The power of engagement SUSTAINABILITY REPORT 2011– 2012Zhao Yan (left), of Cummins TurboTechnologies, teaches a vocationa...
ABOUT THIS REPORTThe information in this report is presented        Jones, Christine Kuo, Carol Lavengood, Anniein the spi...
Letter from the chairman                                                                         Table of contentsWelcome ...
United kingdom          Cummins around the world                                                                          ...
Who we are                                                                                           How we do it         ...
Our history         The values of integrity, innovation and corporate responsibility         have deep roots at Cummins, g...
Vision, mission,         values and principles         VISION                                                          Str...
Our recognition         A look at Cummins’ achievements in the past year:                             Environmental       ...
Environment              SuperTruck project is ready to take off              The future of trucking could well be unfoldi...
The supertruck team                                                    Cummins received a $39 million grant from the energ...
Environmental Stewardship // Products                        Cummins demonstrates good environmental stewardship          ...
2012 Cummins Sustainability Report
2012 Cummins Sustainability Report
2012 Cummins Sustainability Report
2012 Cummins Sustainability Report
2012 Cummins Sustainability Report
2012 Cummins Sustainability Report
2012 Cummins Sustainability Report
2012 Cummins Sustainability Report
2012 Cummins Sustainability Report
2012 Cummins Sustainability Report
2012 Cummins Sustainability Report
2012 Cummins Sustainability Report
2012 Cummins Sustainability Report
2012 Cummins Sustainability Report
2012 Cummins Sustainability Report
2012 Cummins Sustainability Report
2012 Cummins Sustainability Report
2012 Cummins Sustainability Report
2012 Cummins Sustainability Report
2012 Cummins Sustainability Report
2012 Cummins Sustainability Report
2012 Cummins Sustainability Report
2012 Cummins Sustainability Report
2012 Cummins Sustainability Report
2012 Cummins Sustainability Report
2012 Cummins Sustainability Report
2012 Cummins Sustainability Report
2012 Cummins Sustainability Report
2012 Cummins Sustainability Report
2012 Cummins Sustainability Report
2012 Cummins Sustainability Report
2012 Cummins Sustainability Report
2012 Cummins Sustainability Report
2012 Cummins Sustainability Report
2012 Cummins Sustainability Report
2012 Cummins Sustainability Report
2012 Cummins Sustainability Report
2012 Cummins Sustainability Report
2012 Cummins Sustainability Report
2012 Cummins Sustainability Report
2012 Cummins Sustainability Report
2012 Cummins Sustainability Report
2012 Cummins Sustainability Report
2012 Cummins Sustainability Report
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2012 Cummins Sustainability Report

  1. 1. The power of engagement SUSTAINABILITY REPORT 2011– 2012Zhao Yan (left), of Cummins TurboTechnologies, teaches a vocational education class in Wuxi, China. Read how Cummins is engaging in these kinds of programs around the world on page 54. Cummins Inc. SUSTAINABILITY REPORT 2011 | 3
  2. 2. ABOUT THIS REPORTThe information in this report is presented Jones, Christine Kuo, Carol Lavengood, Anniein the spirit of the Global Reporting Initiative Mack, Keri Moenssen, Christy Nycz, Luther(GRI). The goal of the GRI is to develop a Peters, Jennifer Kain Rager, Alan Resnik, Loriconsistent way for companies around the Rucker, Meredith Sanders, Stephen Sanders,world to voluntarily report on the economic, Rosann Scattoloni, Ernie Smith, Mark Smith,environmental and social components of Todd Swingle, Steve Watts, Janet Williamstheir businesses. and Jackie Yeager.The GRI was created in 1997 by the ABOUT THE COVERCoalition for Environmentally ResponsibleEconomies. The coalition today works This year’s cover shows vocational educationin collaboration with the United Nations students in Wuxi, China gathered aroundEnvironment Program and the U.N. Zhao Yan, Technical Project Leader forSecretary General’s Global Compact. Cummins Turbo Technologies, for a lesson on turbochargers. It’s just one of many examplesCummins takes a broad view of sustainability, of how Cummins is engaging in technicalgoing beyond environmental practices and training programs around the world to helpcommunity involvement to include suchissues as safety, diversity, leadership and provide people with portable job skills thatgovernance. We also believe that a company will ultimately lead to stronger communities.can’t be sustainable without a firm financial Cummins is launching a major new effortfoundation that enables investment in in this area. To learn more, go to page 54.everything from product development CONTACTSto building stronger communities. Jean BlackwellAs a global company, Cummins Executive Vice President –wants to make a difference for all of Corporate Responsibilityits stakeholders today and in the future. Chief Executive Officer –This report was published in June 2012 The Cummins Foundationand is the Company’s ninth annual edition. One American Square, Suite 1800 Indianapolis, IN 46282CONTRIBUTORSThis report relies on the writing, editing, Marya Rosedesign and technical expertise of many Vice President – Chief Administrative Officer One American Square, Suite 1800Cummins employees. Contributors this year Indianapolis, IN 46282include: Sena Adekpuitor, Marsha Allamanno,Jane Calloway, Jeff Campbell, Dave Clark, Blair Claflin (Editor)Sarah Clark, Laurie Counsel, Bill Fak, Angela Director – Sustainability CommunicationsFlood, Li-Anne Foo, John Forte, Cindy Frey, One American Square, Suite 1800Elena Grimm, Carla Howie, Elliot Hayden, Indianapolis, IN 46282Leah Huelsebusch, Surbhi Jagotta, Joann (317) 610-2542
  3. 3. Letter from the chairman Table of contentsWelcome to the 2011-2012 Sustainability Not only is there a direct tie between Letter from the chairman 2 Corporate ResponsibilityReport. I’m pleased to report that 2011 our future growth and the success of our Living our corporate responsibility INTRODUCTIONwas another outstanding year for Cummins stakeholders, but it is in our self-interest as value takes many forms in 2011–2012 58both in terms of our financial performance a company to invest in our stakeholders’ Cummins around the world 4 Challenge keeps growingas well as our commitment to a cleaner, success. For example, we believe that Who we are 6 in scope, impact 61healthier and safer environment. our Company is only as strong as the How we do it 7 communities where our employees live Power for Padarwadi, and beyond 68At Cummins, we believe that sustainability Our history 8 and work. Stronger communities mean Putting our professional skills to work 70starts with a strong financial performance. that we can attract and retain the best Vision, mission,Our Company had record revenue and Philanthropy: talent and ultimately lead to more robust values and principles 10profits in 2011. Revenue for the full year augmenting our skills and passions 73 markets for our products and services. Introductionwas $18 billion, up 36 percent from 2010, Our recognition 12 Foundation Leaders 77and Earnings Before Interest and Taxes The theme of this year’s report, The Power Environment(EBIT) increased by 54 percent compared of Engagement, fits well with Mr. Miller’s Employee Relationsto a year ago. Our balance sheet is strong, ideals that we partner with our stakeholders SuperTruck project is ready to take off 14 A record year in safety 78as our cash balances finished the year to achieve success and promote our Products 18 ‘Ergo Team’ charts safer path for plant 81at $1.5 billion, more than twice our mission that “everything we do leads Hedgehog: Big can still be green 28outstanding debt. to a cleaner, healthier, safer environment.” Leveraging the full benefit of diversity 83 As you read this report, I think you will see Profitable and green after 10 years 30The strong financial performance in Making a difference many examples where Cummins employees Zero can be a big number 312011, as well as in prior years, has for women at Cummins 86 are engaging with the community to makeenabled our Company to make the Practices 32 Taking supplier diversity things happen. They are working closelynecessary investments to develop and to the next level 88 with key community partners, leveraging Let the sun shine in! 41maintain technology leadership in our the skills and capabilities of Cummins, Development mindset keyindustry, to further expand our global Silence is music to neighbor’s ears 42 and investing in community projects that to sustainable workforce 90reach with manufacturing, engineering, Partnerships and policy 44 make a difference.and customer service, and to increase Collaborating with customers Governance & Riskour capacity to meet growing demand. On a personal note, it is an honor and for better performance 46 Sustainability builtAll of these investments are vital to privilege to assume the leadership of a on good governance 92sustain our future profitable growth. company with a long history of achievement A family affair 50 and great values. Much like my predecessor Cummins Board of Directors 96 Energy savings from theAt Cummins, we also recognize that Tim Solso, I feel a tremendous responsibility Managing risk key to sustainability 98our long term sustainability depends earth’s core to the shop floor 52 to be a good steward of Cummins and itson the success of a number of other key stakeholders. I am committed to building COVER STORY FINANCIALstakeholder groups. In fact, the stakeholder an even stronger and more sustainable Vocational education: changing lives, Cummins records strong financialmodel was championed by our former company during my time as leader. strengthening communities 54 performance over past year 102Chairman and Chief Executive Officer,J. Irwin Miller, who believed strongly Transition goes according to plan 104that it is in Cummins’ self-interest toensure that all stakeholders share inour Company’s success. Tom Linebarger Chairman and Chief Executive Officer Cummins Inc.2 SUSTAINABILITY REPORT 2011–2012 SUSTAINABILITY REPORT 2011– 2012 3
  4. 4. United kingdom Cummins around the world Cummins Turbo Technologies celebrated its 60th anniversary. Established in Huddersfield, U.K. on March 29, 1952 as Holset Engineering Co. Ltd., the company has been owned by Cummins since 1973. Cummins enjoyed a busy 2011– 2012 with several major CHINA developments around the world. Here are just a few: Cummins Board of Directors visited China in November 2011, touring Cummins facilities and meeting with company leaders France and customers. United States United States Cummins unveiled the new QSF2.8 engine for construction equipment during the INTERMAT Seymour, Ind. – Cummins unveiled Columbus, Ind. – Cummins announced show at the Paris Exhibition Center. The 4-cylinder, its most powerful engine ever, the plans to produce dual fuel engines from 2.8-liter engine is the smallest off-highway engine QSK95, at the Company’s plant in 800 hp to 3,500 hp for high-horsepower to be introduced by Cummins. Seymour Ind., in November 2011. markets. The first in the product portfolio, The engine, the first of the “Hedgehog” the QSK50 Tier 2 for oil and gas well family, will be marketed for use in boats, servicing applications, will begin productionI Introduction light rail, mining equipment and more. in mid-2013, with other QSK Series engines to follow. The engines will run on diesel fuelntro d until the operator selects the option to run South Korea on a blend of diesel and natural gas. Turkey Cummins Filtration celebrateduction Cummins employees began the grand opening of its plant moving into a new production in Suwon, South Korea in 2012. Brazil facility in Izmir, Turkey in 2012. Africa Cummins Filtration and Cummins Cummins Brazil announced in March 2012 the Generator Technologies will be acquisition of land outside São Paulo for a master Cummins Africa launched located there. site. The site will initially host Cummins Power a major AIDS information India Generation and Cummins Parts Distribution and and communications will be home to approximately 250 employees. campaign in 2011-2012, Cummins India celebrated its 50th including videos from anniversary in business in India CEO Tom Linebarger and with a variety of activities in 2012. Cummins Africa leader The Company has more than Brady Southwick urging 11,000 employees working AIDS testing. across some 200 locations. This map includes Cummins plants, offices and distributors. United states France Africa Turkey South Korea China 4 SUSTAINABILITY REPORT 2011–2012 SUSTAINABILITY REPORT 2011– 2012 5
  5. 5. Who we are How we do it Cummins is organized into four business units: Cummins Inc., a global power leader, is a corporation of complementary business units that design, manufacture, Cummins engine business distribute and service engines and related technologies, The Engine Business manufactures and markets a complete line of diesel and natural gas-powered engines for on-highway and off-highway use. Markets include including fuel systems, controls, air handling, filtration, heavy- and medium-duty trucks, buses, light-duty trucks and industrial uses such emission solutions and electrical power generation systems. as agricultural, construction, mining, marine, oil and gas and military equipment.I Introduction Cummins power generation businessntro d Power Gen is a global provider of power generation systems, components World Headquarters STOCK SYMBOL (traded on NYSE) FOUNDED in 1919 CMI and services in standby power, distributed power generation, as well asuction 500 Jackson Street auxiliary power in mobile applications. It also provides a full range of Columbus, Ind., 47201 WEB SITE services including long-term operation and maintenance contracts www.cummins.com and turnkey and temporary power solutions. Components business Sales / Earnings Fortune 500 ranking (2012) Cummins Emission Solutions designs and manufactures 150 exhaust aftertreatment technology and solutions for the medium- $1.85 billion In 2011, Cummins earned and heavy-duty, and high-horsepower engine markets. on revenues of $18 billion. Cummins Filtration designs and builds heavy-duty air, fuel, hydraulic and lube filtration, chemicals and exhaust system technology products. Cummins Fuel Systems designs and manufactures new fuel systems and rebuilds Electronic Control Modules. EMPLOYEES CUSTOMERS Cummins Turbo Technologies designs and builds Worldwide, approximately The Company’s customers are located in approximately turbochargers to boost engine power and related products. 44,000 people. 190 countries and territories that More than 60 percent of the Cummins reaches through a network of more than Cummins distribution business Company’s employees are 600 company-owned and independent distributor located outside the U.S. Seventeen Company-owned distributors and 10 joint ventures locations and approximately 6,000 dealer locations. work through 233 locations worldwide – selling and distributing Cummins-branded products and services. 6 SUSTAINABILITY REPORT 2011–2012 SUSTAINABILITY REPORT 2011– 2012 7
  6. 6. Our history The values of integrity, innovation and corporate responsibility have deep roots at Cummins, going back to the Company’s founding in 1919. Three men helped shape the Company in each of these areas. Their influence is still felt today. INNOVATION INTEGRITYI Introduction Clessie Cummins (1888-1968) was W.G. Irwin (1866-1943) was the a driver and mechanic for a Columbus, Ind. businessman who hired Clessie Cumminsntro d businessman. Cummins had a fascination as his driver and mechanic. The son of for diesel engines. a banker, he pursued profits with a sense of community mission.uction Born on a farm in Indiana, Cummins was intrigued by all things mechanical growing While he was initially cool to Cummins’ up, tinkering with gadgets at an early age promotion of diesel technology, he agreed and building a miniature steam engine at 11. to let Cummins use a vacant forge building His family eventually moved to Columbus, as an auto repair shop and even supplied Ind. where they operated a business making him with some tools. barrels and casks. Later, Irwin decided to build a garage He would drop out of school and work for near the family’s home, including room several Indiana machinists and automakers for Cummins to experiment with the CORPORATE Miller believed passionately that a company TOP Driver, mechanic and Cummins founder Clessie before taking the chauffeuring job. Cummins engines he was so passionate about. was only as strong as the communities opened a repair shop in 1913 in addition RESPONSIBILITY where it did business and where its Cummins was fascinated with diesel engines. Eventually, Irwin agreed to back the creation employees lived and worked. to his driving duties. That business would J. Irwin Miller (1909-2004) was the grand- of the Cummins Engine Company. He was LEFT W.G. Irwin hired Clessie become a machine shop, performing work nephew of W.G. Irwin. Educated at Yale the source of nearly all of the Company’s “If previous generations hadn’t done a lot of Cummins as his driver and for the military during World War I, and then and Oxford, he joined the Company in ended up financing his dream $50,000 starting capital. personal work and spent money which their the Cummins Engine Company in 1919, 1934, was elected president in 1947 of starting an engine company. generation was never going to profit from, shortly after the war ended. The business got off to a rocky start, and became chairman and CEO in 1951. this wouldn’t be a good community and our RIGHT J. Irwin Miller believed however, and both men talked of shutting other plant communities wouldn’t be good Cummins had an obligation A prolific inventor and entrepreneur, Under his watch, Cummins entered to all of its stakeholders - it down. Irwin’s family, however, persuaded communities,” he once said when asked Cummins promoted diesel technology in India and China long before most other employees, communities, him to keep the business going to provide why the Company invested in philanthropy. barnstorming trips across the United States. American companies. He helped organize shareholders, government jobs for the young men of Columbus. officials and more. He would continue inventing throughout Dr. Martin Luther King Jr.’s 1963 March “We have an obligation not to use up his tenure at the Company and even Nineteen years after the Company was on Washington while leading the National that asset but to do as well in our time after he left Columbus in 1945 and founded, the Cummins Engine Company Council of Churches. as every previous generation has in its moved to California. turned its first profit. time,” he added. 8 SUSTAINABILITY REPORT 2011–2012 SUSTAINABILITY REPORT 2011– 2012 9
  7. 7. Vision, mission, values and principles VISION Strategic principles Six Sigma is a difference Cummins Operating System maker at Cummins Making people’s lives better by Leverage Complementary Businesses The Cummins Operating System helps Cummins is a family of complementary Six Sigma has played a key role in unleashing the Power of Cummins. businesses that create value for our Cummins’ success since it was initiated develop common practices and approaches customers by leveraging relationships in 2000 at a time when the Company was to improve customer satisfaction. MISSION and applying innovative technology facing some significant financial problems. across business boundaries. We unleash the Power of Cummins by: 1 Put the customer first The business-improvement tool created Increase Shareholder Value and provide real value. »»Motivating people to act like owners, a common language for CumminsI Introduction Cummins’ financial success is measured working together. by growth in shareholder value. We will employees to solve problems and 2 Synchronize flows (material,ntro d focus on ROE / ROANA and Earnings develop new products and processes. »»Exceeding customer expectations Growth (not Revenue Growth) as the physical and information). by always being the first to market principal drivers of shareholder value. Six Sigma uses data-based analysis with the best products. to identify defects and variation in a 3 Design quality in everyuction Seek Profitable Growth wide range of manufacturing and step of the process. »»Partnering with our customers Cummins will seek profitable growth by business situations. leveraging our assets and capabilities to to make sure they succeed. 4 Involve people and grow in market segments with favorable Here’s a quick look at what »»Demanding that everything we do leads industry dynamics and where Cummins Six Sigma has meant to Cummins: promote team work. can establish an advantage. to a cleaner, healthier, safer environment. »» As of the end of 2011, approximately Relentlessly Pursue Cost Leadership 5 Ensure equipment and tools »»Creating wealth for all stakeholders. 12,500 people had been trained in Cummins will pursue an operational are available and capable. how to use Six Sigma tools at Cummins strategy of cost leadership. Values since the process was initiated in 2000. Lead in Critical Technologies 6 Create functional excellence. Integrity »» Almost $3.9 billion in savings have Cummins will be the market leader in Strive to do what is right and what we say we will do. technologies most critical to our customers’ been identified at Cummins since 7 Establish the right environment. Innovation success and our Company’s performance. the program was initiated. Apply the creative ingenuity necessary to make us »» An estimated $812 million was saved 8 Treat preferred suppliers as partners. Create the Right Work Environment better, faster, first. by Cummins’ customers since 2005. Cummins will assure that the physical 9 Follow common problem- Deliver Superior Results and cultural work environment is The Company also uses Six Sigma in its solving techniques. Exceed expectations consistently. conducive to excellent performance and continuous improvement. community involvement work, helping its Corporate Responsibility community partners improve their efficiency 10 Use Six Sigma as the primary Serve and improve the communities in which we live. and address major problems. In 2011, Personality process improvement method. Diversity 48 Community Impact Six Sigma Projects Decisive. Driven to win. Embrace the diverse perspectives of all people were completed, up from 34 in 2010 Agile. Passionate. Caring. and honor both with dignity and respect. and 11 in 2009. Global Involvement Seek a world view and act without boundaries. 10 SUSTAINABILITY REPORT 2011–2012 SUSTAINABILITY REPORT 2011– 2012 11
  8. 8. Our recognition A look at Cummins’ achievements in the past year: Environmental Workplace, diversity, people In 2012, Cummins was named a winner in the Greenhouse Gas (GHG) Goal Cummins was named one of the Top 50 Companies for Diversity by DiversityInc magazine achievement category of the inaugural Climate Leadership Awards for excellence for the sixth consecutive year in 2012. Cummins ranked 18th on the list, the same positionI Introduction in industrial energy efficiency. The U.S. Environmental Protection Agency (EPA) and the Company held in 2011. three other groups sponsored the awards to recognize corporate, organizational andntro d In 2012, Cummins received a perfect rating for a seventh consecutive year from the Human individual leadership in addressing climate change and reducing carbon emissions. Rights Campaign, the largest advocacy group for gay, lesbian, bisexual and transgender Cummins was named to the Dow Jones Sustainability Index for the seventh employees. The group rated more than 800 employers as part of its 2012 Corporateuction consecutive year in September 2011. The index represents the top 10 percent Equality Index. The index reviews companies on their LGBT policies, practices and more. of the world’s largest companies rated by Dow Jones across a range of economic, Cummins in 2011 was honored with the Company Driver Safety Award at the ninth Annual environmental and social responsibility measures. Fleet Safety Forum Awards for Excellence in Staffordshire (U.K.) sponsored by Brake, Cummins finished in the top third of the companies reviewed as part of a road safety charity. Cummins was recognized for its efforts to create a global driver risk Newsweek’s environmental rankings of the 500 largest U.S. companies in the fall assessment, as well as for the monitoring and improvement program developed through of 2011. The magazine partnered with two environmental research organizations the Virtual Risk Manager application. to review the environmental footprints of companies along with their policies and Cummins received an IHS SPECTRUM Excellence Award in 2011 in recognition of the transparency in reporting. company’s superior use of advanced information technology to achieve environmental, Governance, ethics and corporate responsibility health and safety compliance and sustainability (EHS&S) business goals. In 2012, Cummins was again named one of the World’s Most Ethical Companies Cummins received an Honorable Mention C. Everett Koop National Health Award in 2011, by the Ethisphere Institute. The institute evaluates companies’ commitment to presented by The Health Project, a non-profit, private-public consortium chaired by the ethical leadership, compliance practices and corporate responsibility. This was former U.S. Surgeon General. The project honors organizations that have met rigorous the fifth straight year that Ethisphere selected Cummins for this honor. results criteria and documented improved health and decreased medical costs. Corporate Responsibility magazine again named Cummins to its 2012 list of the world’s 100 Best Corporate Citizens. It was the 12th time in the last 13 years that the Company has been named to the list. Overall, Cummins was number 81. Cummins China Investment Co., Limited won the Outstanding Corporate Citizen Award in 2011 from the China Association of Social Workers for the fourth consecutive time. The awards ceremony was held in the Great Hall of the People in Beijing. Cummins was honored for undertaking corporate responsibility activities while making great commercial achievements. 12 SUSTAINABILITY REPORT 2011–2012 SUSTAINABILITY REPORT 2011– 2012 13
  9. 9. Environment SuperTruck project is ready to take off The future of trucking could well be unfolding this fall along U.S. Route 287 in north central Texas. After months of testing concepts in trucks For Cummins, it means a chance to see around the country, Cummins engineers not only how the waste heat recoveryENVIRONMENT and their colleagues in a public-private system works in concert with the rest of the partnership will pull together the best of vehicle but also combustion efficiency gains what they’ve learned and apply it to a achieved by redesigning parts of the engine. single tractor-trailer. Members of the Cummins SuperTruck team stand vehicle systems such as aerodynamics, “The program is really an extension of the Waste heat recovery next to the tractor before its trip to Texas for the start using lighter weight materials and reducing With an aerodynamic exterior, an engine work we’ve been doing on fuel efficiency for of critical testing in the fall of 2012. From left to right, Cummins engineers have Jon Dickson, Vehicle Applications Leader – Advanced friction in the drive train. that captures waste heat and converts it a very long time now; it’s not something we worked hard developing a Engineering; David Koeberlein, SuperTruck Principal to energy, and much more, their vision of just started on,” said Wayne Eckerle, Vice Investigator and Wayne Eckerle, Vice President – The potential savings are significant. Class waste heat recovery system the SuperTruck will officially hit the road. President – Research and Development for Research & Technology. 8 trucks represent only about four percent for SuperTruck. The system Cummins. “The SuperTruck program takes of the on-road vehicles in the United States is similar to how steam “The opportunity to get out and see how “Working on a project like this is exciting a comprehensive look at how to maximize but are responsible for almost 20 percent power plants operate. all of these improvements work together because it’s about the entire vehicle. It’s not the fuel economy of the tractor-trailer of the country’s on-road fuel consumption. Here’s a quick look: is very exciting for everyone in the project,” just the tractor. It’s not just the engine,” said combination as a single unit.” said David Koeberlein, Cummins Principal Scott Newhouse, Assistant Chief Engineer Through the SuperTruck program, 1 First, the system extracts Investigator for SuperTruck. The engine work is only part of the of Product Development responsible for the energy officials want to see fuel economy waste heat from the SuperTruck project that Cummins is SuperTruck Program at Peterbilt. “It’s the increase from about 6.5 miles-per-gallon exhaust system via a Funded in part by the U.S. Department leading. Peterbilt Motors Company, whole system working together, which is to 9.75 miles-per-gallon. That would save pressurized refrigerant. of Energy (DOE), the SuperTruck program a division of PACCAR, is designing a really exciting for us.” about $15,000 in annual fuel costs per was created to develop the next generation 2 Next, the pressurized, tractor-trailer exterior with less drag. long-haul truck. of tractor-trailers – a more fuel efficient heated refrigerant ABOUT THE PROGRAM and environmentally friendly version of Eaton and Dana are developing drivetrain expands across a Energy officials initiated the multi-year The total cost of the SuperTruck initiative what’s on the road today. improvements. Delphi is working on a small turbine on the program in 2010 with the goal of designing is about $270 million including DOE fuel cell to reduce or eliminate the idling of engine, creating power. a heavy-duty Class 8 truck that achieves grants and matching expenditures There’s still plenty of research and trucks when drivers are asleep or resting. from the project participants. 3 Finally, the power development to do, but the test runs a 50 percent improvement in overall freight And those are just some of the companies generated by the turbine to start in October 2012 between efficiency measured in ton-miles per gallon. Cummins is one of four prime contractors involved in the effort (page 16). goes back to the engine Fort Worth and Vernon, Texas are leading SuperTruck teams. Daimler / The DOE set the goal of attaining shaft, helping to push an important project milestone. Freightliner, Navistar and Volvo are 40 percent of the overall efficiency the vehicle forward and gains from engine improvements with the also leading SuperTruck projects. reducing the need remaining 60 percent coming from other for diesel fuel. 14 SUSTAINABILITY REPORT 2011–2012 SUSTAINABILITY REPORT 2011– 2012 15
  10. 10. The supertruck team Cummins received a $39 million grant from the energy departmentHere’s a quick look at the Cummins partners VERNON, TX in 2010. The Company expects to complete its work by April 2014.working on the SuperTruck project: PROJECT PROGRESSCummins engine-related partners: At about the half way point in the effort, Cummins officials say they»» Cummins businesses: are pleased with the progress so far. TEXAS The Engine Business, Fuel Systems, Turbo Technologies, Emission Solutions and Filtration “The Cummins SuperTruck program remains on schedule and our are all participating in the project to develop roadmaps seek to meet or exceed our targets,” Koeberlein said. an advanced efficient engine. Fort Worth, TX Cummins is committed to reaching a number of milestones,»» Modine Manufacturing Company ENVIRONMENT including a 20 percent improvement in Brake Thermal Efficiency – and VanDyne SuperTurbos Inc.: a measure of the energy efficiency of the engine. The waste heat- Supporting engine development recovery system is expected to accomplish about 6 percent of that and exploration efforts. 20 percent gain. WHAT’S AHEAD»» Oak Ridge National Lab and Purdue University: The Cummins team expects to build on that by reducing friction, The route on U.S. 287, not far from Structuring research programs adding a highly efficient exhaust aftertreatment system and Peterbilt’s headquarters in Denton, supporting development efforts. efficiency gains within the combustion cycle of the engine resulting will allow the team to test SuperTruckPeterbilt vehicle-related partners: in more power for the crankshaft without a corresponding increase over real-world conditions: elevation While the technical hurdles are significant, Key testing will take place»» Peterbilt Motors Company: in fuel consumption. change, start-stop conditions and Eckerle says it’s important that team along U.S. Route 287 in north central Texas in the Advanced aerodynamics of tractor- speed limit changes within city limits. members not lose sight of one other “The 20 percent fuel efficiency improvement is a very technically fall of 2012. It will be the trailer and vehicle weight reductions. critical factor. first time Cummins’ engine challenging target to reach,” Koeberlein said. “Waste heat recovery “Utilizing multiple new technologies on improvements are tested»» Eaton Corporation and is a significant contribution towards this goal.” a single vehicle can create integration “Our biggest challenge is really getting the with chief partner Peterbilt’s Dana Holding Corporation: tractor-trailer designed to be challenges,” said Peterbilt’s Newhouse. costs for any and all of the technologies and The other members of the SuperTruck team are contributing to more aerodynamic and other Working on drivetrain improvements. “Working as a team, we understand the systems we’re working on down to where the two program milestones on vehicle freight efficiency. These goals new features. Team members»» Delphi Automotive: trade-offs and resolve them to ensure the fleets will want to buy them,” he said. are excited to see how their are to be over a complete vehicle operating cycle and measured in Developing idle management systems. proposed improvements everything operates the most efficiently “They need to be durable and reliable, of gallons of fuel consumed per ton of goods moved per mile traveled. work together.»» Bergstrom Inc.: as a system. Individual component testing course, but in the end they must offer a way Vehicle improvements to accomplish this might include a and vehicle testing are being conducted to reduce total cost of ownership in order Developing climate control system. more aerodynamically efficient tractor and trailer, improved to ensure performance objectives are met.” for a customer to use them.”»» Modine Manufacturing Company: tire technology, an advanced axle and transmission system, Supporting the vehicle cooling system idle management and more. and waste heat recovery integration. The final program commitment is to develop and demonstrate in a test»» Bridgestone Corporation and cell Brake Thermal Efficiency even above the 20 percent improvement. The Goodyear Tire & Rubber Co.: Leading the tire development.»» U.S. Xpress Enterprises: Helping with fleet operational questions and evaluations. SUSTAINABILITY REPORT 2011– 2012 17
  11. 11. Environmental Stewardship // Products Cummins demonstrates good environmental stewardship through our products, practices and our partnerships. Here’s a look at our activity in all three areas: Continued innovation has enabled the Company to deliver exceptional fuel economy for Cummins’ on-highway customers, ultimately driving a reduction in their output of carbon dioxide (CO2). Cummins is committed to doing both Products the right thing for our customers and ISX15 the right thing for the environment. Cummins’ leadership in combustion research, fuel ON-HIGHWAY ENGINES and an EcoFit™ Ultra- Low Emissions System systems, air-handling systems, electronics, filtration and In 2010, all heavy-duty diesel engines that incorporates Selective sold in the United States had to meet Catalytic Reduction (SCR) aftertreatment enables the Company to provide the mostENVIRONMENT ENVIRONMENT the EPA’s NOx standard (0.20 grams per technology to reduce brake-horsepower hour (g/bhp-hr)) and ISX12 appropriate emissions control for each market Cummins serves. the PM standard (0.01g/bhp-hr). These are emissions. Each ISX15 can reduce CO2 emissions by the most stringent emissions regulations up to 12 metric tons per year in the world. The EPA has reduced both compared to a 2007 ISX engine. The Company’s diverse product all-encompassing regional element and allowable NOx and PM levels by 90 percent Enhancements introduced in 2011 portfolio meets or exceeds all emissions internal oversight and coordination to compared to the levels in 2004. delivered improved fuel economy. requirements and at the same time delivers ensure we have the right technology, on our customers need for fuel economy, at the right time and in the right places. The 2010 regulations not only required near In 2012, Cummins introduced the new performance, power, reliability and durability. zero NOx and PM emissions, but also the Engines ISX12 engine for the vocational- and phase-in of advanced on-board diagnostics work-truck market, emergency vehicles, There is a strong push for more stringent Highlights: Since the 1970s, Cummins on-highway with additional sensors to monitor the environmental regulations by governments motor coach and regional haul applications. Environment engines have been regulated by the U.S. effectiveness of emission-control systems in almost every country around the world. The engine is designed to deliver better »» Cummins starts Environmental Protection Agency (EPA) on the engine. The on-board diagnostics Meeting these regulations is a critical fuel economy, performance, reliability development on a and similar regulatory agencies around the alert drivers if emission-reduction devices element of Cummins’ global success. and durability in a compact design. 15-liter heavy-duty world for combustion emissions, including fail and need to be repaired. We believe our technical expertise gives natural gas engine for nitrogen oxide (NOx), carbon monoxide OFF-HIGHWAY ENGINES us a competitive advantage in this Cummins was among the first companies on-highway applications. (CO), hydrocarbons (HC) and particulate business environment. Off-highway regulations have come a long See charts matter (PM), also known as soot. to meet all of these new standards. In 2010, »» Cummins establishes way in a short time. In only 20 years, the on page 27 for engine emission the Company successfully introduced the Action Committee But the Company needs to increase performance from 2009-2011. When compared to emissions from industry has been faced with the challenge for Environmental ISX15 engine for use in 18-wheel heavy- its understanding of, and impact on, of transitioning from being an unregulated unregulated engines 40 years ago, duty commercial trucks. The engine Sustainability to regulations in every market so we can today’s on-highway diesel engines market to requiring near zero emissions. pull together provides up to six percent greater fuel develop the best technical solutions environmental efforts. emit 99 percent less PM and NOx. economy, stronger performance, faster for those markets. Our goal is to meet This challenged Cummins to look beyond throttle response and best-in-class basic engine technologies to areas such as »» Company increases our customers’ needs wherever they Throughout the years, Cummins has greenhouse gas drivability and reliability compared to high pressure fuel systems, turbo charging, are located. been a leader in clean diesel technology, reduction goal from the Company’s previous industry electronics and aftertreatment systems to pioneering the design and use of integrated 28 percent achieved This approach builds on the emissions leading ISX engine. reduce emissions. The resulting innovations subsystem technology such as combustion, in 2010 to 40 percent compliance work we have historically not only helped to meet the latest controls, fuel systems, filtration, air handling The ISX15 features the Cummins XPI fuel by 2015 using 2005 done, but adds in the very important, regulations, but can also lead to more fuel and aftertreatment. system, the next generation of Exhaust Gas as a baseline. efficient products that produce less CO2. Recirculation (EGR), a VGT™ turbocharger, 18 SUSTAINABILITY REPORT 2011–2012 SUSTAINABILITY REPORT 2011– 2012 19

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