Cummins Recognized for Environmental Practices by Newsweek Magazine
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Cummins Engine Co., Inc.
P.O. Box 3005
Columbus, IN, 47202 3005
Press release date: October 8, 2009
Company No. 91 among Fortune 500 in magazine's first-ever "green" survey
COLUMBUS, IN - Cummins Inc.'s (NYSE: CMI) efforts to minimize its environmental footprint, along with its efforts to reduce greenhouse gas emissions, helped the Company achieve a ranking in the top 20 percent of the 500 largest companies in United States in Newsweek's inaugural "green" survey released recently.
The magazine used publicly available data analyzed by two leading research firms and collected reputational information on all 500 companies in arriving at its ranking. Cummins placed seventh among 47 industrial goods company. Technology companies dominated the top of the survey list, with Hewlett-Packard ranked No. 1 and Dell, Intel and IBM all placing in the top five.
The Newsweek ranking is the second sustainability-related recognition Cummins has received in recent weeks. In early September, Cummins was named to the Dow Jones Sustainability Index for the fifth consecutive year. The index represents the top 10 percent of the world's largest companies rated by Dow Jones across a range of economic, environmental and social responsibility measures.
Newsweek credited Cummins for its ambitious goal of reducing greenhouse gas emissions from its facilities worldwide by 25 percent as a percentage of sales from 2005-2010, as part of its voluntary commitment to the EPA Climate Leaders program.
In addition, Cummins has become active in the climate change dialogue on a national level. The Company formed a Climate Change Working group in 2007 and early this year released its first set of Climate Change Principles, which will guide Cummins' actions and environmental policy efforts.
Environmental stewardship is a critical component of Cummins' mission, and the Company continues to carry out that mission, both by being a leader in clean diesel engine technology and continuously seeking ways to reduce the environmental impact of its facilities around the world. Some examples of how Cummins is carrying out its environmental mission include:
Cummins' 6.7 liter turbo diesel engine for the Dodge Ram pickup was the first engine to be certified to meet the EPA's 2010 standards for nitrogen oxides emissions - three years ahead of the deadline.
Cummins Diesel Recon recycles and reuses more than 50 million pounds of engine-related materials a year.
Cummins' new on- and off-highway engines are certified to run effectively on a 20 percent blend of biodiesel fuel.
Cummins powers all the new natural gas urban transit buses in the U.S. and powers more than 7,000 natural gas transit buses in China and India.
The Company's first "Unplugged Challenge in late 2008," which encouraged employees to take simple steps to reduce electricity usage at Cummins facilities during a holiday shutdown period, resulted in a reduction of 7,000 tons of carbon dioxide emissions compared to the same period in 2007.
Cummins Power Generation received the Frost and Sullivan 2008 North America Product Quality Leadership award for its commitment to environmentally friendly product design and for creating a manufacturing process that enables its products to meet or surpass regulatory standards relating to noxious emissions and noise pollution.
About the Newsweek 'Green' rankings
Newsweek worked with research partners to compile the rankings: KLD Research & Analytics, which tracks environmental, social and governance data on companies worldwide and served as lead partner; Trucost, which specializes in quantitative environmental performance measurement; and CorporateRegister.com, the world's largest online directory of social responsibility, sustainability and environmental reporting.
The goal was to assess each company's actual resource use and emissions and its policies and strategies, along with its reputation among its peers. The 500 companies included in the ranking are the largest U.S. companies as measured by revenue, market capitalization and number of employees. The companies are broken out into 15 sectors, based on the FTSE/Dow Jones Industry Classification Benchmark (ICB)."
The GREEN SCORE for each company is based on three components:
*The ENVIRONMENTAL IMPACT SCORE, based on data compiled by Trucost, is a comprehensive and standardized quantitative performance measurement that captures the total cost of all environmental impacts of a corporation's global operations. Over 700 variables are summarized in the EIS. This figure is normalized against a company's annual revenues, so that companies of all sizes and industries can be compared.
*The GREEN POLICIES SCORE, derived from data collected by KLD, reflects an analytical assessment of a company's environmental policies and performance. Its scoring model captures best-in-class policies, programs and initiatives, as well as regulatory infractions, lawsuits and community impacts, among other indicators.
*The REPUTATION SCORE is based on an opinion survey of corporate social responsibility (CSR) professionals, academics and other environmental experts who subscribe to CorporateRegister.com. CEOs or high-ranking officials in all companies on the Newsweek 500 list were also invited to participate.
Cummins Inc., a global power leader, is a corporation of complementary business units that design, manufacture, distribute and service engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems. Headquartered in Columbus, Indiana, (USA) Cummins serves customers in approximately 190 countries and territories through a network of more than 500 company-owned and independent distributor locations and approximately 5,200 dealer locations. Cummins reported net income of $755 million on sales of $14.3 billion in 2008. Press releases can be found on the Web at www.cummins.com.