Cummins again named to list of most sustainable companies in North America

Cummins takes a broad approach to sustainability, including multiple areas ranging from the environment to good governance and financial performance.
Cummins takes a broad approach to sustainability, including multiple areas ranging from the environment to good governance and financial performance.

Cummins has been named to the S&P Dow Jones Sustainability Index for North America for a 14th consecutive year.


The 2019 index, based primarily on 2018 data, reviews a company’s economic, environmental and social performance across more than 20 different categories, ranging from codes of conduct to environmental reporting and occupational health and safety.

“Raising the bar each year, the CSA (Corporate Sustainability Assessment) is continuously enhanced to identify and measure under-researched or under-reported financially material ESG (environmental, social and governance) factors,” S&P Dow Jones said upon releasing its findings last week. “This process helps better detect those companies that are well-positioned to address future sustainability-driven challenges and opportunities.”

ABOUT THE ASSESSMENT

The assessment is conducted by RobecoSAM, an investment specialist focused exclusively on sustainable investing. It says the 2019 assessment covered approximately 1,000 data points and attracted record interest from companies seeking to measure and improve their sustainability performance. This is the 20th anniversary of index.

Cummins' 2018 Sustainability Progess Report
Cummins' most recent Sustainability Progress Report, along with reports back to 2003, can be found on the company's sustainability page.

Despite raising its score four points over the company’s 2018 overall assessment, Cummins once again narrowly missed making S&P Dow Jones’ World Index. It saw overall increases in its economic, environmental and social dimension scores ranging from two to six points.

The largest year-over-year increases came in the categories of materiality, operational eco-efficiency and talent attraction and retention. Human capital development, product stewardship and corporate governance also recorded significant improvements.

EXCLUSIVE COMPANY

In Cummins’ category, capital goods, only 10 other companies made the North American Index. Those companies included: Caterpillar Inc., Fluor Corp., Ingersoll-Rand, Johnson Controls, Lockheed Martin Corp., Northrop Grumman Corp., Owens Corning, Rockwell Automation Inc., Stanley Black & Decker and W.W. Grainger, Inc.

Cummins takes a broad approach to sustainability, including the environment, corporate responsibility, health and safety, diversity and inclusion, innovation, customer service, good governance, ethics and financial performance.

To learn more about Cummins’ sustainability efforts, check out the company’s 2018 Sustainability Progress Report and other related documents on Cummins’ sustainability page on cummins.com.
 

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. [email protected]

 

Cummins lauded as a top organization for environmental innovation globally

The technical center at the company's engine plant in Seymour, Indiana (U.S.).
The technical center at the company's engine plant in Seymour, Indiana (U.S.).

Cummins has been named one of the world’s top 100 organizations innovating for a better environmental future based on a review of the company’s “Green Patent Portfolio.”

The ranking in Sagacious IP’s GREEN100 Index follows Cummins’ record year for global patents of all types in 2020. The company received 312 global patents that year, topping its previous record of 287 reached in 2017. That’s a nearly 9% improvement over Cummins’ previous record and a more than 12% increase over 2019. 

“The GREEN100 Index is an annual feature to recognize organizations who are working and innovating relentlessly for building a green future,” said Tarun Kumar Bansal, President, Sagacious IP. “I congratulate Cummins for being at the forefront of green innovation and entwining sustainability within the company’s goals.”

ABOUT THE INDEX

The index includes 100 companies and universities from around the world, ranging from Qualcomm, the semi-conductor, software and wireless technology company based in San Diego, California (U.S.), which ranked first in the report, to Compagnie de Saint-Gobain, the French materials design, distribution and manufacturer, which ranked No. 100. Cummins ranked No. 92 in the study.

The United States had the most organizations in the GREEN100 with 39 followed by Japan with 20. The patents reviewed as part of the study generally fell into one of 10 groupings: energy and power; transportation - motor vehicles and parts; renewables; information and communication; transportation - airlines; industrial machinery; building and infrastructure; chemical; health care; and metal processing.

Sagacious IP is one of the largest global intellectual property research and consulting firms, headquartered in Gurgaon, India, with offices around the world. Established in 2008, it has more than 1,000 clients in over 45 countries. 

The firm’s GREEN100 index explored global patents from 2015 to 2020 to judge companies based on their commitment to a more environmentally sound future, their current impact on that future, and their potential to influence the future. Sagacious says its methodology goes beyond evaluating companies on the quantity of their relevant patents to also judge them on the quality of those patents.

The goal of the study and ranking, according to Sagacious, is to raise awareness and spark conversation around the quality of innovation being achieved to address issues like the world’s climate challenges.

2020 Cummins Global Patents Chart
Cummins has consistently increased the number of global patents the company received since 2013.

A RECORD OF INNNOVATION

Cummins has been quickly emerging as a leader in new low carbon power technologies such as battery and fuel cell electric as well as electrolyzers to produce renewable hydrogen by splitting water into hydrogen and oxygen.

The company’s New Power business segment has been part of a number of firsts recently, including the world’s first hydrogen powered passenger train.

Meanwhile, Cummins has been working to improve its diesel and natural gas platforms to reduce heat-trapping greenhouse gases (GHGs) as well as key contributors to smog such as particulate matter and nitrogen oxides. 

The company has invested significant amounts in innovation, topping $900 million in research, development and engineering expenses in each of the past three years, including a record $1 billion in 2019.

Cummins aspires to be carbon neutral by 2050 under the company’s PLANET 2050 environmental sustainability strategy. PLANET 2050 also includes science-based goals timed to 2030 that are aligned to the Paris Agreement on climate change.

The company recently wrapped up work on environmental goals timed to 2020, achieving significant reductions in water and energy use at Cummins facilities while increasing recycling. The company also worked with customers to reduce the GHGs generated by Cummins products in use.

Cummins will be posting those results soon in the company's 2020 Sustainability Progress Report. More on Cummins' sustainability initiatives can be found on the company's sustainability website.

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. [email protected]

 

Company posts first TCFD report on climate actions

Cummins' technology is helping to power the world's first hydrogen powered passenger train. (Photo copyright Alstom/Reme Frampe))
Cummins' technology is helping to power the world's first hydrogen powered passenger train. (Photo copyright Alstom/Reme Frampe)

Cummins has posted its first environmental sustainability report aligned to the Task Force on Climate-related Financial Disclosures (TCFD), a platform created to improve and increase reporting of climate-related information. 

The company’s TCFD report joins Cummins reports aligned to the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB), and the CDP (formerly Carbon Disclosure Project) in addition to Cummins' Sustainability Progress Reports. The company has been reporting annually on its sustainability work since 2003.

NEW REPORT'S ROOTS

Cummins’ 27-page TCFD report details the company’s strategy to address climate change, governance at Cummins for overseeing the company’s climate-related initiatives, its structure to manage climate-related risks and the metrics and targets the company uses to evaluate its impact on climate issues.

The new report borrows significantly from PLANET 2050, Cummins' environmental sustainability strategy. PLANET 2050 includes science-based goals timed to 2030 and aligned to the Paris Agreement on climate change, as well as the aspiration to be carbon neutral by 2050. The new TCFD report also draws heavily from information included in the company’s annual CDP Climate Report, which Cummins has been reporting to since 2006 and posting its response publicly since 2014.  

Finally, the new report includes extensive information on the company’s two decades of leadership on emissions related issues, from having the first heavy-duty engine certified to tough new EPA standards in 2002 to the unveiling of PLANET 2050 in the last quarter of 2019. Cummins has long supported tough, clear and enforceable regulations that spur innovation in the commercial power industry. It has also actively advocated for action on the world’s climate challenges.

THE IMPORTANCE OF TCFD

TCFD has emerged quickly as an important platform in environmental, social and governance (ESG) reporting over the past five years. The task force was created in 2015 by the Financial Stability Board, a group launched after the G20 London summit in 2009 to promote international financial stability. The TCFD’s first chairman was Michael Bloomberg, the former Mayor of New York City and a 2020 presidential candidate in the United States.

The task force released its first reporting standards in 2017 to encourage companies to report “clear, comprehensive, high-quality information on the impacts of climate change.” The TCFD standards received a major boost in 2020 when Larry Fink, CEO of BlackRock, an investment management corporation based in New York City, called the standards a “valuable framework” for reporting on climate risk in his influential annual letter to CEOs. With more than $8 trillion in assets under management, BlackRock has considerable influence.

“Climate change poses both risks and opportunities for business, now and in the future,” TCFD says on its website. “As the Earth’s temperature rises, increasingly common natural disasters are disrupting ecosystems and human health, causing unanticipated business losses, and threatening assets and infrastructure.”  

The TCFD report will soon be followed by Cummins’ 2020-21 Sustainability Overview and the company’s 2020 Sustainability Progress Report looking at key ESG metrics for 2020. Those wanting to learn more can also check out Cummins’ Sustainability website.
 

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. [email protected]

 

ESG performance propels Cummins to 2021 Best Corporate Citizens list

Cummins rejoined the 100 Best Corporate Citizens List Tuesday thanks to high rankings on ESG Performance and acting on Climate Change.
Cummins rejoined the 100 Best Corporate Citizens List Tuesday.

Cummins has returned to the 100 Best Corporate Citizens list, tying for first in Environmental, Social and Governance (ESG) Performance and finishing sixth in the survey’s Climate Change category.

The company ranked No. 49 overall in the survey’s review of the 1,000 largest publicly traded U.S. companies on sustainability performance and transparency. The ranking is based on publicly available data covering eight categories: Climate Change, Employees, Environment, ESG Performance, Financial, Governance, Human Rights and Stakeholders and Society.

“Now more than ever, corporate leadership on environmental, social and governance issues is imperative,” said 3BL Media, sponsors of the survey. “And so is transparency. As companies decarbonize, align with the (U.N.’s) Sustainable Development Goals and rebuild an equitable economy post-pandemic, they must be open about their efforts.”

3BL Media works with  companies including Cummins to help them reach key audiences concerned about ESG performance. However, 3BL is careful to say the Best Corporate Citizens review is completely independent. 3BL develops the methodology and ISS ESG, part of Institutional Shareholder Services (ISS), researches the data and information and processes the ranking. ISS is a leading provider of ESG information for investors.

Cummins finished No. 27 in the 2019 100 Best Corporate Citizens ranking but fell to No. 121 in 2020. The company’s return to the list was fueled by its high ranking on ESG Performance and taking action Climate Change. Cummins tied for the top ranking in ESG Performance with 133 other companies that earned an “A” grade. 

ISS ESG looked at 100 different factors to assess performance with regard to managing risk and seizing opportunities involving ESG. Over the past year, Cummins has wrapped up its work on the company’s environmental performance goals timed to 2020, achieving the benchmarks established for conserving water and working with customers to reduce the environmental impact of Cummins' products in use, while falling just short of the goal set for reducing energy use.

Meanwhile, Cummins’ New Power business segment aggressively pursued development of battery and fuel cell electric products as well as products designed to increase the supply of green hydrogen, a promising low-carbon fuel source.

In addition, the company continued reducing the environmental impact of its diesel and natural gas products, achieving reductions in key emissions that contribute to smog and improving fuel economy, which results in lower greenhouse gas emissions.

In the social performance area, the company continued to advance gender equity in communities around the world in 2020 through the company’s Cummins Powers Women initiative and launched Cummins Advocating for Racial Equity that same year to help dismantle systemic racism in the United States. In governance, two Black women joined the 13-member Cummins Board of Directors in the past year, increasing the total number of women to five on the board or 38.5% of its membership.

On climate change, in addition to the company’s work on its 2020 environmental goals and New Power’s progress in low-carbon products, Cummins began implementing its PLANET 2050 environmental sustainability strategy. PLANET 2050 includes science-based goals timed to 2030 and the aspiration to be carbon neutral by 2050.

Cummins has received several high rankings for its ESG performance over the past 12 months. The company finished No. 84 in Barron’s list of the 100 Most Sustainable Companies in the U.S. earlier this year. Cummins was also named one of the World’s Most Ethical Companies by the Ethisphere Institute for a 14th consecutive year. 

The company was also one of 50 named to the National Business Inclusion Consortiums’ Best of the Best list of corporations committed to diversity and inclusion across all communities. In December 2020, the company finished No. 24 on Newsweek’s ranking of America’s Most Responsible Companies for 2021.
 

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. [email protected]

 

Cummins CEO promotes ESG progress at Annual Meeting

An employee works at the Cummins Fuel Cell & Hydrogen Technology campus in Mississauga, Ontario (Canada).
An employee works at the Cummins Fuel Cell & Hydrogen Technology campus in Mississauga, Ontario (Canada).

Despite the pandemic, Cummins was able to make significant progress on its environmental, social and governance (ESG) priorities in 2020, Chairman and CEO Tom Linebarger told shareholders and guests at the company’s Annual Meeting Tuesday.

The Cummins leader said the progress will be critical to achieve the goals and aspirations included in the company's PLANET 2050 environmental sustainability strategy.

Cummins Chairman and CEO Tom Linebarger speaks at the Annual meeting in 2019, the last in-person meeting before the COVID-19 pandemic.
Cummins Chairman and CEO Tom Linebarger speaks at the Annual Meeting in 2019, the last in-person Annual Meeting before the pandemic.

“We continued investment in our most important technology programs, which are critical to reaching our sustainability pledge of carbon neutrality by 2050,” Linebarger said at the meeting, which was conducted virtually because of the ongoing threat from COVID-19. “We are investing in a range of solutions to lead the industry on the path to a zero-emissions future, and we are taking steps today to turn our 2050 targets into real-world products and applications.”

ESG IN ACTION

Linebarger highlighted five areas in particular when discussing the company’s progress on ESG:

  • Delivering a 20-megawatt PEM electrolyzer system to generate green hydrogen in Bécancour, Quebec (Canada), making it the largest in operation in the world.
  • Providing fuel cell modules to ASKO, Norway’s largest grocery wholesaler, that were integrated into four Scania trucks, and fuel cells for FAUN, a leader in waste collection vehicles and sweepers in Europe for that company’s electric refuse truck program.
  • Cummins’ emergence as the largest supplier of fuel cells for the rail industry, including the world’s first hydrogen-powered passenger train. Linebarger said the company is using its experience in rail for other heavy-duty transportation applications.
  • In the battery-electric market, the delivery of 147 powertrains to Blue Bird in 2020 for use in the school bus market and 19 powertrains to Gillig for use in the transit bus market.
  • The formation of a joint venture with NPROXX to provide customers with high-pressure tank and storage solutions in hydrogen and natural gas markets.

“We continue investment in key technologies for the future,” Linebarger said. “We are targeting markets where commercial opportunities exist today or will emerge in the near- or medium-term.”

But the Cummins’ leader was careful to say Cummins cannot reach carbon neutrality by itself.

“We are advocating for public policies that enable the energy transition while reducing emissions,” Linebarger said. “This includes innovating and scaling low-carbon fuels, modernizing the grid and developing the hydrogen economy.”

Cummins remains committed to offering customers the power of choice, including advanced diesel and near-zero natural gas platforms. The company believes these technologies can reduce greenhouse gases immediately and serve as an important bridge to a carbon-neutral future as the infrastructure develops for low- and no-carbon platforms.

LEADING ON RACIAL EQUITY

Linebarger also highlighted Cummins’ 2020 work to address systemic racism in the United States. The company launched Cummins Advocating for Racial Equity, or CARE, to drive racial equity in Cummins communities and at the company, too.

CARE has four key focus areas: police reform; criminal justice reform; economic empowerment; and social justice reform in healthcare, housing, workforce development and civil rights, including voting rights and education.

“Institutional racism is a disease,” Linebarger said. “It is deeply rooted and longstanding, and it makes our society weaker. It will take decisive and sustained action to dismantle racism and Cummins will be part of that action.”

The Cummins CEO noted that company Tuesday took another step toward racial equity with the election of a third Black woman, Carla Harris, to the now 13-member Board of Directors and a fifth ethnically diverse member. Harris is Vice Chairman, Managing Director and Senior Client Advisor at Morgan Stanley.

PURSUING A HEALTHIER PLANET

Linebarger said these and other steps forward in ESG excellence were only possible thanks to the outstanding work of employees during the pandemic. While the virus took a heavy toll on the company, a collaborative effort from the manufacturing floor to the company’s Board of Directors enabled Cummins to implement numerous steps to safely reopen.

The company also partnered with 3M and DuPont to help produce personal protective equipment for medical personnel around the world, shared what it learned from the pandemic to help other companies reopen through Cummins’ Safe Work Playbook, and approved a record $22 million in community grants including $2.6 million in emergency grants to partners providing pandemic-related services.

It’s all about Cummins living its mission, vision and values, Linebarger said.

“No matter the application, we will provide customers an economically viable solution so businesses can thrive, and we can sustain a vibrant economy while preserving the planet for generations to come,” he said. “Our communities and businesses depend on a healthier planet and this work is our mission in action.”

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. [email protected]

 

Redirecting to
cummins.com

The information you are looking for is on
cummins.com

We are launching that site for you now.

Thank you.