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THE POWER

OF CUMMINS
SUSTAINABILITY PROGRESS REPORT 2014-2015
INTRODUCTION
COVER STORY
ABOUT THE COVER

ENVIRONMENT
One of the most visible signs of the
“Power of Cummins” is the Company’s
QSK95, the largest high-speed diesel
engine Cummins has ever built.

INNOVATION
The engine was chosen by Siemens
to power its Charger locomotive in
the United States. Siemens won a
multi-state, $225 million contract to

CORPORATE RESPONSIBILITY
build 35 diesel-electric locomotives.

Cummins employees are shown


pushing the QSK95 into a test cell at
the Company’s Seymour Engine Plant
in Seymour, Indiana (U.S.A.). You can
learn more about the Company’s big
year in passenger rail on page 18.

HEALTH & SAFETY


The QSK95, by the way, is also
powering a new line of generators.
You can learn more about that
on page 40.

RIGHT ENVIRONMENT
GOVERNANCE
FINANCIAL
SUSTAINABILITY PROGRESS REPORT 2014-2015
THE POWER
OF CUMMINS

FINANCIAL GOVERNANCE RIGHT ENVIRONMENT HEALTH & SAFETY CORPORATE RESPONSIBILITY INNOVATION ENVIRONMENT COVER STORY INTRODUCTION
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // INTRODUCTION

COVER STORY
ABOUT THIS REPORT CUMMINS DATA BOOK ABOUT OUR WEBSITE

ENVIRONMENT
Cummins’ 2014-2015 Sustainability As we hope you’ll see from reading Cummins will introduce its first Cummins has a website dedicated
Progress Report is presented in the this report, Cummins is a global Sustainability Data Book in June 2015. to its sustainability efforts at
spirit of the Global Reporting Initiative company that wants to make a This report will include all of the data www.cummins.com/sustainability.
(GRI). The GRI’s goal is to develop difference for all of its stakeholders, in our Sustainability Progress Report The site includes past reports dating

INNOVATION
a consistent way for companies today and in the future. plus additional data, especially as it back to 2003, sustainability-related
across the globe to voluntarily report pertains to Cummins’ environmental videos and more. Cummins posts
This report was posted in May
on their environmental, social and performance. It is designed for those its answers to the Carbon Disclosure
2015 and is the Company’s
economic performance. who want a complete statistical look Project there and the Company’s
12th annual edition.

CORPORATE RESPONSIBILITY
at the Company. The Data Book will new Sustainability Data Book will
The report reflects Cummins’ broad
EXECUTIVE SUMMARY be posted at www.cummins.com/ be posted there as well. If you have
view of sustainability, including safety,
sustainability where we will also suggestions for the site, please
diversity, employee development Cummins has prepared an
post Cummins’ submission to contact Blair Claflin, Director –
and governance in addition to the Executive Summary of this report.
the Carbon Disclosure Project. Sustainability Communications,
Company’s environmental initiatives, The summary includes some of the
at blair.claflin@cummins.com.
its community service programs and most important statistical material You can find more financial data
Cummins’ financial performance. in the full report as well as a number

HEALTH & SAFETY


about the Company’s performance
of condensed versions of the in Cummins’ annual 10-K report.
The theme of this year’s report
stories within this report. It is available in the Investor
is “The Power of Cummins.”
Relations section at cummins.com.
The Company’s power isn’t limited You can get the Executive
You can find a link to that report at
to its products or its record financial Summary by going to

RIGHT ENVIRONMENT
www.cummins.com/sustainability.
year. The Company uses its strength www.cummins.com/sustainability.
in many other ways, ranging from its
Look on the left-hand menu
push for environmental sustainability,
for a link to “Past Reports.”
to its efforts to build stronger
communities, to its ability to serve

GOVERNANCE
customers in remote locations such
as Myanmar and Madagascar.

FINANCIAL
2
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // INTRODUCTION
2012 2013 2014

ECONOMIC

Revenue $17.3 billion $17.3 billion $19.2 billion

COVER STORY
Earnings $1.65 billion $1.48 billion $1.65 billion

KEY PERFORMANCE INDICATORS EBIT $2.35 billion $2.16 billion $2.5 billion

ENVIRONMENT
Cummins takes a broad view of sustainability,
2012 2013 2014
including the environment, corporate responsibility,
ENVIRONMENTAL
safety, diversity, employee development and
GHG emissions
governance. The Company uses a number of

INNOVATION
(thousands of metric tons CO2e) 729 750 788
key performance indicators (KPIs) to evaluate Energy consumption1
how it’s doing. You will find them listed (thousands of MMBtu) 11,711 12,077 12,746

CORPORATE RESPONSIBILITY
throughout this report. Water use (millions of gallons) 1,069 958 972

Water intensity reduction2 22% 30% 36%


1
Primary energy excludes sold electricity and associated fuel usage
2
Intensity defined as adjusted for sales (energy / GHG) or hours worked (water)
Energy intensity reduction2,3 33% 30% 34%
3
Reduction includes consolidated entities only

GHG intensity reduction2,3 35% 33% 35%

Recycling rate 88% 89% 90%

HEALTH & SAFETY


2012 2013 2014

EMPLOYEES

Major incidents /
dangerous occurrences rate 0.056 0.047 0.057

RIGHT ENVIRONMENT
Incidence rate 0.69 0.65 0.61

Women leaders in the workforce 19% 20% 20%

Every Employee Every


Community (EEEC)
participation rate 63% 68% 73%

GOVERNANCE
Environmental Challenge
employee participation 12,000 11,500 13,600

Greenhouse gas reduction


as part of the Environmental

FINANCIAL
Challenge (metric tons) 4.3 19 22.4
3
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT

TABLE OF CONTENTS
6 INTRODUCTION 18 COVER STORY 45 62 INNOVATION

COVER STORY
A NOTE FROM INNOVATION’S KEY
THE CHAIRMAN CUMMINS HELPS CUMMINS’ ROLE AT CUMMINS
PASSENGER RAIL PRACTICES
8 PICK UP SPEED IN HELP PROTECT 64

ENVIRONMENT
NORTH AMERICA ENVIRONMENT JULIUS PERR AWARDS
CUMMINS AROUND
THE WORLD 65
CUMMINS GOES VIRTUAL

INNOVATION
IN LAUNCH OF QSK95 SERIES

66
IN MYANMAR, CUMMINS POWER

CORPORATE RESPONSIBILITY
GENERATION IS CONNECTING A
NATION TO THE WORLD

24 ENVIRONMENT
CUMMINS ESTABLISHES 51 68
NEW SUSTAINABILITY GOALS
10 CUMMINS EMPLOYEES IN THE NEW NISSAN TRUCK
U.K. ARE DETERMINED RECYCLERS
OUR RECOGNITION
27 INCLUDES CUMMINS’
CUMMINS MAKES PROGRESS 52 INNOVATION,

HEALTH & SAFETY


12 ON ENVIRONMENTAL GOALS
EMPLOYEE TEAMS RECOGNIZED COMMITMENT TO
WHO WE ARE
30
THROUGH FACILITIES
ENVIRONMENTAL AWARDS
EXCELLENCE
13 CUMMINS PRODUCTS ALWAYS
HAVE THE ENVIRONMENT IN MIND 54
VISION, MISSION, VALUES

RIGHT ENVIRONMENT
MAKING CONSERVATION WORK
35
AND PRINCIPLES
AT CUMMINS’ MEGASITE

14 NEW PRODUCTS REFLECT


CUMMINS’ COMMITMENT 56
HOW WE DO IT TO ENVIRONMENT
CUMMINS’ PARTNERSHIPS
PRODUCE GREEN RESULTS
15 44
60

GOVERNANCE
OUR KEY TOOLS CUMMINS’ SMARTADVANTAGE
PROVIDES FUEL ECONOMY
RESEARCH PARTNERSHIP ON
70
16 FOR CUSTOMERS
EMISSIONS HELPS PROTECT CUMMINS’ ETHOS ENGINE
PUBLIC HEALTH SCORES BIG REDUCTIONS
OUR HISTORY
IN CARBON DIOXIDE

FINANCIAL
4
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // TABLE OF CONTENTS

72 86 121

COVER STORY
UPDATE: SUPERTRUCK’S NEW TRIP BUS PROJECT LOOKS TO HELP CUMMINS FOCUSING ON
SCHOOLS LOWER COSTS EMPOWERING EMPLOYEES TO
73 REDUCE CYBER SECURITY THREATS
87 104 RIGHT ENVIRONMENT

ENVIRONMENT
NEW INDIA TECH CENTER 122
NEARS COMPLETION
CUMMINS
SCHOOL CHILDREN IN INDIA
BECOME ‘SUPER HEROES’ FOR GOVERNMENT RELATIONS
STRENGTHENS
THE ENVIRONMENT THROUGH AND POLITICAL ACTIVITY
74 CORPORATE RESPONSIBILITY EDUCATION PROJECT
DIVERSITY
124 FINANCIAL & OPERATIONS

INNOVATION
EMPLOYEES TAKE 88 VALUE IN 2014
CUMMINS ACHIEVES RECORD
CORPORATE
RESPONSIBILITY 106
CUMMINS’ ENGINE FOR GIVING BACK FINANCIAL YEAR IN 2014

VALUE TO HEART 95 DIVERSITY HELPS 127

CORPORATE RESPONSIBILITY
SOLVE HARD PROBLEMS
THE CUMMINS FOUNDATION CENTER’S GOAL IS A
109 HEALTHIER EMPLOYEE
96 HEALTH & SAFETY
CUMMINS REDOUBLES ITS HEALTH
DIVERSITY AT WORK 128
AND SAFETY EFFORTS IN 2015
110 CUMMINS’ SOUTHERN INDIANA
LOGISTICS CENTER SETS
99 DIVERSITY PROCUREMENT
CELEBRATES OUTSTANDING YEAR
NEW STANDARD FOR
CUMMINS’ SUPPLY CHAIN

HEALTH & SAFETY


CUMMINS WINS PRESTIGIOUS

77 112 130
HEALTH AND SAFETY AWARD

ENVIRONMENTAL CHALLENGE 100 CUMMINS ‘HIRE


PHILOSOPHY
TO DEVELOP’
CUMMINS TEAMS
ENJOYS ANOTHER
SUCCESSFUL YEAR SAFETY AT CUMMINS IS
UP TO DELIVER
PART OF EVERYONE’S JOB
114 GOVERNANCE FOR CUSTOMERS

RIGHT ENVIRONMENT
80
102 CUMMINS ENCOURAGES BROADER
ADOPTION OF ETHICAL PRINCIPLES
IN MADAGASCAR
ENVIRONMENTAL
CHALLENGE WINNERS
‘KNIGHT KNUCKLE’ 118
82 INVENTOR CREATES BOARD LEADS CUMMINS
TECHNICAL EDUCATION PROGRAM A SAFER CUMMINS INTO THE FUTURE

GOVERNANCE
INCREASES OPPORTUNITIES FOR
WOMEN IN TURKEY 120
84 STRESS TESTS PUT CUMMINS
PLANTS IN THE MIDDLE OF
132
CUMMINS HELPS CITY SIMULATED DISASTERS CUMMINS HELPS PATIENTS TAKE

FINANCIAL
GET WISE ABOUT WASTE FLIGHT IN FIGHT AGAINST CANCER
5
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT //

INTRODUCTION

COVER STORY
A NOTE FROM

ENVIRONMENT
THE CHAIRMAN
I sometimes surprise people when I tell them deep underground. And it must be number of variables before an engine

INNOVATION
reliable. Cummins’ on-highway truck is ever placed in a test cell.
Cummins is a high-tech company, rivaling anything
engines regularly travel a million
they might find in Silicon Valley. Cummins is probably best known for
miles if properly maintained – almost
diesel engines, but we also design and
10 times what most people expect

CORPORATE RESPONSIBILITY
The outside of our engines look much Cummins’ turbochargers, spinning at build engines that run on natural gas,
from their cars. Cummins’ generators
as they did when our founder Clessie 120,000 revolutions per minute (rpm), biofuels and diesel-electric hybrids.
can power hospitals, data centers
Cummins first experimented with boost engine power while providing We are experimenting with everything
INTRODUCTION

and other critical buildings for tens


diesels more than 95 years ago. the heat necessary for chemical from 3-D printing to electrification and
of thousands of hours.
But the cutting-edge technology on reactions in our aftertreatment start-stop technology (page 70).
the inside enables our customers to systems. The aftertreatment converts Like many Silicon Valley companies,
get the power they need with near oxides of nitrogen, a key contributor to Our mission demands that
Cummins has engineers developing
“everything we do leads to a cleaner,

HEALTH & SAFETY


zero emissions to do business in smog, into nitrogen and water that can smart and predictive technology for
some of the most competitive, be safely emitted into the atmosphere. healthier, safer environment” and
onboard diagnostics. They also help
demanding applications in the world. in 2014 Cummins adopted its first
ensure our fuel systems and other
These advances have helped reduce comprehensive environmental
components work well together.
Our fuel injectors, for example, must diesel engine emissions in North sustainability plan. This plan introduced
be in a near perfect cylindrical form America by nearly 100 percent over

RIGHT ENVIRONMENT
But we also have chemists exploring goals to further reduce our use of
to precisely apply fuel at more than the past 20 years. You can put a reactions to remove pollutants water, energy and our greenhouse gas
30,000 pounds per square inch (psi) handkerchief over the exhaust pipe of from emissions. And our experts in emissions while increasing recycling
to enhance combustion while reducing a diesel engine today with the proper computational fluid dynamics and at the Company. We made significant
emissions. They can’t do their job aftertreatment and it will remain white thermal management use advanced progress on these goals (page 27) and
if there is an error as small as the even after the driver revs the engine. computer modeling to simulate the have established new goals starting

GOVERNANCE
diameter of a single strand of hair. harsh environment inside an engine. in 2015 for our products in use and
Our technology has to work in extreme
They can test an almost limitless internal logistics (page 24).
heat and cold, at high altitudes and

FINANCIAL
6
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // INTRODUCTION

COVER STORY
ENVIRONMENT
For all of these reasons, technical Cummins’ global reach positions

INNOVATION
innovation is critical to Cummins us to take advantage of an exciting
when it comes to sustainability. opportunity that exists in our industry
That’s as true for a very large engine today. A growing number of countries Linebarger has been working at Cummins
like the QSK95 powering a locomotive are adopting more stringent emissions for more than 20 years. Here’s a quick look

CORPORATE RESPONSIBILITY
(page 18), as it is for the Company’s regulations to protect their natural at his career at the Company.
new 5.0L V8 Turbo Diesel for pickup resources. We believe Cummins’
trucks (page 68). technical expertise, and a proven CHAIRMAN AND CHIEF EXECUTIVE OFFICER
Jan. 1, 2012, to present
record for providing the right solution
We operate in a unique business PRESIDENT AND CHIEF OPERATING OFFICER
at the right time and place, will help 2008-2011
environment. A significant portion
us continue to expand globally. EXECUTIVE VICE PRESIDENT, PRESIDENT –
of Cummins’ customers build their POWER GENERATION BUSINESS

HEALTH & SAFETY


own engines. When they buy ours, Clessie might not recognize all of the 2005-2008

it is usually because the innovation high-tech features added to Cummins VICE PRESIDENT – POWER GENERATION
2003-2005
and quality we provide gives them engines today, but I think he’d be
VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
a competitive advantage. pleased to see that innovation and 2000-2003
quality continue to be integral to VICE PRESIDENT – SUPPLY CHAIN MANAGEMENT

RIGHT ENVIRONMENT
The Company invested a record 1998-2000
everything we do.
$754 million in research and MANAGING DIRECTOR –
development in 2014, up more than HOLSET ENGINEERING COMPANY
(a division of Cummins), 1997-1998
7 percent from the year before, and
SENIOR MANAGER – ENGINEERING OPERATIONS
launched more than one new or AND TECHNICAL CENTER LEADER, HOLSET
1996-1997
improved product each week to

GOVERNANCE
ENGINE COMPANY ASSISTANT TO GROUP
ensure we continue to provide Tom Linebarger
VICE PRESIDENT FOR WORLDWIDE OPERATIONS,
a competitive advantage for our Chairman and Chief Executive Officer PROGRAM MANAGER – ADVANCED FUEL SYSTEMS
1994-1996
customers wherever they operate. Cummins Inc.
INTERNSHIP – ASSISTANT TO PLANT MANAGER

FINANCIAL
Columbus MidRange Engine Plant, 1992

7
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // INTRODUCTION

COLUMBUS,
INDIANA (U.S.A.) KENT,
UNITED KINGDOM

COVER STORY
Cummins announced in January 2015 that Distribution
Business President Pamela Carter, the first woman to
Cummins Power Generation Kent received the Export
lead one of the Company’s four main business units,
Award in September 2014 at the UK Best Factory
was retiring. Carter, who became Indiana’s first African-
awards for a second year in a row. The plant was

ENVIRONMENT
American woman Attorney General in 1993, had been
also highly commended in the supply chain category.
with Cummins since 1997. She initially served as the
Company’s Vice President – General Counsel and
Corporate Secretary. She then held several key positions
before becoming President of the Distribution Business

INNOVATION
JAMESTOWN,
Unit from 2007 until she retired.

JUÁREZ, NEW YORK (U.S.A.)


MEXICO The Jamestown Engine Plant celebrated its 40th
BUENOS AIRES,

CORPORATE RESPONSIBILITY
year in production in 2014. JEP opened in 1974 as
In June 2014, Cummins Filtration was named
“PACCAR Mexico 2013 Supplier of the Year.” ARGENTINA a component manufacturing plant for Cummins and
didn’t produce its first engine (the L-10) until 1979.
PACCAR leaders said Cummins exceeded
Three Cummins ISZ13 powered Ginaf Rally Power Today, the 1 million-square-foot plant employs
their expectations in sales, field support,
Trucks were part of the 2015 Le Dakar race across 1,500 people and produces 480 engines per day.
operational logistics, customer service
Argentina, Chile and Bolivia. The aim of the three-year
and parts delivery.
project between Ginaf and Cummins was to develop
a new rally truck platform that is lighter and easier to

HEALTH & SAFETY


maneuver than its predecessor.

RIGHT ENVIRONMENT
CUMMINS
AROUND
THE WORLD

GOVERNANCE
Here’s a look at some of what was happening
at the Company around the world in 2014-2015.
CARTER JAMESTOWN

FINANCIAL
8
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // INTRODUCTION

COVER STORY
PHALTAN, INDIA PUNE,
The Cummins India Foundation launched
INDIA QUEENSLAND,
a skills development program in June 2014
AUSTRALIA

ENVIRONMENT
Cummins India partnered
for residents around the Company’s Megasite.
with Tata Motors to compete The first installation of a Cummins QSK95 generator
Working with the Yashaswi Institute of
in the popular T1 Prima Truck in a commercial project outside North America took
Technology, the program is designed to
Racing Championship in 2014. place at the new $1.8 billion Sunshine Coast Public
build skills in employment and entrepreneurship.
The massive and powerful University Hospital. Four QSK95 generator sets were

INNOVATION
Tata Prima trucks, powered delivered to the new hospital in early December
by Cummins ISL engines, 2014, where they will provide standby power.
proved to be popular among The hospital is under construction and will open
CASABLANCA, India’s many race fans. at the end of 2016.

CORPORATE RESPONSIBILITY
MOROCCO
Cummins officially opened its newly expanded and renovated
North Africa regional office in Casablanca, Morocco in March 2015.
The office will serve as a dedicated regional hub for customers
SHANGHAI, CHINA
in 19 countries. It was first established in Casablanca in 2011 Cummins and Jardine Engineering officially began operations in the power
and has been growing ever since. solutions business during a ceremony in January 2015. It is the 16th joint
venture involving Cummins in China. The business will develop, sell, deliver

HEALTH & SAFETY


and service gas powered generation projects in China.
This map includes Cummins
plants, offices and distributors.

RIGHT ENVIRONMENT
GOVERNANCE
PUNE PHALTAN SHANGHAI

FINANCIAL
9
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // INTRODUCTION

COVER STORY
OUR RECOGNITION

ENVIRONMENT
Cummins received several awards in 2014 and 2015 that touched on the sustainability of the Company.

CORPORATE ENVIRONMENT

INNOVATION
RESPONSIBILITY / ETHICS Cummins was named to the DOW
JONES SUSTAINABILITY INDEX
Cummins was named one of the WORLD’S MOST ETHICAL COMPANIES
FOR NORTH AMERICA in 2014.

CORPORATE RESPONSIBILITY
in 2015 by the Ethisphere Institute. The institute recognizes a company’s
The Company has been on the North
commitment to ethical leadership, compliance practices and corporate
American Index since 2006. The survey
social responsibility. This was the eighth straight year that the institute
measures a company’s sustainability in a wide range of areas including the
selected Cummins for its list.
environment, corporate responsibility, human resources, finance and more.

Cummins in 2014 was named a member of the Cummins was ranked 105th among the 500 largest public companies in
FTSE4GOOD INDEX, a stock market indices, the United States in NEWSWEEK’S 2015 GREEN RANKINGS.

HEALTH & SAFETY


which measures for investors the performance
In 2014, Cummins facilities in the United Kingdom won two National Recycling
of companies demonstrating strong social,
Awards for their waste minimization and recycling efforts – CORPORATE
governance and environmental practices.
RECYCLER OF THE YEAR and the WASTE PREVENTION AWARD.

Cummins was one of 11 global The awards are sponsored by Materials Recycling World in the U.K. Cummins

RIGHT ENVIRONMENT
companies named winners of the facilities in the U.K. reduced their total waste generated by almost 31 percent

2014 GOLDEN PEACOCK AWARD or 8,729 metric tons between 2012 and 2013 and increased their recycling

for Excellence in Corporate Governance rate from 96.4 percent to 98 percent.

by the Institute of Directors. The group


Cummins India won the SPARSHA – BEST PROJECT AWARD in 2014
initiated the Golden Peacock awards in 1991 to establish a benchmark for
for its efforts to conserve water across the Company’s facilities in India.
corporate excellence in areas such as sustainability, human resources, corporate

GOVERNANCE
The award was presented by the Lakshya Corporate Social Responsibility
social responsibility, health and safety, governance and the environment.
program organized by the National Institute of Industrial Engineering,
a pioneering academic institute for higher education.

FINANCIAL
10
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // INTRODUCTION

COVER STORY
ENVIRONMENT
DIVERSITY / WORKPLACE BUSINESS

INNOVATION
In 2014, Cummins received a perfect Cummins was recognized in 2014 by Chrysler Group LLC as one of its
score for a 10th consecutive year in the 2013 SUPPLIERS OF THE YEAR during the Company’s 2014 Annual
2015 CORPORATE EQUALITY INDEX Strategy Meeting and Supplier Awards ceremony. Cummins was recognized

CORPORATE RESPONSIBILITY
awarded by the Human Rights Campaign. in two categories, marking the first time it received two awards in the same
The group is the largest U.S. civil rights year. Cummins was recognized as the Powertrain Supplier of the Year
organization for lesbian, gay, bisexual and transgender (LGBT) employees. and the Technical Cost Reduction Supplier of the Year.

Frost & Sullivan recognized Cummins with its 2014 U.S. OVERALL BEST
Cummins, in 2015, was named 21st in Forbes magazine’s list of the
HEAVY-DUTY TRUCK ENGINES PRODUCT LEADERSHIP award
TOP 25 EMPLOYERS IN AMERICA. The list was based on a survey
based on the results of a survey distributed by the consulting firm.
of more than 20,000 American workers at large U.S. firms or institutions.

HEALTH & SAFETY


According to Frost & Sullivan, the majority of respondents said they think

Cummins was named one of the Cummins is the “best” brand of heavy-duty truck engines for their fleets.

TOP 50 COMPANIES FOR DIVERSITY by


DiversityInc magazine for a ninth consecutive year

RIGHT ENVIRONMENT
in 2015. Cummins ranked 21st on the magazine’s list.

The Minority Corporate Counsel Association (MCCA) named Cummins


the 2014 EMPLOYER OF CHOICE FOR THE MIDWEST REGION OF
THE UNITED STATES. MCCA’s Employer of Choice Award honors general
counsels and their law departments for their success in internal and external

GOVERNANCE
diversity and inclusion initiatives.

FINANCIAL
11
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // INTRODUCTION

COVER STORY
WHO WE ARE

ENVIRONMENT
Cummins Inc., a global power leader, is a corporation of complementary
business units that design, manufacture, distribute and service engines

INNOVATION
and related technologies, including fuel systems, controls, air handling,
filtration, emission solutions and electrical power generation systems.

CORPORATE RESPONSIBILITY
WORLD HEADQUARTERS STOCK SYMBOL FORTUNE 500 RANKING
(traded on New York Stock Exchange) FOUNDED IN 1919 (2015)

CMI 154
500 Jackson Street
Columbus, IN 47201
WEB SITE

HEALTH & SAFETY


www.cummins.com

SALES / EARNINGS EMPLOYEES CUSTOMERS

RIGHT ENVIRONMENT
Worldwide, approximately The Company’s customers are located
In 2014, Cummins earned in approximately 190 countries and
54,600 people.
$1.65 billion on revenues of More than 60 percent of the
territories that Cummins reaches through a
network of more than 600 company-owned

$19.2 billion.
Company’s employees are
and independent distributor locations and
located outside the United States.

GOVERNANCE
approximately 7,200 dealer locations.

FINANCIAL
12
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // INTRODUCTION

COVER STORY
VISION, MISSION, VALUES AND PRINCIPLES

ENVIRONMENT
OUR VISION

Making people’s lives better by unleashing the Power of Cummins.

INNOVATION
OUR MISSION OUR VALUES

We unleash the INTEGRITY // Strive to do what is right and what we say we will do.
Power of Cummins by: INNOVATION // Apply the creative ingenuity necessary to make us better, faster, first.

CORPORATE RESPONSIBILITY
»» Motivating people to act DELIVER SUPERIOR RESULTS // Exceed expectations consistently.
like owners, working together.
CORPORATE RESPONSIBILITY // Serve and improve the communities in which we live.
»» Exceeding customer expectations DIVERSITY // Embrace the diverse perspectives of all people and honor both with dignity and respect.
by always being the first to market
GLOBAL INVOLVEMENT // Seek a world view and act without boundaries.
with the best products.

»» Partnering with our customers OUR STRATEGIC PRINCIPLES

HEALTH & SAFETY


to make sure they succeed. Leverage Complementary Businesses // Cummins is a family of complementary businesses that create
»» Demanding that everything value for our customers by leveraging relationships and applying innovative technology across business boundaries.
we do leads to a cleaner,
Increase Shareholder Value // Cummins’ financial success is measured by growth in shareholder
healthier, safer environment.
value. We will focus on ROE / ROANA and Earnings Growth (not Revenue Growth) as the principal

RIGHT ENVIRONMENT
»» Creating wealth for drivers of shareholder value.
all stakeholders.
Seek Profitable Growth // Cummins will seek profitable growth by leveraging our assets and capabilities to
grow in market segments with favorable industry dynamics and where Cummins can establish an advantage.
OUR PERSONALITY

Decisive. Driven to win. Relentlessly Pursue Cost Leadership // Cummins will pursue an operational strategy of cost leadership.

GOVERNANCE
Agile. Passionate. Caring.
Lead in Critical Technologies // Cummins will be the market leader in technologies most critical to our
customers’ success and our Company’s performance.

Create the Right Work Environment // Cummins will assure that the physical and cultural work
environment is conducive to excellent performance and continuous improvement.

FINANCIAL
13
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // INTRODUCTION

COVER STORY
HOW WE DO IT

ENVIRONMENT
Cummins is organized into four business units:

INNOVATION
CORPORATE RESPONSIBILITY
CUMMINS CUMMINS CUMMINS
ENGINE POWER DISTRIBUTION
BUSINESS GENERATION BUSINESS
The Engine Business manufactures BUSINESS COMPONENTS
Cummins Distribution sells and services
BUSINESS

HEALTH & SAFETY


and markets a complete line of diesel
Power Gen is a global provider of power the full range of Cummins products for
and natural gas engines for on-highway
generation systems, components and Cummins Emission Solutions over 20 application segments in over
and off-highway use. Markets include
services in standby power, distributed designs and manufactures exhaust 190 countries around the globe.
heavy- and medium-duty trucks, buses,
power generation, as well as auxiliary aftertreatment technology and solutions
light-duty trucks and industrial uses such
power in mobile applications. It also for the light-, medium-, heavy-duty
as agricultural, construction, mining, marine,

RIGHT ENVIRONMENT
provides a full range of services and high-horsepower engine markets.
oil and gas and military equipment.
including long-term operation and Cummins Filtration designs and
maintenance contracts and turnkey builds heavy-duty air, fuel, hydraulic
and temporary power solutions. and lube filtration and chemical and
exhaust system technology products.

Cummins Fuel Systems designs

GOVERNANCE
and manufactures new fuel systems.

Cummins Turbo Technologies


designs and builds turbochargers to
boost engine power and related products.

FINANCIAL
14
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // INTRODUCTION

COVER STORY
OUR KEY TOOLS

ENVIRONMENT
Cummins is a company with operations across the globe.
To help ensure the Company operates smoothly, Cummins relies on three primary tools:

INNOVATION
SIX SIGMA CUMMINS OPERATING SYSTEM CUMMINS BUSINESS MODEL

Cummins is a major proponent »» An estimated $5.78 billion in savings The Cummins Operating System The Cummins Business Model is a
of Six Sigma, using the business have been identified at the Company helps develop common practices simplified view of how the Company

CORPORATE RESPONSIBILITY
improvement tool to save the since Six Sigma started at Cummins and approaches to improve customer is organized that starts and ends
Company and its customers 15 years ago. satisfaction. The 10 practices are: with customers and the business.
billions of dollars. »» Put the customer first and
»» Cummins customers have saved The business model was updated
an estimated $1.15 billion through provide real value. in 2013 to more accurately reflect
Since it was initiated at Cummins
Six Sigma since it was first offered »» Synchronize flows (material, how Cummins delivers products
in 2000, Six Sigma has provided a
to them in 2005. physical and information). and services to our customers
common process and language for

HEALTH & SAFETY


»» Design quality in every step around the world through an
employees to solve problems and
Cummins also uses Six Sigma in
of the process. integrated supply chain. The new
develop new products and processes.
its community involvement work,
model more clearly represents how
helping its community partners »» Involve people and promote
Six Sigma uses data-based analysis to we work together to meet or exceed
improve their efficiency and address team work.
identify defects and variation in a wide customer expectations.
major problems. In 2014, Cummins »» Ensure equipment and tools

RIGHT ENVIRONMENT
range of manufacturing and business
employees completed 156 Community are available and capable.
situations. Here’s a quick look at what
Six Sigma has meant to Cummins: Impact Six Sigma projects. »» Create functional excellence.

»» Establish the right environment.


»» As of the end of 2014,
approximately 21,000 people »» Treat preferred suppliers as partners.

GOVERNANCE
had been trained how to use »» Follow common problem-
Six Sigma tools at the Company solving techniques.
since the process was introduced. »» Use Six Sigma as the primary
process improvement method.

FINANCIAL
15
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // INTRODUCTION

1944

COVER STORY
ENVIRONMENT
1937

Cummins earns Miller becomes Executive


its first profit. Vice President of Cummins.

INNOVATION
Cummins has a rich history, replete with examples
of innovation, entrepreneurship and vision.
1934 1945
Here’s a look at some highlights over the last 95 years:

CORPORATE RESPONSIBILITY
J. Irwin Miller, great-nephew Clessie Cummins leaves
of W.G. Irwin, becomes Cummins and moves to

OUR HISTORY
general manager of California where he continues
Cummins at the age of 24. inventing until his death in 1968.

HEALTH & SAFETY


Cummins barnstorms across the
country, demonstrating the power Miller becomes Chairman
Cummins takes Irwin for a ride
and fuel efficiency of the diesel of the Cummins Board.
in a used Packard limousine that
he equipped with a diesel engine engine in his Coast to Coast
1951

RIGHT ENVIRONMENT
on Christmas Day, convincing Cummins Diesel Test Bus.
Irwin of the engine’s potential.
Irwin invests a much-needed
Clessie Cummins creates the infusion of cash.
Cummins Engine Company Miller is commissioned as a lieutenant
based in Columbus, Indiana in the Navy Air Corps, where he served
1929
(U.S.A.). William G. Irwin, aboard the carrier Langley during World

GOVERNANCE
who employed Cummins as War II. He saw action in the Marshall
a driver, supplies nearly all of Islands and New Guinea.
the $50,000 in startup capital.
1932 1942
1919

FINANCIAL
16
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // INTRODUCTION

COVER STORY
1962
2012
Cummins begins operations
in India, first as a joint venture
1973

ENVIRONMENT
with one plant in Pune. Today,
the Company owns all or part of Cummins acquires Holset, a
20 manufacturing facilities in the country British turbocharger manufacturer.
and employs nearly 14,000 people. Turbochargers today play a key role
2000
in a number of engine functions.

INNOVATION
Cummins establishes
1963 its Mission and Values
around its Vision of President and Chief Operating
1975 Officer Tom Linebarger succeeds
Miller helps Dr. Martin Luther King, Jr. “Making people’s Tim Solso as Chairman and

CORPORATE RESPONSIBILITY
with some of the organizing behind Cummins enters
lives better by CEO on Jan. 1, 2012. During
the 1963 March on Washington. China as part of a deal involving
unleashing the Solso’s 10 years leading
Miller was acting as leader of the heavy construction equipment
Cummins the Company
National Council of Churches. with Cummins engines. Power of Cummins.”
experienced record growth.

HEALTH & SAFETY


Miller lays out his thinking on Corporate Responsibility Cummins purchases 86 percent of
Cummins names Rich Freeland
in Cummins’ 1972 Annual Report. “While some still the Onan Corporation in suburban
President and Chief Operating
argue that business has no social responsibility, Minneapolis, Minnesota (U.S.A.),
Officer in July 2014. Freeland had
we believe that our survival in the very long run is which would become the basis
been the Engine Business Unit

RIGHT ENVIRONMENT
as dependent upon responsible citizenship in our for its Power Generation Business.
President since 2010.
communities and in the society as it is on responsible
technological, financial and production performance.” 1986 2014

Miller retires as Chairman of the Board,

GOVERNANCE
although he remains active with the
Company until his death in 2004.

1977
1972

FINANCIAL
17
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT //

COVER STORY

COVER STORY
CUMMINS HELPS

ENVIRONMENT
PASSENGER RAIL
PICK UP SPEED IN

INNOVATION
NORTH AMERICA
From its Ontario-inspired shades of green to

CORPORATE RESPONSIBILITY
its custom seats, handy power outlets and
Wi-Fi, the UP Express will have plenty to
COVER STORY

keep passengers talking about as it whisks


visitors from Toronto’s Pearson International
Airport to Union Station downtown for the

HEALTH & SAFETY


Pan American Games in 2015.

Few people, however, will likely notice over the 25-minute


trip what’s beneath Nippon Sharyo’s state-of-the art railcars.
Cummins’ underfloor QSK19-R diesel engine will power the

RIGHT ENVIRONMENT
new service, but Company leaders say they’ll understand if
riders focus instead on the new train’s passenger amenities
and eye-catching exterior.

GOVERNANCE
Toronto’s new rail service, when fully implemented,
is expected to remove more than one million cars
annually in and around Canada’s largest city.
(Photo courtesy of METROLINX.)

FINANCIAL
18
INTRODUCTION
The Cummins QSK19-R powers more

THE POWER
than 1,700 railcars currently in use in
intercity operations in Germany, the United
OF CUMMINS Kingdom, Australia, China and elsewhere.

COVER STORY
“At Cummins, we are all about preferred engine for Siemens’
partnering in our customers’ success,” new Charger locomotive.

ENVIRONMENT
said Melina Kennedy, the Company’s Siemens won a multi-state,
General Manager – Global Rail and $225 million contract in 2014 to
Defense Business. “We’re very pleased build 35 diesel-electric locomotives
that our ultra-clean diesel technology now in development for intercity

INNOVATION
is seen as a way to help move people projects in the United States.
more efficiently while significantly The QSK19-R
»» Siemens’ Charger locomotive
reducing emissions and improving
with the QSK95 will also power

CORPORATE RESPONSIBILITY
the environment.”
All Aboard Florida, the first privately When these passenger rail initiatives BUILDING ON PROVEN SUCCESS

Powering the 18 railcars included in owned, operated and maintained started looking for a fuel-efficient
For the QSK19-R, Cummins is
Toronto’s UP Express is merely one passenger-rail system in the United engine meeting the U.S. Environmental
building on a platform with a long
example of how Cummins is playing States. The service, which will Protection Agency’s (EPA) stringent
history of success.
an increasingly important role today eventually connect Miami and Tier 4 Final regulations that went into
Orlando, Florida (U.S.A.), is effect Jan. 1, 2015, Cummins had The engine powers more than
in passenger rail in North America.
expected to begin operations the right product at the right time to 1,700 railcars currently in use in
Other projects in the works include:

HEALTH & SAFETY


in late 2016 from Miami to Fort deliver the power and torque they intercity operations in Germany,
»» Cummins’ QSK19-R will power Lauderdale and West Palm Beach. needed to succeed. the United Kingdom, Australia,
14 Nippon Sharyo railcars headed China and elsewhere. The cars are
Cummins is following a familiar
to the Sonoma Marin Area Rail “With over 100 Tier 4 locomotive,
self-propelled, with the engine typically
path in each of these endeavors.
Transit (SMART) system north of San switcher, and railcar installations
installed under the car. They usually

RIGHT ENVIRONMENT
The Company is combining more
Francisco, California (U.S.A.), as part already on order, this means that
run in pairs with the ability to add
than 90 years of diesel engine know-
of a more than $200 million project Cummins will power almost every
non-powered cars in between to
how with a rich tradition of innovation
to expand rail service between Santa Tier 4 passenger rail project underway
increase passenger capacity.
and a deep technical knowledge of
Rosa and San Rafael, California. in North America and we have
the fuel systems, aftertreatment and The QSK19-R was the first railcar
hundreds of additional installation
»» Cummins’ QSK95 engine, the other components critical to meeting
options under consideration,” said engine produced in North America

GOVERNANCE
largest high-speed diesel engine demanding emissions regulations in
Randy Nelson, Manager – Cummins certified to meet EPA’s Tier 4 Final
the Company has ever built, is the North America.
Rail Business Development. emissions standards, the toughest

FINANCIAL
19
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // COVER STORY

COVER STORY
in the world. The underfloor QSK19-R Smart electronic engine controls and
is the latest generation of the 19-liter, advanced combustion techniques

ENVIRONMENT
6-cylinder engine manufactured at result in a smooth delivery of power,
the Cummins Seymour Engine Plant providing a comfortable travel
in Seymour, Indiana (U.S.A.). experience for passengers even when
a railcar is running at its top speed of

INNOVATION
To meet Tier 4 Final regulations,
90 mph (145 km/h). The engine runs
Ed Pence, Vice President and General Manager – Cummins High-Horsepower Engine and the equivalent Stage IIIB
quietly with minimal vibration due to
Business, speaks at the ground breaking for the technical center offices at Seymour,
standards for railcars in Europe,
Indiana (U.S.A.) in June 2014. an upgraded common-rail fuel system
the engine is fully integrated with

CORPORATE RESPONSIBILITY
that can precisely balance fueling
RENOVATION AND EXPANSION AIMS TO SAVE ENERGY Cummins’ Selective Catalytic
across the engine’s six cylinders.
Reduction (SCR) aftertreatment
Cummins doesn’t want to just build clean, efficient engines.
system that reduces exhaust When the service is fully implemented
It wants to build those engines in ways that are clean and efficient.
emissions to extremely low levels. in Toronto, the UP Express is expected
The Company is finishing up a more than $250 million renovation to remove the equivalent of more than
SCR-based systems convert oxides
and expansion of its Seymour Engine Plant in Indiana (U.S.A.) where a million vehicles annually in and
of nitrogen (NOx), which can cause
both the QSK95 and QSK19-R engines are produced. The work was around Canada’s largest city.

HEALTH & SAFETY


smog, into nitrogen and water that
announced in 2012 and is expected to wrap up in 2015.
can be safely emitted into the The 18 railcars that are part of the
In addition to energy efficient lighting and other features in the atmosphere. With the use of SCR service will have a flexible seating
renovation, the work includes two state-of-the-art test cells where aftertreatment, engine combustion capacity of 173 for a three-car
the power generated by the QSK95 engines being tested can can be optimized to improve fuel configuration. Additional space for

RIGHT ENVIRONMENT
be captured using what’s called regenerative dynamometers to efficiency. Engines with Cummins’ standing passengers is also available
either help power the facility or be sold to the local power utility. SCR package have delivered up during busy periods. Air conditioning
The dynamometers are among the largest in the world. to 6 percent better fuel economy. is generated from the QSK19-R
by means of a high-efficiency drive
Even before the engines make their way to the test cells, design The QSK19-R also has very fast
shaft, eliminating the need for an
changes can be tested using the latest computer technology in torque response. This allows railcars

GOVERNANCE
additional engine.
a new technical center that will adjoin the plant. That can reduce to achieve rapid acceleration from
the time engines have to run in test cells. idle – an important advantage in A very similar configuration will also
reducing trip times on routes with power the railcars for the Sonoma
It’s all part of the Company’s mission that “everything we do leads short distances between stations.

FINANCIAL
to a cleaner, healthier, safer environment.”
20
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // COVER STORY

COVER STORY
Marin Area Rapid Transit system. INNOVATION IN A BIG WAY
SMART wants to build a line serving

ENVIRONMENT
While relatively new, the QSK95 has
Sonoma and Marin counties, north
been quickly making a name for itself.
of San Francisco. Eventually leaders
Introduced in November of 2011, the
want to link the project to Larkspur,
engine is eight feet tall, 14 feet long
California, with ferry connections

INNOVATION
and capable of producing up to
between Larkspur and San Francisco.
4,400 horsepower (2,983 kW) –
The project also includes an extensive
the largest high speed diesel
bicycle and pedestrian path.
Cummins has ever built.

CORPORATE RESPONSIBILITY
The initial operating segment between
Dubbed the “Hedgehog,” the engine
Santa Rosa and San Rafael is slated
was developed after Company Cummins’ QSK95 engine (left)
to open in late 2016. will power Siemens’ Charger
leaders saw potential markets for
locomotive (below) in several
a bigger engine in the Company’s large North American projects.
(Rendering courtesy of Siemens.)

HEALTH & SAFETY


RIGHT ENVIRONMENT
GOVERNANCE
FINANCIAL
21
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // COVER STORY

COVER STORY
WHY PASSENGER portfolio for rail, marine, mining and a long life. Advanced electronics It was the perfect fit when Siemens,
TRAINS ARE GOOD other industries. The QSK95 is also enable custom calibration for specific known for its precision engineering,

ENVIRONMENT
FOR THE ENVIRONMENT powering the largest generator ever duty cycles. The engine also features decided to enter the passenger rail
built by Cummins Power Generation, SCR technology and includes all of the industry in North America. Siemens
Passenger trains are generally
which was introduced in the final fuel economy benefits associated with chose the QSK95 when it needed an
considered more efficient than
quarter of 2014 (page 40). Selective Catalytic Reduction. American-made engine to complete a

INNOVATION
cars because of their relatively
high occupancy. A car may new locomotive it planned to build at
Working from a “clean sheet,” with The engine is ideal for passenger rail,
have only a single occupant. its solar-powered rail manufacturing
lots of flexibility to innovate, engineers providing clean power in a relatively
hub in Sacramento, California (U.S.A.).
designed the QSK95 not only to meet small footprint compared with heavy,
According to U.S. Bureau

CORPORATE RESPONSIBILITY
EPA Tier 4 emissions regulations, but medium-speed diesels traditionally Siemens’ new diesel-electric Charger
of Transportation Statistics, a
with remanufacturing in mind to ensure used in locomotive applications. locomotive is technically based on the
passenger train in 2012, the most
recent numbers available, used company’s Eurosprinter, Eurorunner

about 1,561 Btu’s per passenger and Vectron locomotive platforms,

mile compared with around and will be capable of reaching

3,861 Btu’s per passenger speeds up to 125 miles per hour.

mile for cars.

HEALTH & SAFETY


When officials from Illinois, California

When a new passenger rail service and Washington (state) jointly bid

begins, supporters expect a certain a contract for 35 diesel-electric

number of drivers will give up locomotives with an option for

their cars and switch to the train, another 222 locomotives for regional

RIGHT ENVIRONMENT
resulting in an environmental benefit. and mainline trains, Siemens was
the winner. The trains will also serve
parts of Missouri and Michigan.
The 35 locomotives are scheduled
to be delivered starting in 2016.

GOVERNANCE
The QSK95 engine, which will be used in
Siemens’ Charger locomotive, is prepared
for testing at Cummins’ engine plant in
Seymour, Indiana (U.S.A.).

FINANCIAL
22
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // COVER STORY

COVER STORY
The $225 million, multi-state contract LOOKING TO THE FUTURE RAIL BUSINESS WINS GOLDEN SPANNER AWARDS
isn’t the only big development in

ENVIRONMENT
Even with all of these developments Cummins’ rail business in 2014 celebrated achievements in powering
Siemens’ rail efforts in the United
taking place, passenger rail will still customers in the United Kingdom, winning several prestigious Spanner
States. The company’s Charger
be relatively limited in North America – Awards in London.
locomotive with the QSK95 will also
especially when compared with Europe
power a ground-breaking initiative The awards, hosted annually by industry magazine Modern Railways,

INNOVATION
and other parts of the world. Skeptics
called All Aboard Florida. recognize the work of the U.K. Rail Maintenance Depots located
question whether North Americans will
throughout the country in maintaining the vehicles that transport
The privately owned, operated and ever be willing to give up their cars in
thousands of passengers every day in the United Kingdom.
maintained passenger rail service will large numbers to travel by train.

CORPORATE RESPONSIBILITY
eventually connect Miami and Orlando, The awards divide train fleets into categories and award the best
But advocates say as traffic
making intermediate stops in Fort operators from each category: Golden Spanners for the most reliable
congestion grows on North American
Lauderdale and West Palm Beach. fleet, Silver Spanners for the most improved fleet and Bronze Spanners
highways and concern increases
Service from Miami to West Palm for the fleet with the fastest incident recovery. The assessment is based
about managing natural resources
Beach is scheduled to begin in late on performance data for reliability and engineering performance in the
wisely, the climate improves
2016 and from West Palm Beach rail industry.
significantly for passenger rail.
to Orlando in 2017.

HEALTH & SAFETY


Cummins-powered train fleets scored big in the 2014 awards
“This is a very exciting and important
The initial five trainset purchase to ceremony with a total of three Gold Spanners, two Silver Spanners
time for passenger rail,” Cummins’
serve the Miami to Fort Lauderdale and two Bronze Spanners.
Kennedy said. “Our hope is the high
and West Palm Beach segment
technology we’re developing coupled “The team at Cummins provides innovative and reliable power and support
will consist of two diesel-electric
with our deep knowledge of engines

RIGHT ENVIRONMENT
to our award-winning customers so they can be successful in their business
locomotives, one on each end
will help Cummins customers develop goals as they serve thousands of passengers every day,” said Cummins
of four passenger coaches.
successful solutions to moving Rail and Defense Business General Manager Melina Kennedy.
All Aboard Florida’s leaders expect, people quickly and efficiently, with
as little impact on the environment “These awards are due to the successful collaboration, hard work
when fully implemented, the passenger
as possible.” and partnerships among many people and organizations and exemplify
rail service will remove 3 million cars

GOVERNANCE
Cummins’ promise of dependability to our customers,” she added.
from the road annually.

FINANCIAL
23
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // Cummins’ products in-use team

ENVIRONMENT THE POWER worked with customers in 2014 to


complete projects reducing nearly
OF CUMMINS 700,000 metric tons of carbon dioxide.

COVER STORY
ENVIRONMENTAL SUSTAINABILITY GOALS

CUMMINS ESTABLISHES

ENVIRONMENT
Environmental Icons
NEW SUSTAINABILITY GOALS ENGINE FUEL
EFFICIENCY
RAW
MATERIALS

Cummins is establishing new goals to address two of the The Company knows it can make It is not uncommon for the Company’s

INNOVATION
a difference in this area, having engines to run one million miles or
Company’s biggest environmental opportunities, improved
ENERGY done more than 100 fuel-economy more over their lifetime, so there is
efficiency of its products in use and more efficient
LOGISTICS
logistics RAW
projects with Cummins customers plenty of opportunity to help customers
MATERIALS
within Cummins’ own operations. using Six Sigma tools since 2004. keep their engines running longer and

CORPORATE RESPONSIBILITY
Those projects saved customers more efficiently.
“Going forward, Cummins will continue Here’s a look at the new goals:
more than 100 million gallons of
to be a catalyst for environmental Cummins defines products in-use
ENVIRONMENT

fuel and prevented the release of


action,” said Chairman and Chief PRODUCTS COMMUNICATIONS engines as those that are currently in
WATER IN USE more &than 1 million tons of CO2
MARKETING
Executive Officer Tom Linebarger. operation or a new original equipment
into the atmosphere.
“Our vision and mission demand it, manufacturer (OEM) installation that
our business success depends on it, PRODUCTS The projects included optimizing incorporates new approaches for fuel

IN-USE GOAL

HEALTH & SAFETY


and the ingenuity and energy of our SUPPLIER vehicleEMPLOYEE
specifications and engine efficiency. These new approaches can
ENGAGEMENT ENGAGEMENT
employees can make it happen.” operating parameters, fleet and be applied at the OEM, with customers
Partner with customers to driver training and advanced at their location after they purchase
The new goals are in addition to improve the efficiency of our engine integration with the vehicle. the product from an OEM, or at a
WASTE
the goals the Company set publicly products in use, reaching by distributor branch.

RIGHT ENVIRONMENT
for waste, water and energy in 2020 an annual reduction
FACILITIES & of Market research studies show
OPERATIONS
2014 (page 27). fuel efficiency is one of the most
3.5 million metric tons (MMT)
significant factors when a customer
Cummins’ Action Committee for of carbon dioxide (CO2 ), saving
buys equipment that uses fuel. In 2014 alone, the
Environmental Sustainability (ACES) 350 million gallons of fuel.
Fuel efficiency projects with customers Company’s fuel-efficiency
has been working on the new goals
Cummins produced 1.1 million engines not only saves them money while work reduced CO2

GOVERNANCE
for the past year, which, like the
in 2014 (including joint ventures), and reducing greenhouse gases (GHGs), emissions from products
2014 goals, are timed to 2020.
carbon dioxide emissions from these it also upholds Cummins’ promise of in use equal to the CO2
engines in use represent 99 percent dependability and customer support. footprint of Cummins’
of its CO2 footprint. global facilities.

FINANCIAL
24
INTRODUCTION
All others
1 percent

Products in use
99 percent

COVER STORY
CUMMINS’ ENVIRONMENTAL FOOTPRINT

Cummins conducted a thorough


environmental impact analysis to GHGs

ENVIRONMENT
determine its environmental footprint.

The Company’s new goal presents an


PRODUCT LIFECYCLE

INNOVATION
opportunity for Cummins’ products
in-use team to do this work faster
and expand beyond current initiatives.
Having a public goal as part of the
01 Cummins facilities
12 percent

CORPORATE RESPONSIBILITY
RAW MATERIALS
Company’s global Environmental & PROCESSING
Sustainability Plan also keeps
Cummins accountable to its Raw materials &
external stakeholders. processing

02 88 percent
WATER
The Company made significant CUMMINS
progress in 2014 and completed FACILITIES

HEALTH & SAFETY


projects reducing nearly
700,000 metric tons of CO2.
The team has worked across 03
regions and market segments to LOGISTICS &
TRANSPORTATION Logistics & Products in use
identify opportunities and accelerate 3 percent

RIGHT ENVIRONMENT
transportation
fuel-efficiency improvement efforts 4 percent
with a project list numbering close to
200 from 2014 to 2020. In the past 04 Cummins facilities
PRODUCTS IN USE 19 percent
year, the team has also trained more
than 450 people in fuel-efficiency

WASTE

GOVERNANCE
improvement work globally.
05
Raw materials &
END OF LIFE
processing
74 percent

FINANCIAL
25
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // ENVIRONMENT

COVER STORY
ENVIRONMENT
ons
ENGINE FUEL RAW
EFFICIENCY MATERIALS

INNOVATION
RGY
area for its global environmental The main focus of the Company’s The Company’s new Southern Indiana Logistics

CORPORATE RESPONSIBILITY
RAW
LOGISTICS Center is expected to help the Company move
sustainability
MATERIALSplan. goal is on shipments from suppliers products much more efficiently (page 128).
to Cummins facilities and shipments
Cummins spends close to
between Cummins own facilities, as
LOGISTICS GOAL $442 million in transporting goods
its business units supply each other.
across the Cummins network. In 2014, Cummins is taking a phased-in
Use the most efficient method
PRODUCTS COMMUNICATIONS
TER IN USE the Company adopted a transportation
& MARKETING The transportation management implementation approach, which
and mode to move goods
network optimization initiative to get system will help Cummins reduce began as a pilot in North America in
across the Cummins network

HEALTH & SAFETY


the most out of its transportation the total number of miles goods travel 2014 followed by a European launch
to reduce CO2 per kilogram of system as part of Cummins’ larger by combining shipments of different in January 2015, with India integration
goods moved by 10 percent
SUPPLIER EMPLOYEE
supply chain transformation. products going to common locations.
ENGAGEMENT ENGAGEMENT occurring in the third quarter of 2015.
by 2020. The Company will also be able to
The Company is now using a global The logistics team is working with the
Transportation is a key element of reduce the number of less-than-full

RIGHT ENVIRONMENT
STE transportation management system Company’s many internal business unit
the logistics process that impacts truckload shipments.
to improve the speed and visibility and external stakeholders to achieve
the supply chain from suppliers
FACILITIES &
OPERATIONS
of goods moved and have better The management system will also this goal as Cummins transitions from
to customers. Transforming how
analytics to manage the process. help Cummins’ logistics professionals third-party providers to a self-managed
Cummins moves raw materials
Adding a goal for CO2 reduction not choose the most efficient way – process. Working with carriers in India,
and finished goods across the supply
only will quantify the environmental whether by road, rail or sea – to ship

GOVERNANCE
chain is at the core of the Company’s Brazil and Asia-Pacific is a priority, as
benefit that Cummins expects them. As a result of these efforts, the those are regions where Cummins can
transportation, logistics and warehouse
to achieve through this system, Company expects to save $40 million achieve the biggest CO2 reductions.
strategy as well as an important priority
but accelerates and expands its to $64 million annually.
efforts globally.

FINANCIAL
26
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // ENVIRONMENT // GOALS

THE POWER Since 2010, direct water use is down


by 14 percent, while water use adjusted
OF CUMMINS for hours worked is down 36 percent.

COVER STORY
CUMMINS MAKES PROGRESS

ENVIRONMENT
ON ENVIRONMENTAL
Environmental Icons GOALS ENGINE FUEL RAW
EFFICIENCY MATERIALS

Cummins made significant progress on all of the goals it of 2010, direct water use is down by The Company’s water neutrality

INNOVATION
ENERGY 14 percent, while water use adjusted for work is progressing as expected.
established in 2014 to reduce its use of water and energy RAW
LOGISTICS
hours worked is down by 36 percent.
MATERIALS Working toward achieving this goal
and the waste it produces in its facilities. is promoting awareness about the
As the Company prepared to
connection between water use in
WATER

CORPORATE RESPONSIBILITY
The Company is close to its energy PRODUCTS establish its water goals, some sites
COMMUNICATIONS
WATER IN USE & MARKETING the Company’s plants and the
goal, which is tied to 2015, and is
already close to its overall target
GOALS began their efforts even ahead of
the announcement. In fact, four sites
needs in its communities.

for water consumption by 2020. Reduce direct water


SUPPLIER
ENGAGEMENT
EMPLOYEE
including threeENGAGEMENT
engine plants in China Cummins defines water neutrality
But officials say it remains to be seen use across Cummins and the Technical Center in Columbus, as off-setting the Company’s own
WASTE
if the Company can reach its water by 33 percent by 2020, Indiana (U.S.A.), saved more than water use at a particular location
FACILITIES &
goal over an extended period of time. adjusted for hours worked. OPERATIONS
67 million gallons, about 7 percent through conservation and with

HEALTH & SAFETY


of the Company’s total water use community improvements that
“We want to show we can consistently Achieve water neutrality at in 2014. These achievements either conserve water or make
meet these goals before we develop 15 Cummins manufacturing have placed Cummins ahead of its new water sources available.
new ones,” said Mark Dhennin, sites where water is in short 33 percent goal, but the Company
Cummins Director of Energy Efficiency supply, also by 2020. Because the Company is still validating
is not yet ready to claim success.
and Environment. “We’re off to a good

RIGHT ENVIRONMENT
its calculations, Cummins is not yet
start and there’s been some great work BASELINE YEAR: 2010
With several new facilities open prepared to confirm sites as water
done, but there is still a lot of work that are continuing to ramp up neutral, but has approximately six
Cummins used 972 million gallons of
ahead before we can say we met production, Cummins must sites, primarily in India, that have
water in 2014. While this is an increase
our 2020 goals.” ensure it continues producing implemented significant projects
of 14 million gallons from 2013,
the number represents a 9 percent results through the next phase of toward achieving water neutrality.

GOVERNANCE
Here’s a 12-month progress
decrease in water use intensity since growth and production demands.
report on each of the six goals The Company’s efforts already
Cummins established: last year. Since the goal’s baseline year
underway range from expanding water
reservoirs in Pune, India; to creating

FINANCIAL
27
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // ENVIRONMENT // GOALS

COVER STORY
Environmental Icons
ENGINE FUEL RAW
EFFICIENCY MATERIALS
reservoirs and improving irrigation Since the baseline year of 2010, one site awaiting validation as Achieving the second goal by 2015
practices in Cummins India’s Model Cummins’ total waste disposed zero disposal. will require the Company to double

ENVIRONMENT
ENERGY
Village program in Nandal village decreased by about
RAW 22 percent in its energy efficiency reductions at
Under Cummins’ definition of zero
LOGISTICS MATERIALS

(page 54); to digging a new well absolute terms, while experiencing the same time Cummins’ business
disposal, waste can only be burned
for a school in Xiangyang, China, a 41 percent reduction in disposal is changing.
for energy recovery after reasonable
establishing a rain water harvesting adjusted for hours worked.

INNOVATION
PRODUCTS COMMUNICATIONS
WATER IN USE & MARKETING
efforts have been made to reduce, The Company is adding several new
system and teaching students the Compared with 2013, Cummins’
reuse or recycle, and then only if buildings that will use energy but not
importance of using water wisely. total waste disposed in 2014
SUPPLIER EMPLOYEE there is a net energy gain, creating produce revenue, engage in more
decreased by 2,000
ENGAGEMENT metric tons
ENGAGEMENT

more energy than is needed merely joint ventures in the engine business,
WASTE

CORPORATE RESPONSIBILITY
on an absolute basis or 20 percent,
WASTE to sustain combustion. and produce more high-horsepower
Environmental Icons
GOALS adjusted for hours worked.
FACILITIES &
OPERATIONS
engines, which require
ENGINE FUEL
EFFICIENCY MATERIALS a lot of fuel
RAW

Increase recycling rate


Facilities and operations staff have ENERGY to test.
updated some waste management
from 89 percent in 2014
processes to ensure goal success.
AND GHG
ENERGY
These changes have
LOGISTICS
RAW been challenging,

GOALS
MATERIALS
to 95 percent by 2020. but Cummins is on track to meet
The team is conducting “deep dive”
both its energy and GHG goals.
Reach “zero disposal” status waste evaluations at the 10 sites

HEALTH & SAFETY


Reduce energy use and The Company is COMMUNICATIONS
PRODUCTS leveraging lessons
at 30 sites by 2020 where that account for 50 percent of the WATER IN USE & MARKETING
greenhouse gas (GHG) from programs such as the ISO50001
100 percent of waste is Company’s waste disposal. A waste
emissions by 25 percent energy management system and
recycled in a useful manner. reduction toolkit will be included in the
and 27 percent, respectively, SUPPLIER
the Department of
ENGAGEMENT
EMPLOYEE
Energy’s Superior
ENGAGEMENT
formal waste reduction plan at those
BASELINE YEAR: 2010 compared to a 2005 baseline Energy Performance program.

RIGHT ENVIRONMENT
sites. Concurrent quarterly waste
and adjustedWASTE
to sales, by 2015.
reviews by business unit and region In 2014, the Company’s GHG
Cummins continues to make progress FACILITIES &
OPERATIONS
are expected to provide greater BASELINE YEAR: 2005 emissions both increased on an
on its public waste management
insight into progress and facilities absolute basis (up 8.6 percent) and
goals. In fact, the Company’s sites
The focus on energy and greenhouse
best-practice sharing. decreased when adjusted for sales
in the United Kingdom have already
gas was the first company-wide
achieved a collective 99 percent (down 2 percent) from the prior year.

GOVERNANCE
As with the Company’s water neutrality initiative of its kind at Cummins,
recycling rate. The Company all Compared with the energy / GHG goal
goal, Cummins has formalized its targeting a specific set of
together recycled 90.4 percent baseline year of 2005, emissions have
definition of “zero disposal.” Four sites environmental impacts around the
of its total waste generated in decreased 35 percent, while increasing
have been validated as zero disposal globe. An initial goal was set for 2010.
2014, equivalent to approximately by 10 percent on an absolute basis.

FINANCIAL
under this criteria. There is currently
165,000 metric tons of waste.
28
ENGINE FUEL RAW ENGINE FUEL RAW
RAW RAW
EFFICIENCY
LOGISTICS MATERIALS EFFICIENCY
LOGISTICS MATERIALS
MATERIALS MATERIALS

INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // ENVIRONMENT
WATER NEUTRALITY REDUCE DIRECT WATER USE
ENERGY ENERGY
RAW RAW
2020 GOAL 15 SITES
LOGISTICS
PRODUCTS MATERIALS
COMMUNICATIONS 2020 GOAL 33 PERCENT
LOGISTICS
PRODUCTS MATERIALS
COMMUNICATIONS
WATER IN USE & MARKETING WATER IN USE & MARKETING

2014 PROGRESS 36 PERCENT

ENVIRONMENTAL

COVER STORY
PRODUCTS
SUPPLIER COMMUNICATIONS PRODUCTS
SUPPLIER COMMUNICATIONS
EMPLOYEE EMPLOYEE
WATER
ACTUAL PENDING IN USE
ENGAGEMENT & MARKETING
ENGAGEMENT
WATER IN USE
ENGAGEMENT & MARKETING
ENGAGEMENT
0 6
GOAL PROGRESS WASTE WASTE
ZERO DISPOSAL SUPPLIER
ENGAGEMENT
EMPLOYEE
ENGAGEMENT
INCREASE RECYCLING
SUPPLIER RATE
ENGAGEMENT
EMPLOYEE
ENGAGEMENT
FACILITIES & FACILITIES &

Cummins’ water and waste OPERATIONS


2020 GOAL 30 SITES
OPERATIONS
2020 GOAL 95 PERCENT

ENVIRONMENT
WASTE WASTE
facility goals have a goal year of
FACILITIES & FACILITIES & 90 PERCENT
2014 PROGRESS
2020, while the energy and GHG
OPERATIONS OPERATIONS

ACTUAL PENDING
goals are set to be met in 2015. 4 1
Environmental Icons Environmental Icons

INNOVATION
ENGINE FUEL RAW ENGINE FUEL RAW

The charts to the right show REDUCE ENERGYEFFICIENCY


USE MATERIALS
REDUCE GHG EMISSIONS
EFFICIENCY MATERIALS

the Company’s goal progress ENERGY


2015 GOAL 25 PERCENT
ENERGY
2015 GOAL 27 PERCENT

visually, while the data table


RAW RAW
34 PERCENT
2014 PROGRESS LOGISTICS MATERIALS
2014 PROGRESS 35 PERCENT
LOGISTICS MATERIALS

CORPORATE RESPONSIBILITY
below gives more detail.
PRODUCTS COMMUNICATIONS PRODUCTS COMMUNICATIONS
Sites that are pending validation IN
WATER areUSEnot yet confirmed to have met the goal, but have enough data and evidence
& MARKETING WATER to support the commencement
IN USE or & MARKETING

continuation of the validation process. Sites pending validation are not necessarily guaranteed to qualify as “actual” once the validation process is complete.

ENVIRONMENTAL PERFORMANCE SUPPLIER EMPLOYEE SUPPLIER EMPLOYEE


ENGAGEMENT ENGAGEMENT ENGAGEMENT ENGAGEMENT

Includes all consolidated operations and joint ventures subscribing to Cummins’ Enterprise Environmental Management System.
WHAT IS THE IMPACT?
WASTE WASTE

Since 2010, Cummins substantially Environmental Performance


FACILITIES &
OPERATIONS
2010 2011 2012FACILITIES
OPERATIONS
& 2013 2014
reduced facility water and waste, Energy consumption (thousands of MMBtu) 11,847 12,263 11,711 12,077 12,746

HEALTH & SAFETY


1

adjusted for hours worked, and GHG GHG emissions (thousands of metric tons CO2e) 760 783 729 750 788
emissions, adjusted for sales.
Generated waste (thousands of metric tons) 171 188 179 177 183
The Company avoided impacts
Disposed waste (thousands of metric tons) 22 25 21 20 18
equivalent to these real-life examples.
Recycled waste (thousands of metric tons) 149 164 158 157 165

RIGHT ENVIRONMENT
Recycling rate (%) 87 87 88 89 90
Emissions equal to taking
46,700 passenger U.S. hazardous waste (metric tons) 98 101 104 85 92
cars off the road annually
Water use (millions of gallons) 1,135 1,083 1,069 958 972

Water for drinking, Number of Enterprise ISO 14001 certified entities 67 76 81 86 102
sanitation and hygiene Number of Enterprise ISO 14001 certified manufacturing sites 53 55 63 67 71

GOVERNANCE
for 284,000 people
for a year Net sales (millions U.S. dollars) 13,226 18,048 17,334 17,301 19,221

Energy intensity reduction since 2005 (%) 2,3 16 35 33 30 34


3,500 garbage GHG intensity reduction since 2005 (%) 2,3 16 36 35 33 35
trucks full of waste
Water intensity reduction since 2010 (%) 2 0 21 22 30 36

FINANCIAL
1
Primary energy excludes sold electricity and associated fuel usage 2
Intensity defined as adjusted for sales (energy / GHG) or hours worked (water)
3
Reduction includes consolidated entities only
29
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // ENVIRONMENT // PRODUCT STEWARDSHIP

COVER STORY
PRODUCT STEWARDSHIP

CUMMINS PRODUCTS ALWAYS

ENVIRONMENT
HAVE THE ENVIRONMENT IN MIND
Products are at the center of the Company’s vision to make It was clear from this analysis that potential to reduce both the resources

INNOVATION
the Company’s top priority must be used to make a product as well as how
people’s lives better by unleashing the power of Cummins.
products, both in design and in use. much fuel is burned when that product
From powering fire trucks that keep Here is Cummins’ view of The analysis led Cummins to establish is put to use.
communities safe, to heavy-duty product stewardship: its products in-use goal (page 24)

CORPORATE RESPONSIBILITY
After the Company completed a
trucks that deliver goods, to generators and design for environment initiative.
ENVIRONMENTAL lifecycle analysis (LCA) on its flagship
supporting hospitals, Cummins makes
IMPACT ANALYSIS PRODUCT DESIGN ISX15L engine in 2013, Cummins
a difference around the world by
There will always be a need for moving continued to approach product
working to meet the needs of all After an intensive study and analysis,
goods and providing power for the stewardship with a lifecycle mindset.
of its stakeholders. Cummins adopted its first-ever
world to do important work, and it Since the material-embodied energy-
comprehensive environmental
The Company’s technology leadership is critical to develop technologies to-weight ratio is consistent across
sustainability plan in 2014 that builds

HEALTH & SAFETY


and innovation enable Cummins to that will do those in the cleanest and all engine sizes, the Company is
on the good work the Company has
meet increasingly more stringent most efficient way possible. Cummins using this comprehensive information
previously done in this area.
emissions regulations across the engineers are thinking about ways to develop Cummins’ design for
globe. The Company’s customers This new plan prioritizes actions to make the Company’s products environment strategy. The Company
have come to depend on Cummins’ by Cummins to address its biggest even more environmentally friendly will continue to perform LCAs on other

RIGHT ENVIRONMENT
clean technology for the power and environmental opportunities, from the in the future. Cummins products as necessary.
reliability they need to succeed, materials the Company buys to the
Seventy percent of a product’s The Company’s design for environment
whatever the job. emissions of its products. Cummins
environmental footprint is determined strategy will focus on materials and
examined its entire environmental
Product stewardship means the during the earliest phases of the fuel efficiency. Improving fuel efficiency
footprint, focusing on the key areas
Company has an environmental design process, according to the not only means reducing the fuel

GOVERNANCE
of water, waste, energy and
mindset about its products as U.S. Environmental Protection Agency consumption of Cummins products,
greenhouse gases (GHGs).
employees think about their design, (EPA). So Cummins has tremendous but also includes designing for
use, remanufacture and end of life. alternative energy sources as well as

FINANCIAL
30
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // ENVIRONMENT
Cummins puts millions of pounds of product
back to useful life through the Company’s
remanufacturing operations.

COVER STORY
Cummins biggest opportunity to Based on previous Cummins fuel-
expand its product stewardship efficiency projects, the Company

ENVIRONMENT
beyond the upfront design will be expects that a 3 to 5 percent reduction
working with customers to improve the in fuel usage can be achieved for many
efficiency of its products in use. This is customers through optimization tools,
a win-win as it saves customers money system-level expertise and various

INNOVATION
for fuel and it reduces greenhouse gas fuel-economy engine features.
emissions. And through the Company’s
REMANUFACTURING
products in-use goal, Cummins can
Cummins’ remanufacturing is

CORPORATE RESPONSIBILITY
make a difference right now (page 24).
the Company’s “green business.”
reducing the amount of fuel burned in PRODUCTS IN USE
The Company has partnered with Remanufacturing maximizes benefits
the Company’s development testing.
While Cummins products can change customers on fuel-efficiency projects for customers and the environment
Material efficiency includes designing the world for the better, the Company for many years. As part of Cummins’ by planning and designing Cummins
with less material and designing must also ensure it minimizes the Environmental Sustainability plan, products to have a long and
with circular material flow in mind, environmental impact of its products the Company has added more people increasingly more fuel-efficient life.
such as recycled material use and in use, helping customers reduce and tools to accelerate and expand

HEALTH & SAFETY


their own environmental footprints. this important work. High-horsepower In 2014, some 50 million pounds
remanufacturing.
engines in use are a priority given the of Cummins product was put back
Cummins is beginning to integrate On-highway transportation
large amount of fuel they burn and into use thanks to remanufacturing.
tools and training programs into its represents approximately 20 percent
the corresponding CO2 emissions. Remanufacturing requires about
new product development process to to 30 percent of the world’s GHG
85 percent less energy than

RIGHT ENVIRONMENT
take into account the environmental emissions. Greenhouse gas emissions
manufacturing the same product with
impacts of all phases of the product from Cummins products in use are
new parts. Water is saved since new
lifecycle, including raw material the Company’s largest environmental On-highway and mining metal does not need to be extracted.
extraction, manufacturing, product impact and represent 99 percent engines account for
of Cummins’ greenhouse footprint Remanufacturing at Cummins had
use and end of life. Cummins expects 74 percent of Cummins

GOVERNANCE
due to fossil fuel use, which emits sales of about $595 million in 2014.
to report more on its design for product CO2 emissions.
carbon dioxide (CO2). The Company’s remanufacturing
environment strategy in 2016. Eighty percent of product
CO2 emissions come
from engines fewer

FINANCIAL
than 10 years old.
31
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // ENVIRONMENT // PRODUCT STEWARDSHIP
This report includes a lot of statistics
about carbon dioxide (CO2 ), a colorless
gas that contributes to global warming.
In many instances, statistics are based
on metric tons of CO2 .

COVER STORY
operations include nine global facilities The old methods of grinding and As more regions around the world
So, how much is a metric ton of CO2?
and offer about 4,500 part numbers. machining are gradually being replaced consider regulating greenhouse
with additive technologies, specialized gas emissions (GHGs) and fuel
Through the common application
coating technologies and more. 1 consumption, Cummins sees an

ENVIRONMENT
of salvage technology, component
The emerging field of mechatronics, opportunity for technological innovation
re-use guidelines and remanufacturing-
specific policies and procedures, the
which combines mechanical and
electrical engineering and computer
2 that can benefit vehicle owners and
the environment. The Company
Company has become increasingly
science, is creating new systems such supports a separate engine standard
3

INNOVATION
sophisticated in what it can
as robotics and digitally controlled in these regulations to provide a clear
remanufacture and for how long
combustion engines. direction for innovation, addressing
it can extend a product’s life.
The Company is also investing in 4 the component that burns all the fuel
and emits the carbon dioxide (CO2 ).

CORPORATE RESPONSIBILITY
In many cases, remanufactured
technologies to assess remaining
products today are “upcycled” It ensures enforceable requirements.
useful life. The expanding number FOUR TRACTOR TRAILERS FULL!
to include design, emissions, fuel
of emissions control components, A regulatory framework that includes
economy and quality upgrades.
such as diesel particulate filters, a combination of engine and vehicle

Lighter, more compact engine designs also present business opportunities The Company continues to advocate standards is also the most cost-

combined with new materials (compact for remanufacturing. globally for sound public policy and effective way for customers to realize

graphite and aluminum) and special regulations that are tough, clear fuel savings and retain their ability

HEALTH & SAFETY


REGULATORY INTEGRITY
coatings are changing Cummins’ and enforceable. to choose the right powertrain and

approach to remanufacturing and Cummins’ product stewardship vehicle to purchase in order to do


There is growing public demand for
making engines more fuel efficient. is underpinned by the Company’s their work.
better environmental regulations of
The Company is also developing commitment to regulatory integrity,
all kinds by governments in almost MATERIAL COMPLIANCE
advocating now for cleaner and

RIGHT ENVIRONMENT
specific rebuild kits to improve fuel
every country. Customers increasingly
more efficient products for the Material compliance is a key
economy at time of rebuild.
need Cummins’ products to meet new
future, and ensuring improvements component of Cummins’ product
environmental regulations and provide
intended by regulation are delivered stewardship. The Company maintains
the power and reliability that helps
In 2014, Cummins in the real world. a comprehensive corporate policy
them compete and win. By getting out
remanufactured regarding the use of prohibited and
Cummins has a long history of in front of regulations and participating

GOVERNANCE
15,673 engines; restricted substances in its products.
supporting regulatory actions to make in the rule-making process, the
6 percent of them were Cummins’ policies take into account
the environment cleaner, going back Company is in a very good position
originally manufactured key global environmental regulations
to the 1970s as a strong advocate for to not only comply but excel.
in 2010 or later. as well as very specific ones driven
the Clean Air Act in the United States.

FINANCIAL
32
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // ENVIRONMENT // PRODUCT STEWARDSHIP

COVER STORY
by the European Union such as Cummins’ efforts resulted in a process »» Cummins will provide its customers, a Product Safety Committee that
Registration, Evaluation, Authorization both compliant to Section 1502 of the partners, employees and society is accountable for applying the
and Restriction of Chemicals (REACH), Dodd Frank Act in the United States with products that are safe to policies and procedures in its area.
Restriction of Hazardous Substances on conflict minerals, and one that sets operate, maintain, adjust and

ENVIRONMENT
These Product Safety Committees
(RoHS), and End of Life Vehicle for the expectation of responsible sourcing repair when used as intended.
integrate into the Corporate Product
automotive products. practices throughout the Company’s
»» Each Cummins employee
Safety Council, which is managed
supply base. Conflict minerals are
REACH addresses the production will regard product safety
by the corporate Director of Product
mined in conditions of armed conflict
as a top priority.

INNOVATION
and use of chemical substances Safety. This network allows for
and human rights abuses in the
and their potential impacts on both »» Each Cummins employee is collaboration and rapid communication
Democratic Republic of Congo and
human health and the environment, responsible for applying the on safety-related matters.
adjacent countries.
while RoHS restricts the use of certain policy in his or her individual

CORPORATE RESPONSIBILITY
In compliance with the Company’s
hazardous substances in electrical U.S. laws require companies that are and collective work activity.
Product Safety Policy in 2014,
and electronic products. publicly traded on U.S. exchanges to
»» Each Cummins employee
Cummins voluntarily initiated five
disclose whether they use specified
Compliance with the Company’s is expected to adhere to the
product safety campaigns impacting
minerals from those countries such
policies is designed into the materials spirit as well as the letter of
approximately 91,000 Cummins
as tungsten, tantalum and gold in
it uses and Cummins partners with the Product Safety Policy.
engines and/or Cummins components.
their products (page 117).
its suppliers to ensure the Company’s These campaigns were reported to the
Cummins has a set of standardized

HEALTH & SAFETY


global compliance requirements are met. PRODUCT SAFETY relevant public agencies as required
corporate and local policies and
Cummins’ Mission demands that procedures in order to meet the by applicable laws and improvements
Responsible sourcing of
everything the Company does Corporate Product Safety Policy. were made on each of the products
minerals is important to Cummins.
leads to a “cleaner, healthier, safer Each Cummins Business Unit has at issue.
The Company maintains global
environment.” That makes product

RIGHT ENVIRONMENT
policies to carry out key processes
such as the Reasonable Country of safety a top priority. Cummins

Origin Inquiry process, consistent Product Safety Policy says:

with the Organization for Economic »» Cummins will design, manufacture,


Co-operation and Development sell, distribute and service all
(OECD) due diligence framework. products so that they are safe

GOVERNANCE
to use for the described and
intended purpose.

Cummins Power Generation employees conduct


a product safety review on a generator at the

FINANCIAL
business unit’s test facility at Manston, Kent,
United Kingdom. 33
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // ENVIRONMENT

CUSTOMER SPECIFIC PROJECTS

COVER STORY
Cummins and its distributors work with end-
user customers, often including their partners
and suppliers, on projects that are tailored ENGINE IMPROVEMENTS AND FEATURES
to each customer application and operation.
Cummins continually improves engine calibrations
Project scope includes data collection, analysis

ENVIRONMENT
and increases the options available to customers such
and specific improvement recommendations.
as recent additions ADEPT (idle cruise management,
page 38), naturally aspirated air compressors
and Connected Diagnostics (page 38).

INNOVATION
DRIVETRAIN AND
EQUIPMENT OPTIMIZATION

CORPORATE RESPONSIBILITY
Cummins collaborates extensively with vehicle
and equipment manufacturers and suppliers,
BEST PRACTICES
such as Eaton and Allison Transmission,
to design products that meet customer The ongoing work Cummins does
needs while improving efficiency. This work with customers for on-highway truck
also includes hybrid and start/stop technology. and bus, construction equipment
and mine vehicles helps the Company
incorporate best-practice improvements
in subsequent installations.

HEALTH & SAFETY


PARTNERING WITH CUSTOMERS

RIGHT ENVIRONMENT
FOR BETTER FUEL EFFICIENCY
Cummins provides a complete set of collaborative solutions
to help customers maximize their fuel efficiency and reduce
POWERSPEC
greenhouse gas emissions. From the development of
Cummins’ PowerSpec is a powerful electronic tool that supports customer
products that are optimized for specific market segments, fuel efficiency beginning at the ordering process and continuing through

GOVERNANCE
to the use of software to assist in the truck specification the life of the vehicle. The tool can optimize equipment set-up during the
process, to the ability to customize electronic engine settings order, tailor operation of the engine by customizing electronic parameters
and provide real-time data and information for optimal in-use performance.
and parameters, Cummins helps customers reduce their
carbon footprint throughout the life of the truck.

FINANCIAL
34
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // ENVIRONMENT // PRODUCTS
ENGINE BUSINESS
Cummins produces engines for on-highway use, off-highway use and
high-horsepower engines for mining, rail, marine, oil and gas, and power

COVER STORY
PRODUCTS generation applications. On-highway engines range from engines for pickup
trucks to the engines for large tractor-trailers hauling freight. Off-highway
engines include engines for construction, agriculture and industrial uses.
NEW PRODUCTS

ENVIRONMENT
Tremendous strides have been made in engine emissions in North America

REFLECT CUMMINS’ since the U.S. Environmental Protection Agency (EPA) began regulating them
in the 1970s. On-highway diesel engine emissions, for instance, are down

COMMITMENT more than 95 percent for particulate matter (PM) and oxides of nitrogen (NOx),

INNOVATION
reaching near-zero emission levels.
TO ENVIRONMENT Advances in fuel economy, meanwhile, have greatly reduced the output
of carbon dioxide (CO2), a key contributor to global warming.
Cummins had another good year bringing new products

CORPORATE RESPONSIBILITY
Cummins has been a pioneer in clean diesel technology, advances in combustion,
to market in 2014. The Company introduced more than
electronic controls, fuel systems, filtration, air handling, exhaust aftertreatment
60 products or product updates, many addressing and more to reduce emissions and improve fuel economy. It has achieved
emissions, fuel efficiency or both. these advances both working on its own and in partnership with others.

The Company has a distinct advantage countries enact stricter regulations For example, in the highly competitive North American Heavy-Duty Truck
when it comes to designing and to protect their air, land and water. engine market, Cummins and Eaton introduced a new powertrain package

HEALTH & SAFETY


building clean, fuel-efficient engines for the ISX15 on-highway engine in 2013 that produced industry-leading
The Company recognizes that its
and generators that provide the power fuel economy. Through hardware and software enhancements, the package
products must deliver real economic
customers need to succeed while integrated power and fuel-shifting strategies to provide an estimated
benefits to Cummins’ customers,
meeting the regulations applicable 3 percent to 6 percent improvement in fuel economy.
including not just the performance
in any particular market.

RIGHT ENVIRONMENT
customers have come to depend The two companies announced in 2014 that the SmartAdvantage
Cummins is the only independent upon but also reliability, durability Powertrain package (page 44) was being expanded to include
engine manufacturer with the in- and low cost of ownership, too. applications for the ISX12, a smaller engine ideal for regional hauling.
house capability to produce all of the
Here’s a look at some of the In addition to diesel, the Company has also been a leader in the
critical subsystems required to build
major environmental sustainability development of engines that run on biodiesel, natural gas and other
an engine or generator. The Company

GOVERNANCE
developments in Cummins products alternative fuels to provide customers with the option that best works
believes its technical expertise gives
over the past year, organized by for them to meet their own sustainability goals.
it a competitive advantage as more
business segment.
All this knowledge comes together in the Company’s Engine
Business Unit. Some of the most significant environmental sustainability

FINANCIAL
developments in the business in 2014 and early 2015 start on the next page.
35
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // ENVIRONMENT // PRODUCTS

COVER STORY
ENGINE EFFICIENCY NOTABLE:
During the tour, customers will have an opportunity to interact with Cummins

ENVIRONMENT
Cummins in March 2015 announced plans for a mobile showcase experts to learn about current and future products and technologies including
of its products and technologies available for customers in the real 2017 prototype engines powering the truck fleet for the tour, as well as
North American truck market to help them operate more efficiently. engine system displays representing the Company’s product lineup for the
The Cummins Redefining Tour will visit dozens of cities across North American truck market.

INNOVATION
the United States and Canada beginning in the summer of 2015
(see www.cumminstour.com for schedule). QUOTABLE:
“We are very excited to announce the 2015 Redefining Tour,” said Amy Boerger,
Vice President – North American Engine Business. “The Cummins powered fleet

CORPORATE RESPONSIBILITY
not only demonstrates our products in a real-world application, it also allows us
Cummins announced its Redefining Tour at the Mid-America
Trucking Show in Louisville, Kentucky (U.S.A.), in 2015. to bring product demonstrations and displays directly to our customers – some
Company experts will meet with customers on the tour
of whom we don’t have the opportunity to engage with on a regular basis.”
to talk about current and future products.

HEALTH & SAFETY


RIGHT ENVIRONMENT
GOVERNANCE
FINANCIAL
36
INTRODUCTION
Cummins has more than

THE POWER doubled the number of engines


10 liters and above that it has
OF CUMMINS remanufactured since 2008.

COVER STORY
ISB6.7
QSX15 NOTABLE:
The QSX15 features more horsepower and industry-leading
AND ISL9

ENVIRONMENT
Cummins announced in February hydraulic capacity in a durable platform. The QSX15 is Allison Transmission Holdings and Cummins
2015 the start of production of manufactured at Cummins’ Jamestown Engine Plant in announced in March 2015 that they had
the QSX15 for John Deere 9R/9RT Jamestown, New York (U.S.A.), the heart of heavy-duty received certification from the California Air
Series Tractors. The 15-liter engine manufacturing at Cummins. Typically, more than Resources Board (CARB) to sell the model

INNOVATION
engine, which meets EPA Tier 4 400 engines are built per day at the plant. year 2015 Allison H 40/50 EP hybrid propulsion
Final and European Union Stage system paired with the Cummins ISB6.7 and
IV emissions standards, is the QUOTABLE: ISL9 diesel-electric hybrid engines for transit
largest horsepower engine in “The Jamestown Engine Plant plays an important role buses and coaches. The pairing was first

CORPORATE RESPONSIBILITY
the John Deere four-wheel-drive in our Company’s ability to produce a broad range of announced in November 2014.
tractor range. engines for different customers around the world serving
a wide variety of markets,” said Hugh Foden, Executive NOTABLE:

Director – Off-Highway Business. Allison’s H 40/50 EP hybrid propulsion system is used


for both straight and articulated transit buses. It has
improved fuel economy up to 25 percent over similar
diesel buses. Additionally, its regenerative braking
QSK50 NOTABLE:

HEALTH & SAFETY


capability can significantly extend the brake change
Cummins is applying its experience in diesel electric
Cummins announced in November interval by as much as 350 percent.
to introduce optimized ratings for variable speed diesel-
2014 the availability of its QSK50
electric technology that is ideal for low-load applications QUOTABLE:
marine engine for variable speed
such as offshore support vessels, ferry boats, passenger “Cummins is pleased the hybrid system has received
diesel-electric applications.

RIGHT ENVIRONMENT
vessels and fishing boats. Early reports show significantly 2015 certification from the ARB as it will provide transit
reduced fuel consumption, reduced carbon dioxide (CO2 ) customers another viable solution designed to meet
emissions and lower system weight compared to fixed their business needs,” said Laura Chasse, general
speed diesel applications. manager of the North American Bus Business.

QUOTABLE:

GOVERNANCE
“Cummins will play a critical role in the advancement of
this more efficient technology, supplying engines to system
integrators for packaging into complete variable speed
diesel electric packages,” said Waldemar Marchetti,

FINANCIAL
Director of Strategic Growth – Offshore.
37
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // ENVIRONMENT // PRODUCTS

COVER STORY
6.7L CONNECTED ADEPT TECHNOLOGY
TURBO DIESEL DIAGNOSTICS

ENVIRONMENT
Cummins in March 2015 introduced ADEPT
technology (Advanced Dynamic Efficient
Cummins announced in August 2014 that its Cummins announced in February 2015 details
Powertrain), a new suite of electronic features
6.7L Turbo Diesel was the first diesel engine surrounding Connected Diagnostics, the first
that will deliver fuel-economy gains of up to
in a medium-duty vehicle certified to meet application within the Connected Solutions suite

INNOVATION
3 percent initially for ISX15 customers operating
Low Emission Vehicle III standards from that has been designed to work with leading
with automated manual transmissions.
the California Air Resources Board (CARB). telematics providers. Cummins Connected
Solutions is a group of products that utilize the NOTABLE:
NOTABLE:

CORPORATE RESPONSIBILITY
connection of a Cummins electronic engine to ADEPT utilizes load-, speed- and grade-sensing
The new standard applies to all vehicles under
a vehicle’s on-board telematics system. technology to initiate adjustments to speed, power
14,000 pounds Gross Vehicle Weight Rating.
and transmission gear to take advantage of vehicle
The Cummins 6.7L Turbo Diesel powers the NOTABLE:
momentum for better fuel economy. The technology
Ram Heavy-Duty lineup. Connected Diagnostics gathers engine data
also eliminates unnecessary downshifting to keep
to provide customers with immediate expert
QUOTABLE: the engine operating in the most fuel-efficient “sweet
recommendations in response to engine fault
“Being the first in this segment to certify to these spot.” The first ADEPT package will be available in
information. Connected Diagnostics utilizes

HEALTH & SAFETY


new standards demonstrates our commitment the third quarter of 2015, and customers will be
Cummins’ expert guidance to provide thorough
to the environment and meeting more stringent able to upgrade as future packages are released.
recommendations so customers can make
requirements without hardware changes allows us to
the most informed decision at the time of the QUOTABLE:
maintain the proven capability and reliability that our
notification. This will help maintain productivity “The release of ADEPT in 2015 signifies Cummins’
customers have grown to expect,” said Jeff Caldwell,

RIGHT ENVIRONMENT
and maximize uptime for customers. commitment to deliver customer-focused innovation
General Manager – Global Pickup and Van Business.
as soon as it is ready for market,” said Amy Boerger,
QUOTABLE:
Vice President – North American Engine Business.
“Cummins is excited to provide this service for our
customers to help enable their success,” said John
Malina, Executive Director of Connectivity and Data

GOVERNANCE
Integration. “We are committed to continuing our
promise of providing exceptional customer support,
and Connected Diagnostics is one more tool that
allows us to deliver on this promise.”

FINANCIAL
38
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // ENVIRONMENT // PRODUCTS

REMANUFACTURED ENGINES
The number of remanufactured engines 10 liters
and above has more than doubled since 2008.

COVER STORY
YEAR NUMBER OF ENGINES

2008 3,759
NATURAL REMANUFACTURING 2009 2,728

GAS ENGINES

ENVIRONMENT
Remanufacturing of engines and parts 2010 3,357
provides customers with a high-quality, 2011 4,770
Cummins’ goal is to provide customers with
sustainable option that’s good for the
the engine that makes sense for their particular 2012 5,408
environment and good for their bottom line.
sustainability needs. That’s why the Company 2013 5,880

INNOVATION
makes engines that run on a variety of fuels, Instead of sending tons of metal to landfills and 2014 7,661
including natural gas. the scrap heap, remanufacturing recycles and
reuses resources, providing customers with
Cummins has been developing a full line of natural

CORPORATE RESPONSIBILITY
significant savings while greatly reducing the
gas engines both through its Engine Business
need to mine new materials. manufacturing a new engine or part. Cummins
and through Cummins Westport Inc. The joint
reclaims about 50 million pounds of product
venture partnership was established with Westport This conserves natural resources and minimizes
annually, avoiding 200 million pounds of
Innovations Inc. of Vancouver, British Columbia the greenhouse gas emissions associated with
greenhouse gas emissions per year.
(Canada), in 2001. excavating, refining and machining materials used
for new parts. A Cummins remanufactured engine Every remanufactured engine or part is completely
Cummins Westport’s natural gas engines are
or part requires about 85 percent less energy than disassembled, cleaned, inspected, fully restored

HEALTH & SAFETY


available as factory-installed options from more
and tested to meet original specifications or better.
than 50 truck and bus manufacturers, establishing
If an upgrade has been made from the original
the joint venture as the leading North American
design or material of a particular part or engine,
provider of natural gas engines for on-highway
it will be added as it is remanufactured.
commercial vehicles.

RIGHT ENVIRONMENT
TO LEARN MORE
Independent of the joint venture, Cummins Engine
You can learn more about Cummins’ complete
Business has been building natural gas engines
line of engines at cumminsengines.com.
for many years, especially in the Company’s
High-Horsepower business, primarily for power
generation and gas compression customers.

GOVERNANCE
Every remanufactured engine or part at Cummins
is disassembled, cleaned, inspected, fully restored
and tested to meet original specifications or better.

FINANCIAL
39
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // ENVIRONMENT

COVER STORY
POWER GENERATION QSK95 SERIES

ENVIRONMENT
Cummins Power Generation is committed to providing products that Cummins Power Generation in November 2014 introduced the
minimize their impact on the environment. The business unit is developing QSK95 Series, a new line of high-performance generator sets
cleaner combustion techniques with natural gas and diesel reciprocating engineered with the highest kilowatt per square-foot ratio in its
engine generators, plus factory-integrated exhaust aftertreatment that class, resulting in a smaller footprint that achieves a 20 percent

INNOVATION
allows these products to meet stringent global emissions standards. improvement in power density.

As part of its global emissions strategy, Cummins Power Generation NOTABLE: QUOTABLE:
focuses on meeting or exceeding U.S. EPA and European Union The new series uses Cummins’ most “The QSK95 Series produces up to

CORPORATE RESPONSIBILITY
emissions standards, as these standards are the world’s most powerful engine to offer best-in-class 3.5 megawatts of power, occupying
stringent and all-encompassing. This strategy assures end-users fuel economy. Over the course of less floor space than lower-rated
of the best power generation solution for their application, 8,000 hours of operation, the QSK95 generator sets. They are designed to
regardless of country or continent. can achieve fuel savings of more lower the total cost of ownership by
than $400,000. Fewer maintenance reducing installation expenses, fuel
Cummins Power Generation has been in the forefront of the move to
requirements, longer service intervals costs and maintenance requirements—
cleaner, quieter and more efficient diesel engine-powered generator
and 25,000 hours to major overhaul all while maintaining Cummins’ high

HEALTH & SAFETY


sets, improving the fuel efficiency of all its engines because less fuel
make these generator sets ideal as standards of reliability,” said Tony
consumed means fewer emissions overall.
primary sources of power, but they Satterthwaite, then president of
Sophisticated electronic engine controls have virtually eliminated are also excellent for standby power Cummins Power Generation. (He has
visible smoke, and better engine design has reduced lubricating oil with their smaller footprint and higher since taken a new position leading the
consumption to only 0.15 percent of fuel consumed – the best in power density. Company’s Distribution Business Unit.)

RIGHT ENVIRONMENT
the industry. Power Gen’s lean-burn gas engine generators used
in combined heat and power applications significantly reduce
wasted energy and overall emissions.

Here’s a look at some of the key sustainability developments at

GOVERNANCE
Cummins Power Generation over the past year.

FINANCIAL
40
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // ENVIRONMENT // PRODUCTS

COVER STORY
QSK19 60 HZ GRID CODES GRID CODE
GENERATOR SET ALTERNATOR RANGE

ENVIRONMENT
Cummins Power Generation announced in January
2015 that certified Grid Code Compliant generator
Cummins Power Generation in Cummins Generator Technologies (CGT),
sets had been delivered successfully to a customer
December 2014 announced it had a division of Cummins Power Generation,
in Germany. Grid Codes have been introduced in
extended its range of gas-fueled announced in July 2014 the availability of

INNOVATION
Europe to help improve the stability of today’s
generator set capabilities with a range of “Grid Code Ready” STAMFORD
power grids that have become increasingly
a natural gas version that has and AvK alternators. Customers will benefit
reliant on numerous renewable energy sources.
U.S. EPA Mobile Off-Highway from exclusive access to a certification

CORPORATE RESPONSIBILITY
(MOH) emissions certification. NOTABLE: modelling tool, which can be used with any
The introduction of the certified Transmission and distribution system operators in Europe prime mover when used in conjunction with
model means that the generator are defining sets of rules that specify how grid-connected real-time practical data.
set is now deployable across a power sources must perform, including generator sets
NOTABLE:
wider variety of applications. and their associated components. These rules, known
The new Grid Code Ready line of alternators was
as Grid Codes, require embedded generation schemes
NOTABLE: engineered to meet global Grid Code regulations
to stay connected to the grid during certain grid faults,
Natural gas represents an attractive ahead of the German certification deadline.

HEALTH & SAFETY


unlike the traditional approach where generator sets
energy source at sites where the Ranging between 25-10,000 kVA, the Grid Code
could come off the grid at such times.
resilience of a fuel supply is critical. Ready alternators are designed to help generator set
In adverse weather conditions or in QUOTABLE: manufacturers meet the global Grid Code legislation
the aftermath of a natural disaster, “With the growing demand to meet Grid Code roll out that started in Germany on Jan. 1, 2015,

RIGHT ENVIRONMENT
the diesel fuel needed to maintain a requirements in Europe, the introduction of Cummins before progressing to the rest of Europe and beyond.
vital service may run out before fuel Grid Code Compliant products means power providers
TO LEARN MORE
deliveries to the affected area can be can continue to rely on one manufacturer for their
You can learn more about Cummins Power
re-established. Generator sets that generator set needs,” said Andrew Stone, Cummins
Generation’s complete line of generators and
run on natural gas offer a significant Director of Global Project Companies.
related products at power.cummins.com.
advantage in that the gas they utilize

GOVERNANCE
can be supplied continuously even Cummins Generator Technologies’ complete
when other infrastructure, such as line of alternators and related products can be
roads, are out of service. found at cumminsgeneratortechnologies.com.

FINANCIAL
41
INTRODUCTION
COMPONENTS
Four units within the Company’s Components Business Unit play a

COVER STORY
critical role in helping the Company’s engines operate efficiently and with
near zero emissions: Cummins Emission Solutions, Cummins Filtration, CUMMINS FILTRATION
Cummins Turbo Technologies and Cummins Fuel Systems. Here’s a look
at some of the sustainability highlights from the Components group: Modern diesel engines require extremely clean fuel and lubrications to support

ENVIRONMENT
the very precise equipment that helps engines run efficiently and reduces engine
emissions and noise. Cummins Filtration has been an industry leader in both fuel
and lube filters.
CUMMINS EMISSION SOLUTIONS
Cummins Emission Solutions (CES) designs, manufactures and integrates FLEETGUARD NOTABLE:

INNOVATION
exhaust aftertreatment systems. It has grown into a more than $2 billion NanoNet filtration media removes
operation since it was created in 2002, propelled in part by the growing
LF14000NN and retains 98.7 percent of all
regulation of engine emissions around the world. Cummins Filtration announced in particles as small as 4 microns

CORPORATE RESPONSIBILITY
February 2015 the release of the (12 times smaller than the smallest
ECOFIT Fleetguard LF14000NN lube filter particle visible to the human eye).

SINGLE MODULE for Cummins ISX15 diesel engines. That process is critical to keeping
It is the Company’s first lube filter engines running cleanly and efficiently.
Cummins Emission Solutions announced in March 2015 that
with NanoNet media, a patented
it was introducing the first of its next generation of ultra-high QUOTABLE:
polymeric nanotechnology-
efficiency aftertreatment systems, the EcoFit Single Module. “Many of the characteristics that
based synthetic media originally
The EcoFit Single Module is up to 60 percent smaller and make NanoNet media so successful

HEALTH & SAFETY


developed for Fleetguard fuel
40 percent lighter than the EPA 2013 solution it supersedes, in fuel filter applications translate
filter applications.
while improving emissions reduction performance. well to lube filters,” said Brad Long,
Senior Engineering Technical Advisor,
NOTABLE: QUOTABLE:
Cummins Filtration. “By pairing
The smaller size enables better heat “We’ve achieved incredible results

RIGHT ENVIRONMENT
NanoNet with our proven StrataPore
management and retention for improved with this product through an entirely
synthetic media, we can offer a lube
fuel economy capability, while the new engineering approach to
filter that’s suited to meet the needs
simple single-pass exhaust flow design aftertreatment systems,” said
of today’s advanced engine platforms
meets customer requests for a simpler, John Carroll, General Manager –
and lubricants.”
easier-to-integrate solution. CES’ Global On-Highway Business.

GOVERNANCE
TO LEARN MORE
TO LEARN MORE
You can learn more about Cummins
You can learn more about
Filtration at cumminsfiltration.com.
Cummins Emission Solutions at
cumminsemissionsolutions.com.

FINANCIAL
42
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // ENVIRONMENT // PRODUCTS

COVER STORY
CUMMINS FUEL SYSTEMS

ENVIRONMENT
Cummins Fuel Systems help enable engines to meet increasing emissions
regulations while maximizing fuel-economy standards. The group’s CUMMINS TURBO TECHNOLOGIES
world-class technologies help deliver fuel at the pressure levels necessary
Turbochargers boost power and efficiency with a minimum of weight,
for outstanding results.
and produce heat for chemical reactions critical to some exhaust

INNOVATION
In both new product production and remanufacturing, the group is a critical aftertreatment systems. Cummins Turbo Technologies (CTT) produces
partner to Cummins engine applications and other key external partners. durable and innovative turbochargers to meet the global challenges
of emissions reduction, fuel consumption and total cost of ownership.
HEAVY-DUTY FUEL PUMP

CORPORATE RESPONSIBILITY
At a trade show in Germany in September 2014, Cummins revealed
TWO-STAGE TURBOCHARGER
a selection of next generation innovations capable of improving the Cummins Turbo Technologies in March 2015 officially launched its
fuel efficiency of modern diesel engines. The selection included a new Two-Stage Turbocharger. The Two-Stage system with Rotary
new Heavy-Duty Fuel Pump. Turbine Control is Cummins’ most sophisticated turbocharger to
date, delivering high efficiency and low emissions levels.
NOTABLE: QUOTABLE:
NOTABLE: QUOTABLE:

HEALTH & SAFETY


The new high-pressure oil-lubricated “Over the last few years we have seen
pump for heavy-duty engines, which continued demand for smaller, lighter, This integrated technology “Advances in air handling
complements the Company’s robust high-quality components to drive was developed in partnership technology and improved system
injectors, offers industry-leading diesel engine efficiency improvements, with Cummins Engine Business integration continue to provide
injection pressure of 2600 bar and a as well as the industry requirement and Nissan, specifically for use on new turbocharging solutions that

RIGHT ENVIRONMENT
leak-free system design that reduces from manufacturers for equal and the 2016 Nissan TITAN XD pickup enable customers to achieve their
parasitic loss, increasing fuel economy. higher power outputs,” said Suzanne truck (page 68). The technology was emission and efficiency targets without
The pump offers a highly modular and Wells, Executive Director – Sales and developed at the Company’s technical compromising engine performance,”
adaptable design which is lighter than Marketing, Components Business. centers in Huddersfield in the United said Jonathan Wood, Executive
previous pumps, allowing for flexibility Kingdom and Columbus, Indiana Director – Research and Engineering.
in customer integration. (U.S.A.). It offers a flexible architecture

GOVERNANCE
TO LEARN MORE
that efficiently integrates and packages
You can learn more about
two turbochargers in series to deliver
Cummins Turbo Technologies at
high performance levels.
cumminsturbotechnologies.com.

FINANCIAL
43
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // ENVIRONMENT // PRODUCTS

COVER STORY
CUMMINS’ SMARTADVANTAGE PROVIDES

ENVIRONMENT
FUEL ECONOMY FOR CUSTOMERS
One of the Company’s most recent fuel-efficiency successes

INNOVATION
has been focused on engine and transmission integration.

The SmartAdvantage Powertrain takes the innovation it has provided


the power of Cummins ISX15 and to the marketplace.

CORPORATE RESPONSIBILITY
ISX12 engines with SmartTorque2
Customer fuel-efficiency improvements
and combines it with the smooth
using SmartAdvantage count toward
shifting of the Eaton Fuller Advantage
meeting Cummins’ products in-use
10-speed automated transmission for
environmental sustainability goal
improved fuel economy. The engine
(page 24). Average customer fuel-
and transmission share critical data,
efficiency improvement was 3.3 percent
determining the torque required to

HEALTH & SAFETY


in 2014, which in 2015 will translate
deliver the power level that drivers
into savings of about 2.3 million gallons simple,” said Vernon Nance, who Mark Stanton is Maintenance Director for CalArk
need without wasting fuel.
of fuel, 23,400 metric tons of carbon Trucking, which has seen a significant increase in
oversees CalArk truck purchasing fuel economy using the SmartAdvantage Powertrain.
Customer feedback on fuel-economy dioxide avoidance and $9.4 million. as President of Arkansas Equipment
savings and overall performance has Leasing, Inc. “Our drivers like the and the rest from the benefits of the

RIGHT ENVIRONMENT
CalArk is a 650-truck fleet based
been excellent and there have been trucks overall and with help from total SmartAdvantage package. The
in Little Rock, Arkansas (U.S.A.),
numerous media accolades, including Cummins we are still making changes improvement is based on comparisons
whose trucks deliver goods in the
“top product” lists by publications in the settings that should help our with trucks in the fleet that have an
48 contiguous United States and
such as the Commercial Carrier drivers even more.” early 2013 ISX15 engine with Eaton’s
Canada. The fleet has 100 International
Journal, Heavy Duty Trucking and Ultrashift Plus transmission.
trucks equipped with SmartAdvantage

GOVERNANCE
Today’s Trucking. CalArk saw a 5 percent total
and 50 more on order. increase in fuel economy from using Cummins made improvements to
The SmartAdvantage Powertrain was SmartAdvantage with a late 2013 CalArk’s earlier 2013 ISX15 engines
“We chose SmartAdvantage for the
named an Automotive News PACE ISX15 engine. Nearly half came from using lessons it learned from the
miles per gallon savings, plain and
Award Finalist for 2014, recognizing

FINANCIAL
drive fuel economy from the engine SmartAdvantage package.
44
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // ENVIRONMENT // PRACTICES

COVER STORY
PRACTICES

CUMMINS’ PRACTICES

ENVIRONMENT
HELP PROTECT
ENVIRONMENT

INNOVATION
Cummins is constantly working to shrink the Company’s
environmental footprint with a special focus on the waste,

CORPORATE RESPONSIBILITY
water and energy Cummins uses in the production process.

The Company’s Enterprise 18001 Occupational Health & Safety


The water strategy, adopted in 2011, Cummins sites in water-scarce areas like
Environmental Management System Management System, to create San Luis Potosí use low-water vegetation
establishes four priority areas:
(EMS), created in 2003, plays a critical the Enterprise Health, Safety and for site landscaping.

role in Cummins’ global environmental Management System (HSEMS) »» Water conservation.


footprint reductions and other (page 49). »» Water risk management in
improvements. The Company

HEALTH & SAFETY


business operations.
Here’s a look at some of the scorecards, expert advice and more
adopted a model that includes a
Company’s key practices and »» Water and community engagement. to help sites manage that risk.
common framework to ensure a
strategies in this important area: »» Water in the supply chain.
similar look, feel and fundamental The Company’s strategy also takes into
approach throughout the organization. WATER STRATEGY account the important role water plays
The Company recognizes that

RIGHT ENVIRONMENT
Cummins’ global water strategy water is vital to food production, outside of Cummins’ operations in
The EMS has the flexibility to allow
goes beyond conservation to sanitation, power generation and water-scarce communities. Cummins
individual sites and businesses to
address water as a business risk more. So conservation is a goal at all works with community leaders in those
address risks and opportunities most
and a key consideration in building Cummins sites. But the Company also locations to help them establish their
important to them. Cummins has
stronger communities, a central recognizes water as an operational own conservation initiatives.
integrated health and safety processes

GOVERNANCE
and procedures with the environment goal of the Company’s Corporate risk, especially in parts of the world
Finally, Cummins’ strategy
since 2007, in accordance with Responsibility initiative. where water is scarce. Cummins’
identifies the critical role water
the international standard OHSAS environmental leaders provide
plays in the Company’s supply chain.

FINANCIAL
45
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // ENVIRONMENT // PRACTICES

HAI HO RIVER BASIN


Beijing Foton Cummins Engine Co.

COVER STORY
Here are the four areas where
PANUCO RIVER BASIN
Cummins facilities face the biggest San Luis Potosí – all facilities KRISHNA RIVER BASIN
Phaltan Megasite – all facilities
water risk. Each of these locations Pune – Cummins India Limited and 
also falls within the Company’s Cummins Technical Center India

ENVIRONMENT
priority regions for achieving
water neutrality (see page 27).
PARANA RIVER BASIN
São Paulo – Cummins Brazil Limited

INNOVATION
The size of the dot represents
the amount of water withdrawn
in a particular region.

Cummins operations»»in

CORPORATE RESPONSIBILITY
Almost 90 percent of Cummins’ can often spot prime opportunities WASTE STRATEGY water-stressed
Recycling of waste is Cummins areas
water footprint exists in the supply for improvement. next priority.
Cummins global waste strategy is
chain, mostly associated with the
For more detailed analysis, Cummins built around the belief that through »» Finally, waste to energy through
extraction and production of metals.
has developed true cost and risk waste reduction, reuse and recycling, incineration is only considered
The Company is beginning to address
analysis tools. Each of these tools the Company can drive improvements after reasonable efforts have been
this challenge by considering water
help provide more insight into the in processes and procedures. It was made to reduce, reuse or recycle.
in its material selection practices
often hidden costs of water. On-site developed after an in-depth study

HEALTH & SAFETY


and promoting awareness of Reducing packaging or “right-sizing”
costs include factors such as pumping, of the Company’s waste footprint
water management techniques incoming parts are examples of ways
heating and chemical usage, which are in 2011. Cummins has a robust
with its supply base and in its Cummins tries to avoid the generation
often not considered when evaluating database that contains waste
purchasing processes. of waste. Reusing waste might involve
a project. metrics as far back as 2005.
reusing pallets or finding an alternative

RIGHT ENVIRONMENT
As part of its strategy, Cummins has
However, the most significant The Company uses a waste use without any reprocessing.
developed tools to help the Company
consideration can be the risk of hierarchy consistent with current Recovery and reuse of solvents is
better understand and prioritize its
impacting production. By understanding industry standards: another example. The recycling of
water management opportunities.
this exposure, Cummins is working metals, paper or wood also reduce
Perhaps the most important tool is »» Cummins’ first priority is to
to promote equipment selection and the amount of waste that has to
the water balance. By thoroughly avoid the generation of waste.

GOVERNANCE
management choices that mitigate be disposed.
understanding everywhere water goes »» The Company’s next priority
risks where Cummins operates in
in a facility, Cummins facility leaders is the reuse of waste. The Company’s ultimate goal is
water-scarce environments.
“Zero Disposal” at Cummins’ facilities.

FINANCIAL
46
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // ENVIRONMENT // PRACTICES

Cummins’ waste footprint


Iron and steel make up the largest component of Cummins’ waste footprint.

COVER STORY
Iron and steel 56% Cummins is improving its existing The Company has established
Wood 13%
facilities by installing high-efficiency ASHRAE 189.1 international

ENVIRONMENT
General refuse 9%
Cardboard 9% “smart” lighting and energy-efficient standards developed by the U.S.
Liquids 5%
Process-derived 4% windows, doors, walls and roofs Green Building Council and others
Composted 2%
Other 2%
to reduce heat gain or loss. as Cummins’ minimum standard
High-efficiency heating, cooling for global construction.

INNOVATION
and recirculation systems also
Cummins is also committed to
create significant savings as well as
obtaining certification for the
energy-efficient boilers and burners.
ISO 50001 international energy

CORPORATE RESPONSIBILITY
The Company defines Zero Disposal ENERGY STRATEGY
Cummins has also been working to management standard at 15 key
as completely avoiding the disposal
Saving energy has bottom-line
recover energy generated by engines facilities by 2016. Three of the
of waste according to Cummins’
benefits. Cummins also recognizes the
and generators in its test cells by 15 have been certified.
waste hierarchy. Waste to energy is
link between energy conservation and
installing equipment that can capture
only considered if there is no other The Company will partner with the
reducing greenhouse gases (GHGs).
that power for use by the plant or for
option and it produces a net energy government under its strategy to
Reducing energy use is both a win
sale to a local utility.
gain, creating more energy than
for the Company and a win for the

HEALTH & SAFETY


needed to merely sustain combustion.
environment, too.

Cummins is also committed to Energy use by facility type


The Company’s strategy focuses
in millions of British thermal units
avoiding the production of hazardous
on four key areas:
waste and properly handling hazardous
Facility type Electricity* Diesel Natural gas Other fuels
»» Saving and conserving energy

RIGHT ENVIRONMENT
materials in the workplace.
Manufacturing - Heavy 4,931,252 970,398 808,611 83,187
by improving existing facilities
The definition for what constitutes Manufacturing - Light 2,217,688 92,115 363,379 29,817
»» Building energy conservation
hazardous waste varies widely Test / Research & development 677,920 616,403 220,865 10,230
into new construction
by country. For U.S. sites that do Distribution / Services 554,561 39,136 146,507 6,195
»» Optimizing manufacturing and
produce hazardous waste, however, Warehouses 397,606 10,931 72,149 1,335
product testing processes

GOVERNANCE
Cummins has a formal pre- Offices / Data centers 461,582 2,914 34,645 6
qualification process to ensure »» Enhancing energy management *Includes generation, transmission & distribution losses

the waste is handled properly.

FINANCIAL
47
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // ENVIRONMENT // PRACTICES

COVER STORY
ENVIRONMENT
INNOVATION
CORPORATE RESPONSIBILITY
experiment with alternative forms GLOBAL BUILDING STANDARD Cummins’ global building standard Cummins’ global building standard applies
not only to new construction, but to renovations
of energy. For example, Cummins is based on the international standard

HEALTH & SAFETY


Cummins has nearly 550 facilities of older buildings as well, incorporating green
has significant solar installations at established by the American Society features such as efficient lighting and water
encompassing more than 34 million
fixtures. The former Irwin Bank headquarters in
its facilities in Jamestown, New York of Heating, Refrigerating and Air
square feet across the globe. As of Columbus, Indiana (U.S.A.) underwent a major
(U.S.A.), and Huddersfield in the Conditioning Engineers (ASHRAE) renovation in 2014 when Cummins took over
the first quarter of 2015, 47 major
the property for office and conference space.
United Kingdom. 189.1 to ensure implementation of
new projects were under way

RIGHT ENVIRONMENT
at the Company with a planned energy and water efficiency.
Cummins is a partner in the U.S.
Department of Energy’s Better capital expense of $800 million by the U.S. Green Building Council.
While the Leadership in Energy and
Buildings Challenge, which includes over multiple years. Cummins expects ASHRAE 189.1
Environmental Design (LEED) Silver
the Jamestown facility (page 58). standard is an industry-respected to provide better realized returns and
Having efficient buildings is not only a
The Company committed to a norm, Cummins is a market leader allow the Company to consider the
good return on investment, it is critical

GOVERNANCE
25 percent reduction in U.S. energy with the adoption of ASHRAE 189.1. total cost of ownership in its buildings.
to reaching Cummins’ energy and
efficiency intensity by the end of 2015, ASHRAE 189.1, with its more
greenhouse gas (GHG) goals.
Both the ASHRAE and LEED international scope, is also a better
and achieved a 42 percent reduction
standards have been recognized fit for Cummins buildings.
by the end of 2014.

FINANCIAL
48
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // ENVIRONMENT // PRACTICES

EMPLOYEES CELEBRATE JUNE ENVIRONMENTAL MONTH

Carpooling in San Louis Potosí, Mexico; a facility-wide dumpster dive

COVER STORY
(pictured below) in Charleston, South Carolina (U.S.A.); community
water conservation in Dewas, India; more than 12,000 “Find it. Fix it.”
At a minimum, all new buildings will HEALTH, SAFETY
reports in engine plant sites — these are just a few of the actions
be ASHRAE 189.1 compliant or LEED AND ENVIRONMENTAL

ENVIRONMENT
10,000 employees took at home, work and in the community
Silver equivalent unless business cases MANAGEMENT SYSTEM
during Cummins’ 2014 Global June Environment Month.
prove otherwise. In most instances,
Cummins Health, Safety and
Cummins’ ASHRAE 189.1 compliant The Company celebrated the announcement of its Global Environmental
Environmental Management System
buildings would fall between the silver Sustainability Plan by dedicating an entire month to environmental

INNOVATION
(HSEMS) ensures a common approach
and gold LEED standard. education and action. Cummins asked employees during the month of
to implementing the Company’s
June to engage in environmental stewardship at work, at home and in
As part of Cummins’ 2015 investment environmental standards at its sites
the community by reducing personal water and energy consumption
plan to reduce GHGs, the Company worldwide. The system has served

CORPORATE RESPONSIBILITY
and minimizing waste.
will lessen its footprint in new buildings as the framework for driving continual

by making four considerations when improvement and efforts beyond These actions are not only consistent with the Company’s environmental
choosing a building site: compliance at Cummins operations mission and vision, but mirrored the goals set forth in the plan. Weekly
around the world. Cummins expects education materials and project models helped site leaders spread the
»» The region’s climate
all sites to comply with policy, word and provide guidance.
»» The carbon intensity of the procedures and initiatives.
building and site In 2015, Cummins will add a “personal tracker” tool, which will allow
Cummins’ HSEMS model deploys a

HEALTH & SAFETY


»» The cost of the energy source employees to commit to specific environmental conservation actions.
common framework to ensure a similar The monetary savings and environmental benefits, customized by region,
»» The carbon intensity of the look, feel and fundamental approach can be communicated back to employees so they can understand the
energy source throughout the organization, with positive environmental impact they are making.
flexibility to allow individual sites and
Taking these four factors into

RIGHT ENVIRONMENT
businesses to address opportunities
account with the ASHRAE
and risks most important to them.
189.1 standard, Cummins expects
Broad objectives and targets are set
its buildings will yield about a
at the corporate level to establish
21 percent emissions reduction.
direction for critical corporate
initiatives. Cummins’ business units

GOVERNANCE
and sites then build upon them to

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INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // ENVIRONMENT // PRACTICES

COVER STORY
establish site-specific objectives By the end of 2014, the Company’s AUDITOR CERTIFICATION recycled materials. They provided
that align with Company priorities independent auditor certified PROGRAM an audit report with “limited

ENVIRONMENT
but address site-specific needs 104 entities, representing 347 sites independent assurance,” which
Environmental goals are measured
and challenges. and corporate offices as part of the the Company included as part
through a structured audit process.
HSEMS. Cummins’ HSEMS scope of its external reporting.
Cummins policies apply to more than A third party auditor, Bureau Veritas
has been extended to encompass

INNOVATION
just its employees, also extending Certification (BVC), certifies the Cummins supplements the audit
manufacturing joint ventures and
to contingent workers, suppliers, health, safety and environment sampling conducted by BVC by
distributors. They are committed
contractors and even clients working (HSE) management enterprise conducting its own annual audits using
to registering their sites by the
at Company facilities. Cummins’ system and the environmental internally trained HSE auditors. Every

CORPORATE RESPONSIBILITY
end of 2015.
expectations extend beyond the metrics Cummins collects. site is audited on an annual basis.
Company’s physical boundaries, By incorporating practices and
Two of Cummins’ key sustainability The Company has developed
encompassing maintenance and procedures into the HSEMS to
stakeholders, the Carbon Disclosure an internal environmental auditor
support services that often occur at meet the new ISO 50001 Energy
Project and Dow Jones Sustainability certification process, where employees
customers’ locations or even remote Management Standard, Cummins has
Index, consider independent data complete a training course and then
areas where its products are used. delivered a common global approach
verification an important factor in a series of audit levels. In 2014,
to make energy efficiency a standard

HEALTH & SAFETY


Cummins strategically drives their evaluation of environmental more than 60 people have been
practice across the Company.
certification to recognized performance and transparency. trained and there is a pool of 96 HSE
standards. Since 2003, the Broad objectives and targets are set Cummins believes the audit validates leaders certified as HSE Lead Auditors.
Company has focused on its at the corporate level to establish its considerable efforts at data quality,
This structured audit program
manufacturing locations with direction for critical corporate initiatives. placing the Company among a

RIGHT ENVIRONMENT
validates performance and provides
90 percent of manufacturing Cummins’ business units and sites relatively small number that pursue this
a mechanism for HSE auditors
sites certified to ISO14001 and then build upon them to establish level of performance and validation.
to share best practices. Through
OHSAS 18001. By 2015, Cummins site-specific objectives that align with
Since 2011, BVC has also audited these practices, Cummins is not
expects the HSEMS Enterprise Company priorities but address site-
Cummins’ environmental footprint and only improving sites – it is building
to consist of dual-certified sites, specific needs and challenges. At the
the Company’s data collection and the Company’s next generation

GOVERNANCE
representing 100 percent of the Global level, three sites obtained the
verification processes. BVC’s audit of HSE leaders.
Company’s manufacturing and ISO 50001 certification in 2013 and
included greenhouse gases (GHGs),
distribution locations. eight sites worked toward their ISO
water used, landfilled waste and
50001 implementation in 2014,

FINANCIAL
with a certification target for 2015.
50
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // ENVIRONMENT // PRACTICES HUDDERSFIELD’S ADVICE
Here’s some advice from CTT
Huddersfield on how to put together
an effective recycling program:

COVER STORY
CUMMINS EMPLOYEES IN THE »» Do the research.
Employees like to see the

U.K. ARE DETERMINED RECYCLERS


business case and review data.

»» Keep working even when

ENVIRONMENT
roadblocks or resistance occur.

Employees at Cummins Turbo Technologies (CTT) in It’s perhaps no wonder that the »» Work with individual areas
plant won the Campbell Institute’s within the site to see what
Huddersfield, United Kingdom, don’t have one or two works for them.
prestigious Innovation Challenge
recycling bins to choose from when they separate their

INNOVATION
for the Environment award for 2014. »» Effective communication is
extremely important.
waste – they have nine color-coded receptacles.
To say Cummins facilities in the U.K.
The plant also has a special waste “We continually strive to improve our take recycling very seriously might

CORPORATE RESPONSIBILITY
segregation yard to make sure waste management operations here be something of an understatement. increased their recycling rate from
recycling remains are properly at Huddersfield,” said Jennifer Hirst, In addition to the Campbell Institute 96.4 percent to 98 percent. These results
sorted before they are hauled away. Facilities Energy Engineer at the plant. award, Company facilities won two cover Cummins sites in Cumbernauld,
And a leaderboard in the plant reports “We conduct waste dives and welcome national recycling awards for their Darlington, Daventry, Huddersfield,
not only on the facility’s progress in overall waste reduction ideas and waste minimization and recycling Kent and Stamford, as well as offices
recycling, but also encourages some suggestions. Through positive integration, efforts – Corporate Recycler of the and regional distribution centers.
healthy competition among employee CTT continues to push the boundaries Year and the Waste Prevention
Achieving these kind of results are

HEALTH & SAFETY


groups at the site. within sustainable operations.” Award – from Materials Recycling
critical if Cummins is to meet its
World in the U.K.
environmental sustainability goals
The group recognizes best practices for waste. Those goals call for the
inside and outside the waste industry Company to increase its recycling

RIGHT ENVIRONMENT
in the United Kingdom, including both rate to 95 percent by 2020 and
the public and private sector. achieve “zero disposal” status at
30 Cummins’ sites by that same year.
Cummins facilities in the country
reduced their total waste generated “This recognition is the result of the
by 30.76 percent or 8,729 metric hard work and commitment exhibited

GOVERNANCE
tons between 2012 and 2013 and by the many people involved in the
region’s waste reduction efforts,” said
Cummins Turbo Technologies employees in Ernie Smith, Environmental Affairs
Huddersfield make multiple sorts in their waste
for recycling before trash leaves the plant. Manager and leader of Cummins’

FINANCIAL
waste efforts. “Congratulations to all.”
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INTRODUCTION
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COVER STORY
EMPLOYEE TEAMS RECOGNIZED

ENVIRONMENT
THROUGH FACILITIES
THE POWER
OF CUMMINS
ENVIRONMENTAL AWARDS

INNOVATION
Cummins has challenged employee teams since 2005 to complete improvement
In addition to the environmental
benefits, the winning project from projects that reduce the Company’s environmental footprint in the more than

CORPORATE RESPONSIBILITY
San Luis Potosí, Mexico, produced
an annual savings of more than
200 Cummins facilities and operations globally.
$330,000, paying for itself in
about two years. In appreciation of their efforts, the In recognition of their achievement, “A major reason that Cummins has
Chairman’s Environmental Award a team representative presented the been able to confidently put forth
recognizes employees and teams project to the Cummins Board of new and ambitious environmental
that implemented outstanding Directors. In addition, representatives sustainability goals is because of
environmental improvements at their from the top three winning projects the excellent work that teams like
sites. Winning projects were chosen shared their work during the Six these have been doing in Cummins

HEALTH & SAFETY


based on the greatest environmental Sigma Expo along with leading Six facilities and operations for years,”
impact, economic efficiency, employee Sigma and Health and Safety projects. said Alan Resnik, Director of
and leadership engagement, innovation Facilities and Operations
The winners of the Chairman’s
and replicability. Environmental Management.
Environmental Award are often viewed

RIGHT ENVIRONMENT
Of the 30 projects submitted, the New as best practices for other facilities “I congratulate all of the teams for
and ReCon Parts project from San to implement because they have their outstanding results, creativity
Luis Potosí, Mexico, was named the been proven effective. As Cummins and continued enthusiasm for the
Top Environmental Project. The project continues to set environmental environment,” Resnik said.
saved water by installing water-free performance goals, the Chairman’s
The 2014 Chairman’s

GOVERNANCE
urinals, reduced water demand from Environmental Award-winning projects
Environmental Award winners,
cooling towers, and saved water, are important to help the Company
by category, are as follows:
energy and chemicals used during find innovative, bottom-up solutions
the cylinder head salvage process. to minimize waste, water and energy.

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COVER STORY
MULTI-MEDIA WASTE Achieved water reduction with
low-cost solutions such as installing
satisfaction and substantial reductions
in resource consumption and
POLLUTION MANAGEMENT

ENVIRONMENT
a high-efficiency dishwashing waste generation.
PREVENTION CV MEDIA RECYCLING system, changing dish detergent

ENERGY, WATER AND Cummins Filtration,


and working with the food services GREEN
vendor to conserve water.
BUILDING

INNOVATION
WASTE EFFICIENCY Neillsville, Wisconsin (U.S.A.)*

Engine Business Unit (EBU) New and


ReCon Parts, San Luis Potosí, Mexico*
Significant cost savings and waste SUPPLY CHAIN GREEN FACILITY
reduction achieved by collecting and SECURES GREEN FUTURE
MANAGEMENT

CORPORATE RESPONSIBILITY
processing CV media polymer waste Cummins Turbo Technologies,
Saved water by installing water-free
that can be reused in production, ELECTRONIC LITERATURE
urinals and reduced water demand Wuxi, China
reducing the use of virgin raw material. WASTE REDUCTION
from cooling towers. Water, energy
Project showcased proper
and chemicals used during the cylinder Cummins Power Generation,
head salvage process also reduced. WATER Fridley, Minnesota (U.S.A.)
application of green building
principles during the new plant
MANAGEMENT Cross-functional project converted start-up phase that resulted in high
ENERGY WATER CONSERVATION printed product manuals to electronic recycling of waste and significant

HEALTH & SAFETY


MANAGEMENT Cummins Generator
versions resulting in significant cost reductions in water and energy use.
reduction improved customer
CARBON FOOTPRINT Technologies (CGT),
*Indicates the top three winners
REDUCTION San Luis Potosí, Mexico

EBU India Parts Distribution Center,

RIGHT ENVIRONMENT
Phaltan, India*

Engaged employees at all levels to


achieve significant and cost-effective
energy-efficiency improvements.

GOVERNANCE
Employee teams collaborated to prevent
multi-media pollution at New and ReCon
Parts in San Luis Potosí, Mexico.
The project earned the team recognition
as the Top Environmental Project for the

FINANCIAL
2014 Chairman’s Environmental Award.
53
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // ENVIRONMENT // PRACTICES By various means, Cummins helped

THE POWER provide an additional 20 million gallons


of water to village residents living near
OF CUMMINS the Company’s Megasite in India.

COVER STORY
MAKING CONSERVATION WORK

ENVIRONMENT
AT CUMMINS’ MEGASITE
Water is a precious resource in much of India. So when of land under cultivation, resulting approach: water conservation within

INNOVATION
in increased agricultural output and its own operations, within the nearby
Cummins employees at the Company’s Megasite in Phaltan
better incomes to the farmers.” community and by developing public
looked at sustainable water management techniques to meet water bodies.
The site has made significant progress
their water goals, they wanted to make a difference not only

CORPORATE RESPONSIBILITY
toward water neutrality, which at REACHING OUT
at the site but in nearby communities, too. Cummins means consistently reaching
Water conservation at the Megasite
the equivalent of what the Company
“Our employees working at the “Not only is it one of our environmental itself is being accomplished by limiting
uses at any particular site either
Megasite are going beyond the good sustainability goals, but it’s also the the use of treated water, stopping
through water conservation at the
they are doing at work to conserve right thing to do to help our local water leaks at the site, using drip
site, water conservation within nearby
and preserve the water supply for the farmers enhance their living by making irrigation for landscaping so water is
communities, developing other sources
villagers who live near our site,” said water available for drinking as well as released slowly, harvesting rainwater,

HEALTH & SAFETY


of water or by some combination of
S. Ravichandran, Head of Corporate agricultural purposes. Our work has using low-flow water fixtures and by
the three. But it’s too early to declare
Responsibility for Cummins India. helped bring an additional 80 acres other steps.
complete success.
Outside the Company’s property,
The Megasite currently has eight plants
Cummins employees met and spoke

RIGHT ENVIRONMENT
in operation in addition to a general
to many villagers, farmers and rural
administration building housing a
government leaders in order to fully
health center, childcare center and
understand their water needs and
a gymnasium. The site consumed
water availability.
14 million gallons of water in 2014.
Cummins is working to accomplish Rainfall alone isn’t enough to meet

GOVERNANCE
water neutrality through a three-fold everyone’s needs. Villages lack proper
water management techniques and
Cummins helped build two storage areas capable had no initiatives to improve ground
of holding 10 million gallons of water for use by

FINANCIAL
the villages near the Megasite in Phaltan, India.

54
INTRODUCTION
COVER STORY
THE POWER OF THE SUN

ENVIRONMENT
At the India Parts Distribution
Center at the Megasite, the
team reduced GHG emissions
by 27 percent by opening the

INNOVATION
building up to more natural light.

The plant also installed solar


panels to provide hot water for
the cafeteria and for washing

CORPORATE RESPONSIBILITY
dams of 38,600 metric cubic feet, to help control the temperature. While Village residents join Cummins employees in
utensils. In addition, the plant marking the start of work to store more water
which could store another 10 million not ideal from an energy perspective, for residents living near the Megasite.
installed solar streetlights, and gallons of water. Teaching villagers they are critical in water-scarce areas
motion-sensing lights in the how to maintain the improvements because evaporative coolers use a lot
In traditional testing, energy from the
manufacturing and office areas. was also an important part of making of water to achieve their cooling effect.
engine is dissipated, and therefore
these improvements sustainable.
By installing regenerative wasted, through evaporative cooling
The outreach effort at the village
dynamometers to capture the energy towers. Cummins uses the AC

HEALTH & SAFETY


won one of the Company’s 19
produced in engine test cells, the regenerative dynamometer to capture
water percolation; so what rain the Environmental Challenge grants.
plant was able to save both energy the mechanical energy of the motor
area received often washed quickly The Challenge is a competition
and reduce cooling load. This allows and return (or regenerate) it to the
away. Farmers who had land but sponsored by Cummins’ Corporate
cooling systems to be smaller. With AC power source. Through this
not enough water were left with no Responsibility team (see page 77).

RIGHT ENVIRONMENT
the reduced cooling demand and the project, the Company saved
choice but to do other work, impacting
ENERGY MANAGEMENT recovered power, the Phaltan location $35,036, 1.2 million liters of water
agriculture in a significant way.
was able to implement air cooling and achieved a 12 percent reduction
Cummins looks at plant improvements
In Nandal village, de-silting the systems that, while less efficient by in greenhouse gases.
holistically, and while it is ideal to
retention area behind a dam increased have solutions that save both energy themselves, give an integrated solution
It’s steps like those, Megasite
the capacity of the tank, resulting in and water, sometimes one must take that improves energy and water

GOVERNANCE
leaders say, that will help them
an estimated 10.5 million gallons precedence over another. For example, positions for the site as a whole across
reach the Company’s Environmental
of water being made available. in the Phaltan high-horsepower plant, both media. High-horsepower engines
Sustainability goals.
Cummins helped build two more non-evaporative coolers were installed require of a lot of testing fuel because
of their large size.

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INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // ENVIRONMENT // PARTNERSHIPS & POLICY

COVER STORY
PARTNERSHIPS & POLICY

CUMMINS’

ENVIRONMENT
PARTNERSHIPS PRODUCE
GREEN RESULTS

INNOVATION
Cummins’ partnerships have helped the Company meet
its product emissions goals, use energy more efficiently

CORPORATE RESPONSIBILITY
and much more. Cummins’ policy advocacy has helped RESEARCH AND DEVELOPMENT The U.S. Department of Energy’s Maria Vargas
talks with Randy Myers, Jamestown Engine
bring environmental solutions to the marketplace. COLLABORATION Plant (JEP) Director of Machining and Facilities,
about the plant’s energy efficiency efforts.
Cummins longstanding partnerships
Four of the Company’s (GHG) and fuel-efficiency standards in JEP is Cummins’ Showcase Project as part
with the U.S. Department of Energy of the Company’s participation in the Better
10 environmental sustainability the U.S. for medium- and heavy-duty Buildings, Better Plants Challenge.
(DOE) and other federal and state
principles focus on partnerships commercial vehicles. The Company is
agencies directly support the United
with legislative and regulatory entities now working with regulators to build
States’ goal of reducing greenhouse and vehicle freight efficiency targets

HEALTH & SAFETY


to develop sound public policy to on the success of Phase 1 and help
gas (GHG) emissions and net oil and completed its 55 percent brake
reduce Cummins’ impact on the shape the next stage of GHG and fuel-
imports. The partnerships also help the thermal efficiency (BTE) technology
environment. They are: efficiency standards known as Phase
U.S. achieve further improvements in scoping and demonstration efforts.
»» Help develop responsible regulations 2. A key aspect for Phase 2 is to
energy productivity while sustaining a The team identified two clear BTE
maintain the same regulatory structure
pathways, one using diesel fuel

RIGHT ENVIRONMENT
»» Promote technology development steady reduction in criteria emissions
with separate standards for the engine
from the nation’s transportation and and another using alternative fuels.
»» Advocate for incentives to and the rest of the vehicle. Separate
accelerate progress distributed power generation fleet. »» The ATLAS (Advanced Technology
standards are critical for the regulation
Light Automotive Systems) project
»» Support a balanced global approach to achieve environmental and user The Company’s current and recently
team significantly exceeded its
benefits while recognizing the diversity completed public-private projects
Cummins worked closely with the 40 percent fuel economy

GOVERNANCE
and complexity of the commercial involving DOE, except where
U.S. government and a variety of improvement target, at Tier 2 /
vehicle sector. noted, include:
stakeholders to develop the Phase Bin 2 criteria emission levels, by
1 rule, the first-ever greenhouse gas »» The SuperTruck Project team delivering a 60 percent improvement
significantly exceeded its engine in Corporate Average Fuel Economy

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INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // ENVIRONMENT // PARTNERSHIPS & POLICY

COVER STORY
(CAFE) compared to the program’s see page 70), a partnership with at the DOE’s system of national As producers of natural gas engines,
gasoline engine powered baseline the California Energy Commission, laboratories with their counterparts Cummins and Cummins Westport

ENVIRONMENT
½ ton pickup truck. Numerous significantly exceeded its at Cummins. They jointly work on are contributing to the study of
innovative engine features delivered 50 percent greenhouse gas (GHG) such things as combustion modeling fugitive methane emissions related
outstanding performance and emission reduction target through and diagnostics, materials science, to evaporative losses and incomplete
emissions while weighing a downsized medium-duty engine/ catalysis fundamentals, hybridization combustion from vehicles, and fugitive

INNOVATION
80 pounds less than the all- powertrain optimized for E85 and more. emissions associated with fueling
aluminum gasoline baseline ethanol. Vehicle tests completed infrastructure. The study is led by
ENVIRONMENTAL
engine, including aftertreatment. in Sacramento, California (U.S.A.), West Virginia University. The results
DEFENSE FUND

CORPORATE RESPONSIBILITY
»» The SLTNR (Sustained Low showed a 50 percent to 80 percent of the study will be submitted for
GHG reduction, depending on Cummins continues to collaborate peer-review in 2015.
Temperature NOx Reduction)
the drive cycle and type of with the Environmental Defense Fund
project was launched in early 2015
(EDF) to learn more about fugitive GOVERNMENT RELATIONS
to develop and demonstrate catalyst ethanol feedstock.
methane emissions from natural gas The Company’s Government
and reductant delivery technologies »» The HD Ultra-Low NOx Natural
vehicles and the fuel supply chain. Relations staff continues to advocate
capable of improving the robustness Gas program, a partnership with
Through the sponsorship of a series globally for policies, legislation,
of high-performance NOx (oxides California’s South Coast Air Quality

HEALTH & SAFETY


of 16 independent studies, EDF is government research funding and
of nitrogen) aftertreatment over Management District (SCAQMD)
coordinating the work of close to regulatory guidelines that promote
temperature-challenged real- and other California entities, is
100 universities, research facilities products and technologies that
world-duty cycles. developing 0.02 gram/bhp-hr NOx
and industry partners that are benefit the environment.
»» The EDPCI (E85/Diesel Premixed technologies, while maximizing
contributing to this research
engine efficiency. This technology Cummins’ Government Relations

RIGHT ENVIRONMENT
Compression Ignition) project was
including Cummins and the joint
also launched about the same time, addresses the needs of regions efforts in the United States include
venture Cummins Westport.
building on learning from SuperTruck in California and other places working with Congress, the White
(see page 72), to develop and worldwide where significant Information is being collected in House, state governments, trade
demonstrate high-efficiency dual- ambient air-quality issues persist. several core areas: production, associations and industry to support
fuel engine operation in Class 8 gathering lines and processing the Environmental Protection Agency
Underlying Cummins’ system-

GOVERNANCE
trucks that commonly haul freight facilities, long-distance pipelines (EPA) in developing greenhouse
integration programs is a valuable
on North American highways. and storage, local distribution gas regulations in the U.S. for
portfolio of collaborative research and
and commercial trucks and heavy-duty vehicles, and to broadly
»» The Ultra-Low Carbon Powertrain development agreements that team,
refueling stations. educate policy makers about how
program (also known as ETHOS, and fund, world-class researchers

FINANCIAL
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INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // ENVIRONMENT

COVER STORY
regulations, economic development environment for emissions regulations
and competitiveness can co-exist if and a non-discriminatory certification/

ENVIRONMENT
developed properly. testing mechanism for engines
CUMMINS’ JAMESTOWN ENGINE PLANT and vehicles. The Company also
In India, Cummins pushed for
RECOGNIZED FOR ENERGY EFFICIENCY supports a broad consensus on fuel-
new generator emission standards
Cummins’ Jamestown Engine Plant showed off its energy-efficiency efforts in 2014, economy regulations by working with

INNOVATION
recently released by the federal
earning a “top visit” accolade from U.S. Department of Energy (DOE) officials. government, trade associations and
government for generator engines
industry partners.
When the Company joined the Better Buildings, Better Plants program as below 800 kW. Cummins strongly
a Challenge Partner in 2011, it was required to share a Showcase Project, supported the adoption of these Cummins is encouraging the U.S.

CORPORATE RESPONSIBILITY
one that models leading energy-efficiency practices, involves significant new standards, which will help government to provide technical
investment and results in substantial energy savings. improve India’s air quality. assistance and share best practices
based on its leadership in this area
Cummins’ plant in Jamestown, close to the famed Lake Chautauqua in New In the transportation area, the
of regulation. The Company is also
York state (U.S.A.), was undergoing a deep retrofit upgrade that made it the Company is pushing for stronger
working with the Chinese government
perfect choice. Critical equipment had been updated, leading to increased emissions and fuel-economy
to identify opportunities to promote
energy efficiency, as well as greater reliability and operational stability. rules, along with low sulfur diesel
combined heat and power solutions,

HEALTH & SAFETY


The Company initiated a phased, whole-building energy and infrastructure requirements across the country.
telematics, natural gas engine
improvement project, setting aside $5.1 million specifically for energy-efficiency Cummins also worked with the Society
applications and hybrid technology.
projects. Leaders say the plant is on track to achieve a 30 percent reduction in of Indian Automobile Manufacturers
energy use and cost. (SIAM) to organize the “Emissions In Colombia, Cummins worked with
Roadmap for the Future” roundtable in the U.S. and Colombian governments

RIGHT ENVIRONMENT
Maria Vargas, Senior Program Advisor in the DOE’s Office of Energy Efficiency
Delhi, which was attended by industry to eliminate barriers for the
and Renewable Energy and Andre deFontaine, Program Manager in the
and government representatives who importation of remanufactured goods.
Advanced Manufacturing Office, came to tour the plant in late 2014,
discussed the importance of diesel fuel Remanufacturing provides benefits
joined by several members of the media.
efficiency as well as a clear emissions for the environment by using about
Plant leadership updated them on heating, air conditioning and air handling roadmap for India. 85 percent less energy compared
upgrades; LED lighting on the shop floor; compressed air and roofing improvements

GOVERNANCE
to the mining, refining, melting and
and the 2 megawatt solar array on the roof. It is capable of generating about a third In China, Cummins is advocating
machining of new material.
of the plant’s power on the sunniest days. There are more than 7,000 solar panels for an overall effective enforcement
covering about half a million square feet on the roof.

FINANCIAL
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SUSTAINABILITY PROGRESS REPORT // ENVIRONMENT // PARTNERSHIPS & POLICY

COVER STORY
SCIENCE AND TECHNOLOGY Other senior international scientists The university is investigating the SUSTAINABILITY REPORTING
ADVISORY COUNCIL and engineers are invited to participate process parameters that allow for

ENVIRONMENT
Cummins takes a number of steps
Cummins seeks advice from its as advisors depending on the topic. the most energy efficient Additive
to report on its environmental
Science and Technology Advisory Manufacturing, using both metals and
The Safety, Environment and performance to the public and
Council in developing products to polymers. In the future, MIT will assess
Technology Committee of the Cummins work with other companies to
additional environmental impacts

INNOVATION
comply with various standards, reduce
Board of Directors also advises senior share best practices.
the Company’s environmental footprint of Additive Manufacturing in the
leaders and the technical leadership at
and meet customer demands. fabrication of engine components. For the past nine years, the
Cummins regarding:
Company has participated in the
The Council, formed in 1993, has »» Environmental and technological BUSINESS COALITIONS

CORPORATE RESPONSIBILITY
Carbon Disclosure Project (CDP)
given Cummins access to some of strategies, compliance programs AND COUNCILS
reporting initiative, supported by
the country’s leading scientific experts and major projects as they relate The Company sits on the U.S.
an institutional investor consortium
and policymakers from the worlds of to the Company and its products. EPA’s Clean Air Act Advisory Council
that seeks to encourage greater
academia, industry and government. and the North American Council for
»» Public policy developments, public environmental reporting
The Council was restructured in 2010 Freight Efficiency.
strategies and positions taken among companies.
to make it easier to access a broader
by the Company regarding safety,
In addition, Cummins is a member
group of international specialists and CDP asks companies to provide

HEALTH & SAFETY


environmental and technical matters.
of the Business Roundtable’s
align their expertise with specific topics details on their carbon emissions,
»» Progress of strategic environmental S.E.E. (Society, Environment and
being addressed at a particular time. their response to the impact of
programs and policies. Economy) Change initiative, which
climate change on their markets and
The permanent council members are: encourages member companies to
ACADEMIC PARTNERSHIPS regulatory environment, their use of
lead by example and adopt business

RIGHT ENVIRONMENT
»» Chairman Dr. Gerald Wilson, energy and planning for the future.
Cummins has continued to partner strategies and projects that measurably
former Dean of Engineering
with universities around the world improve society, the environment and Cummins has participated in the
at the Massachusetts Institute
to collaborate on important the economy. CDP Water Disclosure Project for
of Technology
environmental research topics. For the past two years and was one of
»» Dr. Harold Brown, former Chairman and CEO Tom Linebarger
example, the Massachusetts Institute a handful of companies to agree

GOVERNANCE
U.S. Secretary of Defense leads the Business Roundtable’s
of Technology’s Environmentally Benign to have its responses scored.
and former President of the International Engagement Committee
Manufacturing Group is evaluating the Cummins’ water program was
California Institute of Technology and Cummins has been a regular
environmental impacts of advanced rated in the “leadership” category.
manufacturing technologies, contributor to the Roundtable’s
annual sustainability report.

FINANCIAL
such as Additive Manufacturing.
59
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // ENVIRONMENT // PARTNERSHIPS & POLICY

COVER STORY
RESEARCH PARTNERSHIP ON EMISSIONS

ENVIRONMENT
HELPS PROTECT PUBLIC HEALTH
Cummins’ partnerships to address emissions

INNOVATION
regulations go back many years.

In 1977, the U.S. Environmental science, Schacht brought the engine


Protection Agency (EPA) amended and vehicle industries together with

CORPORATE RESPONSIBILITY
the Clean Air Act to place new controls then EPA Administrator Doug Costle
on diesel emissions and the industry in 1980 to form the Health Effects
was challenged to adapt to the Institute (HEI). Funded jointly by
unprecedented regulation. the EPA and industry, HEI is a
non-partisan and not-for-profit
At the time, very little was known
organization committed to providing
about the effects of diesel emissions
high-quality, impartial, and relevant

HEALTH & SAFETY


on health. In response to the EPA’s
science regarding the effects of air
new regulation, then Cummins
pollution on health.
Chairman and CEO Henry Schacht
decided to form a consortium of HEI has funded more than
experts and interested parties to 250 studies in North America,

RIGHT ENVIRONMENT
objectively and independently study Europe, and Asia, producing important
the health effects of diesel emissions. research on carbon monoxide, air
toxics, nitrogen oxides, diesel exhaust,
Guided by the belief that all of society
ozone, particulate matter, and other
benefits from objective and rigorous
pollutants. The institute’s work has

GOVERNANCE
been published in over 200 research
Cummins and health effects experts discuss
the future of diesel emissions during a panel and special reports.
hosted by Cummins in Columbus, Indiana
(U.S.A.), in February 2015.

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SUSTAINABILITY PROGRESS REPORT // ENVIRONMENT // PARTNERSHIPS & POLICY

COVER STORY
ENVIRONMENT
Thirty-five years after the creation of evaluation of lifetime exposure measurement techniques of emissions large cities like Beijing where vehicle

INNOVATION
the institute, Cummins’ partnership to exhaust from new technology levels that are also used in Cummins’ emissions are the largest source of
with HEI is just as strong as it was diesel engines (NTDE). It found no own research and development of dangerous particulate matter.
at the institute’s creation. As it has evidence of carcinogenic lung tumors. emissions technology.
Other strategic topics for HEI include
grown, HEI’s work has continued The Advanced Collaborative Emissions

CORPORATE RESPONSIBILITY
“The lung tissue samples that showed studying the health effects of biofuels,
to investigate health effects in Study (ACES) also confirmed that the
clean results are really a credit to the the toxicity of gas direct injection in
anticipation of regulation. Cummins concentrations of particulate matter
engineers who were able to bring passenger vehicles (GDI), and
relies on the institute as a trusted and toxic air pollutants emitted from
emissions levels down so low,” examining the impact of traffic
source of information when NTDE are more than 90 percent lower
said Dan Greenbaum, HEI President, and port emissions on health.
working with regulators worldwide than emissions from traditional older
during a health effects panel discussion
to create clear, responsible and diesel engines (TDE).
hosted by Cummins in February 2015.
enforceable emission standards.

HEALTH & SAFETY


“This study is significant because
Even as improvements have been
“In the inimitable words of Henry it is the culmination of 30 years of TO LEARN MORE
made to diesel emissions, air quality
Schacht, ‘facts are friendly,’” said technology development to clean
continues to be a serious challenge in You can learn more about
Brian Mormino, Cummins Executive diesel exhaust,” said Cummins’
many parts of the world. According to the Health Effects Institute
Director of Worldwide Environmental Rich Wagner, Director of Global

RIGHT ENVIRONMENT
the World Health Organization, urban by going to its website at
Strategy and Compliance. “We aren’t Product Certification and Compliance.
outdoor air pollution is estimated to www.healtheffects.org.
afraid to ask the tough questions.
Cummins’ relationship with HEI is cause 3.1 million premature deaths
Our currency is credibility and credible There you can find its annual
mutually beneficial; the Company per year worldwide.
health effects science is the bedrock report, posted in February
often provides technical consultation
of good regulations.” To reflect this reality, HEI has expanded 2015, and its report on
and guidance to HEI studies. For

GOVERNANCE
its research in India and China where lifetime animal exposure to
The institute posed some tough example, Cummins served on the
ambient particulate matter pollution new technology diesel engine
questions in a recent study that was working group for the lifetime exposure
is the fourth largest disease burden exhaust, which found no
the first to conduct a comprehensive study and helped identify the study’s
causing premature death and in evidence of lung cancer.

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INTRODUCTION
SUSTAINABILITY PROGRESS REPORT //

INNOVATION
Aleksey Yezerets, Cummins Director of Catalyst
Technology at the Tech Center in Columbus,

COVER STORY
Indiana (U.S.A.), says there is a chemical plant
behind every Cummins engine.

INNOVATION’S KEY

ENVIRONMENT
ROLE AT CUMMINS
At Cummins, innovation is one of the Company’s six core

INNOVATION
values, calling on employees to “apply the creative ingenuity
necessary to make us better, faster, first.” That value is
almost tangible at any of Cummins’ global network of

CORPORATE RESPONSIBILITY
technical centers.

The Company’s Advanced Engineering Asked about the future of innovation


INNOVATION

and Technology organization looks out at Cummins, Dr. John Wall, Vice
six to 10 years and sometimes longer, President – Chief Technical Officer,
well upstream of product development. puts it this way:
The engineers and scientists who

HEALTH & SAFETY


“We need to know our markets
make up this group are discovering,
better than anyone else. We need
inventing and applying the
to know our technologies better
most advanced technologies
than anyone else. And we need
in engines, power generation and
to be able to combine these so
related products. Their work is vital

RIGHT ENVIRONMENT
we can differentiate our products
to Cummins’ sustainability.
in the eyes of our customers.”
The Company uses very powerful works with Indiana University’s Big Red
It’s a critical time for research and
THE CUMMINS COMMITMENT computer models to simulate II super computer, one of the fastest
technology. For years, increasingly
the harsh environment inside an research computers in the world.
stringent North American emissions In just the past five years, Cummins
engine and how an engine works
regulations have driven innovation at has more than doubled its investment

GOVERNANCE
Cummins researchers can study many
in real-world applications. To get
the Company. Now that engines have into research and development, design variables using these computer
the computing power it needs,
reached near zero emissions levels, increasing its contribution from $362 models before an engine is ever put
the Cummins Technical Center in
that’s not as true. million in 2009 to $754 million in 2014. in a test cell. That saves money on
Columbus, Indiana (U.S.A.), regularly

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INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // INNOVATION

“We are a global team. We benefit from the insights

COVER STORY
and talents of engineers all around the world who
work together to deliver innovative technologies
and products to our customers.”
DR. JOHN WALL

ENVIRONMENT
CUMMINS VICE PRESIDENT – CHIEF TECHNICAL OFFICER

fuel and other related expenses while The simulations can even account say “You have to love it.” Otherwise, Wayne Eckerle, Cummins Vice President

INNOVATION
of Research & Technology, talks to a reporter
also making it possible to develop for different driving styles – fast, an employee wouldn’t stay with it. from The Star in Indianapolis, Indiana (U.S.A.)
much more robust designs that simply slow, or a driver who is more erratic. Eckerle, by the way, has a Ph.D. about technology at the Company.

weren’t possible when the majority of in fluid mechanics.


Cummins is always studying design

CORPORATE RESPONSIBILITY
testing was conducted in a test cell.
advances. For example, it has virtual Cummins not only has mechanical and Over time, Cummins has developed
Computers today can simulate the reality available in technical centers in electrical engineers working in research an effective way to conduct its product
interaction between the engine and Columbus, Indiana; São Paulo, Brazil, and technology but also chemists who research. To help ensure general
the vehicle while running a specific and at its newest global tech center are exploring the chemical reactions research continues into areas such
route almost anywhere in the world, scheduled to be completed in India necessary to convert pollutants into as combustion and alternative fuels,
according to Tara Hemami, Director – by the end of 2015 (see page 73). something that can be safely emitted that work is covered by corporate
Systems Performance Analysis. into the atmosphere. funds. As an idea becomes ripe for

HEALTH & SAFETY


CUMMINS PEOPLE
product development, Eckerle says its
The most powerful computer models, “There is a chemical plant behind
funding is taken over by the applicable
of course, won’t get a company far if every engine,” said Aleksey Yezerets,
CUMMINS’ INVESTMENT IN
business unit at the Company.
it doesn’t have the right people using Cummins Director of Catalyst
RESEARCH & DEVELOPMENT
them. The Cummins research and Technology who works at the This is true not only in the United

RIGHT ENVIRONMENT
YEAR FUNDING Tech Center in Columbus.
technology team is smart, diverse States, but for Advanced Technology
2009 $362 million and dedicated to finding solutions Teams in India and China.
THE CUMMINS WAY
2010 $414 million for customers.
With fuel efficiency now getting more “We are a global team,” Wall said.
2011 $629 million
Today, most of the new hires in research attention, Cummins is researching all “We benefit from the insights and
2012 $728 million

GOVERNANCE
and technology for salaried positions kinds of alternative fuels as well as talents of engineers all around the
2013 $713 million have doctorates or master’s degrees. electrification. It’s also testing new world who work together to deliver

2014 $754 million The work is so complicated that Wayne processes such as 3-D printing and innovative technologies and products
Eckerle, Cummins Vice President its potential to produce lighter, more to our customers.”
of Research & Technology, likes to complex components.

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COVER STORY
JULIUS PERR AWARDS

ENVIRONMENT
Fifteen years ago, the U.S. Environmental Protection Agency inventors of Cummins’ technologies and that was beneficial for everybody,”
that provide great value to Currier said.
(EPA) mandated that beginning with the 2007 model year,
the Company.
pollution from heavy-duty highway vehicles would have to The Perr award is named for Dr. Julius

INNOVATION
The team, which was recognized at Perr, a Hungarian refugee who made
be reduced by more than 90 percent.
Cummins’ 2014 Technical Leaders his home in Indiana and spent 41 years
That requirement meant Cummins’ that worked on the effort the Conference, received a total of as a mechanical engineer at Cummins.

CORPORATE RESPONSIBILITY
engineers and scientists had to cut prestigious Dr. Julius Perr 13 patents for NOx reduction Dr. Perr submitted more than
oxides of nitrogen (NOx) in diesel Innovation Award. technologies and the fundamental 300 U.S. patents to improve engine
exhaust without compromising know-how developed during this technology and was named as inventor
“It was the experience of a career,”
power or price. project has since been used in all or co-inventor on 80 patents.
said chemist Neal Currier, a 22-year
Cummins products for emissions-
The result of their hard work: veteran of the Company. “These 13 individuals have carried on
critical engine applications.
13 patents that redefined the industry, Dr. Perr’s legacy by making Cummins
Currier was one of 13 Cummins
put cleaner trucks on the road years “We got cleaner trucks on the road stronger through innovation,” said

HEALTH & SAFETY


scientists and engineers who received
before they were required, and earned years before they were required, John Wall, Vice President and Chief
the Perr Award, given annually to the
every member of the Cummins team Technical Officer.

RIGHT ENVIRONMENT
Here are the Perr award winners and how
many of the 13 NOx reduction patents

GOVERNANCE
their names are listed on:

Mike Cunningham (7), Neal Currier (3),


Jim Fier (1), Sam Geckler (4), Lyle Kocher (2),
Wei Lu (1), Paul Miller (1), Sriram Popuri (5),
Mike Ruth (4), Brad Stroia (3), Stewart Sullivan (1),
Joan Wills (3), Alex Yezerets (2).

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COVER STORY
The virtual launch for the QSK95 generator

CUMMINS GOES series saved both money and jet fuel to get
people to the event.

VIRTUAL IN LAUNCH

ENVIRONMENT
OF QSK95 SERIES
When it came time to introduce the largest generator set

INNOVATION
Cummins has ever built, the Company opted for a more
environmentally friendly approach in keeping with the
product’s fuel-saving capabilities.

CORPORATE RESPONSIBILITY
FEATURES OF THE
Rather than invite potential customers, The only thing missing from the typical with more than 10 times the number
QSK95 SERIES
media and Company leaders to travel trade show experience? Tired feet – of attendees.
to the launch of the QSK95 generator and who misses that? The QSK95 Series generator sets
“We realized that we could
series, Cummins brought the launch are engineered with the highest
Cummins worked with the international showcase this powerful product
to anyone interested in the form of a kilowatt per square foot ratio in
company ON24 Virtual Environments and all of its attributes in a way that
digital trade show. their class, resulting in a smaller
to build the online launch for the saved the Company money and

HEALTH & SAFETY


footprint that achieves a 20 percent
In early November 2014, Cummins QSK95 Series. made it easier for people to be part
improvement in power density.
President and Chief Operating Officer of the announcement,” said Craig
More than 2,000 participants attended This means customers will need
Rich Freeland and other senior leaders Wilkins, who worked closely on
the event, which was followed by more less space in their facilities, which
unveiled the generator sets via three the launch and now serves as
than 500 expert-led group chats and lowers installed costs. And, in

RIGHT ENVIRONMENT
web presentations scheduled during Director of Corporate & Global
more than 400 private chats about multiple-generator applications,
convenient business hours around Strategic Accounts for Cummins
the generator set. fewer generators are required to
the world. Power Generation.
achieve the desired power output,
During planning, Cummins
Visitors could check out the generator The generator sets are engineered to resulting in substantial cost savings.
estimated the cost of transporting
in the virtual Exhibit Hall or talk with deliver reliable, mission-critical power
150 participants and executing

GOVERNANCE
Cummins employees and other visitors protection without interruption. Over
an in-person launch at more than
in the digital Networking Lounge. the course of 8,000 hours of operation,
$750,000. By comparison, the virtual
They could also watch presentations in the QSK95 Series can achieve fuel
launch cost less than $100,000 and
adjoining rooms about the generator or savings of more than $400,000.
saved a significant amount of jet fuel

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hear from the Company’s top leaders.
65
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // INNOVATION

COVER STORY
IN MYANMAR, CUMMINS

ENVIRONMENT
POWER GENERATION IS
CONNECTING A NATION

INNOVATION
TO THE WORLD
Imagine a nation where only 25 percent of the population has

CORPORATE RESPONSIBILITY
electricity and less than 10 percent have a mobile telephone.

Then, the government begins to shift The end result will be a nation
to a more democratic system, and with open, accessible lines
a nation with an extremely limited of communication.
infrastructure and no global reach
“With Cummins equipment
is suddenly open for business.

HEALTH & SAFETY


working on these cell towers, we are
Welcome to Myanmar, where empowering people in Myanmar to
Cummins Power Generation has been get connected to the rest of the world,”
working with Irrawaddy Green Towers said J.P. Singh, marketing manager
(IGT) since September 2014 to supply for the project. “Cummins has been

RIGHT ENVIRONMENT
battery hybrid and diesel generator developing this hybrid technology for
solutions sized from 8 kVA to 80 kVA years and is now working in close
with extra-large fuel tanks to power partnership with our customer in
hundreds of new cell phone tower Myanmar to deploy it in a way
sites. Two-thirds of those sites are off that will help millions of people.”

GOVERNANCE
the country’s insufficient power grid
and located in remote locations.

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66
INTRODUCTION
The battery-hybrid model supplied by
SUSTAINABILITY PROGRESS REPORT // INNOVATION

THE POWER
Cummins can cut the time a generator
must run by more than half, extending
OF CUMMINS its life by as much as two-thirds.

COVER STORY
Myanmar represents one of the total cost of ownership and ensuring Not only is Cummins technology the truck weighed too much. The
few remaining telecommunications uninterrupted operations. playing a key role in transforming team ultimately found an alternative.

ENVIRONMENT
frontiers, but the new government communications for the 60 million Anderson said teamwork is key to
The battery-hybrid model can cut the
wants to move quickly to expand people who live in Myanmar, but the getting through such challenges, and
time the generator must run by more
access, pushing to grow from conditions surrounding the installation small changes that can speed up the
than half, extending its life by as much
10 percent penetration earlier this of these power packages have forced process are enormously helpful.

INNOVATION
as two-thirds and significantly lowering
decade to 80 percent by 2016. Cummins to adapt in ways that will
diesel fuel usage and carbon dioxide That’s why engineers working on the
benefit the Company as it enters
IGT contracted with Cummins to (CO2) emissions. These attributes are Myanmar project added forklift slots
other markets with underdeveloped
supply and install a power package especially critical in a nation with a and eye bolts to the generators and

CORPORATE RESPONSIBILITY
infrastructures.
that includes a generator, hybrid nascent and unpredictable power grid. cabinets to make transportation more
control and renewable battery pack. Small changes can make an installation uniform and efficient. These design
“Leveraging our proven experience in
The Company is also working with much faster as the components travel changes have since been used for
hybrid power, we designed a hybrid
IGT to potentially deploy additional from a central warehouse to a remote a rollout in Ethiopia and will be
product specifically for the telecom
renewable technologies. project site where local residents must deployed in other challenging
industry to provide the best value
sometimes be enlisted to clear a path territories in the future.
Cummins’ advanced hybrid power to our customers,” said Alan Zhao,
just to ensure a truck can access the

HEALTH & SAFETY


systems are engineered to optimize director of the telecom business “We worked hard to develop
installation site.
capital expenditure while lowering at Cummins. technologies that are helping to
Cummins after-market engineer open up the telecommunication
Kyle Anderson, who has overseen market and connect a nation to
a number of Myanmar installations the world,” Zhao said.

RIGHT ENVIRONMENT
in country, described the logistics of
“Through that process, we’re also
deploying materials for hundreds of
learning on a continuous journey
sites as “a little bit overwhelming.”
how to make our product better and
Anderson recalled one installation prepare for future projects,” he added.
where a generator set couldn’t be “Every challenge is an opportunity

GOVERNANCE
transported over a bridge because to develop solutions that make us
stronger as a company, enable our
Cummins learned many lessons working
customers to grow and help make
to power cell phone towers in remote
parts of Myanmar. the world a greener place.”

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INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // INNOVATION

COVER STORY
NEW NISSAN TRUCK INCLUDES CUMMINS’

ENVIRONMENT
INNOVATION, COMMITMENT TO EXCELLENCE
When you turn the key on the all-new 2016 Nissan

INNOVATION
TITAN XD powered by the Cummins 5.0L V8
Turbo Diesel, it almost purrs to life.

CORPORATE RESPONSIBILITY
Don’t be fooled. The TITAN XD is all Nissan Sales & Marketing,
tiger, no housecat. Service & Parts, Nissan U.S.A.

The powerful engine, a clean sheet The new pickup made its much-
design, was also developed to meet anticipated debut at the 2015 North
the latest emissions regulations using American International Auto Show in
Cummins’ most recent innovations: Detroit, Michigan (U.S.A.), followed by
sophisticated turbocharger technology, a celebratory event at the Columbus

HEALTH & SAFETY


state-of-the-art filters and Selective Engine Plant in January 2015, where
Catalytic Reduction (SCR) technology the engines will be made.
that reduces emissions.
Bringing the TITAN XD to life, though,
The result: a strong, fuel-conscious has been a decade-long journey and

RIGHT ENVIRONMENT
diesel engine to power Nissan’s light- a lesson in perseverance.
duty pickup truck line.
First, some background. It served as the Company’s President and COO Rich Freeland praises
the dedication of Cummins employees in the
“There is no question that the new The Columbus Engine Plant headquarters in the 1920s and has
development of the 5.0L V8 Turbo Diesel engine.
TITAN will turn heads, and with the (CEP) was originally built around been expanded 26 times, including
available Cummins 5.0L V8 Turbo a two-story Civil War-era house extensive work in the 1940s during

GOVERNANCE
Diesel we expect to win new fans and purchased by Cummins co-founders World War II. The building has been at
attract buyers looking for this unique Clessie Cummins and W.G. Irwin in the center of some of the Company’s
configuration,” said Fred Diaz, Columbus, Indiana (U.S.A.). most important developments.
Divisional Vice President,

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INTRODUCTION
COVER STORY
ABOUT THE ENGINE

ENVIRONMENT
Cummins 5.0L V8 Turbo Diesel
engine has been optimized for
the next generation TITAN XD.
Cummins also is developing

INNOVATION
a version of the engine for
commercial vehicle customers. “It’s difficult to walk from one end of “We were faced with the recession in The 5.0L V8 Turbo Diesel success
this plant to the other without feeling 2009, and we came out of that with story would not have been possible
This new engine will offer the right
a little nostalgic,” said Jeff Caldwell, a great engine, a great plant, great without a Southern Indiana workforce
balance of power, performance

CORPORATE RESPONSIBILITY
General Manager of Cummins Global people,” Freeland said. “We were and leadership that never gave up.
and fuel economy while delivering
Pickup and Van business. missing one thing: the customer.”
the dependability Cummins Freeland highlighted Cummins’
customers expect. With a torque About 15 years ago, however, Enter Nissan and the TITAN. commitment to its employees at
rating of 555 (lb-ft) and more than Cummins stopped making engines Discussions actually began in 2007, the TITAN XD launch in Columbus.
310 horsepower, the Cummins at the plant for a variety of reasons. but it wasn’t until August 2013 before
“We are committed to winning and
5.0L V8 Turbo Diesel will provide the partnership became official.
“It was, quite frankly, a sad day for growing in Southern Indiana, and we’re
light-truck customers the

HEALTH & SAFETY


me,” said Cummins President and “This is an exciting announcement committed to do it with our two unions.
combination of towing capacity
Chief Operating Officer Rich Freeland, for our Cummins team,” Cummins Other companies are running away
and mileage that is expected
a 35-year Cummins employee, Chairman and CEO Tom Linebarger from that, we’re running to it because
in the highly competitive
speaking at the January ceremony. said at the time. “We are bringing our we have terrific leadership and a terrific
North American truck market.
“I always felt it left a hole in the heart innovation and latest technology in workforce here,” Freeland said.

RIGHT ENVIRONMENT
The Cummins 5.0L V8 Turbo of this company.” engines and aftertreatment products
Caldwell, the pickup and van general
Diesel will be built at the to a new segment of customers.”
Until the TITAN XD, that is. manager, lauded employees for
Columbus Engine Plant in
Eighteen months and 150 new jobs sticking with the project and seeing
Columbus, Indiana (U.S.A.). In 2006, the Company announced
later, hundreds of Columbus Engine it through to fruition.
This plant has the latest plans to build a light-duty diesel
Plant workers looked on as the truck

GOVERNANCE
technological innovations engine, but then the global economic “We’ve looked back. We’ve looked
they’d worked so hard to bring to life
to continue the 90-plus-year downturn stalled the project. forward. Here we are today, and this
finally rolled onto the shop floor.
tradition of building the highest is another big day in the history of
quality Cummins engines. the CEP,” Caldwell said.

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COVER STORY
CUMMINS’ ETHOS ENGINE

ENVIRONMENT
SCORES BIG REDUCTIONS
IN CARBON DIOXIDE

INNOVATION
It may lack a sleek, aerodynamic design, but Cummins’
ETHOS 2.8L Demonstration Vehicle still turned heads like

CORPORATE RESPONSIBILITY
a sports car as it cruised around California’s capital during
the summer of 2014.

Built in partnership with the California “The Cummins ETHOS engine, Using corn derived E-85, the high- pathway for future fuels because
Energy Commission (CEC), the test developed through a research thermal efficiency and power-to-weight non-food feed stocks are dramatically
vehicle’s engine and powertrain partnership with CEC, clearly ratio of the engine resulted in 50 to more abundant. Two cellulosic plants
reduced carbon dioxide (CO2 ) demonstrates that by combining 58 percent lower well-to-wheels CO2 started up in 2014 in North America

HEALTH & SAFETY


emissions by as much as 80 percent innovative engine design and emissions compared with the gasoline and another was nearing completion
during testing compared to a baseline, combustion approaches with low- engine baseline. Using second- in 2015.
gasoline-powered, medium-duty truck. carbon alternative fuels, we can generation, cellulosic derived E-85,
The Cummins ETHOS 2.8L engine
determine a path to significant the powertrain’s efficiency features
CO2 is the primary greenhouse also incorporates an integrated stop-
reductions in greenhouse gas delivered 75 percent to 80 percent

RIGHT ENVIRONMENT
gas (GHG) emitted through human start system, which further reduces
emissions,” said Wayne Eckerle, lower well-to-wheels CO2 emissions,
activities, accounting for the vast fuel consumption and emissions.
Cummins Vice President – depending on the drive cycle.
majority of GHG emissions in the In stop-start mode, the engine shuts
Research and Technology.
United States. The ETHOS 2.8L Cellulosic E-85 uses non-edible down after the vehicle comes to a
engine is designed to use E-85, The engine also delivered the power plant sources so it is less intensive to complete stop and the brake pedal
a clean-burning blend of 85 percent (up to 250 horsepower) and peak produce in terms of land use, tilling, remains depressed. As the driver’s

GOVERNANCE
ethanol and 15 percent gasoline, torque (up to 450 lb.-ft.) of gasoline fertilizing and harvesting than corn- foot is lifted from the brake, the
at diesel-like cylinder pressures to and diesel engines nearly twice its based E-85. While not available in system automatically starts the
take full advantage of the favorable 2.8-liter displacement. high volumes today, cellulosic ethanol engine to seamlessly allow
combustion attributes of the biofuel. represents a promising production acceleration from a stop.

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COVER STORY
ENVIRONMENT
INNOVATION
CORPORATE RESPONSIBILITY
The Cummins ETHOS 2.8L engine was tested Additional partners in the project While the ETHOS project is over, it is There are many factors involved such
in California during the summer of 2014.
included Valvoline, which provided still generating a lot of inquiries despite as the availability of ethanol in general
NextGen engine oils specifically relatively low prices for diesel which and the availability of the fuel from
designed for lower CO2 emissions, has removed much of the cost benefits non-edible sources. That’s the nature

HEALTH & SAFETY


Cummins’ system controls, along and Freightliner Custom Chassis, of ethanol. Meanwhile, product of Cummins’s Strategic Principle
with a robust starter, smart alternator which provided a prototype MT45 developers are looking for ways to to “Lead in Critical Technologies.”
and sensors, handle the additional Class 5 step-van vehicle. incorporate the many lessons from It requires looking 5 to 10 years ahead.
stop-start duty cycle and maintain ETHOS into future product designs.
A final, on-road validation test phase “It’s not unusual for a project like

RIGHT ENVIRONMENT
reliable operation over the life of the
took place in July 2014 in Sacramento, Samuel Geckler, Director – Advanced this to be done and for people to
engine. Cummins worked closely with
California (U.S.A.), managed by Systems Integration at the Cummins be working on this technology for
Allison Transmission to integrate the
Cummins Pacific, the California Technical Center in Columbus, the next 10 years,” Geckler said.
2000 Series transmission for smooth
and Hawaii distributor for Cummins. Indiana (U.S.A.), calls the ETHOS “But I think we have learned a
and efficient stop-start operation.
The project team made a final report to project “just outstanding.” But tremendous amount from ETHOS.”
The transmission is equipped with

GOVERNANCE
the California Energy Board in August he says it can take some time for
hydraulic circulation features to ensure
of 2014 and prepared an academic commercialization to take place
smooth operation and quick vehicle
paper on ETHOS in October of 2014. on any initiative of this nature.
launch during stop-start driving.

FINANCIAL
71
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // INNOVATION

COVER STORY
UPDATE: SUPERTRUCK’S NEW TRIP

ENVIRONMENT
After meeting the president and hosting dignitaries at the Company, a division of PACCAR, to When U.S. President Barack
lead one of several SuperTruck teams. Obama called for new fuel-efficiency
U.S. Department of Energy (DOE), the Cummins-Peterbilt
Their team had several objectives as standards for medium- and heavy-duty
SuperTruck is finally getting a rest.

INNOVATION
part of the public-private partnership, commercial vehicles in 2014, he did it
including demonstration of a clean in front of the SuperTruck developed
But the most significant part of its Cummins Principal Investigator
and highly efficient engine with an by Cummins and Peterbilt.
more than four-year journey could for SuperTruck. “This has been
advanced waste heat recovery system

CORPORATE RESPONSIBILITY
just be starting. an extremely valuable project.” Work on SuperTruck wrapped up
and an aerodynamic tractor and trailer.
in a test cell. The final objective
“We learned a tremendous amount Done in partnership with the DOE,
The Cummins-Peterbilt SuperTruck was developing a way for the engine
not just about features like waste SuperTruck started in 2012 to spur
made headlines in February of 2014 to reach 55 percent Brake Thermal
heat recovery but about the base innovation in the industry. Cummins
when the companies announced it Efficiency (BTE), a key measure of
engine itself,” said David Koeberlein, partnered with the Peterbilt Motors
achieved 10.7 miles per gallon (mpg) engine efficiency. The engine went from
under real-world driving conditions. 42 to 50 percent BTE during on-road

HEALTH & SAFETY


At one time, that would have been testing. The Cummins team reached
considered impossible. Most trucks the 55 percent goal and work was
today get between about 5.5 and completed in June 2014.
6.5 mpg.
It remains to be seen how many of

RIGHT ENVIRONMENT
Using the industry leading Peterbilt the SuperTruck’s features become
Model 579 tractor, the Cummins- commercially available, but Koeberlein
Peterbilt SuperTruck was powered by says elements are already working
an engine based on the Company’s their way into product development.
ISX15. It converted exhaust heat into
While it may no longer be on the road,
power delivered to the crankshaft,

GOVERNANCE
he says SuperTruck’s influence could
used route information to optimize fuel
be around for years to come.
use, and included many other features.

FINANCIAL
President Barack Obama called for new fuel-efficiency standards for
trucks in front of the SuperTruck developed by Cummins and Peterbilt.
72
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // INNOVATION

COVER STORY
NEW INDIA TECH CENTER

ENVIRONMENT
NEARS COMPLETION
The Cummins Technical Center India is
In Cummins’ journey to becoming a global company from Some of the unique architectural
scheduled to become fully operational in 2016.

INNOVATION
features of the design, which
a multinational, there is an increased focus on developing
also strongly promote the »» Energy-efficient
India as a global engineering hub for undertaking green building concept, are: air-conditioning system.
research and development for the Company worldwide. »» Integration of test cells, labs and »» Conducive design allowing easy

CORPORATE RESPONSIBILITY
office space to create synergy accessibility to the differently-abled.
Against this backdrop, the Cummins A global, cross business unit
and smoothen interaction and
Technical Center India (CTCI), is being technical center, CTCI will provide »» Collaborative work spaces
collaboration between all entities.
established in Pune, Maharashtra, India. shared engineering services as well resulting in optimization of space.
Offices and social areas are well
as business unit specific development »» Rain water harvesting.
This new building will co-locate integrated with labs and test cells.
capabilities and resources. A three-
laboratories, engineering facilities and »» Recycled STP (Sewage
level building, CTCI, once completed, »» Large atria with green spines
engineers from across India. Geared Treatment Plant) water for

HEALTH & SAFETY


will include 36 engine test cells and introduced to allow natural light
toward strengthening the Company’s gardening and flushing.
various labs along with engine-build within the building, thus reducing
capabilities to design technologies for
and tear-down space and other areas energy consumption. Engineers will work together in
the future, this Center will house over
essential to technology and product »» The combination of glass and clay leveraging their talent to bring
2,500 engineers and is expected to
development, verification and tiles for the external façade, which about accelerated growth while

RIGHT ENVIRONMENT
become fully operational in 2016.
validation work. insulates the building from external improving productivity, profitability
heat. Reflective surface for flat roofs and maximizing customer
to reduce heat gain. responsiveness.

»» Use of recycled material (e.g. bricks With a vision to be a globally integrated


made of fly ash) and use of solar technical organization that serves the

GOVERNANCE
energy for hot water at cafeteria, needs of all business, both in India
street lights, etc. and worldwide, the CTCI will be
an extension of the Company’s
One Cummins approach.

FINANCIAL
73
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT //

CORPORATE RESPONSIBILITY

COVER STORY
EMPLOYEES
TAKE CORPORATE

ENVIRONMENT
RESPONSIBILITY
VALUE TO HEART

INNOVATION
Cummins employees continued to leverage engagement
to build stronger communities in many ways in 2014, from

CORPORATE RESPONSIBILITY
recycling tires in Mexico to empowering students to speak
CORPORATE RESPONSIBILITY

out on environmental policy in Dubai, to helping women


Cummins employees clean a beach in Callao, Peru, as part of an Environmental Challenge project that also
develop technical skills in Turkey. included an educational campaign on the importance of clean beaches and healthy ocean ecosystems.

Cummins’ Corporate Responsibility The Company believes building In 2014, more than 50,000 Company The Company is keeping its EEEC
value calls on the Company and its stronger communities ultimately builds employees, joint-venture employees 2015 goal at 70 percent participation
employees to “serve and improve stronger markets for its products. This and Cummins contractors reported so it can put more focus on improving

HEALTH & SAFETY


the communities in which we live.” philosophy dates back to visionary devoting some 364,000 hours to the quality of that engagement.
CEO J. Irwin Miller, who helped community involvement work as
Cummins has more than 200 The Environmental Challenge was
organize Dr. Martin Luther King Jr.’s part of the EEEC program.
employee-led Community Involvement created in 2009 as part of the
1963 March on Washington, D.C. (see
Teams (CITs) around the world that Participation in the EEEC program celebration of the Company’s 90th
Cummins history timeline, page 17).

RIGHT ENVIRONMENT
organize most of the Company’s increased from 68 percent of eligible birthday. The Challenge is a friendly,
community service work. Cummins The Every Employee Every Community employees and contractors in 2013 global competition among community
encourages employees to focus on (EEEC) program provides employees to 73 percent in 2014. Meanwhile, service projects with an environmental
three global priority areas where they with at least four hours of Company engagement in another of the component. Project teams can win
can add knowledge, skills and passion: time to engage in community service Company’s major community up to $10,000 from the Cummins
work. Established in 2005, EEEC involvement programs, the Foundation for the charitable entity

GOVERNANCE
»» Education
continues to serve as a foundational Environmental Challenge, or non-governmental organization
»» Environment
building block for Cummins to increased by 18 percent in 2014 of their choice.
»» Social justice / equality achieve community impact. compared to the previous year.
of opportunity

FINANCIAL
74
INTRODUCTION
Education efforts connected to

THE POWER Cummins’ Environmental Challenge


projects in 2014 reached
OF CUMMINS 250,000 adults and children.

COVER STORY
GROWING IMPACT In addition to the increases in Although Cummins’ current metrics development, coalition building and
Cummins’ Environmental Challenge has participation, the amount of greenhouse focus on employee engagement mobilizing their teams to address

ENVIRONMENT
removed an increasing amount of greenhouse
gases (GHGs). Here’s a look at the estimated
gas (GHG) removed as a result of the through EEEC, the Company has tough community issues.”
amount in thousands of metric tons. Environmental Challenge also rose challenged its leaders to establish
Overall, Levett said 2014 was a very
Year GHGs removed from an estimated 19,000 metric tons more impactful goals and metrics by
successful year.
in 2013, the previous record, to about region that will both help focus and

INNOVATION
2009 0.5
23,700 metric tons in 2014 (page 77). achieve greater impact from Cummins’ “I think these (participation) numbers
2010 0.7
community involvement efforts. illustrate the value we put on growing
“Community service initiatives, like
2011 3.6 employee engagement to help solve
the Environmental Challenge, create “At Cummins, leaders can be one of

CORPORATE RESPONSIBILITY
2012 4.3 problems in our communities,” Levett
a global footprint that allows Cummins the strongest enablers for encouraging
said. “Our employees take our core
2013 19.0 employees to use their skills to achieve employee engagement and driving
value very seriously and understand
2014 22.4 impact and results,” said Gwen impact in our communities,” said Mark
that their work is never truly done.”
Langley, Cummins Director of Global Levett, Vice President of Corporate
Community Engagement. “These Responsibility and CEO of the

GROWING ENGAGEMENT programs help us build stronger Cummins Foundation. “In 2014,
Cummins College of Engineering for Women in
communities, and attract and retain we saw an increase in leaders who

HEALTH & SAFETY


Cummins’ Environmental Challenge has seen India serves an underrepresented demographic
a growing level of employee engagement the kind of employees we need to were meaningfully engaged in policy in the engineering field.
since it was initiated in 2009. Here’s a look
at the number of employees participating succeed as a company.”
measured in thousands.

Year Participating employees

RIGHT ENVIRONMENT
2009 3.2

2010 6.7

2011 10.0

2012 12.0

GOVERNANCE
2013 11.5

2014 13.6

FINANCIAL
75
INTRODUCTION
ENVIRONMENTAL CHALLENGE

BY THE NUMBERS

COVER STORY
Here’s a look at some of the numbers generated
UNITED WAY SIGNIFICANT PARTNERSHIPS
by Cummins’ Environmental Challenge program.

ENVIRONMENT
Donations from Cummins Cummins continued financial support

250,000 10,000
employees to the United Way in for several significant partnerships in
North America also increased from 2014-2015, addressing a range of
about $2.8 million in 2013 to nearly community needs.
Number of adults or children reached Maximum amount in dollars awarded

INNOVATION
$3.12 million in 2014.
by an education component of the by the Cummins Foundation to each The Company, for example, supports

2014 Environmental Challenge projects. of the 19 Environmental Challenge The United Way’s mission is to improve the Cummins College of Engineering

winners for use by the charitable lives by mobilizing communities to for Women in Pune and Nagpur, India,
address their key concerns. The which serves women who have long

CORPORATE RESPONSIBILITY
82,700
or non-governmental group of the
winners’ choice. organization raises money to support been underrepresented in the field of
community organizations and launches engineering. Cummins also continues
its own initiatives in areas such as to support EARTH University in

8,000
Trees planted as part of 2014
Environmental Challenge projects. education and social services. Costa Rica, which teaches sustainable
agriculture to students from around
Because Cummins matches the gifts
the world.

63,466
Estimated tons of garbage diverted
made by its employees to the United

HEALTH & SAFETY


from landfills as part of 2014
Way, more than $6 million was donated To see a list of organizations that
Environmental Challenge projects.
to help communities in North America. receive major grants from the
Hours devoted to 2014 Environmental
Nearly 6,000 of the 12,000 eligible Company or its foundations,

5,500
Challenge projects at Cummins.
employees participated. Employees in please go to page 89.
Clovis, New Mexico; Elkhart, Indiana;

RIGHT ENVIRONMENT
22,370
Looking ahead, Levett says while he
and Miramar, Florida, had 100 percent
Olympic-sized swimming pools was pleased with 2014, Cummins will
participation rates.
of water conserved or made fit for continue to challenge its leaders and
Estimated metric tons of greenhouse use as part of 2014 Environmental Cummins has also launched matching- employees in 2015.
gas reduced by Environmental Challenge projects. gift programs over the past five years in
“Last year (2014) was a very good year

GOVERNANCE
Challenge projects. China, India and parts of Asia-Pacific.
for helping our Cummins communities
These initiatives allow employees
grow stronger,” Levett said. “We feel
outside North America to also support
that our continued focus on defining
local non-profits whose causes are
impact and related metrics will improve
meaningful to them.

FINANCIAL
our communities that much more.”
76
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // CORPORATE RESPONSIBILITY

PROJECTS BY REGION

COVER STORY
In 2014, 62 teams from 17 countries
developed projects to improve the environment
in their communities, including first-time entries
from new participating locations, including

ENVIRONMENTAL CHALLENGE Singapore and Dubai. Here’s a look at a


breakdown of the projects by region.

ENVIRONMENT
ENJOYS ANOTHER SUCCESSFUL YEAR
Cummins employees included an education

INNOVATION
component in their cook stove project in China
to warn people about the dangers of indoor air
pollution from inefficient cook stoves.

CORPORATE RESPONSIBILITY
About 16 percent of the 2014
Challenge projects involved water
conservation or protection. Projects
in the Challenge conserved or made
fit for use about 3.6 billion gallons of
water, enough to fill 5,500 Olympic-
size swimming pools. REGION

HEALTH & SAFETY


China 29 percent
The Environmental Challenge is a
friendly, global competition where Europe 19 percent
Cummins employees take their
For the sixth year in a row, Cummins employees United States 18 percent
skills into the community to address

RIGHT ENVIRONMENT
demonstrated their passion for the environment through the environmental problems. Community India 14 percent
service projects are evaluated based
Company’s Environmental Challenge. The numbers say it all. South America 8 percent
on their level of employee engagement,
More than 13,600 employees Employees donated more than environmental impact and ingenuity. Mexico 8 percent
working on 62 teams in 17 countries 63,000 hours, planted more than
The winning projects, selected by a panel Middle East 2 percent

GOVERNANCE
removed an estimated 22,370 tons 82,000 trees and diverted more than
of experts, receive up to $10,000 each
of greenhouse gases (GHGs), a 8,000 tons of garbage from landfills. South Pacific 2 percent
for the charitable or non-governmental
record amount equivalent to taking About 55 percent of the Challenge
organization of their choice. But the
4,709 vehicles off the road each year projects had at least some educational
real winner is the environment.

FINANCIAL
or planting or saving 573,584 trees. component, reaching more than
250,000 children and adults. 77
INTRODUCTION
The Cummins team takes a break from
their efforts to help La Pila, Mexico,
better manage its waste.

COVER STORY
educational model called The “Zero Waste Management”
“Green Schools” in six schools in team has lofty goals for the program.

ENVIRONMENT
La Pila. Shop-floor employees taught In 2015, it hopes to increase the
more than 2,000 students about the number of families involved in the
environment and helped them develop Green Schools program from 688
a system for separating waste into to 860 and spread the program from

INNOVATION
recycling stations at their school. La Pila to surrounding communities.

Next, employees held an environmental


Here’s a closer look at three of the to raise awareness about the benefits
fair and neighborhood cleanup to
WATER:

CORPORATE RESPONSIBILITY
19 global project winners, each with
a different focus either on waste,
of waste management and recycling
in nearby La Pila.
promote recycling in the community. EVERY DROP
water or energy. Finally, employees helped set up a
COUNTS IN
CGT’s project, “Zero Waste Management,”
recycling program to reduce trash in NANDAL VILLAGE
WASTE: established a framework for a public
La Pila. When the system is entirely in
waste collection service and promoted Water is fundamental for health,
BECOMING waste responsibility through a public
place, an estimated 74.7 tons of waste
sanitation, agriculture and economic
RESPONSIBLE campaign called “I am responsible
will be recycled each year. Because
prosperity, but just a few years ago,

HEALTH & SAFETY


recycling reduces the demand for
FOR THEIR TRASH for my waste.”
raw materials, the project will also
the people of Nandal village near the
Cummins’ Megasite in Phaltan, India,
In La Pila, Mexico, it’s not uncommon “Many of La Pila’s residents weren’t save an estimated 54,000 gallons
did not have a reliable supply to live
to find trash littering the street, committed to maintaining the health of water and 130 metric tons of
healthy, productive lives.
sidewalks and parks. On average, of their community, which is why our carbon dioxide (CO2 ) per year. That’s

RIGHT ENVIRONMENT
each resident of La Pila generates public campaign centered on individual the equivalent of removing 28 cars “Nandal is a drought-prone area and
800 grams of waste per day, of which responsibility,” said Cristina Nava, from the road or planting 3,367 trees. its people faced severe water scarcity,”
at least 500 grams could be recycled. Corporate Responsibility Leader for
A new reservoir is helping India’s Nandal
The project’s community partner,
Mexico and Cummins’ Central America village address its water scarcities.
The Community Involvement SEGAM, the Department of Ecology
Area Business Organization (ABO).
Team (CIT) at Cummins Generator and Environmental Management in

GOVERNANCE
Technologies (CGT) in San Luis Potosí, The project used a phased approach San Luis Potosí, will maintain the
Mexico, decided to use the 2014 to address La Pila’s trash problem. recycling process to ensure the
Environmental Challenge as a way First, an employee team established an initiative is sustainable.

FINANCIAL
78
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // CORPORATE RESPONSIBILITY

A woman uses one of the new cook stoves

COVER STORY
in China provided as part of a Cummins
Environmental Challenge project.

said Soujanya Veguru, Corporate organizations, the project conserved


Responsibility Senior Specialist more than 21 million gallons of water,

ENVIRONMENT
at Cummins India. “Villagers were the equivalent of nearly 32 Olympic-
dependent on regular water deliveries size pools. Tankers are no longer
to meet day-to-day water needs.” needed to supply water, reducing
fuel and greenhouse gas emissions

INNOVATION
The dire community problem required
from the weekly truck deliveries.
an ambitious response. Three years
later, a team of Cummins employees For villagers, these improvements
installing cleaner, more efficient of Cummins employees and multiple
succeeded not only in improving mean their basic drinking water

CORPORATE RESPONSIBILITY
cook stoves in 200 homes. community partners. The Global
access to water for the village, but also and sanitation needs are now being
Environmental Institute (GEI), the
in completely off-setting the amount addressed and water is available to “A cook stove not only improves the
China Alliance for Clean Stoves
of water used by the Company’s own support agriculture and livestock. livelihoods of villagers, it also reduces
(CACS) and the Beijing University
operations in the area (page 54). carbon dioxide (CO2 ) and particulate
School of Chemical Technology
The Megasite is home to several ENERGY: matter emissions that result from
have been critical to ensuring the
traditional cooking methods,” said
Cummins plants.
THE PERILS Queenie Wang, the Project Leader
project’s success and sustainability.

HEALTH & SAFETY


More than 800 Cummins employees OF INDOOR for this Environmental Challenge The 120 Cummins Emission Solutions
went to work installing rain harvesting
systems, fixing leaks, implementing
AIR POLLUTION winning project. Community Involvement Team (CIT)
members who worked on this effort
drip irrigation and building two dams Some 500,000 people die every year Modern cook stoves produce
don’t plan to stop. In 2015, Wang and
to manage water for nine villages in rural China as a result of indoor air environmental benefits and families can

RIGHT ENVIRONMENT
her team have already initiated steps to
surrounding the Megasite. pollution. Many Chinese families burn save money, too. By using cornstalks
install an additional 2,000 cook stoves
coal inside their homes while cooking. instead of coal for cooking fuel in new,
More than 30,000 students were in the neighboring county of Ruicheng.
The lack of ventilation has a significant more efficient stoves, two metric tons
educated about water pollution
impact on the air quality inside and of CO2 are saved per family each year. Along with this planned expansion,
and water conservation practices,
outside of their kitchens. Each family can also expect to save CIT members are adding environmental
creating a ripple effect moving

GOVERNANCE
around 400 Renminbi (about $64). education classes in 10 schools to
beyond the classroom into homes Cummins employees leading an
the cook stove project. More than
and neighborhoods. Environmental Challenge project in This project began in 2012 and
500 students have already
Yangquan, China, have worked for leverages the technical knowledge
In partnership with community schools, participated in these classes.
two years to alleviate this problem by

FINANCIAL
local leaders and non-governmental
79
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // CORPORATE RESPONSIBILITY

COVER STORY
ENVIRONMENTAL BEACH CLEANUP ECOWATER
SCHOOL IN

ENVIRONMENT
CHALLENGE WINNERS
Employees cleaned beaches
in Callao, Peru, and initiated
MAGANG
an education campaign on the
This employee project included digging
In the 2014 Environmental Challenge, there were nine importance of clean beaches

INNOVATION
a new well for a school in Xiangyang,
and healthy ocean ecosystems.
winning projects from China, six from India, two from China, establishing a rain water
the United States and one each from Mexico and Peru. GREEN MACHINE harvesting system and teaching students

Here’s a brief look at each project: the importance of using water wisely.

CORPORATE RESPONSIBILITY
Cummins’ Distribution Business in
North America organized a competition
SUSTAINING
ZERO WASTE EAGLE among distributors to see who could
KOTHRUD
MANAGEMENT – CREEK PARK have the biggest waste cleanup.
Eight teams participated, stretching PLANT WATER
FIRST PHASE This project reopened a cove in a from Fredericton, New Brunswick,
NEUTRALITY
reservoir in Indianapolis, Indiana Canada, to Honolulu, Hawaii (U.S.A.).
This project is establishing a “waste
(U.S.A.), which provides the city This initiative in Pune, India, took a

HEALTH & SAFETY


separation culture” in the La Pila
suburb near Cummins operations in
drinking water. Employees removed TOWARDS A three-pronged approach to improving
water supplies in the area, helping to
San Luis Potosí, Mexico, to increase
invasive species and planted native
plants and trees.
WATER NEUTRAL maintain bodies of water, conserving
recycling and waste management.
MEGASITE water within Cummins facilities and

RIGHT ENVIRONMENT
This initiative focused on creating facilitating education about water

and maintaining water resources in conservation in surrounding

and around Cummins’ Megasite in communities.

Phaltan, India. Employees educated


villages and schools on the importance
TETRA PAK
of water conservation. RECYCLE

GOVERNANCE
Cummins employees in Guangzhou,
Cummins employees in Indianapolis, Indiana China, developed a recycling program
(U.S.A.) removed invasive species to open
up a cove at Eagle Creek Reservoir.
for beverage cartons, working with

FINANCIAL
primary and middle school students.
80
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // CORPORATE RESPONSIBILITY

COVER STORY
EMPOWERING PROTECTING
THE UNDER- THE HAN RIVER

ENVIRONMENT
PRIVILEGED This project in Xiangyang, China,
Cummins employees worked established a biogas plant at Cummins employees help farmers reuse wasted straw in Shanghai, China.

INNOVATION
with low-income individuals to a livestock farm near the Han
help them save energy and make River, providing cooking gas for IMPROVING TOWARDS WATER
other environmental improvements 240 families and a cleaner alternative
in Pune and Phaltan, India. to discharging waste into the river.
THE LUOJIAGOU NEUTRALITY
STREAM

CORPORATE RESPONSIBILITY
Cummins employees in Dewas, India,
COACH NATURE ANGEL This initiative in Chongqing, China,
implemented a multi-faceted water

THEM YOUNG PROJECT worked with families along the Luojiagou


conservation project, including the
construction of soak pits to improve
Stream to conserve water and reduce
This project involved various sites This initiative by Cummins
water harvesting and ensure the
waste discharged into the stream.
in India and was a continuation employees in Shanghai, China,
availability of potable water
of an effort to spread education built a campus garden and taught
CLEAN STOVE throughout the year.

HEALTH & SAFETY


about environmental conservation more than 500 migrant children
to 300,000 school children about the importance of protecting PROJECT RIVER
across the country. the environment. Based in Beijing, China, this initiative
ECOSYSTEM
distributed 200 clean cook stoves
GREEN HOPE GOLDEN STRAW to primarily rural residents subjected
RESTORATION

RIGHT ENVIRONMENT
ENVIRONMENTAL Employees in Shanghai, China, to pollutants from inefficient stoves. PROJECT
EDUCATION continued a project to reduce Eventually, another 2,000 stoves
Employees in Shanghai, China, used
the burning of straw and other will be distributed.
ecological technology to treat water
This initiative in Beijing, China,
agricultural waste by helping farmers
drained from a polluted river so it could
established an environmental
reuse straw to plant mushrooms SOLID WASTE be used safely for street cleaning and
education program in a school
MANAGEMENT

GOVERNANCE
and make handicrafts, bringing
the irrigation of nearby parks.
for migrant children who
them additional income.
normally wouldn’t have access This initiative by Cummins employees
to environmental curriculum. seeks to promote waste reduction
and recycling in Pune, India.

FINANCIAL
81
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // CORPORATE RESPONSIBILITY

COVER STORY
TECHNICAL EDUCATION PROGRAM INCREASES

ENVIRONMENT
OPPORTUNITIES FOR WOMEN IN TURKEY
There’s a growing gap between the increasingly technical among employers that need a “Pairing students with experts working

INNOVATION
skilled workforce,” said Mary Titsworth in their field of study makes the end
jobs available at companies like Cummins and the number
Chandler, who leads Global Strategic result of this program more tangible,”
of people who have the skills to succeed in those jobs. Corporate Responsibility Programs Chandler said.
Schools across the globe simply aren’t teaching the for Cummins.

CORPORATE RESPONSIBILITY
The global TEC initiative has
skills employers need. “Education that addresses the skills roots in Indiana (U.S.A.), where
gap certainly helps employers, but also Cummins is headquartered.
That’s why Cummins and the In 2014, a new TEC program
improves the quality of life in Cummins
Cummins Foundation are investing focused on mechatronics launched “Cummins has invested for many years
communities because more people
in communities around the world in Izmir, Turkey. Mechatronics is a in community education programs
can access quality jobs with good
through TEC: Technical Education multidisciplinary field that includes where our employees live and work,
wages,” Chandler said. “Ultimately, we
for Communities, which targets the mechanical engineering, electrical including in Indiana, working on high-

HEALTH & SAFETY


are helping build stronger communities
technical skills gap through local engineering, telecommunications quality early childhood education,
by building a locally capable and
vocational education programs. engineering, control engineering improved high school graduation
knowledgeable workforce.”
and computer engineering. rates and education leading to jobs,”
TEC is built on a five-point educational
At each TEC school, students are Chandler said. “Education creates
framework. The standardized In TEC, Cummins seeks to partner

RIGHT ENVIRONMENT
taught skills that are needed in the opportunity and that is really
education program includes resources, in each school location with business,
local labor market. There are also important to Cummins.”
processes and tools to help schools government and community
opportunities for workplace learning
identify and supplement gaps in organizations to increase access The work that Cummins has done
such as apprenticeships, internships
their existing programs, ensuring a to good jobs and build a stronger close to home has allowed the
and job shadowing. The TEC program
global approach and allowing the and growing employment base in Company to expand education
uses Cummins and local employer
implementation of TEC at any site. communities across the globe.

GOVERNANCE
programs to its communities
talent to teach classes, train teachers
There are multiple successful pathways around the world. One important
“The key to this program is on new technology and mentor
from technical education to good jobs. part of the Turkey TEC program
collaboration at local schools students during their studies.
has been recruiting women students.

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Students and leaders of Ege University in Turkey


join Cummins employees in celebrating the start

COVER STORY
of a mechatronics program.

“Global companies and organizations


who understand that need have a

ENVIRONMENT
key role to play in finding solutions –
it helps our communities and our
businesses to be successful.”

INNOVATION
In addition to Turkey, TEC has
school programs around the world.
The coalition in Nigeria, which began
in 2013, marked the first agreement

CORPORATE RESPONSIBILITY
between Cummins and other
organizations to support the program,
a model that has gained momentum
at other global sites, including in
China and most recently in Turkey.

TEC also has programs in India,

HEALTH & SAFETY


Morocco and Saudi Arabia with plans
to expand in 2015 into Australia and
“The number of female students government stating that 50 percent of In Turkey, Cummins, Schneider
parts of South America.
in technical education is very low,” its students must be qualified females, Electric and local Turkish business
said Semih Gunes, the Higher the first of its kind in Turkey. partners support Ege University with “Industry, government and civil society

RIGHT ENVIRONMENT
Education Vocational School Manager scholarships for students, curriculum, have a stake in global education,”
“TEC holds great importance in
at Ege University, a program partner teacher training, guidance counseling said Mark Levett, Vice President
training female students in Turkey
and one of the oldest colleges in and equipment purchases. of Corporate Responsibility and
to become qualified technical staff,”
Turkey. “Through TEC, we can CEO of the Cummins Foundation.
said Dr. Candeger Yilmaz, Ege “It’s great to see a coalition like this
support the development and “The coalition in Turkey provides skills
University Rector. “Development of come together to address a critical
employment of female students.” training and access to good jobs for

GOVERNANCE
such cooperation is very important need,” said Gilles Vermot Desroches,
students, including underrepresented
With Cummins’ assistance, the Ege to improve the collaboration between Senior VP Sustainability, Schneider
groups such as women.”
University TEC Mechatronics program the university and industry.” Electric, and General Delegate of
was awarded a quota from the the Schneider Electric Foundation.

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83
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // CORPORATE RESPONSIBILITY A Cummins India program promoting

THE POWER waste reduction has reached more than


14,500 households, resulting in a 66 percent
OF CUMMINS increase in waste segregation at the source.

COVER STORY
CUMMINS HELPS CITY GET WISE ABOUT WASTE

ENVIRONMENT
Civic authorities in Pune, India, are looking to a Cummins Corporate Responsibility The Company has been working on
waste management issues in Pune
initiative for help as they work to get the city’s trash problems under control.
since 2011. Employees won Cummins’

INNOVATION
A rapidly growing industrial and Until mid-2014, Pune collected and from households. That would leave Environmental Challenge competition
educational hub that includes disposed garbage in a landfill close to Pune residents with no option but to for extension of their Zero Garbage
several Cummins facilities, Pune the city. Then, with garbage volumes segregate their waste and build pits Project in 2013.
has a population of more than growing quickly, producing alarming to convert wet garbage into compost.

CORPORATE RESPONSIBILITY
The Company has been partnering
3 million people that is straining levels of environmental pollution, With over 1,600 tons of solid waste
with the NGO (non-governmental
the city’s infrastructure. Among its residents near the landfill began generated each day, the city has to
organization) Janwani, the Pune
many challenges, the city is finding to protest. do something.
Municipal Corporation (PMC) and
it difficult to keep pace with the
Civic authorities are taking another Cummins India’s “Zero Garbage a cooperative (SWaCH) made up
increasing volume of trash.
look at their waste management Project” is one model being
Cummins employees raise awareness
model, evaluating the possibility considered for reducing the about the need to reduce the amount

HEALTH & SAFETY


of no longer collecting wet garbage amount of trash in the city. of waste sent to a landfill outside Pune.

RIGHT ENVIRONMENT
GOVERNANCE
FINANCIAL
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Cummins employees have worked with trash


collectors who gather waste looking for recyclable

COVER STORY
items in the wards where the Company program
has been implemented.

of low-income residents of the city as organic material. The initiative also


who collect trash (wet and dry) from provides training to the society staff on

ENVIRONMENT
doorsteps for recycling. operating compost pits and converting
wet waste into organic matter.
The Zero Garbage Project converts
biodegradable waste into energy Having gauged that the weakest

INNOVATION
and facilitates the recycling of non- link in the solid waste management
biodegradable material. With the process was unreliable push carts
successful implementation of the used by trash collectors, Cummins
project in the Katraj Ward and then engineers designed a cost-effective, of wet waste in local composting pits With the success of the Katraj and

CORPORATE RESPONSIBILITY
the Baner-Balewadi Ward, which is durable, user-friendly push cart has increased by 400 percent to over Baner-Balewadi models, Cummins is
near the Company’s India campus, through a Community Impact Six 2.5 tons per day in the two wards. now ready with a holistically developed
civic authorities believe Cummins Sigma project. Six Sigma is the Meanwhile, 6.5 tons per day model that can be replicated across
has a sustainable model that can data-based business problem- of garbage are being processed at different demographics within the city.
be replicated across the remaining solving tool popular at Cummins. a local biogas plant, which can then During 2014, 980 Cummins employees
46 wards of the city. be converted into electricity using a logged 4,388 hours completing this
They developed a low-cost push-
Cummins generator set. The electricity project, using their skills and passion

HEALTH & SAFETY


The model has worked regardless cart using analysis led design, the
is being used to power street lights. to make their communities better
of a ward’s demographics. The same tool that product designers
places to live.
composition of income groups in the work with at Cummins. The cart Additionally, Cummins has sponsored
Katraj and Baner-Balewadi wards, for is better ergonomically, improving the Nirmalya project, which uses an “In addressing a significant challenge
example, are diametrically opposed. conditions for the waste-collectors annual festival as a key opportunity plaguing the city of Pune, that of waste

RIGHT ENVIRONMENT
and simplifying the process. to promote recycling. In continuation management, it is a tremendously
The program engages Cummins
The design has been shared with of the project in 2014, Cummins rewarding experience to see how
employees in organized rallies and
officials at the PMC for replication employees successfully prevented the skills of our employees can be
door-to-door campaigns to create
across various wards in the city. river pollution from the traditional leveraged in developing a change
a basic awareness about waste
immersion of idols and other offerings model for different demographics
segregation. It also sets up meetings The program has reached out to

GOVERNANCE
such as flowers, fruits, spices, of the city,” said S. Ravichandran,
with various housing societies, over 14,500 households, leading
honey, coconuts, etc. By immersing Head of Corporate Responsibility
encouraging households to restart to a 66 percent increase in waste
these offerings into tanks instead, for Cummins India.
existing pits available for decomposing segregation (separating dry and wet
the material was collected and
wet waste so it can be safely used waste at the source). The treatment

FINANCIAL
converted into 156 tons of compost.
85
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // CORPORATE RESPONSIBILITY A project by two Cummins engineers

THE POWER found a way to modify school bus


powertrain specifications to improve
OF CUMMINS fuel efficiency by more than 10 percent.

COVER STORY
BUS PROJECT LOOKS
TO HELP SCHOOLS

ENVIRONMENT
LOWER COSTS
Editor’s Note: Some of the best Corporate Responsibility

INNOVATION
projects come about when Cummins employees put their
job skills to work to address a need. Here are two examples:

CORPORATE RESPONSIBILITY
A community service project by two Corporation (BCSC) and potentially
Cummins engineers to reduce an many other school systems throughout
Indiana school district’s fuel costs In Columbus, Indiana (U.S.A.), Cummins’
the country to decide if establishing and software changes on bus
Steven Bellinger, second from left, and Mark
could potentially help schools across a new bus spec or upfitting existing powertrains. Six Sigma is a data- Slaton, center, led a Six Sigma project to help
the United States save money on school districts save money on transportation.
buses is right for them,” said Steve based business problem-solving
They are joined by Jim Parker, Dixie Harris
transportation. Bellinger, a Vehicle Integration Engineer tool widely used at Cummins. and Karen Wetherald with the Bartholomew
at the Columbus Engine Plant (CEP) Consolidated School Corporation.
The project involved finding cost- The project included changes in

HEALTH & SAFETY


who worked on the initiative.
effective ways to modify the powertrain the transmission shift schedule, the
Slaton and Bellinger also worked
in buses operated by the school In buses, and most other vehicles, number of forward speeds and the
with Allison Transmission and
system in Columbus, Indiana (U.S.A.), engine torque is transferred through the rear axle ratio, which taken together
chassis engineers from the school
to maximize fuel mileage without transmission and drive axle or axles to enable a bus to operate more
bus companies. BCSC officials

RIGHT ENVIRONMENT
compromising performance or safety. move the vehicle. Optimization efficiently. The project also reduced
have adopted the recommended
of these components is critical to the load on the engine when a bus
Research conducted at the Company’s changes on all new bus purchases.
maximizing the performance and is at a full stop to save fuel.
test facilities and under real world
fuel efficiency of any vehicle. “Cummins and BCSC have been
driving conditions found certain The Six Sigma project was sponsored
working for a long time to make things
modifications to the powertrain The Community Impact Six Sigma by Jeff Caldwell, who leads Cummins’
better and this is just another example

GOVERNANCE
improved bus fuel efficiency by project led by Bellinger and Mark global van and pickup truck business
of that,” Steve Forster, BCSC fleet
more than 10 percent. Slaton, an Environmental Engineer and also serves as the Bartholomew
services manager, told The Columbus
at CEP, was some three years in the Consolidated School Corporation’s
“Our hope is that this project will allow Republic newspaper.
making and ultimately led to hardware Board President.
the Bartholomew Consolidated School

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COVER STORY
SCHOOL CHILDREN IN INDIA BECOME

ENVIRONMENT
‘SUPER HEROES’ FOR THE ENVIRONMENT
THROUGH EDUCATION PROJECT

INNOVATION
To commemorate Cummins India’s 50th anniversary in 2012, The project team worked with iVolunteer, of water and 3.65 million kilowatt
a social enterprise that promotes hours (kWh) of electricity.
Company employees launched a nationwide environmental
India’s social development by bringing

CORPORATE RESPONSIBILITY
education campaign called “Coach Them Young.” Employees not only put their
volunteers and organizations together,
organizational and time management
to coordinate the 1,600 educational
Some 75,000 children at 200 schools But this initial impact was not enough. skills to work, but also leveraged
sessions at 700 schools. Active
in 51 cities watched a video and In fact, it was only the beginning. principles more commonly associated
leadership engagement and partnering
pledged to be a “True Super Hero” with the business world.
“Coach Them Young,” the India Area with joint ventures, dealers, suppliers
by protecting their environment
Business Organization and Distribution and customers also led to the project’s “The first step in change management
from waste and pollution.
Business Unit used new strategies and expanded outreach. is always to educate,” said Karan

HEALTH & SAFETY


In 2013, the team expanded the partners to reach 400,000 students Madan, project leader. “School children
In addition to gaining new partners,
project and used the vast network in 80 cities with 518 employees are the ideal propagators as they are
the program turned in a new direction.
of the Distribution Business Unit to contributing 2,400 hours. The project future torchbearers of the world and
The focus in 2014 was on conservation
reach more than 200,000 students won Cummins’ Environmental have significant capability to learn,
of natural resources. Students were
in 71 cities. It was an Environmental Challenge again in 2014.

RIGHT ENVIRONMENT
adapt and implement.”
shown practical ways to do this, such
Challenge winner both years.
as closing the tap while brushing their The hope is that students will not only
teeth. Even if just one in 10 children take personal actions, but become
takes these simple steps, it results in brand ambassadors – super heroes –
an annual savings of 3.65 million liters inspiring their families, friends and

GOVERNANCE
neighbors to join them. This is where
Cummins Distribution Business is using the project team plans to take the
its organizational skills to reach more than
400,000 students on the importance of project next. They also plan to focus on
environmental conservation. empowering teachers and principals.

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CUMMINS’ ENGINE FOR GIVING BACK

ENVIRONMENT
For Cummins, the fuel for philanthropy is its people. For example, winners of the Company’s
2014 Environmental Challenge each
THE POWER Through their skills and passions, they drive the
received a $10,000 grant to give to
OF CUMMINS Company’s financial support to programs, partners

INNOVATION
the non-profit or non-governmental
and projects in our communities. organization (NGO) of their choice.
Cummins invested about $18.1 million
in Corporate Responsibility in 2014 Since 2007, the catalyst for Cummins And employees are acting on In North Carolina (U.S.A.),

CORPORATE RESPONSIBILITY
compared with $15.3 million in 2013. employees worked to improve third-
Corporate Responsibility—a Company that opportunity.
core value—has been its Every grade reading levels and were granted
In 2014, Cummins’ global priority
Employee Every Community (EEEC) $245,000 to further that initiative.
areas—education, the environment
program. By encouraging employees And, in India, more than $39,000 was
and social justice/equality of
to volunteer four or more of their work devoted to a team-led project with
opportunity—received record-setting
Cummins employees clean a river bank hours, Cummins enables its teams to an area NGO focused on educating
along the Luojiagou, a stream running engagement from its employees.
leverage their interests and abilities in underserved tribal women.
through Chongqing, China. EEEC reached 73 percent in 2014,

HEALTH & SAFETY


their local communities.
compared with 67 percent in 2013. Such financial support is made
And in response to that growth possible by the Cummins Foundation,
came increased financial support one of the oldest corporate
from the Company. foundations in the United States.

RIGHT ENVIRONMENT
Combined with Cummins employees’
Last year, Cummins invested
EEEC engagement, both comprise the
some $18.1 million in its Corporate
engine that creates lasting impact in
Responsibility efforts, compared with
communities around the world.
$15.3 million in 2013. That support
was prompted, and granted, based on Just as Cummins employees dedicate

GOVERNANCE
where and how Cummins employees themselves to producing only the
chose to engage through EEEC. best for their customers, so, too, do
they commit their best to giving back
to their communities. They are the

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philanthropic Power of Cummins.
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COVER STORY
ENVIRONMENT
A list of Cummins’ EEEC-inspired contributions and projects
from 2014 is included on the following pages:

INNOVATION
GRANT OR CUMMINS
COMMUNITY DONATION FOUNDATION CUMMINS INC.

EDUCATION

EARTH University Foundation Guácimo, Limón,


$1,000,000
Matching grant to establish six endowed scholarships and one endowed professorship Costa Rica

CORPORATE RESPONSIBILITY
Ege University  Partnership for Technical Education for Communities (TEC)
Izmir, Turkey $290,000
and Ege University’s mechatronics program in Turkey

Save the Children  Disaster relief supporting Save the Children’s Education in Emergencies program Global $250,000

IU Center of Art & Design


Columbus, IN (U.S.A.) $250,000
Support for educational initiative at the IU Center of Art and Design in Columbus, IN

Strategic Twin-Counties Educational Partnership


Whitakers, NC (U.S.A.) $245,000
Support to improve third grade reading performance in Edgecombe and Nash counties in North Carolina

Ivy Tech  Support for the iGrad program to increase student graduation and retention rates in
Columbus, IN (U.S.A.) $150,000

HEALTH & SAFETY


Bartholomew County, Indiana

Metanoia  Curriculum development for Youth Leader Academy year-round student leadership-building North Charleston, SC (U.S.A.) $125,000

Eko Junior High College


Lagos, Nigeria $77,000
Renovation of six classrooms to help improve grades in mathematics and English

International Youth Foundation


Casablanca, Morocco $60,470
Support for Phase II educational activities at the Cummins’ TEC site in Morocco

RIGHT ENVIRONMENT
Bartholomew Consolidated School Foundation
Columbus, IN (U.S.A.) $50,500
Support for reading training program focused on children with dyslexia

Building Tomorrow Inc. 


Indianapolis, IN (U.S.A.) $50,000
Education initiative supporting access to quality education for students in East Africa

Chongqing Industry Polytechnic College  Partnership for TEC at the Chongqing site Chongqing, China $50,000

King Street Primary School  Support to create an outdoor environmental learning area Durham, England $46,800

Dream It Do It Western New York, Inc  Support for a community education coalition in

GOVERNANCE
Jamestown, NY (U.S.A.) $45,000
Chautauqua County focused on Science, Technology, Engineering and Math (STEM)

Cooperative Housing Foundation (Global Communities)


Ghana, Africa $38,660
Support for structural improvements and sanitation behavior program at Laterbiokorshie Cluster Schools

The Library Project  Support for development of elementary school libraries in China Throughout China $37,500

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COVER STORY
GRANT OR CUMMINS

ENVIRONMENT
COMMUNITY DONATION FOUNDATION CUMMINS INC.

Billkel Ltd.  Support for construction at the Laterbiokorshie Cluster Schools Ghana, Africa $32,850

Association ROI  Support for a coalition program preparing high school students for the job market Bucharest, Romania $30,000

Manzini Primary School 


Gauteng Province, South Africa $28,500
Installation of a biogas system, solar panel system and renovated kitchen at school

INNOVATION
Tennessee Technological University 
Cookeville, TN (U.S.A.) $27,700
Two natural playscape areas at the Child Development Lab for hands-on outdoor learning

Mounds View Schools Education Foundation  Environmental science field work equipment
Shoreview, MN (U.S.A.) $25,100
and technology to enhance the professional realism of an outdoor environment classroom

CORPORATE RESPONSIBILITY
Charleston Orphan House, Inc. 
Charleston, SC (U.S.A.) $25,000
Literacy program for elementary aged children who are in foster care in the Charleston area

Columbus Pro Musica dba Columbus Indiana Philharmonic


Columbus, IN (U.S.A.) $25,000
Providing educational music activities to children in Bartholomew County and surrounding counties

Bainian Vocational School  English program and curriculum for 120 migrant workers’ children Beijing, China $23,000

Mineral Point Unified School District 


Mineral Point, WI (U.S.A.) $22,000
Supporting Project Lead the Way launch that encourages elementary students to become problem solvers

Kwabhekilanga Secondary School  Support to establish a library Sandton, South Africa $21,000

Lila Poonawalla Foundation  Scholarships for disadvantaged female students Pune, India $16,640

HEALTH & SAFETY


Wuhan University of Technology  Scholarships for strategic education initiatives in China Wuhan, China $15,200

Huazhong University of Science and Technology


Wuhan, China $14,400
Scholarships for strategic education initiatives in China

Community Education Coalition


Columbus, IN (U.S.A.) $14,294
Support for Educational Coalition workshop for Rocky Mount, NC and Jamestown, NY

Pre-K 4 All Committee  Campaign to support Busy Bees Academy and pre-Kindergarten programs Columbus, IN (U.S.A.) $12,500

RIGHT ENVIRONMENT
Lycee Collegial Bouskoura  Funding to support the construction of a student library Bouskoura, Morocco $11,500

John H. Boner Community Center  An education program for AmeriCorps members to help improve
Indianapolis, IN (U.S.A.) $10,700
education on the Near Eastside of Indianapolis

SAE Foundation  Support for development of a STEM curriculum Columbus, IN (U.S.A.) $10,000

Innovation in Science and Technology 


Minneapolis, MN (U.S.A.) $10,000
Support for hands-on science, engineering and technology programs and events

GOVERNANCE
School on Wheels Corporation  Support for project-based tutoring at Brookside Elementary (IPS #54)
Indianapolis, IN (U.S.A.) $10,000
through Striving Academic Readiness (STAR) program.

LeMoyne-Owen College  Support for a strategic plan for the college’s search for a new president Memphis, TN (U.S.A.) $10,000

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GRANT OR CUMMINS

ENVIRONMENT
COMMUNITY DONATION FOUNDATION CUMMINS INC.

ENVIRONMENT

Beijing Chaoyang Yongxu Global Environmental Institute


Beijing, China $98,800
Promoting the use of clean stoves using biomass fuel in rural China

Universidad Autónoma de San Luis Potosí


San Luis Potosí, Mexico $75,000

INNOVATION
Building a green roof at the University of San Luis Potosí

Tree Plantation Project


Pune, India $59,517
Addressing the impacts of rapid urbanization and industrialization on forests

Desilting Project  Project to increase the water storage capacity of Khadakwasla dam,
Pune, India $39,203
a major source of water for Pune, India

CORPORATE RESPONSIBILITY
Charyou Youth Volunteer Service Center
Shanghai, China $30,500
River recovery project to improve the water quality at Expo Houtan Park

Global Village of Beijing Environment Education Center 


Beijing, China $25,000
Support to improve the water environment of Luojiagou stream, a tributary of the Yangtze River

Xiangyang City Association of Environment Protection Green Han River


Xiangyang, China $25,000
Support to build a biogas site to dispose of sewage from livestock farming

Agricultural Development Trust


Baramati, India $23,296
Partnership to teach the latest agricultural techniques to farmers

Nirmalya Project  Support for an environmentally friendly solution to the immersion of Nirmalya

HEALTH & SAFETY


Pune, India $19,315
in rivers during festival times in India

Xiangyang City Association of Environment Protection Green Han River 


Xiangyang, China $17,800
Support for a water quality improvement project at Magang Primary school

Proforestal A.C. 
San Luis Potosí, Mexico $17,100
Support for urban forest infrastructure to promote and control urban reforestation

Shanghai Oasis Ecological Conservation and Communication Center 

RIGHT ENVIRONMENT
Shanghai, China $16,400
Development of curriculum to promote environmental education and education equality

Columbus Park Foundation  Promote, improve and maintain the existing People Trail
Columbus, IN (U.S.A.) $15,000
that runs along Haw Creek between Columbus Engine Plant and Cummins Technical Center

Husk Power Project  Project to develop an energy system to use the gas from rice husks to produce
Tamkuha, India $14,975
electricity for use in rural areas

GOVERNANCE
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GRANT OR CUMMINS

ENVIRONMENT
COMMUNITY DONATION FOUNDATION CUMMINS INC.

Food Waste Project 2014 


Pune, India $14,921
Project to create awareness on solid waste management in schools and residential areas

Dissolution of Plaster of Paris Idols Project


Provide an environmentally friendly solution to restrict water pollution caused by Pune, India $13,079
immersion of plaster of Paris idols in rivers during festivals

INNOVATION
Zero Garbage Project  Engineering design services for a waste collection site and a public campaign
Pune, India $11,053
on the importance of separating waste

Centro de Estudios de Promoción Social Cáritas A.C. 


San Luis Potosí, Mexico $10,000
Environmental Challenge grant recipient

CORPORATE RESPONSIBILITY
Centro Educativo en Apoyo al Espectro Autista A.C. 
San Luis Potosí, Mexico $10,000
Environmental Challenge grant recipient

Charyou Youth Volunteer Service Center 


Shanghai, China $10,000
Environmental Challenge grant recipient

Cheonan Seobu Free Meal Support Center 


Cheonan, Korea $10,000
Environmental Challenge grant recipient

SIFE China 
Shanghai, China $10,000
Environmental Challenge grant recipient

Xiangyang City Association of Environment Protection Green Han River 


Xiangyang, China $10,000

HEALTH & SAFETY


Environmental Challenge grant recipient
Xiangyang Charity Federation 
Xiangyang, China $10,000
Environmental Challenge grant recipient

Wuhan Women and Children Activity Center 


Wuhan, China $10,000
Environmental Challenge grant recipient

Aikya Seva Sanstha


Throughout India $10,000

RIGHT ENVIRONMENT
Environmental Challenge grant recipient

Cummins India Foundation


Maharashtra, India $10,000
Environmental Challenge grant recipient

Green Thumb
New Delhi, India $10,000
Environmental Challenge grant recipient

GOVERNANCE
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GRANT OR CUMMINS

ENVIRONMENT
COMMUNITY DONATION FOUNDATION CUMMINS INC.

SOCIAL JUSTICE / EQUALITY OF OPPORTUNITY

United Way Agencies  Match for donations made by employees in North America to the United Way North America and Canada $3,115,183

Anchor House  Renovation and addition to the Anchor House facility to assist the homeless Seymour, IN (U.S.A.) $375,000

INNOVATION
Aeon  Addition of a solar thermal unit, water meter and computerized monitoring system for a
Minneapolis, MN (U.S.A.) $350,000
mixed-income housing development

John Townsend Trust  Support for Creative Adult Project to provide work skills to adults with disabilities Kent, UK $258,000

Pegode  Support for an initiative to help people with mobility issues access transportation Niel, Belgium $118,200

Willoughby School  Development of an immersive learning environment for students with physical,

CORPORATE RESPONSIBILITY
Lincolnshire, UK $113,000
mental and life limiting disabilities

People Serving People


Minneapolis, MN (U.S.A.) $100,000
Project to renovate a kitchen and dining hall at the largest family homeless shelter in Minnesota (U.S.A.)

United Community Ministries  Initiative to increase the capacity of the dining and dormitory areas at
Rocky Mount, NC (U.S.A.) $99,899
McDonald Street Soup Kitchen and Emergency Shelter

NGO Development Project 2014


Creating a framework to develop NGOs that support the underprivileged by focusing on energy Pune and Phaltan, India $90,105
conservation, health and safety and development initiatives for the inmates
The Heritage Fund Community Foundation of Bartholomew County

HEALTH & SAFETY


Support for “Engage Columbus,” an initiative that provides community information to new residents in Columbus, IN (U.S.A.) $90,000
Columbus, Indiana (U.S.A.)
St. Susan Center 
Jamestown, NY (U.S.A.) $56,500
Project to increase the capacity and efficiency of this food pantry and community kitchen

New Day Charities / New Day Foster Care


Beijing, China $54,800
Create an isolation room and new kitchen area at New Day Foster Home

RIGHT ENVIRONMENT
Rise Inc.
Spring Park Lake, MN (U.S.A.) $42,821
Support the launch of a low-cost supply chain for micro-switches used by people with disabilities

Maharashtra Arogya Mandal  Improve education for tribal girls around Padarwadi Pune, India $39,058

Holistic Village Development Project  Holistic transformation of Nandal village by addressing water,
Phaltan, India $32,267
agriculture, health and sanitation, education and more

The Trussell Trust  Project provides cooking classes and crockpots to 200 families, teaching them
Salisbury, UK $32,000
to cook and eat healthy

GOVERNANCE
Human Rights Commission
Collaboration project between the Mayors Advisory Council for Disability and Accessibility, Columbus Columbus, IN (U.S.A.) $25,000
Transition Council and Cummins Assistive Technologies to create a “disability awareness video”

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GRANT OR CUMMINS

ENVIRONMENT
COMMUNITY DONATION FOUNDATION CUMMINS INC.

Food Bank of Central & Eastern North Carolina  Establish the Weekend Power Pack of food
Raleigh, NC (U.S.A.) $25,000
for needy children in Nash, Edgecombe and Halifax counties in North Carolina

Immigrant Welcome Center Inc.  Support to help immigrants connect with people, places and
Indianapolis, IN (U.S.A.) $25,000
resources, helping them build successful lives

INNOVATION
Developmental Services Inc.
Columbus, IN (U.S.A.) $24,700
Support to renovate a kitchen used for cooking classes that instill a healthy lifestyle

Coach Them Young Project  Launching a national awareness campaign to create awareness
Multiple cities, India $23,260
among children to protect the environment in a sustainable manner

Memphis Cultural Arts Enrichment Center  Support to help broaden programming Memphis, TN (U.S.A.) $21,000

CORPORATE RESPONSIBILITY
Wuxi Hishan Lezhu Social Work Office 
Wuxi, China $21,000
Support for development courses for children of migrant workers at a community school

Organization for Livelihood Enhancement Services (OLIVES) 


Ghana, Africa $20,000
Establish a sanitation facility for Abohema Methodist Primary School in Turkey

Gündoğdu Contemporary Community Volunteers Association 


Izmir, Turkey $20,000
Support for building a training center to create a better educational environment for children

Sans Souci  Assist the community school supply effort to provide a backpack full of the
Columbus, IN (U.S.A.) $19,000
school supplies to area children in need

Kids Against Hunger 

HEALTH & SAFETY


Greenwood, IN (U.S.A.) $15,002
Funding for a warehouse reconfiguration project to improve the efficiency of the organization

Xiangyang Charity Foundation Support for a matching gifts program in China Xiangyang, China $14,361

Hogar del Niño A.C.


San Luis Potosí, Mexico $13,550
Support for IT equipment and desks for two classrooms

Putnam County School


Winfield, WV (U.S.A.) $12,500
Support for Backpack Buddy food program for disadvantaged students

RIGHT ENVIRONMENT
Centro de Estudios de Promoción Social Cáritas A.C.  Support to implement an inventory
San Luis Potosí, Mexico $11,000
management system and improve the installation of one of the dispensaries

Growing Places Indy 


Indianapolis, IN (U.S.A.) $10,000
Support to help Growing Places program cultivate a culture of urban agriculture and healthy lifestyles

Indiana Civil Liberties Union (ICLU)  Support to assist the ICLU with general operations Indianapolis, IN (U.S.A.) $10,000

John H. Boner Community Center  Support to help the John Boner Community Center improve
Indianapolis, IN (U.S.A.) $10,000
the quality of life for the Near Eastside of Indianapolis

GOVERNANCE
Local Initiatives Support Corporation of Indianapolis (LISC)  Support to help transform
Indianapolis, IN (U.S.A.) $10,000
distressed neighborhoods into healthy and sustainable communities

Teach For America  Support for Teach For America’s general operations Indianapolis, IN (U.S.A.) $10,000

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COVER STORY
THE CUMMINS FOUNDATION

ENVIRONMENT
The Cummins Foundation is governed by these individuals and committees:

BOARD OF Director Anant Talaulicar


AUDIT COMMITTEE

INNOVATION
Vice President – Chairman – Cummins India
DIRECTORS Chair Marsha Hunt
Director Pat Ward Vice President – Controller, Cummins
Chairman Tom Linebarger
Vice President – Chief Financial Officer, Cummins
Chairman and CEO, Cummins

CORPORATE RESPONSIBILITY
Luther Peters
Director Lisa Yoder Vice President – Internal Audit, Cummins
Director Rich Freeland
Vice President –
President and Chief Operating Officer, Cummins Mark Smith
Global Supply Chain Manufacturing, Cummins
Vice President – Investor Relations &
Director Mark Levett
Business Planning & Analysis, Cummins
Vice President – Corporate Responsibility, Cummins FOUNDATION
Director Will Miller OFFICERS INVESTMENT

HEALTH & SAFETY


Member of the Cummins Board of Directors Chief Executive Officer Mark Levett
COMMITTEE
Vice President – Corporate Responsibility, Cummins
Director Marya Rose
Chair Gloria Griesinger
Vice President and Treasurer Aaron Kaluf
Executive Director – Global Treasury
Chief Administrative Officer, Cummins Corporate Responsibility Finance Controller, Cummins

RIGHT ENVIRONMENT
and Pensions, Cummins
Director Tony Satterthwaite Secretary Mary Chandler
Adam Schumm
Vice President, President – Corporate Responsibility Director of Global
Director Engine Business Unit Operations Finance,
Cummins Distribution Business Strategic Programs and Planning, Cummins
Cummins

Rakesh Gangwani

GOVERNANCE
Director – EMEA Corporate Development, Cummins

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INTRODUCTION
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HEALTH & SAFETY

COVER STORY
CUMMINS REDOUBLES ITS HEALTH

ENVIRONMENT
AND SAFETY EFFORTS IN 2015
Cummins recorded

INNOVATION
improvements in three key
health and safety metrics
in 2014, expanded critical

CORPORATE RESPONSIBILITY
programs and won one
HEALTH & SAFETY

of the world’s most


prestigious health, safety
and environmental awards.

The Company, though, also recorded

HEALTH & SAFETY


an increase in its Major Injuries and
Dangerous Occurrences (MIDO)
Rate in 2014 and missed aggressive
goals in two other focus areas.

RIGHT ENVIRONMENT
“We made real progress in
implementing our vision that all
employees are responsible for
health and safety, not just on the
job but in all facets of their lives,”
said Stan Woszczynski, Cummins

GOVERNANCE
Chief Manufacturing Officer and

Local firefighters demonstrate how they would respond to a crash with victims inside a car at the
Driver Safety Expo in Columbus, Indiana (U.S.A.). The expo wrapped up activities during Cummins’
Driver Safety Week in October 2014.

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96
INTRODUCTION
Cummins won the National Safety

THE POWER Council’s prestigious Robert W.


Campbell award in 2014 for its health,
OF CUMMINS safety and the environment initiatives.

COVER STORY
the Company leader who oversees in preventing injuries and promoting Nevertheless, the 2014 results for KEY INITIATIVES
health and safety. “However, we safe behavior.” Incidence Rate and Severity Case

ENVIRONMENT
Health and Safety leaders expanded
know when it comes to health and Rate were better than in 2013.
2014 RESULTS two initiatives in 2014 – the Driver
safety, our work is never done.”
Meanwhile, the MIDO Rate in Safety program and a program
In 2014, Cummins saw improvements
Cummins won the prestigious Robert 2014 was well above Cummins’ called “Live It. Lead It.”
in three key health and safety

INNOVATION
W. Campbell Award from the National goal (0.057 compared to 0.020).
performance indicators: “Live It. Lead It.” is designed
Safety Council in 2014 (page 99). Dangerous occurrences included
»» A 5 percent reduction compared to to strengthen leaders’ personal
In a video message to Company a technician getting struck by a
2013 in the Company’s Incidence commitment to health and safety by
employees, Chairman and CEO Tom wind-blown door, another falling

CORPORATE RESPONSIBILITY
Rate, the relative number of asking them to share their personal
Linebarger said he felt tremendous off the top step of a truck and an
recordable injuries and illnesses experiences with workplace injuries.
pride about winning the award and engine dropping when a lifting sling
per 100 employees. Participants shared incidents involving
at the same time a sense of urgency broke. The door and fall resulted in
people they were supervising,
to do even more about safety. »» A 5 percent reduction in Cummins’ fractured wrists. Thankfully, no one
family members and former colleagues.
Severity Case Rate, which is based was hurt by the falling engine.
“I came away thinking to myself since
on the number of injuries and Leaders in the “Live It. Lead It.”
safety is the primary duty of a leader… “That underscores why you have
illnesses resulting in lost work program are asked to consider every

HEALTH & SAFETY


(a goal of) zero incidents is really the to think about safety every time,”
days per 100 employees. work station in their facilities and
only ethically responsible position to said Cummins Occupational Safety
»» A 13 percent drop in the Company’s whether they would let their mother,
take,” Linebarger said. Director Pramod Palat. “Sometimes
Ergonomics Incidence Rate. father, daughter or son work at those
the seemingly safest activities are
The Company is using the Campbell Ergonomics has been a leading stations. They are also asked to
the ones that result in significant
create an action plan detailing how

RIGHT ENVIRONMENT
Award as a starting point to redouble cause of injury at Cummins.
injuries. Safety has to be top of
its health and safety efforts. they will personally lead health and
But while the ergonomic rate of 0.149 mind, all the time.”
safety going forward.
“In 2015, Cummins is raising the (ergonomic injuries per 100 employees)
There were 279 lost work days in
expectations for health and safety,” was significantly under the Company’s The program has been very effective
2014, 162 First Aid Incidents and sadly
said Michelle Garner-Janna, Executive goal (0.160), results for the Incidence and safety leaders are working to
one work-related fatality at one of the

GOVERNANCE
Director – Corporate Health and Safety. Rate (0.610) and Severity Case Rate expand it in 2015 to non-supervisors.
Company’s joint ventures in China.
“Each of us must be actively engaged (0.190) were over Cummins’ goals Woszczynski, for example, makes it a

(0.580 and 0.160, respectively). point to discuss with employees the

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COVER STORY
POSITIVE TREND LINES

Both the Company’s Severity Case Rate and Incidence


need to get actively engaged in health A phased-in effort to identify and work
rate fell in 2014 compared to 2013. But Cummins did
and safety through “Live It. Lead It.” with drivers considered to be most

ENVIRONMENT
not reach aggressive goals set in those areas.
when he speaks before groups at risk of getting injured driving was
around the Company. expanded and the Company started
driver safety initiatives with several joint Severity Case Rate Indicator
“We want everyone to make
ventures in South America and Nigeria,

INNOVATION
1.2
safety personal,” said Garner-Janna.
said Clint Wernimont, Corporate Road
“That’s why we believe many of the 1.0
and Safety Project Leader.
principles in ‘Live It. Lead It.’ apply
0.8
to every employee.” The health and safety team also

CORPORATE RESPONSIBILITY
0.6
continued its successful Ergonomics
The program has been customized
Cup, a competition encouraging 0.4
for all employees and is being
employees to identify and fix
deployed in 2015. 0.2
ergonomic problems at Cummins sites
The health and safety team also around the world. And the Company 0.0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

expanded its global driver safety re-introduced Cummins’ toolbox to


initiative, sponsoring a special Driver prevent slips, trips and falls, another

HEALTH & SAFETY


Safety Expo in addition to Driver leading cause of injury at the Company.
Incidence Rate Indicator
Safety Week in October 2014.
Garner-Janna believes Cummins has
3.0
The week includes a focus each day
laid a great foundation for a safe 2015.
on key topics such as driver fatigue, 2.5

RIGHT ENVIRONMENT
rural driving, motorcycle driving, safety “We must look out for the safety and
2.0
at intersections and driver attitude. well-being of not only ourselves, but
every Cummins employee,” she said. 1.5
The Road Safety Expo was a new
“Every injury is preventable, and it’s 1.0
event held at the end of the week
up to each of us to lead by example.”
in Columbus, Indiana (U.S.A.), 0.5

GOVERNANCE
where attendees safely experienced
0.0
first-hand the dangers inherent in 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

conditions such as distracted driving.

Actual

FINANCIAL
Target
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // HEALTH & SAFETY

COVER STORY
CUMMINS WINS PRESTIGIOUS

ENVIRONMENT
HEALTH AND SAFETY AWARD
Cummins Chairman and CEO Tom Linebarger named for Robert W. Campbell, a
accepts the Robert W. Campbell Award at safety pioneer and the first president

INNOVATION
the National Safety Council’s international
Congress and Expo in San Diego. of the National Safety Council.

“The Campbell Award is terrific


recognition for the Cummins

CORPORATE RESPONSIBILITY
The Dow Chemical Co. (2010) and
employees who have made
Schneider Electric North America (2009).
tremendous progress in health, safety
According to the Campbell Award’s and the environment at our Company,”
executive review committee, two of said Michelle Garner-Janna, Executive
the primary reasons Cummins scored Director – Corporate Health & Safety.
highly is because its leaders commit
Cummins Chairman and Chief
to safety through the Company’s

HEALTH & SAFETY


Executive Officer Tom Linebarger said
“Live It. Lead It.” program and
he would like to see the Company use
Cummins actively engages employees
Health and safety is a job never done, but for a few hours the award as a starting point to raise
in meaningful and impactful projects
on a September night in San Diego, California (U.S.A.), the bar on its initiatives in health,
in the places they live and work.
safety and the environment.

RIGHT ENVIRONMENT
in 2014, Cummins’ health and safety team took a
“Cummins is a true learning
moment to celebrate its accomplishments. “Our work in safety is about caring for
organization that continues to
our people who work every day to help
seek opportunities to strengthen its
The Company was named the The prestigious honor goes to our Company succeed,” Linebarger
outstanding approach to safety, health
winner of the 2014 Robert W. companies that have successfully said. “…There is much more to do and
and sustainability,” said Deborah A.P.
Campbell Award by the U.S.-based integrated environmental, health we will continue to be guided by our

GOVERNANCE
Hersman, President and CEO of the
National Safety Council. The award and safety management with their Company’s mission to demand that
National Safety Council.
was presented at the Council’s business operations as a cornerstone everything we do leads to a cleaner,
international Congress and Expo, of corporate excellence. Past winners The Campbell Award is underwritten healthier and safer environment.”
the world’s largest gathering of include Dupont (2013), Firmenich by the Exxon Mobil Corporation and

FINANCIAL
health and safety professionals. (2012), UTC Fire & Security (2011),
99
INTRODUCTION
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COVER STORY
SAFETY AT CUMMINS IS

ENVIRONMENT
PART OF EVERYONE’S JOB
Cummins Director of Global Manufacturing Engineering

INNOVATION
Jim Schoeberl remembers vividly the day he walked on
a shop floor and an employee stopped him, pointing out
he was violating safety rules by wearing a ring.

CORPORATE RESPONSIBILITY
Schoeberl wasn’t embarrassed. In fact, manufacturing leaders have
he couldn’t have been more pleased. taken a very active role in safety
initiatives within their businesses.
“I told him how much I appreciated
This is just following their lead.”
what he had done,” Schoeberl said.
“I had just forgotten to take my ring off. Machine guards are anything that
We all have to look out for each other.” protects an employee from a hazard

HEALTH & SAFETY


while operating a machine. They
When Schoeberl was asked to lead
can range from a transparent shield
the global roll out of a new toolkit
protecting a worker from a lathe to
devoted to machine guarding safety,
“presence-sensing devices” that
he didn’t hesitate. He’s the first

RIGHT ENVIRONMENT
automatically shut down machines
Cummins leader outside the safety
when any part of a worker strays
organization to take ownership of a
into dangerous space.
global safety initiative, but he sees it
as a logical extension of his work. Schoeberl was the sponsor of a
Six Sigma project led by Guillermo
“I’m not doing anything special,” said

GOVERNANCE
Castillo, the then Corporate Safety
the 28-year veteran of the Company.
Project Manager, looking at what Cummins Director of Global Manufacturing
“This is all of our jobs. Many of our
seemed like a high number of injuries Engineering Jim Schoeberl is leading Cummins’
efforts to improve machine guarding safety.

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INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // HEALTH & SAFETY

“I’ve taken more than one maintenance technician to the

COVER STORY
hospital, personally,” Schoeberl said. “It’s very heartrending
to see someone get hurt. You become very aware, very
related to machine guarding or the the guards were forgotten after
conscious of safety. You never look the other way.”
lack of adequate guards. Six Sigma maintenance was performed.

ENVIRONMENT
JIM SCHOEBERL
is the data-driven problem-solving The problem also stemmed from
DIRECTOR – GLOBAL MANUFACTURING ENGINEERING
tool widely used at Cummins. the use of older equipment with
inadequate guarding.
When Castillo moved to another Schoeberl said some fixes are as designed to strengthen leaders’

INNOVATION
position within the Company, Tremendous strides have been made simple as installing some sheet metal personal commitment to health and

Schoeberl said it made sense in modern equipment including safety while others are more complicated, safety to help drive employee behavior.

for him to take over responsibility features like “presence-sensing” involving movable or fixed barriers
“Jim’s role in leading this initiative
for the initiative. technology or “light curtains” capable and the presence-sensing technology.

CORPORATE RESPONSIBILITY
globally drives home the message that
of shutting a machine down when Most new equipment includes the
“When you think about it, machine safety is a value for Cummins at every
it determines potentially dangerous latest safety devices but there are
guarding safety is something that level of the Company,” Palat said.
behavior is taking place. retrofits available, too.
my function owns,” he said.
Safety is something Schoeberl
“It just makes sense.” Cummins had sent out directives The machine guarding toolkit calls
takes very personally. He started
on machine guarding safety, but for implementing improvements over
Schoeberl leads a global team as a maintenance engineer at the
leaders decided to go the next step three phases starting in 2015 through
of manufacturing engineers with Rocky Mount Engine Plant in Rocky

HEALTH & SAFETY


by developing a policy on the topic, installation of new safeguards in 2017.
representatives in every business unit Mount, North Carolina (U.S.A.), in
drawing on national and international Schoeberl has been pleased that many
and sub-business unit. He was ideally 1987. As far as he’s concerned, he’s
standards. Then, the Company Cummins locations are implementing
positioned to roll out the toolkit and seen too many injuries over his career.
developed the toolkit, including: additional safeguards right away after
make sure the work got done. determining their risks. “I’ve taken more than one maintenance
»» A risk assessment tool

RIGHT ENVIRONMENT
Machine guarding safety covers technician to the hospital, personally,”
»» A checklist to determine Pramod Palat, Cummins Occupational
a very broad area and there wasn’t Schoeberl said. “It’s very heartrending
proper machine guarding Safety Director, says Schoeberl’s
a single factor driving the problem. to see someone get hurt. You become
involvement is consistent with the
In a few cases, guards were pushed »» An implementation plan to very aware, very conscious of safety.
Company’s “Live It. Lead It.” initiative.
aside to make work easier; in others, improve machine safeguarding You never look the other way.”
Launched in 2013, the program is

GOVERNANCE
»» Training on the topic

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INTRODUCTION
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COVER STORY
‘KNIGHT KNUCKLE’ INVENTOR

ENVIRONMENT
CREATES A SAFER CUMMINS
When Jamestown Engine Plant tool builder Kendrick Knight In the past year, his creation has gone had a “kick” of torque due to their

INNOVATION
from blueprint to patent-pending use of high-torque tools. Any time a
came up with the idea for a device to improve ergonomics
reality. Dubbed the “Knight Knuckle,” bolt or screw is tightened, the tool
at his workplace, he did not foresee the impact his torque- it has improved ergonomics for engine creates torque once the screw reaches
reducing invention would have. assembly workers, earned international full tightness. The torque is then

CORPORATE RESPONSIBILITY
recognition and has garnered interest transferred directly to the operator.
from Cummins sites and outside
Imagine a hand-held power drill for
companies alike.
home use. The drill is easy to hold
“I can’t believe how well this project when the task begins, but starts to
has been received,” said Knight, who push back against the operator’s arm
has worked at the Cummins plant in as the screw becomes tighter – or fully

HEALTH & SAFETY


Jamestown, New York (U.S.A.), for the torqued – in the wall. High-torque tools
past two years. “The level of press and are similar, but on a much larger scale
enthusiasm is really exciting, and it’s and with a much larger impact on the
great to think of this tool being used at operator’s body.
Cummins manufacturing sites all over

RIGHT ENVIRONMENT
“We have a lot of applications
the world.”
with high-torque tools,” Knight said.
Knight worked in a manufacturing tool “These tools take a significant amount
room for five years prior to joining the of time to use, and the process is
Company. He realized the need for a hard on the employee. I saw the
new tool when he saw his colleagues idea of the Knuckle as a way to solve

GOVERNANCE
at Cummins working on jobs that multiple problems with one new tool.”
Cummins tool builder Kendrick Knight
displays his invention, the “Knight Knuckle.”

FINANCIAL
102
INTRODUCTION
THE POWER The Knight Knuckle took first place in the
engineering category at the International Ergo Cup
OF CUMMINS competition in Nashville, Tennessee (U.S.A.).

COVER STORY
ENVIRONMENT
Kendrick’s invention replaces a ergonomic risk to the operator during in 2013 and a power generation “Kendrick’s project reinforces that

INNOVATION
typical torque arm tool and allows high-torque jobs. In addition to hoist improvement from one of the Cummins has incredibly innovative
the operator to work from any angle. reduced strain, the Knight Knuckle Company’s joint ventures in China. employees,” said Chris Shieldsmith,
In contrast to older torque arm tools shaved eight seconds off the time it the Company’s Corporate Ergonomics
Out of a record 90 project submissions
that have very limited positioning, takes to complete the job; over the Specialist. “He devised a simple

CORPORATE RESPONSIBILITY
in 2014 – all dedicated to making
the possibilities for usage are course of a full day, the tool saves solution to a problem that has plagued
ergonomic improvements in the
greatly increased. Once positioned, approximately 45 minutes. The tool is manufacturing for decades and we’re
workplace – the Knight Knuckle earned
the tool locks in place, so when the also durable, having been run through very proud of his accomplishment.”
the right to compete in the International
“kick” occurs, the Knuckle absorbs thousands of test cycles without
Ergo Cup competition at the Applied In the face of so much acclaim,
it, virtually eliminating the transfer breaking down or failing.
Ergonomics Conference in Nashville, Knight is still focused on one thing:
of torque to the employee. The tool
The Knight Knuckle won top honors Tennessee (U.S.A.). Other companies the improvements his tool has
was conceptualized, designed and

HEALTH & SAFETY


in the Company’s third annual Ergo participating in the 2015 International made in the lives of other
fabricated in Jamestown.
Cup competition. Previous first Ergo Cup competition included manufacturing employees.
The implementation of the Knight place honors went to a part installation Volkswagen, Ford, Honda,
“This has increased tool mobility,
Knuckle has significantly reduced improvement process from Jamestown Gulfstream, Boeing and Caterpillar.
improved their level of comfort

RIGHT ENVIRONMENT
The Knight Knuckle took first place in and generated a lot of excitement,”
“I’m very pleased to see projects that have a the engineering category and garnered he said. “People have started asking
real, positive impact on our employees’ lives. interest from outside manufacturing me to think of new solutions to their
This innovation from our manufacturing companies. The tool will be deployed work problems. It’s exciting to think of
employees deserves to be recognized.” at multiple Cummins sites in 2015. creating more tools and the potential
KELLI SMITH they have to help employees.”

GOVERNANCE
CUMMINS OCCUPATIONAL HEALTH DIRECTOR

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COVER STORY
ENVIRONMENT
INNOVATION
CORPORATE RESPONSIBILITY
CUMMINS STRENGTHENS RENEWING OUR COMMITMENT Chairman and Chief Executive Officer Tom
Linebarger holds his annual diversity town
Cummins’ commitment to diversity hall meeting at the Columbus Engine Plant
RIGHT ENVIRONMENT

DIVERSITY VALUE IN 2014 could be seen in many ways during


2014 and early 2015. The Indiana
in Columbus, Indiana (U.S.A.).

are perfect at managing diversity.


Women’s Affinity Group at the None of us are perfect at really any
Diversity is a core value at Cummins, which calls for its
Company, for example, sponsored a element of leadership and the first
employees to embrace the diverse perspectives of all special session for managers to talk minute we acknowledge that and

HEALTH & SAFETY


people, honoring them with dignity and respect. about the Company’s diversity value say we want to get better, we’re
and the issue of gender diversity in on the road to greatness.”
In 2014, the Company took steps to deepen its commitment to that
the workplace (to learn more about
value, while at the same time re-examining many of its diversity initiatives The Company also continued
Cummins’ efforts on gender diversity,
to ensure they remain relevant at a growing company where more than posting personal statements from its
go to page 106).

RIGHT ENVIRONMENT
60 percent of its employees live outside the United States. leaders regarding their own diversity
The event, which featured many top journeys on the Company’s internal
“We really want to see how we can better work with Cummins Area Business
leaders in the Company, was streamed website. In 2014, Rich Freeland,
Organizations (ABOs) around the world to ensure the power of diversity is
live to managers at Cummins facilities Cummins President and Chief
part of everything we do,” said Kelley Bertoux Creveling, the Company’s
in the United States, Mexico and the Operating Officer; John Wall, the
Executive Director of Global Diversity and Right Environment. “In addition

GOVERNANCE
United Kingdom. Company’s Vice President – Chief
to helping us create innovative products, diversity and inclusion are critical
Technical Officer and Mark Osowick,
to establishing a solid foundation for future growth and success that will “We’re here to get better,” said
the Company’s Vice President –
better serve our customers.” Cummins Chairman and CEO Tom
Human Resources Operations,
Linebarger at the event. “None of us

FINANCIAL
all posted personal statements.
104
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // RIGHT ENVIRONMENT // DIVERSITY

INVESTIGATING COMPLAINTS

A key part of any company’s efforts

COVER STORY
to create the right environment for
success is the ability to investigate
complaints made about employees’ A dozen leaders have now posted collaborative place as Cummins and media and public debate amid
treatment of each other. diversity statements since Linebarger get a chance to explore their ideas.” growing tensions in the Middle East.

ENVIRONMENT
kicked off the initiative in January 2013.
Cummins’ diversity value is The Company also continued LOOKING TO THE FUTURE
included in the Company’s Code “I can’t think of a single time when developing its employee resource
While Cummins took many steps to
of Conduct. The Company has diversity didn’t contribute to the groups. Cummins has more than
increase its commitment to diversity

INNOVATION
Master Investigators stationed success of a project I’ve been involved 100 employee groups organized
and inclusion, Creveling and her staff
around the world to investigate with in my more than 28 years at around diversity. Affinity groups are
also spent time in 2014 and early
reported abuses of the Code. Cummins,” Wall said in his statement. employee formed and led, organized
2015 looking to the future.
Employees can file complaints “Different life experiences and unique around specific demographic traits

CORPORATE RESPONSIBILITY
anonymously where allowed by law. sets of knowledge all add up to team such as women, African-Americans The group wanted to make sure
members who can best understand or LGBT (lesbian, gay, bisexual the Company’s five-year-old diversity
As a growing Company, Cummins
our customers’ experiences and see and transgender). Local Diversity video and its diversity literature still
saw an increase in complaints in
different angles on how to target our Councils are site-based groups that resonated with employees. The group
2014. The Company investigated
innovation more effectively.” are Company formed and leader led, also embarked on a project to update
1,559 reported Code violations,
promoting diversity and inclusion in and expand diversity training from its
up from 1,367 in 2013. About The Company built on the diversity
general and working on diversity- current status as a one-time training at

HEALTH & SAFETY


45 percent of those reports statements by leaders in 2014 by
related issues at particular sites. the start of an employee’s career to a
came from outside the United also asking for diversity statements
layered approach that stretches across
States and 32 percent were from employees on their personal Finally, Linebarger held a focus group
an employee’s time at Cummins.
reported anonymously. diversity journeys at work (see more with Muslim employees early in 2015
on page 109). to better understand their experiences “We recognize the approach to

RIGHT ENVIRONMENT
About 48 percent of the
and hear their views on how Muslims diversity and inclusion may need to
total reports were ultimately “Through diversity, we can succeed
are portrayed in the news and change from country to country,”
substantiated in 2014, compared and reach the topmost level,” said
other public media. Linebarger also Creveling said. “I want to be sure
to 50 percent in 2013. Around Sagarika Dash, Account Specialist –
reiterated that Cummins is a safe and we’re building strategies and plans
29 percent of the substantiated Telecom, in Pune, India. “Look at
welcoming place for all employees around diversity and inclusion in ways
reports resulted in terminations your present environment and you

GOVERNANCE
in keeping with the Company’s that support our common value but
compared to 33 percent in 2013. will definitely find one instance of
core values. Linebarger’s discussion allow us to flex around the world and
diversity enhancing our path to
The average time to close was prompted by his concern over leverage the full, creative power of
success. Every employee should
a case was 13 work days, growing anti-Muslim rhetoric in the all our employees to the benefit of
get a chance to work in such a
our customers looking for innovative

FINANCIAL
down one day from 2013.
105 solutions to their power problems.”
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // RIGHT ENVIRONMENT // DIVERSITY
WORKING FOR A WELCOMING STATE

For a second consecutive year, Cummins


found itself lobbying against legislation that

COVER STORY
sent a less than welcoming message about
its home state of Indiana (U.S.A.).

Senate Bill 101 in the Indiana Legislature was


DIVERSITY HELPS in general and identify diversity-related
issues at particular sites.

ENVIRONMENT
intended to increase legal protections for those
with strongly held religious beliefs, but several
businesses and advocacy groups were
SOLVE HARD PROBLEMS The Women’s Affinity Group of Indiana
has long offered career development
concerned the bill could be used to refuse
Opening doors for women begins with an open dialogue programming to its members, such
services to lesbians, gays, bisexuals and

INNOVATION
as mentoring circles, seminars by
transgender (LGBT) individuals. and a commitment to workforce inclusion.
Cummins leaders and other career
Cummins, the Indianapolis Chamber of “When we do something that helps discussion where Linebarger enhancement activities. It is one of
Commerce and other businesses opposed the us create the right environment spoke. Joining him on the panel more than 30 women’s affinity groups

CORPORATE RESPONSIBILITY
bill because they said it sent an unwelcoming for women, everybody benefits,” were three senior women leaders: at the Company based at locations
message and could expose businesses to Chairman and CEO Tom Linebarger Jill Cook, Cummins Vice President around the world.
lawsuits over religious belief claims that existing told more than 1,000 managers at of Human Resources; Tracy Embree,
Cummins has also initiated
law already protects. The bill was amended to Cummins attending a panel discussion Vice President and President of the
recruiting programs, especially in
prevent business litigation concerns, but still on gender diversity in October 2014. Components Business Unit and
areas like engineering where women
did not expressly state it could not be used Kelley Bertoux Creveling, Executive
“It’s not an us vs. them thing,” he said. have long been under-represented.
to deny services. Director of Global Diversity and

HEALTH & SAFETY


“It’s us and us.” For example, the Company has been
Right Environment.
A media firestorm ensued throughout a major contributor to the Cummins
Cummins is making progress in its efforts
the United States. Cummins, along with The panel discussion was sponsored College of Engineering for Women
to attract and develop women, but
several members of the business and LGBT by the Women’s Affinity Group of in Pune and Nagpur, India. Cummins
leaders say more can and must be done.
communities, worked to include language that Indiana, one of the Company’s more India also sponsors a week of activities

RIGHT ENVIRONMENT
expressly disallows the use of the Religious In 2014, women made up about than 100 employee groups organized dedicated to women in recognition
Freedom Restoration Act to discriminate on the 26 percent of the Company’s total around different facets of diversity. of International Women’s Day on
basis of sexual orientation or gender identity. workforce and about 20 percent of the March 8. This year’s theme was
Affinity Groups provide support and
Company’s leadership ranks. In 2009, “Make It Happen.”
The previous year, Cummins opposed a bill that networking opportunities for their
women made up about 24 percent
would have banned gay marriage in Indiana’s members in addition to representing In 2014, the Company launched the

GOVERNANCE
of the total workforce and about
constitution. The Company maintained it would the group’s views to senior leaders Technical Women Initiative to help hire,
16 percent of its leadership ranks.
make it harder to recruit the best employees and helping solve business problems. develop and retain women in technical
who often look for diverse places to live. Evidence of the Company’s progress Local Diversity Councils are site- fields as part of a broader corporate
That bill was not brought up for a final vote. could be seen at that same panel based groups that promote diversity commitment to diversity.

FINANCIAL
106
INTRODUCTION
COVER STORY
Jill Cook (center), Cummins Vice President of
Human Resources; Tracy Embree (second from

ENVIRONMENT
the right), Vice President and President of the
Components Business Unit and Kelley Bertoux
Creveling (far right), Cummins Executive Director
of Global Diversity and Right Environment, join
Chairman and CEO Tom Linebarger (far left)
for a panel discussion on gender diversity.

INNOVATION
As part of the Technical Women’s Jennifer Rumsey, Cummins Vice their area of expertise to both “Participation in and our support of

CORPORATE RESPONSIBILITY
Initiative, Cummins has been active President – Engineering, Engine expand the role of clean energy in our the conference promotes our diversity
in the Clean Energy Education & Business, and Joan Wills, the collective future as well as increase core value and helps us create an
Empowerment (C3E) initiative. Company’s High-Horsepower Chief the representation of women in the inclusive environment by allowing
C3E was launched by the Engineer and Program Leader for field,” Wills said. “As an ambassador, our technical women to share their
23-government Clean Energy Tier 4, represented Cummins at the I’m responsible for leading and knowledge and learn from other
Ministerial in 2010. The Initiative inaugural symposium, where Rumsey participating locally, nationally and women in the same field,” he said.
was born out of recognition that spoke as part of a panel discussion globally in efforts to increase the
Linebarger says a successful

HEALTH & SAFETY


the ideas and talents of all members on the topic of “Mobilizing Change in representation of women in the
workplace depends on a pipeline
of society are essential to meeting the Private Sector.” Hélène Cornils, field of clean energy.”
of female leaders who are ready
future clean energy challenges. Engineering Director of Global Lab
Dr. John Wall, Cummins Vice and encouraged to move up
Operations, has also represented
Since then, the Massachusetts President and Chief Technical Officer, within the Company.
Cummins at C3E events.

RIGHT ENVIRONMENT
Institute of Technology (MIT) has said the Technical Women’s Initiative
“Diversity, rather than sameness,
been the leading institution backing Wills currently serves as one of and groups like C3E are important
is what helps us solve complex
the group in the United States and 37 international C3E Ambassadors, for several reasons.
problems,” Linebarger said.
Cummins has been a corporate executive-level leaders who work
“Cummins supports and engages “There’s a lot of research about this
sponsor. Starting in 2012, annual together to advance women’s
in the C3E Symposium because that’s pretty compelling. My personal
symposiums at MIT have provided participation and leadership in

GOVERNANCE
it’s important to endorse women experience agrees with it. Sameness
women working in clean energy the sector.
in the area of clean energy and in drives harmony, especially at the front,
with a range of perspectives
“The group has a variety of educational the technical function,” Wall said. and diversity solves hard problems.”
and expertise on clean energy
backgrounds but share a common link
challenges and opportunities,

FINANCIAL
of being female leaders working in
as well as a chance to network.
107
INTRODUCTION
SUSTAINABILITY PROGRESS REPORT // RIGHT ENVIRONMENT // DIVERSITY

23.68%
DEVELOPING A TRULY GLOBAL WORKFORCE
WOMEN IN THE 25.91%
Diversity at Cummins has long been about more than representation. But as a truly

COVER STORY
WORKFORCE
global company, Cummins wants to develop a workforce that closely resembles the
demographics in the countries and markets where it does business.

Company leaders pay special attention to some key metrics of under-represented


2008

ENVIRONMENT
groups at Cummins, such as women. An employee’s country of birth is another
key metric to ensure leadership isn’t limited to one country or group of countries.
Here’s a look at what’s been happening in these areas from 2008 to 2014.
2014
COUNTRY OF BIRTH FOR THE WORKFORCE

INNOVATION
COUNTRY OF BIRTH FOR THE WORKFORCE 16.42%
WOMEN LEADERS
40%
IN THE WORKFORCE

19.61%

CORPORATE RESPONSIBILITY
30%

2008
20%

2014
REST OF WORLD*
AUSTRALIA

UNITED STATES

10%
BRAZIL

MEXICO

HEALTH & SAFETY


CHINA

INDIA

UK

0% 2008 2014 2008 2014 2008 2014 2008 2014 2008 2014 2008 2014 2008 2014 2008 2014

COUNTRY OF BIRTH FOR MANAGERS


COUNTRY OF BIRTH FOR LEADERS
60% WORKFORCE BY LOCATION

RIGHT ENVIRONMENT
More than half the Cummins workforce works outside the United States.
Here’s a look at where Cummins employees were in 2014.
50%
40%

40%
30%

REST OF WORLD*
30%
REST OF WORLD*

GOVERNANCE
20%
20%