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Cummins 2018 Sustainability Progress Report

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Cummins 2018 Sustainability Progress Report CUMMINS AND SUSTAINABILITY 2018 POWERING A MORE PROSPEROUS WORLD INTRODUCTION // ABOUT The team has also continued CDP INTRODUCTION moving some data to our GRI Data ENVIRONMENT ABOUT OUR Cummins is committed to sharing its Book, which can be found where SOCIAL CDP (formerly the Carbon Disclosure we post all of our sustainability Community Engagement SUSTAINABILITY related documents. This report Project) water and climate filings. Health and Safety was completed in June 2019 and The 2018 filings will be posted in Diversity and Inclusion REPORTING is Cummins’ 16th edition. Cummins’ sustainability document Workforce repository sometime in July 2019. ECONOMIC CUMMINS GRI The 2017 reports are available now. Financial Cummins’ sustainability reporting Innovation DATA BOOK Supply Chain SUSTAINABILITY Customer Support primarily consists of four postings The company is again producing a OVERVIEW Ethics, Governance and Risk to reach the right people with the separate posting called Cummins’ Government Relations 2018 GRI Data Book. It follows Cummins has also put together right information at the right time. the format of the Global Reporting another eight-panel sustainability Initiative (GRI) established by brochure to give readers a very WORLD the United Nations to develop high-level look at the HEADQUARTERScompany’s POWERING Development Goals to “end INNOVATION WHO WE ARE 500 Jackson St. A MORE PROSPEROUS SUSTAINABILITY a consistent way for companies Cumminssustainability Inc., a global technology efforts. TheColumbus, overview IN 47201 leader, is a corporation of poverty, protect the planet and WORLD Siemens sold more than 100 of PROSPERITYto report STARTSon their environmental, complementaryis posted business segmentswith the company’s its popular low-emission Charger PROGRESS REPORT that designs, manufactures, distributes locomotives in 2018 featuring ensure prosperity for all.” See the and services a broad portfolio of power the QSK95 diesel engine, social and economic performance. EST. the largest Cummins makes. WITH GREAT IDEAS solutions.other The company’s sustainability products related OUR CHALLENGE notations on page 7 of this report range from diesel and natural gas This document is Cummins’ 2018 Building a more prosperous world requires innovation enginesreports to hybrid and and electric documents platforms, in where the company believes its providing customersCummins with the products will theydisclose need to some as well as related technologies, Sustainability Progress Report, succeed in a way that’s better for the environment. includingthe transmissions, document battery repositoryCMI. WHAT SUCCESS systems, fuel systems, controls, air STOCK SYMBOL disclosures most closely align At Cummins, we wantadditional to bring customers dataa in the Cummins handling, filtration, emission solutions RECORD REVENUES which reflects the company’s broad (New York Stock Exchange) MEANS AT Financial success helps ensure broad portfolio of power options – including Cummins in 2018 unveiled and power generation systems. the means to act sustainably. PowerDrive, an advanced with those aspirations. clean diesel, natural2018 gas and electrified GRI powerData – Book that didn’t fit Here’s a look at revenues from view of sustainability reporting, so they can choose what works best for them. suite of plug-in hybrid electric CUMMINS the past five years. powertrain solutions that switch in real time between the construct of the Sustainability Success at Cummins starts with a COMPANY RECORD including the environment, corporate hybrid and electric modes ASSURANCE The sustainability reporting for the best fuel economy. www.cummins.com strong bottom line. Our mission to Progress Report but is still important make lives better by powering a more responsibility, healthy and safety, CUSTOMERS More than 90% of the data prosperous world requires much more. team at Cummins has continued Cummins’ customers are to disclose. TheNEW 2018 HIGH Cummins diversity and inclusion, innovation, located in approximately It means creating a culture of innovation to FOR R&D Cummins reports is 190assured countries and territoriesby that working to make this report shorter 62,600 ensure success in good times and bad, using BILLION $23.8 In its drive to offer customers the company reaches through a GRI Data Book will be posted by fewer of the world’s resources to preserve and financial performance and the a full line of power options, network of more than 600 wholly- Cummins spent a record EMPLOYEESBureau WORLDWIDE Veritas, a world leader in protect the environment, engaging to build owned and independent distributor BILLION $20.4 and easier to read, moving many amount on research and locations and approximately stronger communities, embracing the power $19.1 BILLION $19.1 the end of June development2019. in 2018. More than 50 percent of Cummins’ BILLION $19.2 company’s supply chain. 7,600 dealer locations. 287 employeestesting, live outside inspectionthe United States. and certification of diversity and inclusion, and establishing BILLION $17.5 feature stories formerly in the That’s a 20% increase over a global reach to maximize our impact. 2017 264 five years services. Its complete assurance As Cummins celebrates report to The Newsroom on 259 SALES / EARNINGS 249 FORTUNE 500 its 100th anniversary in As a signer of the United Nations’ 2018 In 2018, Cummins earned RANKING (2018) 2019, we’re working to 2016 letter is included$2.1 billion inon revenues the ofCummins cummins.com. You can find at 2015 make sure the company 2018 2017 Global Compact in 2017, Cummins 2016 2015 2014 217 MILLION $902 GRI Data Book. is powering prosperity least one sustainability related CUMMINS AND for the next 100 years. $754 MILLION $754 $23.8 supports the U.N.’s 17 Sustainable 2014 $754 MILLION $754 PATENTS MILLION $735 SUSTAINABILITY MILLION $637 story there every week. For a third year in a row, BILLION 2018-2019 Cummins’ technical staff received 2018 149 2017 2016 2015 156 more than 250 global patents. 2014 ©2019 Cummins Inc. BLAIR CLAFLIN Bulletin 5417453 Printed on recycled paper. 2013 Director – CUMMINS AND SUSTAINABILITY Sustainability Communications 2018–2019 Sustainability Brochure PREV 2 NEXT INTRODUCTION // INTRODUCTION ABOUT ENVIRONMENT SOCIAL Community Engagement THE Health and Safety Diversity and Inclusion COVER Workforce ECONOMIC Financial This year’s cover of the Innovation Sustainability Progress Supply Chain Customer Support Report is dedicated Ethics, Governance and Risk to faces that made a Government Relations difference in Cummins’ sustainability in 2018. ABOVE LEFT // Lulu Lopez has been working for more than 20 years in manufacturing, including 12 years at Cummins. She now serves as Director of New and ReCon® Parts Global Manufacturing Operations, where she helps keep tons of used engines and parts in use and out of landfills. ABOVE RIGHT // Cummins employees Kikelomo Bamidele, Abiola Abioye- Yusuff and Ifeyinwa Alex-Anene joined nonprofit leaders who attended Rise Up’s leadership accelerator program in Nigeria to focus on capacity building, networking and leadership development. Rise Up is one of eight non-profit organizations Cummins is partnering with as part of Cummins Powers Women. The program was launched in 2018 to ABOVE // Mark Dhennin, Director of Energy & ABOVE // Cummins employees in southern Indiana support the advancement and prosperity Environment at Cummins, is interviewed at the (U.S.) turned out in big numbers to support of women and girls around-the world. dedication in 2018 of an Indiana wind farm LGBTQ members of the company’s workforce expansion the company is supporting through at the 2018 PRIDE Parade in Indianapolis. a virtual power purchase agreement. The parade was one of many Cummins The expansion will send about as much power employees supported in keeping with the to the grid as Cummins uses in Indiana (U.S.). company’s diversity and inclusion value. PREV 3 NEXT INTRODUCTION // INTRODUCTION TABLE OF CONTENTS ENVIRONMENT SOCIAL Community Engagement INTRODUCTION ENVIRONMENT SOCIAL ECONOMIC Health and Safety Diversity and Inclusion 2 15 27 39 49 Workforce ABOUT OUR CUMMINS IS DRIVEN TO BUILDING MORE INNOVATING TODAY, SOCIALLY COMMITTED, ECONOMIC SUSTAINABILITY REDUCE ITS IMPACT ON PROSPEROUS COMMUNITIES INVESTING IN TOMORROW FOCUSED ON THE FUTURE Financial REPORTING THE ENVIRONMENT AROUND THE WORLD Innovation 40 50 Supply Chain 3 16 29 RECORD YEAR ALLOWS CUSTOMER SUPPORT Customer Support ABOUT THE COVER COMPANY REACHES MEASURING CUMMINS TO INVEST CRITICAL TO CUMMINS’ Ethics, Governance and Risk TWO GOALS, BUT ENGAGEMENT IN ITS NEXT CENTURY PLANS FOR GROWTH 5 Government Relations CHALLENGES REMAIN MATERIALITY 30 42 52 23 PROVIDING THE INNOVATING TO ETHICS AND COMPLIANCE 6 KEY PERFORMANCE ENVIRONMENTAL SKILLS FOR SUCCESS BUILD A MORE PLAYS KEY ROLE IN GOALS UPDATE PROSPEROUS WORLD CUMMINS’ SUSTAINABILITY INDICATORS 31 24 ACCELERATING 43 55 7 THE U.N.’S SUSTAINABLE PARTNERING TO SOLVE GENDER EQUALITY KEY INNOVATION EXERCISING SOUND COMPLEX PROBLEMS METRICS AND INDEPENDENT DEVELOPMENT GOALS 32 JUDGMENT 25 HEALTH AND SAFETY: 44 9 WHO WE ARE BUSINESS COALITIONS CREATING THE RIGHT THE YEAR IN 57 AND COUNCILS CULTURE INNOVATION MANAGING RISK IS 10 KEY TO CUMMINS’ HOW WE DO IT 26 34 46 STRATEGIC ACTIONS DIVERSITY AND INCLUSION PARTNERING SUSTAINABILITY 11 AT A GLANCE PLAYS KEY ROLE IN FOR PROGRESS 58 CUMMINS’ STORY SUSTAINABILITY GOVERNMENT RELATIONS: 47 PARTNERING TO BUILD A 12 37 BUILDING A SUSTAINABLE OUR KEY TOOLS A PLACE EMPLOYEES SUPPLY CHAIN
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