Cummins Honored for Sustainable Practices

Cummins employees gather at one of the company's buildings in Columbus, Indiana (U.S.A.).
Cummins employees gather at one of the company's buildings in Columbus, Indiana (U.S.A.).

Cummins in the past month has received four more honors for its work in sustainability, ethics and diversity. Here’s a quick look:

*The company was named to Barron’s first-ever list of America’s 100 Most Sustainable Companies. Cummins finished 60th in the magazine’s ranking, just behind Macy’s and just ahead of Apple.

*Cummins received the highest ranking possible for its environmental and social performance from Institutional Shareholder Services (ISS), a key source of information for institutional investors. This is the first time ISS has reviewed companies on an environmental and social basis.

*Cummins was named one of the world’s Most Ethical Companies by the Ethisphere Institute, a leader in defining and advancing the standards of ethical business practices. This is the 11th consecutive year Cummins has made Ethisphere’s list.

*The company was named to Forbes Magazine’s first-ever list of the 250 Best Employers for Diversity in the United States. Cummins was 62nd on Forbes’ list.


The four announcements come just about a month after the company received three other honors for its environmental performance, its business practices and its management acumen.

Barron’s said its new list, which it plans to now do annually, comes as the investment world is increasingly defining success not just in terms of financial performance, but also whether an investment makes a positive contribution to society. Investments, it says, should do well and do good.

The magazine, through Calvert Research and Management, looked at 300 performance indicators in addition to financial performance, including everything from accounting practices and board structure to greenhouse gas emissions (GHG) and labor relations.

ISS also looked at more than 300 indicators in its review based on publicly available data. The website expanded its examination as “extra-financial factors play a heightened role in investment decision-making.” The service said adding the environmental and social evaluation to its governance appraisal gives a more balanced view of the risk of investing in a particular company.

While Ethisphere’s focus is on governance and business ethics, it, too, has expanded its survey over the years to include environmental and social factors. Companies must complete a lengthy survey for inclusion on the institute’s Most Ethical Companies list.

Forbes, meanwhile, noted that one study after another has shown companies work better with diverse teams. It worked with the research firm Statista to survey 30,000 employees to develop its Best Employers for Diversity list.

While it’s nice to win awards, Cummins believes its sustainable practices ultimately deliver better results for its customers. The company wants to help customers achieve their own sustainability goals, so they succeed today and well into the future, too.
 

blair claflin director of sustainability communications

Blair Claflin

Blair Claflin is the Director of Sustainability Communications for Cummins Inc. Blair joined the Company in 2008 as the Diversity Communications Director. Blair comes from a newspaper background. He worked previously for the Indianapolis Star (2002-2008) and for the Des Moines Register (1997-2002) prior to that. blair.claflin@cummins.com

Cummins Adopts Human Rights Policy

Cummins' new Human Rights policy applies to entities across the globe in which the company has “a controlling ownership interest or management responsibility.
Cummins' new Human Rights policy applies to entities across the globe in which the company has a "controlling ownership interest or management responsibility."

Cummins has adopted the company’s first Human Rights Policy, addressing human rights violations ranging from human trafficking to child labor, forced labor and indentured labor.

“All of these issues were already prohibited in our company and supplier codes of conduct,” said Mark Sifferlen, Vice President – Ethics and Compliance. “But matters like human trafficking are so important we wanted to be absolutely clear where Cummins stands.”

The policy was finalized in December 2017 after nearly a year long review and was posted on the company’s website in January. In adopting it, Cummins joins many of the most highly ranked companies for sustainability.

“Respect for human rights is fundamental to the sustainability of Cummins and the communities in which we operate,” the policy states. “In our company and with our partners, we are committed to ensuring that people are treated with dignity and respect.”

The policy specifically addresses:

• Human trafficking and exploitation.
• Forced labor, child labor, bonded labor, prison labor and military labor.
• Foreign and migrant worker rights.

The policy applies to Cummins entities across the globe in which the company has “a controlling ownership interest or management responsibility. This includes subsidiaries, joint ventures, affiliated companies and distributors.” If Cummins doesn’t have a controlling interest in a partner entity, it pledges to take steps to ensure the entity complies with all applicable human rights laws.

The company also commits to supply chain transparency, pledging to work with suppliers and partners in high risk locations to mitigate the risk of human trafficking and other human rights violations.

The new policy was guided by the Universal Declaration of Human Rights, the International Labor Organization’s Declaration on Fundamental Principles and Rights at Work, the United Nations Global Compact and the United Nations Guiding Principles on Business and Human Rights.

To see the policy, click here.

Cummins' new Human Rights Policy applies to office and manufacturing employees, alike.
Cummins' new Human Rights Policy applies to office and manufacturing employees, alike.

 

blair claflin director of sustainability communications

Blair Claflin

Blair Claflin is the Director of Sustainability Communications for Cummins Inc. Blair joined the Company in 2008 as the Diversity Communications Director. Blair comes from a newspaper background. He worked previously for the Indianapolis Star (2002-2008) and for the Des Moines Register (1997-2002) prior to that. blair.claflin@cummins.com

Cummins gets high marks in rankings on the environment, just practices and management

An employee at Cummins’ Rocky Mount Engine Plant in Rocky Mount, N.C., carefully monitors energy use. One key aspect of Newsweek’s Green Ranking is energy management.
An employee at Cummins’ Rocky Mount Engine Plant in Rocky Mount, N.C., carefully monitors energy use. One key aspect of Newsweek’s Green Ranking is energy management.

Cummins received high marks in a trio of rankings released in December.

The company finished 25th in Newsweek’s 2017 Green Ranking of U.S. companies, 45th on the Forbes-JUST Capital list of the Just 100: America's Best Corporate Citizens, and 94th in the Wall Street Journal’s Management Top 250, all released separately.


The Newsweek ranking, released Dec. 7, assessed the environmental performance of the world’s largest publicly traded companies. Cummins was named “Best in Industry” in the “Machinery” category for U.S. companies.

The 2017 Green Ranking is built around six principles: Transparency, Objectivity, Public Availability of Data, Compatibility, Engagement and Stakeholder Input. The U.S. rankings assess the sustainability performance of the 500 largest publicly-traded companies headquartered in the U.S. by revenue as of Dec. 31, 2016.

“At Cummins, our mission calls for powering a more prosperous world,” said Brian Mormino, Executive Director of Worldwide Environmental Strategy and Compliance. “That requires a vibrant, healthy planet. Innovation for us means that we are environmentally responsible while dependably meeting the needs of our customers.”

The rankings looked at energy use, greenhouse gas emissions, water use, waste production and recycling, and other factors. Newsweek, a news magazine, produces the Green Ranking in partnership with Corporate Knights, a multi-faceted business known for its environmental and sustainability rankings, its research and its magazine, which it describes as the “magazine for clean capitalism.”

The top U.S. company in the ranking was Cisco Systems Inc. followed by Ecolab Inc. and Hasbro Inc.

The Just 100 list released Dec. 12, ranks the largest publicly-traded U.S. corporations in a number of areas deemed through polling as the most important to Americans.

Key issues in 2017 included employee wellbeing, customer treatment, environmental impact, job generation, transparency and more. This is the second year Forbes and JUST Capital have partnered to produce the list.

The top companies in the Just 100 are Intel, Texas Instruments and NVIDIA.

The Wall Street Journal’s inaugural Management Top 250, released Dec. 6, is a comprehensive guide examining how U.S. companies navigate complex business environments, "serving their workers, customers and shareholders."

It is based on rankings by the Drucker Institute, which looks at corporate performance in five areas: Customer Satisfaction, Employee Engagement and Development, Innovation, Social Responsibility, and Financial Strength.

The Drucker Institute analyzed “37 data inputs, provided by 12 third-party sources, to produce its landmark ranking.” Peter Drucker is an author, professor and longtime Wall Street Journal columnist.

Cummins received four out of five stars in Employee Engagement and Development, and Social Responsibility. The top ranking company in the survey was Amazon.com Inc., followed by Apple Inc. and Alphabet Inc.

In still another rating released earlier this fall, Cummins received a perfect score of 100 percent on the 2018 Corporate Equality Index (CEI) for the thirteenth straight year. The CEI, conducted in 2017, is a national benchmarking survey and report on corporate policies and practices related to lesbian, gay, bisexual, transgender and queer (LGBTQ) workplace equality, administered by the Human Rights Campaign Foundation.

Cummins joined the ranks of 609 major U.S. businesses which also earned top marks this year.

 

 

 

blair claflin director of sustainability communications

Blair Claflin

Blair Claflin is the Director of Sustainability Communications for Cummins Inc. Blair joined the Company in 2008 as the Diversity Communications Director. Blair comes from a newspaper background. He worked previously for the Indianapolis Star (2002-2008) and for the Des Moines Register (1997-2002) prior to that. blair.claflin@cummins.com

Cummins CEO supports NAFTA in interview with POLITICO

Caption: Cummins Chairman and CEO Tom Linebarger says NAFTA means thousands of jobs for American workers at locations such as the company’s engine plant in Jamestown, New York.
Cummins Chairman and CEO Tom Linebarger says NAFTA means thousands of jobs for American workers at locations such as the company’s engine plant in Jamestown, New York.

Cummins Chairman and CEO Tom Linebarger said in an interview with POLITICO that the benefits to business of the tax cuts recently passed by the U.S. House and Senate could be offset by losses if President Trump pulls the country out of the North American Free Trade Agreement (NAFTA).

“I’m excited about the growth that could come from tax reform, and I think that withdrawing from NAFTA could have the exact opposite effect and essentially undo the benefits,” Linebarger, told POLITICO in an article appearing Wednesday (Dec. 6, 2017).

Linebarger, chairman of the Business Roundtable’s International Engagement Committee, strongly supports NAFTA, maintaining international trade means jobs for American workers.

Linebarger said the United States is a much less attractive place to invest if the country withdraws from NAFTA.

“Not only would terminating NAFTA worsen the position of the U.S., but it causes multinational companies like mine to figure what’s the best way to position yourself for a world without NAFTA, which might mean changing manufacturing locations,” Linebarger told POLITICO. “Mexico has 44 free trade agreements. The U.S. has free trade agreements with 20 countries. So the very best way to sell to everybody else is to be in Mexico.”

blair claflin director of sustainability communications

Blair Claflin

Blair Claflin is the Director of Sustainability Communications for Cummins Inc. Blair joined the Company in 2008 as the Diversity Communications Director. Blair comes from a newspaper background. He worked previously for the Indianapolis Star (2002-2008) and for the Des Moines Register (1997-2002) prior to that. blair.claflin@cummins.com

New Microsoft-Cummins Lab Could Impact More Than Datacenters

Cummins’ Executive Director of Power Systems Engineering Gary Johansen (left) tours the Advanced Energy Lab with Sean James (center) of Microsoft and Dan Ronco (right) of McKinstry.

Officials from Microsoft, Cummins, and McKinstry celebrated the start of operations Wednesday, October 25, at their new advanced energy lab in Seattle, Washington, maintaining it could deliver important insights not just on powering datacenters, but on a host of other energy-intensive activities.

“In the future, the research work done here will help us and our customers in really diverse applications and market segments,” said Gary Johansen, Executive Director of Power Systems Engineering at Cummins.

“…Our aim is to create solutions that are cleaner, greener and lower cost,” Johansen said at the celebration. “We know this mission critical work well and believe that in the future it may also reach our customers who need to power hospitals, grocery stores and other important locations.”

A FOCUS ON FUEL CELLS

The lab’s initial focus will be on powering datacenters with natural gas powered fuel cells. The 20-rack environment in the lab simulates datacenter conditions to evaluate whether the fuel cells have the potential to improve efficiency, reduce emissions and cut costs.

The partners in the lab marked the beginning of operations by cutting a symbolic electric cord. Microsoft has long had the goal of unplugging from the grid, maintaining it would improve energy efficiency, reduce costs and improve the reliability of the grid by removing some of the stress on it.

Datacenters use a lot of energy, consuming about 2 percent of U.S. electricity, according to the U.S. Department of Energy. A significant portion of that energy is lost in the transmission of electricity from a power plant through the grid and to the datacenter. The lab partners believe that the integration of fuel cells directly into a datacenter could nearly double energy efficiency.

“The lab is our latest step towards our ongoing work to eventually eliminate the energy and resource impact of our datacenters; in other words, making our datacenters disappear,” said Suresh Kumar, Corporate Vice President, Cloud Infrastructure and Operations, Microsoft.

The project was conceived of and funded by Microsoft, Cummins and McKinstry, with additional funding provided by Siemens and the Washington State Department of Commerce via its Clean Energy Fund. Washington State Governor Jay Inslee was among the dignitaries at the celebration.

A RECORD OF INNOVATION

The three principal partners in the lab each bring a track record of innovation to the project.

Microsoft is a giant in its industry. The company’s cloud infrastructure includes more than 100 datacenters around the world. It hosts more than 200 cloud services including Bing, MSN, Office 365, Xbox Live and the Microsoft Azure cloud platform.

The company has made a commitment to use more clean energy to power its datacenters, maintaining 50 percent will come from wind, solar and hydropower sources by the end of 2018.

Cummins currently has over 7 gigawatts (GW) of primarily backup generator capacity in datacenters around the world, using a variety of technologies including diesel and combined heat and power/gas. That’s enough energy to power every household in New York City.

McKinstry is a full-service construction firm specializing in energy and facility services. It tested re-using waste heat from datacenters before designing the largest waste heat transfer system in America.

“We know the future means we won’t just provide one power system, but customized solutions tailored to customer needs,” said Cummins’ Johansen, who predicts the lab will have positive repercussions for clean energy generation in the power generation industry. “This lab is a place where we can test various combinations of energy storage and power systems, together.”

blair claflin director of sustainability communications

Blair Claflin

Blair Claflin is the Director of Sustainability Communications for Cummins Inc. Blair joined the Company in 2008 as the Diversity Communications Director. Blair comes from a newspaper background. He worked previously for the Indianapolis Star (2002-2008) and for the Des Moines Register (1997-2002) prior to that. blair.claflin@cummins.com

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