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Sustainability Report 2012-2013 Innovative. Engaged. Sustainable. SUSTAINABILITY REPORT 2012-2013 Remanufacturing plants like this one in Juárez, Mexico, use innovative techniques to keep parts and engines in service and out of landfills. Learn more about innovation at Cummins on page 14. ABOUT THIS REPORT CONTRIBUTORS Cummins’ 2012-2013 Sustainability Report This report relies on the writing, editing, is presented in the spirit of the Global design and technical expertise of many Reporting Initiative (GRI). The goal of the Cummins employees. Contributors this GRI is to develop a consistent way for year included: Marsha Allamanno, Cory companies around the world to voluntarily Brandt, Carole Casto, Karen Cecil, David report on the environmental, social and Clark, Sarah Clark, Laurie Counsel, Anna economic components of their business. Dickerson, Roe East, Bill Fak, Scott Field, The Coalition for Environmentally Joy Fischer, Angela Flood, John Forte, Responsible Economies created the GRI Emily Foster, Clint Garrett, David Goggin, in 1997 and works today in collaboration Elena Grimm, Colleen Hahn, Elliot Hayden, with the United Nations Environment Sheah Hilton, Molly Howard, Joann Jones, Program and the U.N. Secretary Melina Kennedy, David Koeberlein, Philip General’s Global Compact to promote Kuhl, Christine Kuo, Carol Lavengood, the importance of sustainability reporting. Yangnan Liu, Annie Mack, Sara McAninch, Cummins takes a broad view of Zack McCrory, Paul Miller, Jon Mills, Steven sustainability, including such things Nendick, Andy Pajakowski, Pramod Palat, as safety, diversity, leadership and Brian Pence, S. Ravichandran, Alan Resnik, governance along with environmental Meredith Sanders, Stephen Sanders, practices, community involvement and Rosann Scatttoloni, Ernie Smith, Grant financial performance. The Company Suchotzky, Todd Swingle, Janet Williams, believes that it can’t be sustainable Matt Weilhamer, Blair West, Stacy Wyatt without a firm financial foundation that and Jackie Yeager. enables investment in everything from product development to building ABOUT THE COVER stronger communities. Cummins Fuel Systems’ plant in Juárez, As a global company, Cummins Mexico, restores nearly a million injectors, wants to make a difference for all of its pumps and Electronic Control Modules stakeholders, today and in the future. each year, using innovative technology to This report was published in May 2013 return them to useful life. Cummins’ Karina and is the Company’s 10th annual edition. Meza Sosa holds a fuel injector that the plant is remanufacturing. Read more about the innovative things happening all across Cummins on page 14. Table of contents INTRODUCTION Partnerships and policy ...............58 EMPLOYEE Fleet reduces global warming Letter from the chairman ....................... 2 relations with natural gas engines ...................... 64 Cummins around the world.................... 4 The power of diversity Charting a plan for and inclusion ..................................... 102 Who we are ........................................... 6 environmental sustainability ................. 65 Pursuing diversity in India................... 104 How we do it ......................................... 7 Corporate Employee groups create Our history ............................................. 9 RESPONSIBILITY inclusive work environment ................ 106 Vision, mission, Diversity Procurement goes global ..... 108 Building stronger communities values and principles ........................... 10 in record numbers ............................... 66 Developing new leaders Our recognition .................................... 12 key to sustainability ............................ 110 TEC program addresses skills deficit around the world ....................... 70 INTRODUCTION Innovation Environmental Challenge GOVERNANCE Keeping the spirit of innovation alive .... 14 is a global success .............................. 71 New code guides ethical behavior ..... 112 Problem solving through innovation ..... 20 Hope blossoms at Board exercises the Dandelion School .......................... 78 independent judgment ....................... 116 Cummins’ innovative giants ................. 22 Coalition for progress ........................... 80 Managing risks, The future of innovation at Cummins .... 24 keeping employees secure ................ 118 Students take a path less traveled ....... 82 Ensuring Cummins’ voice is heard ..... 120 ENVIRONMENT CES puts skills to work designing a better cook stove .............. 84 ‘SuperTruck’ off to impressive start ...... 26 Born to serve ....................................... 86 FINANCIAL Products ......................................28 Global economic slowdown Supporting employee passions Early to market for ISX15 and slows Cummins ................................. 122 and skills through philanthropy ............. 88 stationary diesel generators ................. 40 Ram-Cummins partnership Foundation leadership ......................... 93 New London buses celebrate celebrates major milestones .............. 124 the past, look to the future ................... 41 Putting customers first Cummins innovates to reduce SAFETY in wake of Sandy ............................... 126 global waste footprint .......................... 42 Health and safety key to Committed to a global Cummins’ sustainability ....................... 94 Practices ......................................44 supply chain ...................................... 128 Engine business tackles Mexico plants making distracted driving among teens ............ 97 wise use of water ................................. 53 Cummins holds first Company-wide Practicing environmental Ergo Cup competition .......................... 98 stewardship around the world .............. 54 Ergonomics in action ........................... 99 Strategic approach to energy saves millions for Jamestown, N.Y., plant ...... 56 Web tool helps put safety first ............ 100 SUSTAINABILITY REPORT 2012–2013 3 Letter from the chairman “Innovative. Engaged. Sustainable.” The title of this year’s 2012-2013 Sustainability Report describes our Company well. In fact, Cummins was founded on innovation 94 years ago when Clessie Cummins first obtained a license to use Rudolf Diesel’s technology and then had the ingenuity INTRODUCTION and vision to build on Diesel’s work over time. Today, our Company is the only and function, and everywhere in between. independent diesel engine maker that They are producing the best products, remains from the more than 100 other delivering outstanding customer service, original Diesel licensees. And the continued shrinking the Company’s environmental innovation driven by the engagement of our footprint and building stronger communities more than 46,000 employees across the around the world. globe will secure the long term sustainability We define innovation, one of Cummins’ of our Company into the future. six core values, as using the “creative This year’s Sustainability Report starts out ingenuity necessary to make us better, by appropriately celebrating Cummins’ faster, first.” Here are just a few examples innovative giants over time – such as of the kinds of innovation stories that Clessie, Dr. Julius Perr and Dr. Alyn Lyn – you’ll find in this year’s report: who collectively laid the foundation for a » Our Corporate Responsibility lot of our success today. Their stories are Environmental Challenge initiative inspiring and remind us of the tremendous where teams of Cummins employees contributions they made, embedding join together using their creativity, innovation in everything they did to meet skills and talents to carry out existing customer needs and earn new community involvement projects customers by helping ensure their success. to improve the environment. I’m pleased to report that their legacy lives » Our Health, Safety and Environment on. You’ll see in this year’s report that our employees’ leadership in finding ways heroes of innovation can be found all across to reduce the amount of solid waste Cummins every day and everywhere, from created at our facilities around the world, the engineers designing our products, to which has resulted in recycling almost the shop floor employees making it happen 90 percent of the waste that the in our facilities across the world, to office Company creates. employees serving every business unit 2 SUSTAINABILITY REPORT 2012–2013 “Our ongoing commitment to innovate and engage in everything we do will ensure our customers’ long term success and ultimately the sustainability of our Company for all of our stakeholders now and into the future.” TOM LINEBARGER CHAIRMAN AND CEO » The superior customer service that our To this end, we are launching a campaign employees along the East Coast of the across Cummins in 2013 to promote United States delivered during Super innovation and better engage our Storm Sandy in the fall of 2012. In many employees to See the Future First cases, they put their customers’ needs and Beat the Competition to It! ™ first at a time when many of their own Looking forward, our customers will homes were cold, dark and wet. continue to depend on Cummins to lead INTRODUCTION » Our Safety and IT staffs’ joint work to in innovation and deliver the best products create a new web tool that enables and services to meet both their spoken and employees to easily record the safety unspoken needs. Our ongoing commitment problems they discover and resolve. to innovate and engage in everything we Not only does the tool
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