2009-2010 Sustainability Report
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Cummins Inc. Cummins Inc. Sustainability Report Meeting the Challenges of Global Sustainability 2009 – 2010 Cummins Inc. Box 3005 Columbus, IN 47202-3005 U.S.A. cummins.com ©2010 Cummins Inc. Cummins supports EARTH University’s Bulletin Number 4986092 mission to promote sustainable agriculture 302557_Cummins_TEST.indd 1 6/8/10 4:08 PM On the cover Students get hands-on experience when they learn about sustainable agriculture at EARTH University in Costa Rica. These students are weighing beans to determine who had the biggest yield. Students come from all over the world to the university, which is supported by Cummins both financially and in employees’ time and expertise. Production Notes Design and writing: Cummins Corporate Communications Printing: The Merrick Printing Company Resource Usage The savings below are achieved when post- Cover: Printed on an acid-free blend of 10% banana stalk fibers consumer recycled fiber is used in place of virgin (a by-product of the banana industry) and 90% post-consumer fiber to create 312 pounds of paper. paper at EARTH University, Costa Rica. 3 trees preserved for the future 8 pounds of water-borne waste not created 1,145 gallons of wastewater flow saved Cover printed on 90% post-consumer pounds of solid waste not generated 127 recycled paper 249 pounds of net greenhouse gases prevented 1,909,440 BTUs of energy not consumed The savings below are achieved when post- Interior: Printed on 100% recycled post-consumer paper consumer recycled fiber is used in place of virgin manufactured with electricity that is made with 100% Certified fiber to create 2,940 pounds of paper. Renewable Energy, from non-polluting wind power projects. 28 trees preserved for the future The 100% post-consumer waste fiber used to make this paper 81 pounds of water-borne waste not created is process-chlorine free and is Green-seal certified. 11,989 gallons of wastewater flow saved 1,327 pounds of solid waste not generated Interior printed on 2,612 pounds of net greenhouse gases prevented 100% post-consumer 19,992,000 BTUs of energy not consumed recycled paper Additional savings since paper is manufactured with wind power and carbon offsets. 1,326 pounds of GHG emissions not generated 1.4 barrels of fuel oil unused Equivalent of not driving 1,312 miles Equivalent of planting 90 trees 302557_Cummins_IFC.indd 1 7/6/10 11:42:48 AM Who we are Vision Strategic Principles Making people’s lives better by unleashing Leverage Complementary Businesses the Power of Cummins Cummins is a family of complementary businesses that create value for our customers by leveraging relationships and applying innovative technology Mission across business boundaries. We unleash the Power of Cummins by Increase Shareholder Value Cummins’ financial success is measured by growth in t Motivating people to act like owners working together. shareholder value. We will focus on ROE/ROANA and t Exceeding customer expectations by always being Earnings growth (not revenue growth) as the principal the first to market with the best products. drivers of shareholder value. t Partnering with our customers to make sure Become the Low Cost Producer they succeed. Cummins will pursue an operational strategy of t Demanding that everything we do leads to a cost leadership. cleaner, healthier, safer environment. Lead in Critical Technologies t Creating wealth for all stakeholders. Cummins will be the market leader in technologies most critical to our customers’ success and our Values company’s performance. What do we value? Seek Profitable Growth Cummins will seek profitable growth by leveraging our Integrity: Strive to do what is right and do what assets and capabilities to grow in market segments we say we will do with favorable industry dynamics and where Cummins Innovation: Apply the creative ingenuity necessary can establish an advantage. to make us better, faster, first Create the Right Work Environment Deliver Superior Results: Cummins will assure that the physical and cultural Exceed expectations, consistently work environment is conducive to excellent performance and continuous improvement. Corporate Responsibility: Serve and improve the communities in which we live Diversity: Embrace the diverse perspectives of all Personality people and honor both with dignity and respect What is our personality? %FDJTJWFt%SJWFOUP8JOt"HJMFt1BTTJPOBUFt$BSJOH Global Involvement: Seek a world view and act without boundaries I am Cummins. You can depend on me. Introduction 1 About this report About the cover The information in this report is presented in the The cover of this year’s Sustainability Report feels spirit of the Global Reporting Initiative (GRI). The goal and looks different because it is made out of a blend of the initiative is to develop a consistent way for of banana stalk fibers and post-consumer paper at companies around the world to voluntarily report on Cummins-supported EARTH University in Costa Rica. the economic, environmental and social components of their businesses. The GRI was started in 1997 Typically, after the fruit is harvested the banana by the Coalition for Environmentally Responsible stalk is disposed of in landfills or by other means. Economies and then became independent in 2002 In Costa Rica alone, hundreds of thousands of tons and today works in collaboration with the United of banana stalks are disposed of annually. Paper Nations Environment Program and the UN Secretary- is only one of several ways the university is putting General’s Global Compact. banana stalks to work. EARTH has also pioneered the use of a fertilizer made from banana stalks for Cummins takes pride in the positive impact our fruit growers in Central America. people and products have on society. As a global company, Cummins wants to make a difference To learn more about EARTH University, today and for future generations as well. This report go to page 14. was published in July 2010 and is the Company’s seventh annual edition. Contacts: Jean Blackwell Mark D. Land Executive Vice President – Corporate Responsibility Executive Director – Corporate Communications Chief Executive Officer, The Cummins Foundation One American Square, Suite 1800 One American Square, Suite 1800 Indianapolis, IN 46282 Indianapolis, IN 46282 Office: (317) 610-2456 Marya M. Rose Vice President – General Counsel One American Square, Suite 1800 Indianapolis, IN 46282 2 Cummins Inc. Sustainability Report 2010 Table of contents This year’s Sustainability Report celebrates Cummins’ significant Corporate Responsibility partnerships starting on page 14 with a story about the Company’s involvement in EARTH University. Other partnerships are profiled throughout the report. Introduction Corporate responsibility Letter from the chairman ...................04 Building stronger communities ..............64 Cummins by the numbers ..................06 Philanthropy: A track record of commitment ....68 Our commitment .........................08 Responding to disasters ...................69 History ................................10 Rising to our environmental challenges ........70 Recognition .............................12 Corporate responsibility funding .............78 EARTH University ..........................14 Courage Center ...........................82 Environment Employee relations Raising the stakes .......................18 Creating a safe working environment. 84 Environmental stewardship: Products .........22 A dramatic change for the better .............86 India’s green ambassador ..................28 Cell phone use banned: driver safety. 87 Environmental stewardship: Practices .........30 Connecting diversity to the bottom line ........88 Seven ways our sites save energy ............32 Putting diversity into action .................92 Cummins and climate change: Q&A ..........37 Taking diversity to the next level .............93 Darlington’s big year ......................38 Company recommits to $1 billion goal ........94 Environmental stewardship: Partnerships ......40 Smaller suppliers play critical role ............97 Collaborating with customers ...............42 Creating a sustainable workforce ............98 Combined heat and power .................43 Employee “envolvement” campaign ..........44 LeMoyne-Owen College ....................102 Cummins College of Engineering for Women .....46 Finance Cummins remains strong in 2009 ...........104 Governance / Risk management Six Sigma is 10 years old .................107 Foundation for business success ............50 Our new strategic principle ................109 Cummins Board of Directors ................54 Operating segments .....................110 Dr. Franklin Chang-Diaz ...................56 Managing risks ..........................58 H1N1 response ..........................61 Ithemba Institute of Technology ...............62 Introduction 3 Letter from the chairman Cummins Stakeholder: Sustainability Report highlights the progress we have made in the past year around these values. Over the past year, Cummins has continued to focus As in past years, this year’s report contains a its efforts on keeping the significant emphasis on the Company’s corporate Company strong during responsibility work. the global recession, which Broadly speaking, Cummins operates under the began late in 2008. philosophy that corporate responsibility is not simply Our work to reduce costs, align manufacturing something that is “nice to do,” but is a way of doing capacity with demand and serve customers well business that contributes directly to the financial health when they