Cummins recognized for leadership on sustainability and women in business

Cummins receives honors for sustainability and empowering women.
Cummins receives honors for sustainability and empowering women.

Cummins’ approach to sustainability and its efforts to build a more inclusive work environment for women were recognized recently by four different organizations.

The company was named to Barron’s magazine’s list of the 100 Most Sustainable Companies in the United States and to Forbes’ and Just Capital’s Just 100 – Companies Doing Right by America.

Cummins also was named to the 20th annual list of America’s Top Corporations for Women’s Business Enterprises, honoring corporations for their supplier diversity programs. In addition, the company was named to the National Association for Female Executives’ Top 70 Companies for Executive Women, which will be featured in the April/May issue of Working Mother magazine.

“If sustainability once seemed like a hobby for a group of eccentric businesses, it’s now viewed by many corporations as mission-critical,” Barron’s said in releasing its list.

Meanwhile, Subha V. Barry, president of Working Mother Media, said companies on the list of best places for female executives “continue to pave the way for the advancement of women.”

Cummins has long taken a broad approach to sustainability, including not only the environment but also community engagement, safety, diversity and inclusion, innovation, and financial success. Increasing opportunities for women in and out of the company is one of the key goals of Cummins’ diversity and inclusion efforts.

SUSTAINABILITY

The company has been included on Barron’s annual list since it was first released three years ago. The list is produced by Calvert Research & Management, which examines the performance of the 1,000 largest publicly traded companies relative to five key constituencies: shareholders, employees, customers, communities and the planet. Calvert looked at more than 230 performance indicators as part of its 2020 evaluation, ranging from diversity to greenhouse gas emissions. Cummins finished No. 50 on this year’s list.

Forbes and Just Capital combined research and surveys to develop the 3rd annual Just 100. The list looks at how companies perform on the issues the American public says are most important to them. Just Capital looked at 922 of the nation’s largest publicly traded companies, evaluating them on more than 300,000 data points pulled from public reports, company surveys and crowd-sourced queries. 

The partnership also surveyed more than 90,000 Americans. Key public concerns included: worker treatment, customer treatment, community support, environmental impact and leadership behavior. Cummins has made the Just 100 every year, finishing No. 98 on this year’s list.

WOMEN IN BUSINESS

The 2019 Top Corporations for Women’s Business Enterprises list, announced earlier this year, is prepared by the Women's Business Enterprise National Council (WBENC). It honors the organization’s corporate members demonstrating “a sustained commitment to the inclusion of women-owned businesses in their supply chains.” The companies honored by WBENC require supplier diversity language in their procurement requests and mentor women-owned businesses. 

The Top 70 Companies for Executive Women is sponsored by the National Association for Female Executives. It recognizes U.S. companies that “have a strong focus on best practices that move women to senior ranks,” including mentoring, sponsorship, involvement in employee resource groups and leadership development training.

The application for the top 70 includes more than 200 questions on topics such as female representation at all levels, training mangers to help women advance and employee access to programs that promote the advancement of women.

 

Editor's Note: Cummins continues to take actions to protect the health and safety of our employees and communities while serving our customers amid the uncertainty associated with the COVID-19 pandemic.  

 

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]

 

"We will get through this." A personal note from Tom Linebarger

Cummins - Tom Linebarger - Employees

"An outbreak like this can be frightening. In times like this, when social distancing and isolation are advised, personal connection - even electronically - is more important than ever..."

Cummins Inc. Chairman and CEO, Tom Linebarger
Cummins Inc. Chairman and CEO, Tom Linebarger

The COVID-19 pandemic has now touched every corner of the world. We are in uncharted territory, and all of us are having to make changes – big ones – in how we live and work.  

Like many of you, I am concerned about my family, especially my parents who are in the high-risk category. I am also concerned about all of you and about the impact the pandemic is having on our people, our customers and partners, and our communities. My heart and thoughts go out to everyone who has been affected by the coronavirus or the problems created by the pandemic. The impact on people is very significant. 

The impact on the global economy is also large and growing and its significance will not be fully understood for some time. As restaurants, hotels, and businesses of all sizes close their doors, many employees will be unable to earn wages and will soon find themselves experiencing financial challenges. Many of these businesses support our company, our communities and our families, and their employees are people we know personally.

At Cummins, we are doing everything that we can to continue supporting our customers and partners and to keep our business operating so we can support our employees and our communities. Moreover, our products are critical to the economy at this time. We supply primary and backup power to medical facilities, power to data centers and call centers that help keep people connected, engines for ambulances, fire trucks, food and medical delivery vehicles, and so much more. Our service workshops around the world also ensure that these products continue to work when they are needed most.  

I want to sincerely thank those of you who are working at our manufacturing plants, distribution centers, technical centers, and service operations around the world. I have never been more proud of the ways that Cummins employees and products power the world. 

In order to fulfill our mission, we must also ensure the health and safety of all of our people. Given the size and speed of the pandemic, we are working across all areas of our company and with governments, agencies and other groups to make informed decisions and act as quickly as possible. We have cross-functional subject matter experts who are working diligently on a daily basis to address topics from employee health and wellness to customer and supply chain impact. In addition, our senior leaders meet every day to conduct and review global risk assessments, review new information and make the best judgments and decisions we can based on the facts while staying consistent with our company values. 

Many of the countries where we operate have implemented emergency measures to curb the spread of the disease, such as banning and restricting gatherings, closing schools and educational facilities, and strongly encouraging social distancing. We need to follow these mandates and the expert guidance provided by the Centers for Disease Control in the USA, the World Health Organization, and other national health institutions on how to minimize the spread of the virus. 

These measures are essential to ensure our global healthcare systems are not overwhelmed so that those who need it most can get the care they need. This guidance requires us to change many of our habits and behaviors, but we must do so for our own health and for those most vulnerable in our communities.

This is a very difficult time. But we will get through this. We will continue to rely on the amazing people and teams in the company to solve problems as they arise. We will provide support to our employees and their families as they face new challenges.And we will continue to care for each other.

I know that an outbreak like this can be frightening.In times like this, when social distancing and isolation are advised, personal connection - even electronically - is more important than ever. Please, reach out to your colleagues and friends via those virtual channels and ask them how they are doing and ask what you can do to help. 

Take care,  

Tom Linebarger

Chairman and CEO | Cummins Inc. 

Tom Linebarger Chairman and CEO

Tom Linebarger

Tom Linebarger became Chairman and CEO of Cummins Inc., the largest independent maker of diesel engines and related products in the world, on January 1, 2012.  Prior to becoming Chairman and CEO, he served as President and COO from 2008 to 2011, Executive Vice President and President, Power Generation Business from 2003 to 2008, Vice President and Chief Financial Officer from 2000 to 2003, and Vice President, Supply Chain Management from 1998 to 2000.

Trade deal strengthens Cummins’ position to compete globally

The new trade agreement will enable Cummins to harness the full power of its North American supply chain.
The new trade agreement will enable Cummins to harness the full power of its North American supply chain.

Cummins Chairman and CEO Tom Linebarger says the new U.S.-Mexico-Canada (USMCA) trade agreement is good for Cummins as well as American workers and farmers, establishing a firm foundation for economic growth in all three countries.

President Trump signed the agreement today, which had strong bipartisan support in both the U.S. House and Senate. The agreement cleared the Senate by an 89-10 vote last week, sending it to the president for his signature. Mexican legislators have approved a new agreement. Canada must still ratify the pact.

“USMCA modernizes and strengthens the NAFTA agreement and will be beneficial to American businesses like Cummins, as well as American workers and farmers,” Linebarger said. “NAFTA -- now USMCA -- has been the single most important trade agreement to Cummins and has fueled growth and job creation for our company. We are pleased that an agreement has been reached.”

The trade agreement further opens markets and sets new standards that enhance trade and strengthen labor and environmental standards. USMCA will enable Cummins to harness the full power of its North American supply chain, rather than having to do the same work in multiple countries.

The company can take advantage of unique workforce skills in different North American locations to produce the most innovative and reliable products in the world. That should position the company to compete with imported products in North American markets.

In 2018, Canada and Mexico were the top buyers of Cummins’ U.S. products. U.S. export sales for the company overall were $3.47 billion.

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 gets high marks in five recent independent ratings

The company's latest rankings reflect its responsible behavior and leadership.
The company's latest rankings reflect its responsible behavior and leadership.

Cummins is ranked No. 17 in Newsweek magazine’s first rating of America’s Most Responsible Companies.  It was the top company in its category – automotive and components.
 

The Newsweek list, released earlier this week, is one of five recent evaluations by outside groups praising the company, its approach to sustainability or its leadership and management.

“Companies, we all know, need to make a profit to prosper and survive,” said Nancy Cooper, Global Editor in Chief at Newsweek. “Making a buck, after all, is important to investors, employees and vendors. But over the years, executives have come to realize that they need to do much more. That is, by giving back to the communities they operate in and standing up as good neighbors and citizens.”

Newsweek partnered with Statista Inc., a leading provider of global market and consumer data, to evaluate publicly available information from sources such as sustainability and corporate citizenship reports. The key indicators included in the ranking focused on performance in the areas of the environment, social initiatives and corporate governance. The partners also conducted an independent survey asking U.S. citizens about their perception of companies’ activities related to corporate social responsibility. 

Cummins received an overall score of 83.8 in the 2020 ranking, 83.6 on the environment, 80.2 on social and 87.6 on governance. The top three in the review of 2,000 public companies were HP (94.4), Cisco (91.2) and Dell (90.3).

Cummins took several innovative steps in 2019 starting with its support for Cummins Powers Women, an effort working with expert nonprofit groups to advance women and girls around-the-world. More recently, the company announced its PLANET 2050 strategy to do its part to address climate change and other environmental issues.

In addition, the company has made major investments in electrified power and fuel cells as part of Cummins’ effort to offer customers a broad portfolio of solutions to meet their power needs.

TWO OTHER RATINGS OF NOTE 

Cummins this week was also ranked No. 48 in Investor's Business Daily's 50 Best ESG Companies. The list includes top performers in the environment, social and governance areas, "reflecting broad strength in fundamental and technical areas linked to price performance." Investor's Business Daily looked at companies with ESG (environment, social, governance) ratings of AAA or AA from MSCI ESG Research as of Sept. 11, 2019.

In a rating released last month, the company ranked No. 98 on the 2020 list of America’s Most JUST Companies produced by Forbes magazine and JUST Capital. The list honors 100 U.S. corporations, ranking companies on issues such as fair pay, ethical leadership, good benefits, and work-life balance, in addition to financial performance.

The issues in the rankings and their weights are determined by a polling of the American public to determine what it believes are the most important attributes of a just company.

LEADERSHIP AND MANAGEMENT RANKINGS

Meanwhile, Cummins also received strong reviews in two management and leadership ratings. The company was ranked No. 88 in the Wall Street Journal and Drucker Institute's Management Top 250 released late last month. The partnership rates America's largest publicly traded companies on the principles of Peter Drucker, the late professor, author and longtime Wall Street Journal columnist. 

And Cummins Chairman and CEO Tom Linebarger was No. 12 on Fortune magazine’s Businessperson of the Year 2019 list announced last month. The magazine looks at 10 financial factors “ranging from total return to shareholders to return on capital.

“Then we search for the standouts. The leaders who tackled audacious goals, overcame impossible odds, found creative solutions.”

The magazine selected 20 CEOs to profile, praising Linebarger for his support of free trade.

“Linebarger has spent a large part of the past two years warning what will happen if U.S. trade with Asia doesn't stay open,” Fortune said.

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]

 

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]

 

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