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