon footpr<strong>in</strong>t. Cumm<strong>in</strong>s Energy Efficiency Team, led to<br />

the solar panel projects at these locations.<br />

“We have set aggressive targets for<br />

further greenhouse gas reductions,”<br />

Collectively, the five ma<strong>in</strong> solar arrays are<br />

said Mark Dhenn<strong>in</strong>, Cumm<strong>in</strong>s’ Director sav<strong>in</strong>g the Company about $32,000 per<br />

ENVIRONMENT<br />

HEALTH, SAFETY AND<br />

ENVIRONMENT AWARDS<br />

In 2005, Cumm<strong>in</strong>s created the Health,<br />

Safety and Environment Awards to<br />

recognize employees and sites that excel <strong>in</strong><br />

the commitment to world class performance<br />

and environmental stewardship.<br />

W<strong>in</strong>ners of the 2011 awards presented<br />

their projects to the Cumm<strong>in</strong>s Board of<br />

Directors and participated <strong>in</strong> an exhibition<br />

of Energy Efficiency for the Corporate<br />

Environmental Management Group.<br />

“That’s why <strong>in</strong>vest<strong>in</strong>g <strong>in</strong> renewable<br />

technologies such as solar <strong>is</strong> so important<br />

to shr<strong>in</strong>k<strong>in</strong>g our carbon footpr<strong>in</strong>t.”<br />

Cumm<strong>in</strong>s Turbo Technologies <strong>in</strong><br />

Huddersfield, U.K. led the way <strong>in</strong><br />

2011, followed a few months later by<br />

<strong>in</strong>stallations at two Cumm<strong>in</strong>s Power<br />

Generation facilities <strong>in</strong> M<strong>in</strong>nesota.<br />

year while reduc<strong>in</strong>g carbon dioxide by<br />

about 120 metric tons annually.<br />

Dhenn<strong>in</strong> says solar power rema<strong>in</strong>s relatively<br />

expensive compared to other sources<br />

of energy and its use <strong>is</strong> largely driven by<br />

government <strong>in</strong>centives and utility rebates.<br />

But these larger demonstration projects<br />

show solar can play an important role <strong>in</strong> the<br />

Company’s overall climate protection efforts.<br />

Crews <strong>in</strong>stall the last solar<br />

panel on the roof of Office<br />

Block 1 <strong>in</strong> Huddersfield, U.K.<br />

<strong>The</strong> solar array was the first<br />

application on a large scale.<br />

that provided an opportunity for others <strong>in</strong><br />

the Company to familiarize themselves<br />

with these best practices.<br />

In 2011, a record number of projects<br />

vied for environmental awards. In the<br />

energy efficiency category alone, Cumm<strong>in</strong>s<br />

had 27 projects compete for an award.<br />

<strong>The</strong> grow<strong>in</strong>g number and quality of the<br />

projects demonstrates that Cumm<strong>in</strong>s’<br />

employees embrace and celebrate<br />

environmental stewardship.<br />

SUSTAINABILITY <strong>REPORT</strong> 2011–2012 41

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