ESG performance propels Cummins to 2021 Best Corporate Citizens list
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.