New Cummins strategy to address climate change, conserve natural resources

Cummins announced today bold new environmental sustainability goals timed to 2030, and aspirations for 2050, to do the company’s part in addressing climate change and other global environmental challenges.

Chairman and CEO Tom Linebarger said the company’s new PLANET 2050 strategy includes science-based goals for products and facilities in 2030 aligned to the United Nation’s Intergovernmental Panel on Climate Change (IPCC). Science-based goals are designed to limit global temperature rise to no more than 1.5 degrees Celsius by the middle of the century. 

PLANET 2050’s longer term aspirations include powering customer success through carbon neutral technologies that address air quality, and designing out waste in products and processes. 

Linebarger said the PLANET 2050 strategy is both an environmental and a business imperative. He has long maintained companies that can grow while using fewer of the world’s resources will be the most successful in the future. 

“Our communities and our business depend on our collective response to improve the health of the planet while creating prosperity for all,” Linebarger said. “It’s clear that government, businesses, nongovernmental organizations, and communities must unite behind swift, decisive action to address the environmental threats we face.” 

The new strategy builds on the success of goals announced in 2014 and timed to 2020  to reduce the company’s energy and water use as well as carbon dioxide (CO2) from its products. The company will continue to work on those targets through the end of next year. 

Meadow Lake Wind Farm in northwest Indina
Cummins' support for an expansion at the Meadow Lake Wind Farm in northwest Indiana is one of the creative ways the company has increased its use and promotion of renewable energy.

CHALLENGING GOALS

The company’s eight 2030 goals relate to its parts, products and company-managed facilities and operations. They are divided into two categories: Goals addressing climate change and air emissions, and goals for the use of natural resources in the most sustainable way. 

Company leaders say progress on the 2030 goals will be periodically evaluated and communicated, including consideration of whether more can or should be done in line with global energy and environmental challenges.

The 2030 goals are:

Climate change and air emissions 
•    Reduce absolute greenhouse gas (GHG) emissions from facilities and operations by 50% (science-based target).
•    Reduce absolute lifetime GHG emissions from newly sold products by 25% (science-based target).
•    Partner with customers to reduce greenhouse gas (GHG) emissions from products in the field by 55 million metric tons. 
•    Reduce emissions of volatile organic compounds from paint and coating operations by 50%.

Using natural resources in the most sustainable way
•    Create a circular life-cycle plan for every part to use less, use better, use again.
•    Generate 25% less waste in facilities and operations as a percent of revenue.
•    Reuse or responsibly recycle 100% of packaging plastics and eliminate single-use plastics in dining facilities, employee events and amenities.
•    Reduce absolute water consumption in facilities and operations by 30%.

Work on the solar array at the Beijing Foton Cummins Engine Plant
Crews earlier this month began work on a solar array at the second  building at the Beijing Foton Cummins Engine Plant in Beijing, China. The site is already home to the largest array within Cummins.

Company facilities include all consolidated operations and joint ventures that are part of the Cummins Enterprise Environmental Management System.

The company’s strategy also includes addressing environmental needs in the communities where Cummins employees live and work and where the company does business.

Those goals are under development.

Cummins leaders say the strategy’s goals and aspirations will not be easy to reach and require outside action to achieve. 

Cummins Technical Center in Columbus, Indiana.
About 23% of the Cummins Technical Center's energy needs are covered by power captured from the engine testing that takes place at the facility.

ASPIRATIONS FOR 2050

The strategy’s aspirations are a first for the company. The 2050 targets are organized around the same categories as the 2030 goals:

2050 – Climate change and air emissions  
•    Customer success is powered by carbon neutral technologies that address air quality.
•    Carbon neutrality and near zero pollution in Cummins’ facilities and operations.

2050 – Using natural resources in the most sustainable way
Nothing is wasted:
•    Design out waste in products and processes.
•    Use materials again for next life.
•    Reuse water and return clean to the community

2050 – Improving communities:
•    Net positive impact in every community where Cummins operates.
•    Near zero environmental footprint.

The company says it will continue to report its progress on the environment in Cummins’ annual Sustainability Progress Report.

“Our vision for 2050 is a world where Cummins powers the world’s really important work with carbon neutral products and operations,” said Brian Mormino, Executive Director Worldwide Environmental Strategy and Compliance. “Since our communities and business depend on a healthier planet, we will take strong action on climate change and work toward a future where we waste nothing and ensure that our communities are better because we are there.”

Editorial note: Cummins has created a special website for its PLANET 2050 strategy where you can get more information on goals and the company's development of the plan.

 

 

Forward-Looking Disclosure Statement
Information provided in this document that is not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding forecasts, guidance, preliminary results, expectations, hopes, beliefs and intentions on strategies regarding the future. The forward-looking statements made herein are made only as of the date of this document and we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. More detailed information about factors that may affect our performance may be found in our filings with the SEC, which are available at http://www.sec.gov or at http://www.cummins.com in the Investor Relations section of our website.
 

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. blair.claflin@cummins.com

 

Cummins gets high marks in five recent independent ratings

The company's latest rankings reflect its responsible behavior and leadership.
The company's latest rankings reflect its responsible behavior and leadership.

Cummins is ranked No. 17 in Newsweek magazine’s first rating of America’s Most Responsible Companies.  It was the top company in its category – automotive and components.
 

The Newsweek list, released earlier this week, is one of five recent evaluations by outside groups praising the company, its approach to sustainability or its leadership and management.

“Companies, we all know, need to make a profit to prosper and survive,” said Nancy Cooper, Global Editor in Chief at Newsweek. “Making a buck, after all, is important to investors, employees and vendors. But over the years, executives have come to realize that they need to do much more. That is, by giving back to the communities they operate in and standing up as good neighbors and citizens.”

Newsweek partnered with Statista Inc., a leading provider of global market and consumer data, to evaluate publicly available information from sources such as sustainability and corporate citizenship reports. The key indicators included in the ranking focused on performance in the areas of the environment, social initiatives and corporate governance. The partners also conducted an independent survey asking U.S. citizens about their perception of companies’ activities related to corporate social responsibility. 

Cummins received an overall score of 83.8 in the 2020 ranking, 83.6 on the environment, 80.2 on social and 87.6 on governance. The top three in the review of 2,000 public companies were HP (94.4), Cisco (91.2) and Dell (90.3).

Cummins took several innovative steps in 2019 starting with its support for Cummins Powers Women, an effort working with expert nonprofit groups to advance women and girls around-the-world. More recently, the company announced its PLANET 2050 strategy to do its part to address climate change and other environmental issues.

In addition, the company has made major investments in electrified power and fuel cells as part of Cummins’ effort to offer customers a broad portfolio of solutions to meet their power needs.

TWO OTHER RATINGS OF NOTE 

Cummins this week was also ranked No. 48 in Investor's Business Daily's 50 Best ESG Companies. The list includes top performers in the environment, social and governance areas, "reflecting broad strength in fundamental and technical areas linked to price performance." Investor's Business Daily looked at companies with ESG (environment, social, governance) ratings of AAA or AA from MSCI ESG Research as of Sept. 11, 2019.

In a rating released last month, the company ranked No. 98 on the 2020 list of America’s Most JUST Companies produced by Forbes magazine and JUST Capital. The list honors 100 U.S. corporations, ranking companies on issues such as fair pay, ethical leadership, good benefits, and work-life balance, in addition to financial performance.

The issues in the rankings and their weights are determined by a polling of the American public to determine what it believes are the most important attributes of a just company.

LEADERSHIP AND MANAGEMENT RANKINGS

Meanwhile, Cummins also received strong reviews in two management and leadership ratings. The company was ranked No. 88 in the Wall Street Journal and Drucker Institute's Management Top 250 released late last month. The partnership rates America's largest publicly traded companies on the principles of Peter Drucker, the late professor, author and longtime Wall Street Journal columnist. 

And Cummins Chairman and CEO Tom Linebarger was No. 12 on Fortune magazine’s Businessperson of the Year 2019 list announced last month. The magazine looks at 10 financial factors “ranging from total return to shareholders to return on capital.

“Then we search for the standouts. The leaders who tackled audacious goals, overcame impossible odds, found creative solutions.”

The magazine selected 20 CEOs to profile, praising Linebarger for his support of free trade.

“Linebarger has spent a large part of the past two years warning what will happen if U.S. trade with Asia doesn't stay open,” Fortune said.

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. blair.claflin@cummins.com

 

Collaborative robotics: Leading the way in Industry 4.0

This UR-10e cobot is supplied by Universal Robot. It is being used in a pilot study at the Manufacturing Engineering Development Center at the Cummins Engine Plant in Columbus, Indiana to inspect engine quality.
The UR-10e cobot, above, is supplied by Universal Robot. It is being used in a pilot study at the Manufacturing Engineering Development Center at the Cummins Engine Plant in Columbus, Indiana to inspect engine quality.

The fourth industrial revolution is upon us, and collaboration is the name of the game. 

Cummins will more than double the number of collaborative robots it is using by the end of 2019, further digitizing its manufacturing operations for a future some describe as the fourth industrial revolution – or Industry 4.0. At least 30 cobots will share workspace with employees at 15 different sites across the globe by the end of the year. 

Collaborative robots, also known as “cobots,” are a key element of Cummins’ Industry 4.0 strategy. “When we defined the Industry 4.0 framework for Cummins, we committed to embrace and deploy new technologies that would help us solve key quality challenges, and offer a safer, more efficient manufacturing environment,” said Tim Millwood, Cummins Vice President – Global Manufacturing. “Cobots add significant value in helping us achieve these goals.”

Cummins cobot - Industry 4.0
The cobot pictured here is supplied by Fanuc and located at the Cummins Darlington Engine Plant in the United Kingdom. It is being used to help manage part proliferation and improve quality.

Integrated safety features allow cobots to create safer work environments for those employees who are sharing their workspace. Generally, cobots have lightweight frames with soft, rounded edges and minimized pinch points. They are also limited in both power and speed to levels suitable for human contact, and they are governed by industry-approved safety standards to avoid human injury. 

Cobots are performing unsafe or repetitive tasks that, left to employees, would carry an increased risk for ergonomic injuries. The Cummins San Luis Potosi ReCon plant in Mexico is home to one of the newest cobots paired with a new vision inspection system that helps reduce such ergonomic strain and injuries. Cummins’ ergonomic risk priority score (RPS) – which helps identify and prioritize which risks to address so more employees can go home safely each day – decreased significantly from 25 to four at the site. 

Increased productivity is another advantage cobots offer. In many cases, cobots take the form of an arm, which provides employees with an extra hand that is precise, reliable and versatile. Overall, errors are eliminated, quality improves and team productivity and efficiency increase. After a cobot was installed at the Charleston Turbo Plant (CTP) in Charleston, South Carolina, 10 more turbochargers were produced per eight-hour shift because downtime was eliminated.

Cummins Industry 4.0 cobots
The UR-5 cobot, pictured here, is supplied by Universal Robot. It is used at the Cummins Emissions Solutions Phaltan Components Plant in India to pick and place parts.

Cobots continue to expand throughout the industry because of the many benefits they offer. They are affordable and offer reduced capital costs and a quick return on investment. They are easy to install, program, implement and maintain. They enhance productivity, efficiency and quality. Above all, they reduce the risk to our employees by taking on unsafe or repetitive tasks that could result in injuries. 

Cobots are integral to Cummins’ strategy as the company invests significant resources into advancing and accelerating the use of the latest Industry 4.0 solutions and technologies. Cummins is assessing many other manufacturing processes to determine how additional cobots can be used to further create a competitive advantage. 

“As I walk through our diverse plants today, I see opportunities for applying collaborative robot technology every few feet,” said Elizabeth Hoegeman, Cummins Executive Director – Global Manufacturing Engineering. “Our vision is to steadily invest in cobots over the next several years until we exhaust viable applications.”

Meanwhile, the cobots the company has installed are empowering employees, improving work conditions, and partnering with Cummins to manufacture a bright future in this new era of modern manufacturing.

Cummins Office Building

Cummins Inc.

Cummins is a global power leader that designs, manufactures, sells and services diesel and alternative fuel engines from 2.8 to 95 liters, diesel and alternative-fueled electrical generator sets from 2.5 to 3,500 kW, as well as related components and technology. Cummins serves its customers through its network of 600 company-owned and independent distributor facilities and more than 7,200 dealer locations in over 190 countries and territories.

4 ways Cummins’ 2020 goals are helping the environment

The Beijing Foton Cummins Engine Plant (above) in Beijing, China, is the largest of Cummins’ 12 completed solar installations. Work will begin soon on the plant’s second building (upper right).
The Beijing Foton Cummins Engine Plant (above) in Beijing, China, is the largest of Cummins’ 12 completed solar installations. Work will begin soon on the plant’s second building (upper right).

Skeptical when companies announce goals for reducing their environmental impact? Cummins’ 2020 goals, announced in 2014, have driven positive changes both for the company and the environment.

Cummins announced new environmental sustainability goals Nov. 15 to guide the company through 2030. They will have a big impact if the company’s 2020 goals are any indication. Here’s a quick look back: 

1.    RENEWABLE ENERGY 

Significant strides have been made since the company announced its 2020 goal to increase its use and promotion of low-carbon, renewable energy sources.

A farmer works near the Meadow Lake Wind Farm expansion
A farmer works near the recent Meadow Lake Wind Farm expansion supported by Cummins through an innovative purchase agreement.

The Beijing Foton Cummins Engine Company (BFCEC) in Beijing, China, is the largest of Cummins’ 12 completed solar installations, producing about 15% of the energy consumed at one of its two buildings. Work will soon begin on a new array of about equal size at the site’s second building.

 The Beijing plant is one of 16 Cummins locations where work is taking place on new solar installations – 12 in India, alone. Arrays are planned at another nine sites including Cummins facilities in Nigeria, Romania and Australia. 

Not every site at Cummins is a good fit for solar, however. The company’s work to help an Indiana wind farm expand could prove to be a great alternative to promote low-carbon, renewable energy.

Cummins entered into a Virtual Power Purchase Agreement to help the Meadow Lake Wind Farm expand in 2018. While the power doesn’t go directly to a Cummins facility, the company’s share of the expansion will send slightly more renewable electricity to the grid than the company uses at its Indiana facilities.

That amounts to offsetting about 28% of Cummins’ global energy consumption annually with renewable power, almost 10 times the electricity generated by the company’s solar arrays.

2.    IMPROVING ENERGY EFFICIENCY

Cummins is on pace to achieve a 32% energy intensity reduction, energy use adjusted by hours worked, compared to a baseline year of 2010.

Regen Dyno team at the Seymour Engine Plant
Cummins employees stand before one of the regenerative dynamometers at the Seymour Engine Plant. 

The company has been making efficiency improvements at many facilities - upgrading lighting, heating and air conditioning systems - and replacing inefficient equipment discovered by employees trained as Environmental Champions.   

One of the company’s most impactful investments: regenerative dynamometers or “regen dynos” for short. The technology captures energy generated by test engines and turns it into useful power. Cummins uses a lot of fuel when it tests new engines and components.

The Cummins Technical Center in Columbus, Indiana, gets about 23% of the total electricity it uses from regen dynos, said Mark Dhennin, Director – Energy & Environment. At the Seymour (Indiana) Engine Plant, where Cummins builds some of its largest engines, two dynos are providing about 17% of the site’s electricity, Dhennin said.

3.    CONSERVING WATER

Since 2010, direct water use is down 16% at Cummins despite a significant increase in employees and buildings. Water use intensity, direct water use adjusted by hours worked, has been reduced by 50%.

The company has undertaken projects ranging from repairing leaks and improving water use practices to using heating and cooling systems that recirculate water rather than dispose it. The regen dynos mentioned earlier reduce cooling load, which allows the cooling tower systems used with test engines to be smaller and use less water.

A Cummins employee checks on water use at the company's plant in Chongqing, China.
A Cummins employee checks water use in Chongqing, China.

There are also many building specific features across Cummins to conserve water. Some facilities are focusing on upgrades to reuse wastewater. The company’s Rocky Mount Engine Plant in Rocky Mount, N.C., for example, initiated a project to reclaim 15 million gallons of water per year for use in a cooling tower at the plant.

A similar project is being conducted at Cummins’ Jamestown Engine Plant in Jamestown, N.Y. The potential savings of 15 million gallons per year there will be reused in the facility’s cooling towers and deionized water system. 

There are many smaller efforts ranging from the bioswales at the Distribution Business Headquarters in Indianapolis, which keep about 80% of rainwater on site for landscaping, to plants in India and Brazil that recycle water for non-potable uses.

4.    WORKING WITH CUSTOMERS TO REDUCE CO2

Cummins fuel economy teams across the world have implemented nearly 300 projects since 2014 to improve the efficiency of the company’s products in use. 

In 2018, Cummins surpassed its 2020 goal of working with customers to achieve an annual run rate reduction of 3.5 million metric tons of carbon dioxide (CO2), reaching 4.3 million metric tons of CO2 in 2018. CO2 is a key contributor to greenhouse gas.

Cummins Chairman and CEO Tom Linebarger announces the company's 2020 environmental sustainability goals during a visit to Purdue University in 2014.
Cummins Chairman and CEO Tom Linebarger announces the company's 2020 environmental goals during a visit to Purdue University in 2014.

Projects included retrofitting buses with stop-start technology, so the engine shuts down when stopped on a route; creating a way to easily shift a truck engine to a fuel efficiency setting and ensuring a customer uses the right-sized engine for a job so fuel isn’t wasted.

Cummins expects to work with about 20% of its customer base by the end of 2020, touching nearly 2 million engines as specifications are tailored to specific customer uses.

Editor's note: This story was updated Nov. 18, 2019 to reflect the announcement of Cummins' new environmental strategy goals.
 

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. blair.claflin@cummins.com

 

Looking at the future of transportation at Fast Company's Innovation Festival

Cummins Fast Company Innovation Festival

Celebrating 100 years of innovation, Cummins is recognized as a global power leader and often revered as one of the most progressive technology companies in the world. Perhaps that's why Fast Company, one of the world's leading business media brands focused on innovation and technology, invited Cummins' Vice President and Chief Information Officer (CIO), Sherry Aaholm, to speak at their annual Innovation Festival in New York City.

Supporting this year’s festival theme of "A Connected World," Aaholm shared insights and expertise on the future of mobility through a live panel discussion titled, "Transportation 2025: What’s Down the Road."

Fast Company’s Innovation Festival convenes thousands of creators and innovators from around the globe to inspire, network and learn from each other. Cummins participated alongside a long list of renowned brands across industries including: Microsoft, Target, Disney, Amazon, Lenovo, Kaiser Permanente, Frito Lay, Slack, HBO, Sony, General Motors, Neiman Marcus, Ben & Jerry’s, Hinge, Shutterstock, Columbia Records, Facebook, Chipotle, Intuit, Siemens, Orange Theory, PwC, and General Motors.

Cummins Fast Company Innovation Festival - 2019
Cummins CIO Sherry Aaholm, second from left, joined thought leaders and industry experts from Honda Aircraft Company and Amtrak to talk about the future of transportation at Fast Company's 2019 Innovation Festival in New York City. 

Joined by panelists Michimasa Fujino, CEO of Honda Aircraft Company and Roger Harris, Chief Revenue Officer and EVP of Marketing for Amtrak, Aaholm laid out a vision for how the internet of things (IoT), artificial intelligence (AI) and machine learning are shaping the transportation industry and its workforce. Topics included connectivity, electrified power, autonomous vehicles, high speed travel, regulatory change and more. 

Using a fact-based approach, Aaholm addressed the realities of how technology will be the foundation for a new way to do business, while advocating for educational programs that provide curriculum to prepare the next generation of workers.

“The reality is you can actually do different things in your job if you can use AI to help with repetitive activities,” said Aaholm. "It’s imperative that we teach students early about artificial intelligence and machine learning so they enter the workforce ready to succeed in a digital economy.”

In addition to artificial intelligence, Aaholm brought the audience and media up to speed on a popular topic at this year’s event, autonomous vehicles. “The challenge is how do you safely adopt the technology of autonomous vehicles at scale,” added Aaholm. “It’s going to be some time until the required infrastructure and legislation catches up to autonomous technologies for commercial transportation suppliers, and we don’t expect to see this in volume during the next five years.”

Cummins Fast Company Innovation Festival
Innovation Festival attendees gathered in New York City, where Cummins CIO Sherry Aaholm led a panel discussion on the future of transportation. 

Cummins’ involvement with Fast Company extends beyond this week’s Innovation Festival. The company is also featured in their editorial publications which include their print magazine, videos, social media and online web properties. Cummins shared a series of fascinating stories around themes of Energy and Transportation IQ, as well as Smart Cities. '

As one of the leading technology influencers with a strong global following, Fast Company’s interest in Cummins is a strong indicator of the company’s success as a top innovator and leader in global power solutions. Cummins will continue to look for creative ways of storytelling that bring to life our brand promise of innovation, dependability and powering a more prosperous world for the next 100 years.

Learn how Cummins is developing the power to move us all forward.                     
 

Cummins Office Building

Cummins Inc.

Cummins is a global power leader that designs, manufactures, sells and services diesel and alternative fuel engines from 2.8 to 95 liters, diesel and alternative-fueled electrical generator sets from 2.5 to 3,500 kW, as well as related components and technology. Cummins serves its customers through its network of 600 company-owned and independent distributor facilities and more than 7,200 dealer locations in over 190 countries and territories.

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