Cummins reports progress on key ESG goals in 20th annual Sustainability Progress Report

Cummins Inc. (NYSE: CMI) has posted its 20th annual Sustainability Progress Report, disclosing reductions in greenhouse gases (GHGs) and water consumption while establishing the foundation for progress on other 2030 environmental goals.

The global power technology leader also reported steady progress on the company's diversity, equity and inclusion efforts, including a program addressing systemic discrimination against the Black community in the United States. The report also details the promising start to an initiative addressing the global water crisis, and the continued rebound in employee volunteerism since the outset of the global covid-19 pandemic.

Cummins made these advances, and more, while also achieving record revenues of $28.1 billion in 2022, and completing the acquisition of Meritor Inc., the largest acquisition in company history, in August of that year. In addition, the company concluded the transition from former Chairman and CEO Tom Linebarger to Cummins' first female chief executive, Chair and CEO Jennifer Rumsey, earlier this year. 

“I believe there is no company better positioned than Cummins to make a lasting positive impact on our world,” Rumsey says in concluding her essay that opens the 2022-2023 report.

The report is divided into three sections covering the Environment, Social, and Governance and Economics. Here are a few highlights from each section:

ENVIRONMENT

The reductions in GHGs and water consumption are especially pronounced in comparison to the company's benchmark year of 2018. Cummins' overall water use is down from 1.17 billion gallons in 2018 to 988 million gallons in 2022. Scope 1 and Scope 2 GHG emissions are also down over that time period - all despite the company's growth. 

In addition, the new Cummins Water Works program, launched in 2021 to address the global water crisis, is delivering annual water benefits for communities at a rate significantly outpacing the company’s overall water use. 

Cummins continues to work on achieving the aggressive 2030 goals established in Cummins' PLANET 2050 environmental sustainability strategy. The strategy includes nine goals timed to 2030 around water, waste, greenhouse gases and other emissions. The new report includes progress updates on every goal. In several cases, the company in 2022 was still establishing the foundation necessary to record meaningful results.

In 2022 and 2023, Cummins also began to implement its Destination Zero strategy to reduce greenhouse gas emissions from its products and bring to market low- and no-carbon products for those applications where it makes sense. Greenhouse gas emissions from Cummins' products in-use make up the vast majority of the company's environmental impact.

Leaders believe the 2022 acquisition of Meritor and two other companies will ultimately accelerate Cummins’ development of economically viable decarbonized powertrain solutions.

“Our business and environmental strategies are aligned to capture the growth opportunity decarbonization presents for Cummins and its stakeholders, as we strive to reduce our company’s environmental impact on the planet while strengthening the communities in which our employees live and work,” Rumsey says in the report.

SOCIAL

In the Social section of the report, Cummins highlights continued growth in the number of women working for the company, especially among Cummins' leadership. Overall, women globally made up about 28.3% of the company at the end of 2022 and 40.7% of the Vice Presidents and above.

In the U.S., where the company has prioritized dismantling systemic discrimination, 22% of Cummins’ employees self-identified as Black or Latino as of the end of 2022, while 25% of the Vice Presidents and above identified themselves as Black or Latino.

In other social areas, the company reported that by the end of 2022 about 47% of the company’s workforce was working remotely or in hybrid arrangements as Cummins responded to the global trend for greater work flexibility following the pandemic.

Meanwhile, the company reported employee volunteerism continued to approach pre-pandemic levels. In 2022, employee participation in Cummins' Every Employee Every Community (EEEC) program rose to 73%, up from 56% in 2021 and 35% in 2020. Prior to the pandemic, participation regularly reached 80% or higher.

GOVERNANCE AND ECONOMICS

Cummins’ Governance and Economics section added a new report on the company’s Global Security efforts in addition to updates on the Cummins Board of Directors, the Ethics and Compliance function, Cybersecurity, Risk Management and Government Relations.

The section also includes special reports on the way Cummins’ innovation efforts and the company’s supply chain initiatives are supporting Cummins’ Destination Zero strategy.

The report is available in Cummins’ Sustainability Document Archive. Visitors can also find the company’s 2023 Human Capital Management Report, its 2023 report to the framework established by the Taskforce on Climate-related Financial Disclosures, and assurance statements on key environmental, social and governance data in the company’s 2022-2023 report.