New Cummins strategy to address climate change, conserve natural resources

Cummins announced today bold new environmental sustainability goals timed to 2030, and aspirations for 2050, to do the company’s part in addressing climate change and other global environmental challenges.

Chairman and CEO Tom Linebarger said the company’s new PLANET 2050 strategy includes science-based goals for products and facilities in 2030 aligned to the United Nation’s Intergovernmental Panel on Climate Change (IPCC). Science-based goals are designed to limit global temperature rise to no more than 1.5 degrees Celsius by the middle of the century. 

PLANET 2050’s longer term aspirations include powering customer success through carbon neutral technologies that address air quality, and designing out waste in products and processes. 

Linebarger said the PLANET 2050 strategy is both an environmental and a business imperative. He has long maintained companies that can grow while using fewer of the world’s resources will be the most successful in the future. 

“Our communities and our business depend on our collective response to improve the health of the planet while creating prosperity for all,” Linebarger said. “It’s clear that government, businesses, nongovernmental organizations, and communities must unite behind swift, decisive action to address the environmental threats we face.” 

The new strategy builds on the success of goals announced in 2014 and timed to 2020  to reduce the company’s energy and water use as well as carbon dioxide (CO2) from its products. The company will continue to work on those targets through the end of next year. 

Meadow Lake Wind Farm in northwest Indina
Cummins' support for an expansion at the Meadow Lake Wind Farm in northwest Indiana is one of the creative ways the company has increased its use and promotion of renewable energy.

CHALLENGING GOALS

The company’s eight 2030 goals relate to its parts, products and company-managed facilities and operations. They are divided into two categories: Goals addressing climate change and air emissions, and goals for the use of natural resources in the most sustainable way. 

Company leaders say progress on the 2030 goals will be periodically evaluated and communicated, including consideration of whether more can or should be done in line with global energy and environmental challenges.

The 2030 goals are:

Climate change and air emissions 
•    Reduce absolute greenhouse gas (GHG) emissions from facilities and operations by 50% (science-based target).
•    Reduce absolute lifetime GHG emissions from newly sold products by 25% (science-based target).
•    Partner with customers to reduce greenhouse gas (GHG) emissions from products in the field by 55 million metric tons. 
•    Reduce emissions of volatile organic compounds from paint and coating operations by 50%.

Using natural resources in the most sustainable way
•    Create a circular life-cycle plan for every part to use less, use better, use again.
•    Generate 25% less waste in facilities and operations as a percent of revenue.
•    Reuse or responsibly recycle 100% of packaging plastics and eliminate single-use plastics in dining facilities, employee events and amenities.
•    Reduce absolute water consumption in facilities and operations by 30%.

Work on the solar array at the Beijing Foton Cummins Engine Plant
Crews earlier this month began work on a solar array at the second  building at the Beijing Foton Cummins Engine Plant in Beijing, China. The site is already home to the largest array within Cummins.

Company facilities include all consolidated operations and joint ventures that are part of the Cummins Enterprise Environmental Management System.

The company’s strategy also includes addressing environmental needs in the communities where Cummins employees live and work and where the company does business.

Those goals are under development.

Cummins leaders say the strategy’s goals and aspirations will not be easy to reach and require outside action to achieve. 

Cummins Technical Center in Columbus, Indiana.
About 23% of the Cummins Technical Center's energy needs are covered by power captured from the engine testing that takes place at the facility.

ASPIRATIONS FOR 2050

The strategy’s aspirations are a first for the company. The 2050 targets are organized around the same categories as the 2030 goals:

2050 – Climate change and air emissions  
•    Customer success is powered by carbon neutral technologies that address air quality.
•    Carbon neutrality and near zero pollution in Cummins’ facilities and operations.

2050 – Using natural resources in the most sustainable way
Nothing is wasted:
•    Design out waste in products and processes.
•    Use materials again for next life.
•    Reuse water and return clean to the community

2050 – Improving communities:
•    Net positive impact in every community where Cummins operates.
•    Near zero environmental footprint.

The company says it will continue to report its progress on the environment in Cummins’ annual Sustainability Progress Report.

“Our vision for 2050 is a world where Cummins powers the world’s really important work with carbon neutral products and operations,” said Brian Mormino, Executive Director Worldwide Environmental Strategy and Compliance. “Since our communities and business depend on a healthier planet, we will take strong action on climate change and work toward a future where we waste nothing and ensure that our communities are better because we are there.”

Editorial note: Cummins has created a special website for its PLANET 2050 strategy where you can get more information on goals and the company's development of the plan.

 

 

Forward-Looking Disclosure Statement
Information provided in this document that is not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding forecasts, guidance, preliminary results, expectations, hopes, beliefs and intentions on strategies regarding the future. The forward-looking statements made herein are made only as of the date of this document and we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. More detailed information about factors that may affect our performance may be found in our filings with the SEC, which are available at http://www.sec.gov or at http://www.cummins.com in the Investor Relations section of our 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]

 

Cummins named a “Culture Champion,” praised for diversity efforts

Cummins' efforts at establishing a culture of diversity and inclusion were highly ranked in the new study.
Cummins' efforts at establishing a culture of diversity and inclusion were highly ranked in the new study.

A partnership between a leading university and one of the world’s largest job and recruiting websites has named Cummins a “Culture Champion,” ranking the company first in its review for employers promoting a diverse and inclusive workplace culture.

The Massachusetts Institute of Technology (MIT) in Boston (U.S.) and Glassdoor also found Cummins ranked No. 7 for a culture of integrity, where employees “consistently act in an honest and ethical manner,” and No. 18 for a culture of respect, where employees “demonstrate consideration and courtesy for others.”

The Culture 500 study looked at more than 500 employers loosely overlapping the Fortune 500. Just 21 were named “Culture Champions,” representing “the very strongest cultures of large American employers.” MIT researchers analyzed over 1 million employee reviews on Glassdoor, using a groundbreaking artificial intelligence tool developed by an MIT-born company to make sense of employees’ words over nine key cultural values. 

Using this approach, researchers could measure how positively and frequently employees in different companies discussed cultural values, enabling comparisons between the different employers.

CUMMINS DELIVERS ON DIVERSITY

Culture Champion Logo"At a time when many large American employers are struggling to deliver on these values, employees speak about Cummins’ diverse culture 3.2 standard deviations more positively than the average company in the Culture 500," say the study’s authors, Donald Sull, Charles Sull and Andrew Chamberlain.

While pleased by the findings, Cummins Chairman and CEO Tom Linebarger says there is more the company can do to create a successful work culture.

“Cummins has been working on diversity and inclusion for many years and it’s ingrained in our corporate values and culture,” Linebarger said, addressing the company’s top ranking in the study. “We have done, I think, some really good things. But there is still much more that we can do and we’re taking aggressive steps to get there. We know that a diversity of people, working styles and ideas is critical to our company’s success.”
 

The study by the MIT Sloan Management Review focused on the values of agility, collaboration, diversity, execution, innovation, integrity, performance and respect.

“A growing body of research by financial economists has shown that a good corporate culture is correlated with high profitability and returns to shareholders,” the study says. “Companies listed among the best places to work based on their corporate culture, for example, delivered nearly 20% higher returns to shareholders than comparable companies over a five-year period.”

AN EMPHASIS ON VALUES

Noting that a separate study identified more than 60 distinct values that companies listed in their corporate values statements, the authors said measuring across dozens of values would be overwhelming. So, they narrowed their list down to nine values they said are cited most frequently in creating great corporate cultures, which they call “the Big Nine.” 

“Culture is often about tradeoffs,” said Donald Sull, the Lead Researcher for the project and a Senior Lecturer at MIT. “But Culture Champions buck this trend, excelling across multiple cultural dimensions at once. They win medals in multiple sports.”

Cummins puts a major emphasis on corporate culture, identifying five key corporate values: integrity, diversity and inclusion, caring, excellence and teamwork. The company has an extensive diversity and inclusion program, including employee resource groups, special conferences for employees from under-represented demographic groups and targeted recruiting initiatives to bring diverse people into the company.

The company’s Ethics and Compliance team also strives to create a just and ethical workplace, the target of Cummins’ Treatment of Each Other at Work policy and training. The company was named in 2020 one of the  World’s Most Ethical Companies for a 13th consecutive year by the Ethisphere Institute, a leader in advancing ethical business practices.

Other companies designated Culture Champions in the MIT-Glassdoor study range from institutional investor BlackRock to media provider Netflix and Trader Joe’s grocery stores.
 

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 honored for initiatives on the environment, veterans and creating a great place to work

Cummins' Columbus Engine Plant was honored by Indiana's governor for its continuous improvement on the environment.
Cummins' Columbus Engine Plant was honored by Indiana's governor for its continuous improvement on the environment.

Cummins has been recognized for its efforts on the environment, providing opportunities for veterans and creating a great place to work from a trio of organizations.

The company's historic Columbus Engine Plant (CEP) was recognized by Indiana (U.S.) Gov. Eric Holcomb for a range of initiatives to save energy, conserve water and reduce waste. The company was also named a 2021 Military Friendly Employer® for providing opportunities to veterans and their spouses. Finally, Forbes and Statista named Cummins to its 2nd Annual America’s Best Employers by State list for Indiana.

GOVERNOR’S ENVIRONMENTAL AWARD

CEP was one of six Indiana organizations and government agencies honored for its work on the environment as part of the governor’s annual awards for environmental excellence.

“By using innovative environmental practices, they have reduced waste, saved money, and contributed greatly to environmental protection efforts for Hoosiers,” Indiana Department of Environmental Management Commissioner Bruno Pigott said of the honorees.

The Cummins plant was specifically recognized for five years of continuous environmental improvement, including an upgrade to more energy efficient LED lighting in 2017, an energy-saving manufacturing controls project started that same year enabling CEP to convert a continuously running coolant system to on-demand service, and engine test cell improvements saving 3.4 million gallons of water per year in the system to cool engines undergoing testing.

CEP also achieved Zero Disposal status under Cummins’ environmental management program, and the plant's popular Community Recycling Day for residents in the company’s headquarters city of Columbus diverted some 740,000 pounds of material from reaching area landfills.

“To have a successful environmental management system, it takes every department, every team and every individual working together to create change,” said David Wehrkamp, CEP’s Environmental Supervisor. “This recognition is the result of their hard work and dedication.”

MILITARY FRIENDLY EMPLOYER

Military Friendly employer logoCummins was also one of 240 employers recently named to the 2021 Military Friendly Employers list for its work in the U.S. to create opportunities for veterans and their spouses both through employment and supplier initiatives. 

“Companies that have earned this designation have invested in substantive programs to recruit, retain and advance veterans within their organizations,” said Josh Rosen, who leads the organization that puts the list together. “To them, hiring veterans isn’t just the right thing to do. It’s good for business.” 

Employers are evaluated using public data sources and responses from a proprietary survey. Established in 2003, the Military Friendly Employers list provides a comprehensive guide to veterans and their families. In addition to Cummins employment efforts for veterans, the company has a very active employee resource group dedicated to veterans and veterans are also included in Cummins’ supplier diversity initiatives.

The recognition as a Military Friendly Employer follows the company’s designation in July as a Top-Scoring Company on the 2020 Disability Equality Index, a national benchmarking tool that offers business an opportunity to evaluate their disability inclusion policies and practices. Companies scoring 80% or higher are recognized as “Best Places to Work for Disability Inclusion.” 

BEST EMPLOYERS BY STATE 2021

Finally, Cummins was named to the 2nd annual list of America’s Best Employers by State 2021 for the company’s headquarters state of Indiana.

The list is prepared by Forbes magazine and Statista, which specializes in consumer and market data. It is based on an independent survey of more than 80,000 U.S. employees working for companies employing at least 500 people in their U.S. operations. The surveys were administered using a series of online panels selected to get a representative sample.

Cummins is one of 80 top employers on the list for the state, ranking only behind Salesforce in Indiana. Other highly ranked employers include Eli Lilly and Company (third) and the Indiana University School of Medicine (fourth).  
 

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 named a Top-Scoring Company on the 2020 Disability Equality Index

Cummins has been named a Top-Scoring Company on the 2020 Disability Equality Index® (DEI), a national, transparent benchmarking tool that offers businesses an opportunity to self-report their disability inclusion policies and practices. Companies that score 80% or higher are recognized as “Best Places to Work for Disability Inclusion.” Cummins scored 80% on this year’s index.

Cummins has been named a Top-Scoring Company on the 2020 Disability Equality Index® (DEI)

“I’m so pleased to see Cummins’ progress on the DEI,” said Mark Smith, Vice President – CFO  and the Executive Sponsor of the company’s disability inclusion initiative.  “Last year, we participated in this survey for the first time and found that we had a good deal of work to do to ensure we’re creating an environment that enables people with disabilities.  I’m extremely proud of all that has been accomplished over the last several months.”

From 2019 to 2020, the Cummins Disability Inclusion initiative, led by Dennis Heathfield, made great strides in the following DEI survey categories:

  • Internal and external communications 
  • Leadership engagement
  • Employee Resource Group network and alignment
  • Recruiting practices
  • Facilities accessibility

Going forward, the work will be focused on improving technology and web accessibility, designing and implementing a global workplace adjustments system, and supporting site-specific disability inclusion efforts.

The Disability Equality Index is a joint initiative of the American Association of People with Disabilities (AAPD) and Disability:IN. It was first launched in 2015 and is acknowledged today as the most comprehensive disability inclusion assessment tool designed and embraced by both business leaders and disability advocates. This year, 247 corporations used the DEI to benchmark their disability inclusion efforts.

Cummins Office Building

Cummins Inc.

Cummins is a global power leader that designs, manufactures, sells and services diesel and alternative fuel engines from 2.8 to 95 liters, diesel and alternative-fueled electrical generator sets from 2.5 to 3,500 kW, as well as related components and technology. Cummins serves its customers through its network of 600 company-owned and independent distributor facilities and more than 7,200 dealer locations in over 190 countries and territories.

High tech tools enable Cummins to safely support customers amid pandemic

Cummins Sales and Service technicians can work collaboratively with experts many miles away using RemoteConnect.
Cummins Sales and Service technicians can work collaboratively with experts many miles away using RemoteConnect.

A suite of high-tech tools called RemoteConnect is enabling Cummins to support customers while maintaining social distancing and travel restrictions implemented during the COVID-19 crisis.

The tools, which allow experts to remotely see what technicians see in the field, were created by the Cummins Care team in 2017, prior to the COVID-19 crisis, to support customers in hard-to-reach locations. Now, with travel discouraged to prevent the spread of the virus, the use of RemoteConnect has increased dramatically, making the tools more important than ever. 

“RemoteConnect was created to be an alternative solution when a Cummins subject matter expert cannot be onsite,” said Cummins Care Manager Joe Brooks, who has been leading the initiative since 2017. “This has quickly turned into the only solution to service our customers in certain situations due to COVID-19. RemoteConnect has been a real game-changer during these unprecedented times.”

HOW THE TOOLS WORK

The suite of tools comes in a kit that looks something like a suitcase and includes safety glasses equipped with a tiny camera that technicians can use to work collaboratively with company experts known as “CFSEs” to diagnose and fix problems. CFSEs can literally see what the technician sees even if they are many miles away.

RemoteConnect quickly demonstrated its ability to improve repair quality while reducing misdiagnosis, un-recoverable labor expenses and most importantly, customer pain and suffering. The kits have been placed in more than 140 Cummins locations, primarily in the U.S. and Canada but Cummins Care is working to deploy them elsewhere, too.

Before COVID-19, CFSEs spent a significant time on the road, working with Cummins technicians at a particular Cummins Sales and Service location to collaborate on difficult service work. In addition, they would also collaborate with technicians via RemoteConnect. 

When COVID-19 was declared a pandemic, suddenly a simple flight, train, or even a car ride to service a customer was no longer a routine option. Many CFSEs discovered RemoteConnect was the next best thing to being there.

IMPRESSIVE NUMBERS

While the safety glasses equipped with cameras to live stream two-way audio and visual communication has perhaps the biggest wow factor, the kits also include:

•    LogMeIn Rescue: A tool providing the CFSE the ability to remotely collaborate with onsite technicians by taking control of their desktops.
•    Network Bridge: A tool allowing CFSEs working remotely to connect to an engine’s electronic control module (ECM), which is the command center on an engine controlling its operation.

As of April, over 5,402 remote support cases had been completed since November of 2018, including 621 that would have required travel, and 3,488 days of downtime were saved. The kit was used 166 times just between February and April.

Brooks and others at Cummins expect those numbers will go up in the days and months ahead. RemoteConnect is just another way Cummins puts technology and innovation to work for its customers. 
 

Cummins Office Building

Cummins Inc.

Cummins is a global power leader that designs, manufactures, sells and services diesel and alternative fuel engines from 2.8 to 95 liters, diesel and alternative-fueled electrical generator sets from 2.5 to 3,500 kW, as well as related components and technology. Cummins serves its customers through its network of 600 company-owned and independent distributor facilities and more than 7,200 dealer locations in over 190 countries and territories.

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