Pandemic doesn’t stop Cummins from making progress on key ESG priorities

Employees at the Rocky Mount Engine Plant in North Carolina (U.S.) officially launch the plant's Water Hub in 2020. It uses a number of technologies including hydroponics to return millions of gallons of water to the plant for non-potable use.
Employees at the Rocky Mount Engine Plant in North Carolina (U.S.) officially launch the plant's Water Hub in 2020. It uses a number of technologies including hydroponics to return millions of gallons of water to the plant for non-potable use.

Cummins was able to make progress on its environmental, social and governance (ESG) priorities despite the COVID-19 pandemic, the company’s new 2020 Sustainability Progress Report shows.

The report includes a number of company firsts and records in 2020, including a record number of global patents, a record recycling rate, a record low health and safety Incidence Rate, the first virtual Hydrogen Day and the company’s key role in the first hydrogen-powered passenger train. While COVID-19 left an indelible mark on the company, it did not define Cummins in 2020.

The pandemic triggered its own set of company records and firsts, including a record drop in revenues followed shortly by a record increase in orders as Cummins' customers performed essential tasks such as the transportation of food and medicine. But it did not keep the company from addressing a host of key sustainability issues, including climate change, the environment, diversity and racial equity, cybersecurity and innovation.

“I am proud of what we achieved in 2020 and am optimistic about the opportunities ahead to continue powering a more prosperous world,” Chairman and CEO Tom Linebarger said looking back on 2020 in the introduction to the report.

When COVID-19 began spreading early in 2020 and communities began shutting down, even the healthiest companies were severely impacted. The pandemic showed, once again, that companies are only as strong as the communities around them.

Here’s a quick look at what Cummins did in 2020 to build a more prosperous world:

ENVIRONMENT

Cummins' 2020 environmental sustainability goals spurred many achievements outlined in the new report, including a record company recycling rate of 93% (page 24 of the report) and a water intensity reduction (water use adjusted by hours worked) of 53% compared to Cummins’ 2010 baseline year (page 22 of the report). The company's goal was a 50% reduction. Cummins also exceeded its 2020 goal for sites achieving company standards for water neutrality and zero disposal.

The company partnered with customers to far exceed Cummins’ goal for reducing the production of carbon dioxide, a key greenhouse gas, by its products in use (see page 25 of the report). That goes directly to the world’s mission to address climate change. But Cummins’ progress didn’t stop there.

On the product side, the report covers the important role Cummins’ New Power business segment is playing not just in the development of low- and no-carbon power platforms but also the technology needed to increase the world’s supply of green hydrogen (page 57). Cummins is also working to improve its diesel and natural gas engines with climate in mind. Finally, the report outlines the company’s vision for an innovation focused path to carbon neutrality (page 61).

SOCIAL

Cummins continued making progress on the social challenges it believes are critical to creating more prosperous communities. The gender equality law and policy changes resulting from Cummins Powers Women and its partners now impact the lives of 17 million women and girls (page 35). Cummins TEC: Technical Education for Communities has more than 1,700 graduates as of 2020 in its bid to transform the lives of disadvantaged youth through employable skills to obtain good jobs (page 34).

In the United States, the company launched Cummins Advocating for Racial Equity in 2020, a community initiative focused on dismantling institutional racism (page 36). Cummins pledged to take a leadership role on the topic both in and out of the company and started reporting on the racial and ethnic makeup of its own U.S. workforce to be as transparent as possible (page 42).

Finally, the company issued a record $22 million in grants to communities, including $2.7 million in emergency grants to partners who could quickly provide key services in the face of the pandemic (page 33).

GOVERNANCE

In governance, the report details how the Cummins Board of Directors demonstrated its commitment to diversity and inclusion, adding a fourth diverse member in 2020 and a fifth member in 2021 (page 47). The 13-member board also now has five women.

Meanwhile, the board and the company’s Executive Risk Council, consisting of top officers at Cummins, added climate change to the company’s list of enterprise risks that are actively managed (page 54). A new section on cybersecurity details the company’s multi-pronged effort to address the seemingly growing list of cyber threats (page 53). And the Ethics and Compliance function created a new website designed to make it easier for employees to learn about the company’s core policies (page 50).

All of these ESG efforts were largely in addition to the company’s incredible collaborative response to COVID-19 (page 63). Taken as a whole, the report shows it is very difficult to get between Cummins and its mission to build a more prosperous world. Not even a pandemic could do it.
 

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 Marine powers hybrid sailing superyacht for reduced emissions

Photo courtesy of Southern Wind Shipyard

When you think of a machine powered by Cummins, our engines working hand-in-hand with wind power to move a vessel is likely not the first thing that comes to mind. Nevertheless, the Cummins Marine 4.5 engine is on course to set sail next summer powering the sailing superyacht. 

The vessel is currently under construction in Cape Town, South Africa, and will be ready to house our smallest marine engine offering in early 2022. The high-performance superyacht, constructed by Southern Wind, will be hybrid powered to reduce the emissions and fuel consumption of a classic diesel engine. This ensures an efficient, clean sailing experience regardless of whether the vessel is under sail or motoring. 

Chosen for its compact size and efficiency, the 150hp B4.5 propulsion engine will be combined with BAE Systems’ Integrated Starter Generator (ISG) to provide electric power to both the energy storage system and the vessel auxiliary load. BAE Systems is a progressive technology company working in multiple industrial spaces whose maritime subsidiary has a strong relationship with Cummins, having previously partnered on the Harbor Harvest project. Using BAE’s HybriGen Power and Propulsion technology, the sailboat will, in total, be fitted with an electric motor, two variable speed generators, a lithium-ion energy storage system and a vessel auxiliary power with shore power charging.

Compliant with IMO III standards, the sailing superyacht is a versatile, power dense vessel with deck hardware optimized for both quiet performance cruising and intense offshore racing. The vessel will also be able to operate in Hydrogeneration mode while under sail. In this mode, the propeller and propulsion motor will act as a generator allowing for recharging of the lithium-ion storage cells for a longer zero-emissions experience.

Following its recent launch, the new B4.5 liter engine package is ideal for sailors who prefer a calm, quiet ride thanks to the minimal noise produced by Cummins’ solution. The sailing superyacht is a perfect vessel to house our smallest (but mightiest) solution in the Cummins Marine lineup.

Find out more about the B4.5

Nicki Storey

Nicki Storey

Nicki Storey is a Marketing Communications Placement Student at Cummins. She joined the Marine, Oil & Gas team in July 2021, and is currently studying for a degree in PR & Marketing at Manchester Metropolitan University. As a theatre fan, when away from the office you can find her in London watching a West End show.

Cummins backs its advocacy on climate with a record of action

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).

Cummins Inc. has taken another step forward in its efforts to advocate for climate action.

The company has been accepted into two influential groups promoting climate action ahead of the global COP26 climate summit in Glasgow, Scotland (U.K.) starting Oct. 31. The Business Ambition for 1.5°C encourages companies to set robust emission reduction goals for greenhouse gases (GHGs) using science-based targets aligned to the 2015 Paris Climate Accords.

As a member of that group, the company has automatically been accepted into the United Nations’ Race to Zero, a global campaign to rally leadership and support from businesses, investors, cities and regions for climate action.

It’s a natural alliance. Cummins worked with the Science Based Targets initiative (SBTi) in developing the company’s PLANET 2050 environmental strategy released in 2019. The strategy includes 2030 goals aligned to targets established in the Paris Climate Accords, and the aspiration to reach net zero emissions by 2050. 

The company also advocates for climate action through its participation with a number of groups, including the CEO Climate Dialogue, the Business Roundtable, the International Council on Clean Transportation and the global Hydrogen Council. Cummins Chairman and CEO Tom Linebarger serves as Co-Chair of the Hydrogen Council. 

Linebarger says the world’s climate challenges threaten Cummins’ mission of making people’s lives better by powering a more prosperous world. 

“Climate change is the existential crisis of our time and the biggest threat to our mission as an organization,” Linebarger said. “So, we want to dedicate our innovation, our talent, our resources, and our investments to reduce our impact on the climate. Of course, we have a lot of other challenges to address at the same time to fulfill the needs of our stakeholders, but if we don’t address climate change, there will be nothing else to do.” 

A TRACK RECORD OF ACTION

Cummins combines its advocacy with a long record of working to reduce the environmental impact of the company’s core products such as diesel and natural gas engines. Since the 1990s, for example, the emission of two key contributors to smog from diesel engines, particulate matter and nitrogen oxides, have been reduced by more than 95%. Facility goals between 2014 and 2020, meanwhile, produced GHG savings at Cummins equivalent to removing more than 100,000 cars from the road for a year.

The company has also been a leader in bringing to market low- and no-carbon power technologies such as battery and fuel cell electric. Those technologies are powering a growing number of vehicles such as school buses as well as the world’s first hydrogen-powered passenger train. Cummins is also a leading manufacturer of electrolyzers to produce green hydrogen, a promising fuel for decarbonization. The company is now partnering on projects involving that technology with Spain-based Iberdrola, a global leader in no- and low-carbon energy production.   

Looking ahead, Cummins’ PLANET 2050 strategy includes two approved science-based targets timed to 2030. One is to reduce absolute GHG emissions from Cummins’ facilities and operations (scopes 1 and 2) by 50%, which is consistent with keeping global warming to 1.5°C above pre-industrial levels. The other is an absolute lifetime reduction in the company’s scope 3 GHG emissions from newly sold products by 25%. Scope 3 emissions include emissions from a product in use by a customer.

A GROWING VOICE FOR CHANGE

Acceptance into Business Ambition for 1.5°C extends the company’s reach on the advocacy front. Since launching two years ago more than 650 companies from around the world have joined the campaign with a combined market capitalization of $13 trillion. Other members include Apple, General Motors, Johnson & Johnson, and Volvo.

The Race to Zero campaign has built a coalition of more than 3,000 businesses, more than 700 cities, more than 600 institutions of higher education and more than 150 investors supporting net-zero initiatives around the world. 

Alberto Carrillo Pineda, Managing Director of the Science Based Targets initiative, one of the partners in Business Ambition for 1.5°C, said it is critical to take action now.

“There is no time to lose,” Pineda said. “The transformation to a net-zero economy is unavoidable. …To stand a fighting chance of maintaining a habitable planet, we urgently need more companies to act on climate science and to decarbonize our economy.”

To learn more about Cummins' sustainability efforts, check out the company's Sustainability and ESG web pages.
 

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]

 

Компания Cummins связывает свои перспективы с солнечными батареями

solar array Nov 2019

Компания Cummins делает значительные капиталовложения в солнечную энергетику; к концу 2020 года планируется завершить реализацию 35 проектов по установке солнечных батарей.

 

И это только начало! Как ожидается, в сумме проекты, реализованные к концу 2020 года, обеспечат компанию около 3,5% энергии. С помощью солнечных батарей Cummins рассчитывает получать электроэнергию в количестве 10% своих потребностей.

«Мы придаем большое значение применению солнечных батарей, но, полагаясь только на них, нам не удастся достичь своих целей по снижению уровня выбросов», – говорит Марк Дэннин, директор по вопросам энергетики и окружающей среды компании Cummins. – «Поэтому нам также необходимо реализовывать проекты за пределами компании такие, как, например, поддержка ветровой электростанции Meadow Lake Wind Farm на северо-западе штата Индиана».

Максимальная мощность ветровых электростанций, развернутых Cummins Inc., составляет около 75 МВт, что соответствует примерно 28% общих потребностей компании в электроэнергии. При этом вырабатываемая электроэнергия не поставляется непосредственно на объекты компании Cummins; в рамках программы возобновляемых источников энергии она поступает в электросеть общего пользования.

Инициативы в области солнечной и ветровой энергетики соответствуют планам компании Cummins по увеличению доли и продвижению возобновляемых источников энергии. Компания желает внести свой вклад в решение глобальной экологической проблемы изменения климата.

РАСПРОСТРАНЕНИЕ СОЛНЕЧНОЙ ЭНЕРГЕТИКИ

В настоящее время солнечные батареи установлены на 12 объектах компании, расположенных по всему миру – от Австралии до Северной Америки. Еще на 16 объектах (12 из которых – в Индии) ведутся работы по их установке. Установка солнечных батарей также планируется на девяти объектах, в том числе в Нигерии, Румынии и Австралии.

Крупнейший блок солнечных батарей находится на крыше здания одного из наиболее загруженных заводов компании Beijing Foton Cummins Engine Company (BFCEC) в Пекине (КНР). По словам директора завода Мигеля Киндлера, блок солнечных батарей, расположенный на крыше завода, был установлен в 2016 году и занимает около 650 000 квадратных футов, или примерно 2/3 площади крыши. Он вырабатывает около 15% электричества, потребляемого электрооборудованием здания.

Недавно начались работы по установке еще одного блока солнечных батарей на крыше второго здания завода. Хотя новый блок и меньше, благодаря применению современных технологий он будет вырабатывать столько же электроэнергии, сколько и более крупный блок, что, по самым скромным оценкам, будет покрывать 15 – 20% потребностей завода в электроэнергии.

«Если речь идет о 15 – 20% энергопотребления объекта, то это довольно внушительная цифра», – говорит Киндлер.

Однако установка солнечных батарей целесообразна не на каждом объекте Cummins. Решения компании по этому вопросу зависят от целого ряда соображений, в том числе от экономических и природных факторов, например количества солнечных дней в году. Поэтому Марк Дэннин и его сотрудники также рассматривают варианты установки солнечных батарей за пределами объектов Cummins Inc.

СТРЕМЛЕНИЕ К ЦЕЛИ

Планы компании на 2020 год опубликованы в стратегии «ПЛАНЕТА-2050» и предусматривают «увеличение доли электроэнергии, получаемой Cummins Inc. из возобновляемых источников» не только в 2020 году, но и в 2030 и 2050 годы.  

В том числе планы на 2030 год, содержащиеся в стратегии, предусматривают снижение уровня выбросов парниковых газов от производственных объектов на 50%. Более широкое применение возобновляемых источников энергии в значительной мере способствует достижению этой цели.

СТРАТЕГИЯ «ПЛАНЕТА-2050»

Планы компании на 2050 год, в числе прочего, предусматривают общее положительное воздействие на окружающую среду везде, где работает компания, а также практически нулевое локальное воздействие на окружающую среду, чему также будет способствовать применение и продвижение возобновляемых источников энергии.

«Очевидно, на пути достижения своих целей и намерений возобновляемые источники энергии будут играть важную роль для Cummins», – говорит Марк Дэннин. – Я считаю, что это неплохое начало, но еще многое предстоит сделать».

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