ModuleIntroduction - Cummins

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					                                                                                                  CDP 2011 Investor CDP 2011 Information Request
                         Carbon Disclosure Project                                                Cummins Inc.


Module: Introduction

Page: Introduction

0.1


      Introduction
      Please give a general description and introduction to your organization


      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 employs approximately 40,000 people worldwide and serves customers in approximately 190 countries and territories through a network of
      more than 600 company-owned and independent distributor locations and approximately 6,000 dealer locations. Cummins earned $1.0 billion on sales of $13.2
      billion in 2010. Press releases can be found on the Web at www.cummins.com.

      The past year has been extremely rewarding for Cummins. The Company enjoyed the most profitable year in its history in 2010 despite a U.S. economy that is only
      now recovering from the global recession. The Company was able to align its manufacturing capacity with demand, control costs and improve efficiency while
      continuing to provide the kind of world-class service our customers have come to expect.

      At the same time, a critical determinant of Cummins’ success over the long term is our ability to create an organization that is focused on delivering on our
      commitments to the full range of stakeholders we serve. The values that define Cummins are designed to endure and have never been more important to us than in
      today’s economic climate. Acting with integrity. Doing our part to improve the communities where we live and work. Embracing diversity. Operating with a global
      vision. Striving to always exceed the expectations of our customers. Being first to market with innovative products and services. Being an environmental steward. At
      Cummins, we have long worked under the premise that our strength as a company is dependent on the health of the communities in which we operate and where
      our products are sold. From that perspective, the notion of sustainability is not a luxury, but rather a critical component to our long-term success.




0.2


      Reporting Year
      Please state the start and end date of the year for which you are reporting data.
      The current reporting year is the latest/most recent 12-month period for which data is reported. Enter the dates of this year first.
      We request data for more than one reporting period for some emission accounting questions. Please provide data for the three years prior to the current reporting
      year if you have not provided this information before, or if this is the first time you have answered a CDP information request. (This does not apply if you have been
      offered and selected the option of answering the shorter questionnaire). If you are going to provide additional years of data, please give the dates of those reporting
      periods here. Work backwards from the most recent reporting year.
      Please enter dates in following format: day(DD)/month(MM)/year(YYYY) (i.e. 31/01/2001).


                Enter Periods that will be disclosed

       Fri 01 Jan 2010 - Fri 31 Dec 2010




0.3

      Country list configuration

      Please select the countries for which you will be supplying data. This selection will be carried forward to assist you in completing your response

               Select country

       United States of America
       Australia
       Brazil
       China
       India
       Mexico
       South Africa
       United Kingdom
       Rest of world



0.4

      Currency selection

      Please select the currency in which you would like to submit your response. All financial information contained in the response should be in this currency.
       USD($)



0.5

       Please select if you wish to complete a shorter information request




0.6


       Modules
       As part of the Investor CDP information request, electric utilities, companies with electric utility activities or assets, companies in the automobile or auto component
       manufacture sectors and companies in the oil and gas industry should complete supplementary questions in addition to the main questionnaire.
       If you are in these sectors (according to the Global Industry Classification Standard (GICS)), the corresponding sector modules will be marked as default options to
       your information request. If you want to query your classification, please email respond@cdproject.net.
       If you have not been presented with a sector module that you consider would be appropriate for your company to answer, please select the module below. If you
       wish to view the questions first, please see https://www.cdproject.net/en-US/Programmes/Pages/More-questionnaires.aspx.




Module: Management [Investor]

Page: 1. Governance

1.1

       Where is the highest level of direct responsibility for climate change within your company?

       Individual/Sub-set of the Board or other committee appointed by the Board



1.1a
       Please identify the position of the individual or name of the committee with this responsibility


       The Safety, Environment and Technology Committee of the Cummins Board of Directors. This committee met four times in 2010.

       The Committee advises senior leaders and the technical leadership of Cummins regarding:
       • Environmental and technological strategies including climate change, compliance programs and major projects as they relate to the Company and its products.
       • Public policy developments, strategies and positions taken by the Company with respect to safety, environmental and technological matters that significantly
       impact the Company or its products.
       • Progress of strategic environmental programs and policies.




1.2

       Do you provide incentives for the management of climate change issues, including the attainment of targets?

       Yes



1.2a

       Please complete the table

        Who is entitled to benefit from
                                              The type of incentives        Incentivised performance indicator
             these incentives?

        Executive officer                  Other non-monetary reward       Communicating climate change issues
        Management group                   Other non-monetary reward       Communicating climate change issues
        Business unit managers             Other non-monetary reward       Communicating climate change issues
                                                                           Meeting greenhouse gas reduction
        Energy managers                    Recognition (non-monetary)
                                                                           targets
        Environment/sustainability                                         Meeting greenhouse gas reduction
                                           Recognition (non-monetary)
        managers                                                           targets
                                                                           Meeting greenhouse gas reduction
        Facility managers                  Other non-monetary reward
                                                                           targets
        Process operation managers         Other non-monetary reward       Meeting greenhouse gas reduction
        Who is entitled to benefit from
                                               The type of incentives         Incentivised performance indicator
             these incentives?

                                                                             targets
                                                                             Meeting greenhouse gas reduction
       All employees                        Recognition (non-monetary)
                                                                             targets
       Chief Operating Officer (COO)        Other non-monetary reward        Communicating climate change issues
                                                                             Superior performance in energy
       Facility managers                    Recognition (non-monetary)
                                                                             reduction contest



Further Information

      1.1A Science and Technology Advisory Council
      Cummins seeks advice from its Science and Technology Advisory Council in developing products to meet various standards, to reduce the Company’s
      environmental footprint and to meet customer demands.
      The Council, formed in 1993, has given the Company access to some of the country’s leading scientific thinkers and policymakers from the worlds of academia,
      industry and government. The Council was restructured in 2010 to facilitate access to a broader group of international specialists and align their expertise with the
      specific topics being addressed by the Council at a particular time.
      The permanent members are:
      • Chairman Dr. Gerald Wilson, former Dean of Engineering at the Massachusetts Institute of Technology.
      • Dr. Harold Brown, former U.S. Secretary of Defense and former President of the California Institute of Technology.
      Other senior international scientists and engineers are invited to participate as advisors depending on the topic.


      1.2A In addition to implementing energy efficiency capital projects, Cummins has trained a broad network of Energy Champions who coach and mentor site Energy
      Leaders to find and implement, through a process called an energy treasure hunt, low and no-cost energy projects that also save money for their sites. The
      Company now has 100 trained Energy Champions and 270 Energy Leaders at 21 sites, who completed 10-week programs over the lunch hour in energy efficiency.
      These Champions and Leaders have been recognized in their plant communities by the executive who heads the climate change work and their efforts have been
      applauded.

      Many of our plants calculate, communicate and measure on a CO2 per engine metric

      For three years, Cummins has held an event we call "the Unplugged Challenge" which challenges sites to reduce energy use during their "at rest" state during
      prolonged periods of shutdown, usually at holidays. Winners in several categories are chosen and communicated about throughout the Company. Banners were
      created to hang in the plants, and often were presented to them by their business unit executive to celebrate the accomplishment.


Page: 2. Strategy
2.1

       Please select the option that best describes your risk management procedures with regard to climate change risks and opportunities

       Integrated into multi-disciplinary company wide risk management processes



2.1a

       Please provide further details (see guidance)

       At a company level, the Enterprise Risk Management group, which reports to the Vice President and Chief Administrative Officer, maintains a risk map to identify all
       potential risks (and to an extent, potential opportunities) the company faces, including operational, financial, and environmental risks. The risk map is updated on a
       monthly basis based on input from senior leadership and Cummins’ Board of Directors. Every risk identified by senior leadership and the Board of Directors is
       placed on the risk map based on likelihood and severity. The risks on the risk map, especially those risks that rank as highly likely and highly severe, are then
       translated into Six Sigma projects. Once risk-related Six Sigma projects are complete, the results are reported to senior leadership and the Board of Directors. The
       Enterprise Risk Management group also maintains a risk dashboard of current and emerging risks, from which Cummins’ top ten risks are derived. The risk
       dashboard and the Top Ten List are also presented at each meeting of the Board of Directors.
       At an asset level, the Enterprise Risk Management group is responsible for developing business continuity plans for each of our major sites, as identified by senior
       corporate and business unit leadership. The business continuity plans address all potential risks each facility faces, including operational, financial, and
       environmental risks. The plans identify the appropriate preparedness opportunities, contingency plans, and recovery plans for each facility’s top risks. The business
       continuity plans are updated on an annual basis, and facilities are expected to conduct a tabletop exercise based on a potential disaster scenario at least once a
       year to test the fitness of the facilities’ business continuity plans and their level preparedness for a disaster. The results of the annual updates and tabletop
       exercises are reported to senior corporate and business unit leadership. As stated previously, the Enterprise Risk Management group reports to the Vice President
       and Chief Administrative Officer, who is himself a member of the five-member Executive Committee, which is the strategic policy-making committee of Cummins.
       The Vice President and Chief Administrative Officer reports directly to the Chief Executive Officer of Cummins.
       Cummins has adopted an approach of leveraging various Six Sigma tools and techniques for enterprise risk management. The suite of Six Sigma tools has
       provided Cummins with techniques like Cause & Effect matrices, KJ Analyses, Voice of the Customer interviews, etc. Such techniques have enabled Cummins to
       adopt several qualitative metrics to identify, qualify, measure, and mitigate risks at an enterprise level, a business unit level, and a facility level. These metrics are as
       below: 1. Risk Origin - Internal or External? 2. Risk Controllability - Controllable or Uncontrollable? 3. Risk Severity - Low, Moderate, or High? 4. Risk Likelihood
       (over the next 10 years) - Low, Moderate, or High? 5. Risk Predictability - Low, Moderate, or High? 6. Appetite (to address the risk) - Low, Moderate, or Large? 7.
       Estimated Cost to Mitigate Risk - Low, Moderate, or High? 8. Estimated Time to Mitigate Risk - Short, Moderate, or Long? 9. Frequency of Risk Occurrence - Low,
       Moderate, or High?

       Cummins Climate Change Working Group also assesses risk related to climate change. Formed in 2007, the group takes both a strategic and tactical view of
       climate change and sustainability at Cummins. The team’s members, from across business units, geographies and functions, represent facilities, product planning,
       customer engineering, corporate strategy, environmental policy, supply chain, and government relations, among others. The active working group that takes a very
       structured and results-oriented approach to our 10 climate change principles developed to meet the challenges of climate change going forward - and part of the
       approach includes discussion and analysis about climate change risk and opportunities.
2.2

       Is climate change integrated into your business strategy?

       Yes



2.2a

       Please describe the process and outcomes (see guidance)

       As mentioned in 2.1a, the climate change working group takes a very structured and results-oriented approach to our 10 climate change principles developed to
       meet the challenges of climate change going forward. Six of these principles direct company actions for our products, businesses, employees and communities. The
       outreach of the corporate group is expanding to include forming business-specific and regional working groups to address climate change. The team meets every
       month for four hours and is led by our VP and Chief Technical Officer. Each team has a workplan and a set of deliverables for which they are held accountable. We
       hold a yearly climate change session for the President of the Company.

       Process and outcomes by principle:
       Improve product efficiency: We have value package introduction/ product preceding technology programs for innovation management - our US 2010 on-highway
       engines delivered up to 6 percent better fuel economy than their predecessors
       Grow and develop new businesses: Green projects are solicited and evaluated regularly by our corporate strategy / growth office. Expanding more into natural gas
       was a focus in 2010
       Collaborating with Suppliers: We did a first ever supplier environmental performance survey in 2010 and published our green supply chain principles. We also
       developed a carbon footprint measurement tool for our transportation and packaging projects.
       Collaborating with Customers: In 2010, we did 10 fuel economy projects with customers using Six Sigma tools, saving 1 milllion gallons of fuel. In Power
       Generation, we completed fuel optimization in power products and created a sustainability website that features products and efforts within the Power Generation
       business.
       Make Work Spaces Green Spaces: This team directs both our corporate energy efficiency team and our Energy Champions. The team created the process and
       expertise required to exceed our US EPA Climate Leaders Goal in 2010.
       Harness the Energy of Employees: Far-reaching climate change education was the focus in 2010. Our CTO or his designee made 28 presentations at 14 sites to
       5,000 employees in 2010.
       Support Community Efforts: The climate team supports the company's environmental challenge program with expertise, judging and project leadership. In 2010,
       more than 6,700 employees from 13 countries worked on 86 global environmental projects.




2.2b

       Please explain why not
2.3

       Do you engage with policy makers to encourage further action on mitigation and/or adaptation?

       Yes



2.3a

       Please explain (i) the engagement process and (ii) actions you are advocating

       Four of our 10 climate principles shape our partnerships with legislative and regulatory entities to develop sound public policy. The scope of Cummins engagement
       efforts is global. Outside the US, our senior leadership work with a variety of policymakers and focus on each country's emissions regulations and enforcement. In
       the US, Cummins President and Chief Technical Officer in particular are in very active and regular dialogue at many levels - the White House, federal agencies,
       Congress and state levels.

       Cummins is a member of the Business Roundtable Climate RESOLVE (Responsible Environmental Steps, Opportunities to Lead by Voluntary Efforts), whose
       members have voluntarily committed to reduce or offset greenhouse gas (GHG) emissions. Cummins also is a member of the Business Environmental Leadership
       Council of the Pew Center on Climate Change and sits on the President’s Council of Resources for the Future. Our CEO is a founding member of the American
       Energy Innovation Council that seeks to dramatically increase the spending and infrastructure for clean energy in the U.S.

       In particular for 2010, Cummins has embraced the greenhouse gas emissions and fuel efficiency standards for heavy-duty and light-duty vehicles supported by U.S.
       President Barack Obama as both a competitive advantage for the company and the right thing to do for the environment. The proposal by the EPA and the
       Department of Transportation to regulate GHG and fuel consumption from medium- and heavy-duty commercial vehicles has been four years in the making.

       The Company has been active throughout, forming a stakeholder group on the issue with other companies in the industry; writing a regulatory framework
       whitepaper; supporting the rule publicly when it was proposed in October 2010 and providing extensive feedback during the comment period.
       Cummins believes that clear and consistent greenhouse gas regulation can drive the technological innovation needed to produce more fuel efficient
       products. Because of the importance of this commercial vehicle rule to Cummins’ business, the Company will stay actively engaged on the issue.




Further Information

       Attached are:
       Two editorials authored or co-authored by Cummins on the need for technology advancement
       Testimony of Dr. Steve Charlton in support of the commercial vehicle rule
       Climate Change Working Group and Climate Council organizational structure
Attachments

       https://www.cdproject.net/Sites/2011/36/4136/Investor CDP 2011/Shared
       Documents/Attachments/InvestorCDP2011/2.Strategy/PublicHearingStatement11.15.10.pdf
       https://www.cdproject.net/Sites/2011/36/4136/Investor CDP 2011/Shared Documents/Attachments/InvestorCDP2011/2.Strategy/Two Cummins climate change
       editorials.pdf
       https://www.cdproject.net/Sites/2011/36/4136/Investor CDP 2011/Shared Documents/Attachments/InvestorCDP2011/2.Strategy/Cummins Climate Change Working
       Group.pptx


Page: 3. Targets and Initiatives

3.1

       Did you have an emissions reduction target that was active (ongoing or reached completion) in the reporting year?

       Intensity target



3.1a

       Please provide details of your absolute target

                                                                                                 Base year
                                        % of
                                                         % reduction from                        emissions
            ID            Scope      emissions in                            Base year                               Target year         Comment
                                                            base year                          (metric tonnes
                                       scope
                                                                                                   CO2e)




3.1b

       Please provide details of your intensity target
                                                                            Base year
                                            %
                              % of                                          emissions
                 Scope                  reduction                   Base                  Target
        ID                 emissions                   Metric                (metric                                            Comment
                                        from base                   year                   year
                            in scope                                         tonnes
                                           year
                                                                              CO2e)

                                                                                                   The normalization factor is Net Sales, expressed in constant 2005
                                                    metric                                         dollars. Emissions associated with generation of sold electricity are
                 Scope                              tonnes                                         not included when tracking progress toward the normalized goal, per
        1                99%           25%                          2005   766225         2010
                 1+2                                CO2e per                                       EPA Climate Leaders guidance, due to the orders of magnitude
                                                    unit revenue                                   difference in emissions intensity of electricity sales compared to
                                                                                                   manufacturing.



3.1c

       Please also indicate what change in absolute emissions this intensity target reflects

                     Direction of change anticipated in          % change anticipated    Direction of change anticipated in       % change anticipated
            ID       absolute Scope 1+2 emissions at            in absolute Scope 1+2   absolute Scope 3 emissions at target      in absolute Scope 3        Comments
                             target completion?                       emissions                     completion?                        emissions

        1          Decrease                                 14%



3.1d

       Please provide details on your progress against this target made in the reporting year

            ID      % complete (time)     % complete (emissions)                                      Comment

                                                                       As of year-end 2010, Cummins exceeded its commitment, achieving a 28
        1           100%                  100%
                                                                       percent reduction in GHG emissions per dollar revenue.



3.1e

       Please explain (i) why not; and (ii) forecast how your emissions will change over the next five years
3.2

       Does the use of your goods and/or services directly enable GHG emissions to be avoided by a third party?

       Yes



3.2a

       Please provide details (see guidance)

       Power Generation:
       Cummins Power Generation designs and builds cogeneration systems used around the globe in various applications. Combined Heat and Power (CHP) systems are
       providing power to hospitals, schools, sports complexes and commercial facilities. Cogeneration is the production of two kinds of energy — usually electricity and
       heat — from a single source of fuel. Cogeneration can replace traditional methods of supplying energy from multiple sources – for example, purchasing electricity
       from the power grid and burning natural gas or oil separately in a furnace to produce heat or steam. These methods can waste up to two-thirds of the energy in the
       original fuel. With cogeneration, 70 to 90 percent of the energy in the original fuel is put to productive use, and total energy savings can be 30 percent or
       more. Cummins has 430 megawatts (MW) of cogeneration installations globally with an average project size of 2 MW. These installations represent a greenhouse
       gas reduction of about one million metric tons of CO2 per year for our customers.

       DC gensets: DC generators offer a cost-effective and environmentally-friendly alternative to conventional large battery reserve systems and traditional AC
       generators used to power remote community access TV, telecom and wireless tower sites. They continuously monitor the battery system and seamlessly restore
       power should battery backup fail or prolonged power outage occur. Not only are generators more fuel efficient in general , but DC generators in particular reduce
       the number of onsite batteries needed and protect the smaller number required.

       Hybrid generators for RVs: A hybrid generator set is a great example of how Cummins is using technology to reduce fuel consumption by recreational vehicle (RV)
       owners Cummins Power Generation has been able to reduce generator fuel consumption by up to 20 percent. The hybrid generator weighs up to 374 lbs less than
       our large diesel generators. This translates directly into better fuel economy for RV’s, which in turn means a reduction in carbon footprint.

       AMMPS: Cummins has a new line of mobile power generators for military use whose environmental and logistical benefits include greater fuel efficiency, lighter
       weight and increased reliability with a lower total lifecycle cost. The new Advanced Medium Mobile Power Sources (AMMPS) generator sets are 21 percent more
       fuel efficient than the predecessor TQG line. The U.S. Army, AMMPS first customer, expects to save $745 million on 52 million gallons of fuel annually. That is a
       fuel savings of $11.2 billion over the life of the fleet. The associated annual carbon emissions reductions are 509,698 metric tons of CO2 or 7.7 million metric tons
       over the expected life of the generators. This is equivalent to taking 93,000 cars off the road annually.


       Engine business:
       Customer fuel economy projects and tools with customers: In 2010, Cummins did 10 fuel economy projects with end-user truck fleet customers, saving 1 million
       gallons of fuel and avoiding 8,890 tons of carbon dioxide. In addition, Cummins gives truck fleets other tools to help them achieve maximum fuel economy.
       PowerSpec is a free online tool that helps customers specify the correct vehicle and electronic parameters using inputs such as gross vehicle weight, terrain and
       engine type to determine proper axle and transmission configuration. We also have software features in the engine's electronic control module to help reduce fuel
       consumption. Road Speed and Cruise Control governors limit maximum vehicle speed while Smart Torque allows high torque in the top two gears, minimizing the
       number of downshifts required to maintain speed. Our automotive customer engineering group works with truck fleets on engine optimization specific to their fleet -
       and can achieve greater fuel economy through optimization of duty cycles, calibration and hardware as well as Cummins' help with transmission integration,
       accessory management and down speeding.

       2010 engines: In 2010, all heavy-duty diesel engines sold in the United States had to meet the EPA’s NOx standard (0.20 grams per brake-horsepower hour (g/bhp-
       hr)) and the PM standard (0.01g/bhp-hr) – the most stringent emissions regulations in the world. In addition to the new exhaust emission standards, the EPA
       lowered the limit for diesel sulfur fuel from 500 parts per million (ppm) to 15 ppm. The new fuel standard was phased in between October, 2006 and September,
       2010.

        In 2010, the Company successfully introduced the ISX15 engine for use in 18-wheel heavy duty commercial trucks. The engine provides six percent greater fuel
       economy, stronger performance, faster throttle response and overall best-in-class drivability and reliability




3.3

       Did you have emissions reduction initiatives that were active within the reporting year (this can include those in the planning and/or implementation
       phases)

       Yes



3.3a

       Please provide details in the table below


                                                                                                                                   Annual
                                                                                                                                                Investment
                                                                                                                                  monetary
                                                                                                                                                  required     Payback
         Activity type                                          Description of activity                                            savings
                                                                                                                                                    (unit       period
                                                                                                                                    (unit
                                                                                                                                                 currency)
                                                                                                                                  currency)

                          1 project in 2010 in Cummins energy theme #3 Building Envelope with annualized GHG savings of
        Energy
                          23 metric tons CO2e 2010 best in class winner: Factory Skylights, Palmetto Turbo Technologies                                        1-3
        efficiency:                                                                                                             7000           17000
                          Plant, Charleston SC USA. The turbo plant in Charleston improved roof insulation while adding high                                   years
        building fabric
                          efficiency skylights to bring abundant natural lighting to the shop floor.
                                                                                                                         Annual
                                                                                                                                    Investment
                                                                                                                        monetary
                                                                                                                                      required   Payback
 Activity type                                         Description of activity                                           savings
                                                                                                                                        (unit     period
                                                                                                                          (unit
                                                                                                                                     currency)
                                                                                                                        currency)

                 3 projects in 2010 in Cummins energy theme #1 Power Management with annualized GHG
Energy
                 saviangs of 951 metric tons CO2e 2010 best in class winner: Power Perfector Systems,
efficiency:
                 Pithampur Turbo Technologies Plant, India. The turbo plant at Pithampur optimized power usage by       111000      114000       <1 year
building
                 addressing energy supply issues. “Power Perfector” systems provide voltage optimization and
services
                 active power factor correction for improved energy use by shop floor equipment.
                 2projects in 2010 in Cummins energy them #7 Energy Recovery with annualized GHG savings of
Energy           2,372 metric tons CO2e 2010 best in class winner: Energy Recovery of Test Cell Water Jacket,
                                                                                                                                                 1-3
efficiency:      Seymour Engine Plant, IN USA. This project used high efficiency heat exchangers to capture water       236000      975000
                                                                                                                                                 years
processes        jacket energy. Instead of dumping to cooling towers Test Ops now provides the energy for heating
                 the plant, and in later phases for process heating for wash and paint operations.
                 Cummins has created a culture and structure for energy efficiency that is now part of how the
                 Company does business. In addition to implementing capital projects, Cummins has trained a broad
                 network of Energy Champions who coach and mentor site Energy Leaders to find and implement,
                 through a process called an energy treasure hunt, low and no-cost energy projects that also save
Behavioral
                 money for their sites. Stickers on plant equipment make energy use and cost visible and empower        935000      22000        <1 year
change
                 employees to turn off equipment when not use when appropriate. The Company now has 100
                 trained Energy Champions and 270 Energy Leaders at 21 sites, who completed 10-week programs
                 over the lunch hour in energy efficiency. In 2010 , we have tracked 16 such low or no cost projects,
                 though likely there were more, with annualized GHG savings of 7795 metric tons of CO2e.
                 9 projects in 2010 in Cummins energy theme #2 Lighting with annualized GHG saviangs of 13,513
                 metric tons of CO2e. 2010 best in class winner: High Efficiency Smart Lighting, Columbus
Energy
                 Technical Center, Indiana USA. The Cummins lighting standard uses high efficiency fluorescent
efficiency:                                                                                                                                      1-3
                 technology with individual occupancy and daylight harvesting “smart” sensors, installed now at over    1700000     2600000
building                                                                                                                                         years
                 60 sites. Special to this project was the need for architecturally conforming fixtures while still
services
                 standardized to meet requirements for an Energy Contract for Service approach (no capital,
                 negative net expense).
                 15 projects in 2010 in Cummins energy theme #4 Heating and Cooling with annualized GHG
                 savings of 5,112 metric tons of CO22. 2010 best in class winner: Make-up Air System, Power
Energy           Generation Plant, Fridley MN USA. Heating, ventilation and cooling systems control temperature
efficiency:      and humidity for human comfort and production process requirements, averaging 30% of site                                       1-3
                                                                                                                        832000      2120000
building         energy use. The Fridley plant upgraded air handling with energy efficient gas burners, variable                                 years
services         speed motors, automated dampers and a computer controlled energy management system with
                 CO2 sensors. Outside make-up air is now optimally added to maintain air quality and positive air
                 flows.
Energy           8 projects in 2010 in Cummins energy theme #5 Machinery and equipment (which includes                                           1-3
                                                                                                                        818000      1317000
efficiency:      compressed air) with annualized GHG savings of 5,617 metric tones of CO2e. 2010 best in class                                   years
                                                                                                                                            Annual
                                                                                                                                                       Investment
                                                                                                                                           monetary
                                                                                                                                                         required   Payback
         Activity type                                              Description of activity                                                 savings
                                                                                                                                                           (unit     period
                                                                                                                                             (unit
                                                                                                                                                        currency)
                                                                                                                                           currency)

        processes          winner: Dry Machining Engineered Air Nozzles, Rocky Mount Engine Plant, NC USA. Compressed
                           air is often called the fourth utility in manufacturing, after electricity, gas and water, as it accounts for
                           up to 25% of plant spend. Many projects focus on the supply side, addressing generation and
                           leaks. This project optimized demand by computer controls and the installation of thousands of
                           engineered nozzles throughout the plant’s dry machining lines. The nozzles reduce usage by 40%
                           while significantly decreasing shop floor noise levels.
                           2 projects in 2010 in Cummins energy theme #6 Fuel Usage with annualized GHG savings of 1,730
                           metric tons of CO2e. 2010 best in class winner: Altitude Test Cell Fuel Optimization, Columbus
                           Technical Center, IN USA. Fuel Usage projects involve optimization of energy used in combustion
        Process
                           such as boilers and process heating. Fuel used in engine test cells is often less than energy used in                                    1-3
        emissions                                                                                                                          292000      771000
                           conditioning and handling charge air. For special altitude test cells steam is used to create                                            years
        reductions
                           temperature, humidity and pressure conditions. This project eliminated the test boiler by using High
                           Efficiency Roots Blowers. An additional public perception benefit was gained with the elimination of
                           large plumes of white smoke



3.3b

       What methods do you use to drive investment in emissions reduction activities?

                     Method                                                                                 Comment

        Compliance with regulatory
                                             In the UK, meeting the requirements of the Carbon Reduction Commitment Energy Efficiency Scheme (CRC)
        requirements/standards
                                             Since 2006, Our global energy efficiency team has implemented nearly 300 energy efficiency capital projects across seven
                                             specific energy themes, with an aggregate return on investment of 50 percent. The team, with leaders from each business
                                             unit and related environmental functions, manages the capital fund allocated specifically for energy efficiency, analyzes
        Dedicated budget for energy
                                             proposed capital projects for energy efficiency and greenhouse gas reduction and tracks our progress. The Company’s wide-
        efficiency
                                             ranging energy savings actions have included projects such as high-efficiency lighting upgrades, power management
                                             systems, energy efficient motors, pumps and fans, compressed air optimization, heating and cooling equipment upgrades,
                                             and energy recovery from engine test cells.
                                             To support energy efficiency and the Company’s greenhouse gas (GHG) reduction efforts, Cummins has made energy a
        Dedicated budget for other
                                             “significant aspect” of the environmental management system. This designation means that making energy efficiency part
        emission reduction activities
                                             of our daily work remains a key focus at Cummins facilities and critical to the Company’s sustainability efforts. Designation
                     Method                                                                           Comment

                                            as a “significant aspect” requires the Company’s EMS leaders to train all employees on the importance of energy efficiency
                                            and how each person can positively impact the environment. Part of the EMS budget is dedidated to the training and
                                            implementation of energy efficiency efforts.
                                            In addition to implementing capital projects, Cummins has trained a broad network of Energy Champions who coach and
                                            mentor site Energy Leaders to find and implement, through a process called an energy treasure hunt, low and no-cost energy
        Employee engagement                 projects that also save money for their sites. Stickers on plant equipment make energy use and cost visible and empower
                                            employees to turn off equipment when not use when appropriate. The Company now has 100 trained Energy Champions
                                            and 270 Energy Leaders at 21 sites, who completed 10-week programs over the lunch hour in energy efficiency.
        Financial optimization
                                            Cummins uses a model of the internal rate of return to establish a baseline IRR for funded energy efficiency projects.
        calculations
                                            Cummins uses the cost of carbon as part of the financial decision making process in energy efficiency capital funding of
        Internal price of carbon
                                            projects.
                                            Cummins has long worked in partnership with the U.S. Department of Energy (DOE) to develop advances in diesel engines
                                            and related technologies. Previous Cummins programs funded by the DOE have led to both evolutionary and breakthrough
                                            technologies and analytical approaches, speeding up the time for the commercialization of vehicles powered by advanced
        Partnering with governments on
                                            combustion engines. In 2007, for example, Cummins introduced its 6.7 liter Turbo Diesel, which met 2010 emissions
        technology development
                                            standards three years early. That engine uses a Nitrogen Oxide (NOx) Adsorber Catalyst developed and demonstrated in
                                            collaboration with the DOE. The Company received a $54 million grant from the DOE in 2010 for two projects it is currently
                                            working on to improve fuel efficiency in heavy-duty and light-duty vehicles.



3.3c

       If you do not have any emissions reduction initiatives, please explain why not




Further Information

       Cummins actually achieved a 28% greenhouse gas reduction, exceeding its goal of 25 percent.

       Attached are:
       Slide of all energy efficiency capital projects by theme since 2006
       IRR financial model
       Press release: Cummins Exceed Climate Leaders Goal
Attachments

      https://www.cdproject.net/Sites/2011/36/4136/Investor CDP 2011/Shared Documents/Attachments/InvestorCDP2011/3.TargetsandInitiatives/5-27-11 - EPA Climate
      Leaders release - FINAL.docx
      https://www.cdproject.net/Sites/2011/36/4136/Investor CDP 2011/Shared Documents/Attachments/InvestorCDP2011/3.TargetsandInitiatives/Base financial analysis
      model 2007.ppt
      https://www.cdproject.net/Sites/2011/36/4136/Investor CDP 2011/Shared Documents/Attachments/InvestorCDP2011/3.TargetsandInitiatives/Energy Efficiency
      program.pptx


Page: 4. Communication

4.1

      Have you published information about your company’s response to climate change and GHG emissions performance for this reporting year in other
      places than in your CDP response? If so, please attach the publication(s)


                          Publication                            Page/Section Reference        Identify the attachment

       In annual reports (complete)                        13                              Form 10-K
       In voluntary communications (complete)              all                             Climate principles brochure
       In voluntary communications (underway) – previous
                                                           18 to 45                        2010 Sustainabililty Report
       year attached
       In voluntary communications (complete)              all                             Globally Envolved newsletter



Attachments

      https://www.cdproject.net/Sites/2011/36/4136/Investor CDP 2011/Shared Documents/Attachments/InvestorCDP2011/4.Communication/CumminsInc 2010 Form 10-
      K.pdf
      https://www.cdproject.net/Sites/2011/36/4136/Investor CDP 2011/Shared
      Documents/Attachments/InvestorCDP2011/4.Communication/ClimatePrincipleBroch_v07.pdf
      https://www.cdproject.net/Sites/2011/36/4136/Investor CDP 2011/Shared
      Documents/Attachments/InvestorCDP2011/4.Communication/Cummins_2010_SustainabilityReport_FULL.pdf
      https://www.cdproject.net/Sites/2011/36/4136/Investor CDP 2011/Shared Documents/Attachments/InvestorCDP2011/4.Communication/GloballyEnvolvednewsletter
      April 2011.pdf
      https://www.cdproject.net/Sites/2011/36/4136/Investor CDP 2011/Shared Documents/Attachments/InvestorCDP2011/4.Communication/GloballyEnvolvednewsletter
       May 2011.pdf



Module: Risks and Opportunities [Investor]

Page: 5. Climate Change Risks

5.1

       Have you identified any climate change risks (current or future) that have potential to generate a substantive change in your business operations,
       revenue or expenditure? Tick all that apply


       Risks driven by changes in regulation
       Risks driven by changes in other climate-related developments




5.1a

       Please describe your risks driven by changes in regulation


                                                                                                                               Direct/
                                                                                                                                                         Magnitude
        ID       Risk driver                       Description                          Potential impact        Timeframe     Indirect    Likelihood
                                                                                                                                                         of impact


             Uncertainty
                                  Regulation is passed that is not clear, tough,
        1    surrounding new                                                       Inability to do business     6-10 years   Direct      Unknown         Medium
                                  fair or enforceable.
             regulation
                                  Carbon Reduction Commitment (CRC)
             Fuel/energy taxes                                                                                                           Virtually
        2                         energy efficiency legislation enacted in the     Increased operational cost   Current      Direct                      Low
             and regulations                                                                                                             certain
                                  UK on April 1, 2010.
                                  Some form of US federal legislation or
             Emission reporting   regulation may be forthcoming with respect to    Other: additional                                     About as
        3                                                                                                       1-5 years    Direct                      Low
             obligations          regulating manufacturers' greenhouse gas         employees needed                                      likely as not
                                  emissions.
             Product efficiency   The finalization of greenhouse gas and fuel      Other: regulatory risk of                             Virtually
        4                                                                                                       1-5 years    Direct                      Low-medium
             regulations and      efficiency standards for medium-and heavy-       non compliance and                                    certain
                                                                                                                                    Direct/
                                                                                                                                                                Magnitude
        ID       Risk driver                         Description                          Potential impact          Timeframe      Indirect     Likelihood
                                                                                                                                                                of impact


             standards              duty vehicles in the US.                          increased product devel
                                                                                      cost
                                    Carbon taxes mean additional costs for
        5    Carbon taxes                                                             Increased operational cost    >10 years                  Unlikely        Low-medium
                                    facilities or transportation.



5.1b

       Please describe (i) the potential financial implications of the risk before taking action; (ii) the methods you are using to manage this risk; and (iii) the
       costs associated with these actions

       1i If regulations are not clear or do not provide sufficient lead-time, then we may not have products ready to sell in a market. Additionally, if regulations are not
       enforced, then Cummins will invest to develop compliant product while others in a country may not and thus put our products at a competitive disadvantage.
       1ii Through the newly created Emissions Compliance Committee, compliance activities will be globally managed, coordinated and connected so as a company,
       Cummins will better understand risks and exposures, have improved internal collaboration and visibility, and be well-positioned to react to cross-functional issues.
       1iii The company has several ongoing projects to determine the best structure to improve our emissions compliance processes. The cost is unknown until we
       complete this work and begin to implement all of the recommendations.


       2i Cummins is already included in the League performance table.
       2ii We use the existing energy efficiency team and energy champions program.
       2iii Any additional cost would be part of our existing process in funding and implementing energy efficiency projects.


       3i The risks could be higher costs to manage the reporting of emissions.
       3ii In 2010, Cummins implemented an environmental data collection and tracking system that made the gathering and public reporting of performance data for
       Cummins locations easier and more accurate.
       3iii The yearly cost of service with service provider (not meaningful). If there is regulation, possible additional headcount.


       4i There are costs associated with certifying our engines to a new regulatory regime for CO2 and fuel efficiency.
       4ii We have worked with the regulators to ensure that this new regulatory regime aligns directly with our existing testing, certification and compliance for our current
       engines as certified to existing criteria emissions standards (particulate matter and oxides of nitrogen). Additionally, we have developed and are already
       implementing technology roadmaps to meet the new GHG and fuel efficiency standards.
       4iii The incremental spending is expected to be low given our ongoing work on technology development and alignment with the existing regulatory structure.
       5i The implications are higher operating costs for the company.
       5ii We already have a comprehensive structure in place to measure, report and reduce greenhouse gas emissions and energy use at our facilities through the
       existing energy efficiency team and energy champions program.
       5iii Any additional costs would likely be part of our existing process in funding and implementing energy efficiency projects




5.1c

       Please describe your risks that are driven by change in physical climate parameters

                                                                                                           Direct/
                                                                       Potential                                                                Magnitude of
              ID               Risk driver          Description                          Timeframe        Indirect            Likelihood
                                                                        impact                                                                    impact




5.1d

       Please describe (i) the potential financial implications of the risk before taking action; (ii) the methods you are using to manage this risk; and (iii) the
       costs associated with these actions




5.1e

       Please describe your risks that are driven by changes in other climate-related developments

                                                                                                                        Direct/
                                                                                                                                                       Magnitude of
         ID           Risk driver                   Description                    Potential impact    Timeframe       Indirect        Likelihood
                                                                                                                                                         impact


                   Changing
                                        Consumers may prefer products that    Reduced demand for                                     About as likely
        1          consumer                                                                           Unknown        Direct                            Medium
                                        compete with what Cummins produces.   goods/services                                         as not
                   behaviour
5.1f

       Please describe (i) the potential financial implications of the risk before taking action; (ii) the methods you are using to manage this risk; (iii) the costs
       associated with these actions


       1i The financial implications are hard to quantify as changes in consumer preferences often take time. However, the risk is that customers will move to substitute
       products that compete with ours and we are slow to react and lose sales.
       1ii We have a very broad research and development program that is constantly reviewing and investing in new technologies, fuels, etc. As a result, we have a
       variety of ongoing projects looking at alternatives and are already deploying very efficient engines and power generation equipment that can use a variety of fuels
       including biodiesel and natural gas.
       1iii This is a big part of our regular R&D efforts.




5.1g

       Please explain why you do not consider your company to be exposed to risks driven by changes in regulation that have the potential to generate a
       substantive change in your business operations, revenue or expenditure




5.1h

       Please explain why you do not consider your company to be exposed to risks driven by physical climate parameters that have the potential to generate a
       substantive change in your business operations, revenue or expenditure


       We do not consider our company to be exposed to significant physical risks. Most of Cummins’ major facilities are located inland and would see minimal disruption
       from changes in weather patterns. The majority of the manufacturing processes would not be impacted by rising sea levels or extreme weather events.
       Manufacturing facilities located in coastal areas or inland on the East Coast have been and could be affected by extreme weather events, most significantly
       hurricanes.
       In addition, Cummins has business continuity plans in place at all major manufacturing sites to aid in the preparation and recovery from an extreme weather event or
       resource shortage, such as a disruption in electrical power or labor force.
       Cummins also has a Vice President and Chief Administrative Officer who focuses on risk management along with an Enterprise Risk Management group to identify
       and mitigate key business risks, including enterprise risks related to global climate change. The financial cost to Cummins would be measured in the amount of lost
       production time at the affected facility and lost revenue from the manufacturing plants, both downstream in the supply chain where the affected plant is an internal
       supplier of materials and in lost sales to external customers.

       Most recently in Japan, following the earthquake, tsunami, and resulting nuclear disaster, Cummins set up a crisis management center headed by the General
       Manager of our Japanese distributor. This center was designed to keep us on top of the changing situation, ensuring that we had the best possible information, and
       was authorized to make quick and effective responses as needed to ensure the safety of our Japanese employees and their families. A US-based team led by
       Cummins’ Vice President and Chief Administrative Officer worked closely with the General Manager to support his team’s efforts and to ensure that our team in
       Japan received current information from all global sources. Both teams reported to Cummins’ Chief Operating Officer and Chief Executive Officer regularly.
       Fortunately, the situation in Japan did not directly impact any Cummins facilities. The situation did, however, affect several Cummins suppliers in Japan. For the
       past couple of years, Cummins has required key suppliers to submit their business continuity plans to Cummins to ensure that they are adequately prepared for
       disasters. This action helped minimize the disruption to Cummins’ supply chain.
       The rash of tornadoes and other severe weather in the spring of 2011 severely impacted one of our independent distributors in Joplin, Missouri. The distributor is
       currently working with its insurance carrier and Cummins to rebuild.
       Cummins has proactively addressed other climate change issues identified by the Panel. For example, whenever possible, we work on a global scale to increase
       green space at our facilities and renovate and reoccupy existing facilities instead of building new facilities.




5.1i

       Please explain why you do not consider your company to be exposed to risks driven by changes in other climate-related developments that have the
       potential to generate a substantive change in your business operations, revenue or expenditure




Page: 6. Climate Change Opportunities

6.1

       Have you identified any climate change opportunities (current or future) that have the potential to generate a substantive change in your business
       operations, revenue or expenditure? Tick all that apply

       Opportunities driven by changes in regulation
       Opportunities driven by changes in physical climate parameters
       Opportunities driven by changes in other climate-related developments
6.1a

       Please describe your opportunities that are driven by changes in regulation

                                                                                                                                                         Magnitude
        ID   Opportunity driver                   Description                      Potential impact      Timeframe    Direct/Indirect    Likelihood
                                                                                                                                                         of impact

                                    The Carbon Reduction Commitment
             Fuel/energy taxes                                                Reduced operational
        1                           Energy Effiency scheme was enacted in                                Current      Direct            Very likely     Medium
             and regulations                                                  costs
                                    the UK in April 2010.
                                    Greenhouse gas regulation and fuel
             Product efficiency
                                    efficiency standards for medium and       New products/business
        2    regulations and                                                                             1-5 years    Direct            Very likely     Medium
                                    heavy duty commercial vehicles could      services
             standards
                                    be passed.
                                    Cummins could be presented with
             Voluntary                                                                                                                  About as
        3                           research and development                  Investment opportunities   6-10 years   Direct                            Medium
             agreements                                                                                                                 likely as not
                                    opportunities to meet agreements.
                                    Higher fuel prices could drive customer   Increased demand for
             Fuel/energy taxes                                                                                                          About as
        4                           preference to more fuel efficient         existing                   6-10 years   Direct                            Medium
             and regulations                                                                                                            likely as not
                                    vehicles.                                 products/services
                                    Higher fuel prices could drive customer   Increased demand for
                                                                                                                                        About as
        5    Carbon taxes           preference to more fuel efficient         existing                   Unknown      Direct                            Medium
                                                                                                                                        likely as not
                                    vehicles.                                 products/services
                                    Governments could regulate that
             Emission reporting                                               Other: reputational
        6                           companies account for their carbon                                   6-10 years   Direct            Likely          Low-medium
             obligations                                                      benefit
                                    emissions.



6.1b

       Please describe (i) the potential financial implications of the opportunity; (ii) the methods you are using to manage this opportunity; (iii) the costs
       associated with these actions


       1i Plant efficiency is already part of energy efficiency efforts.
       1ii Plant efficiency is already part of energy efficiency efforts
       1iii Globally, energy efficiency reductions are saving Cummins more than $20 million annually.

       2i Technology to meet future greenhouse gas regulation and fuel efficiency standards is already part of our technology roadmaps and planning
       2ii The value package introduction and product preceding technololgy plannning as part of our standard innovation management process is how we manage this
       opportunity.
       2iii Costs would be part of our regular research and technology capital planning.

       3i No financial implication are identified at this time.
       3ii We would leverage our existing relationships with universities and private-public partnerships.
       3iii Costs are unknown, but they could involve matching funding from Cummins, included in part of our research and development budget.

       4 and 5
       i The implications could be possible increase in operational spend.
       ii We would manage this through our existing energy and product efficiency platforms.
       iii We would manage this through our existing energy and product efficiency platforms.


       6i We see no real financial implications at this time.
       6ii Management would be through the use of our existing environmental management reporting system.
       6iii There are no direct costs associated with emission reporting obligations.




6.1c

       Please describe the opportunities that are driven by changes in physical climate parameters

                                                                                                                                                        Magnitude
            ID   Opportunity driver               Description                  Potential impact      Timeframe      Direct/ Indirect     Likelihood
                                                                                                                                                        of impact

                 Other physical         Changes in frequency of            New products/business
        1                                                                                          Current         Direct              Very likely     Medium
                 climate drivers        extreme weather events             services



6.1d

       Please describe (i) the potential financial implications of the opportunity; (ii) the methods you are using to manage this opportunity; (iii) the costs
       associated with these actions


       1i Approxminately 20 percent of Cummins revenue is from our Power Generation business, and more than half of that is from the sale of generator sets. Generator
       sets many times are used to provide power to locations that have suffered power outages or grid disruption due to large scale weather events.
       1ii No incremental activity to normal production is identified.
       1iii No incremental cost to normal production costs is identified.
6.1e

       Please describe the opportunities that are driven by changes in other climate-related developments

                                                                                                                                Direct/                      Magnitude
        ID   Opportunity driver                     Description                         Potential impact        Timeframe                  Likelihood
                                                                                                                               Indirect                      of impact

                                   Cummins increases its reputation as a           Increased stock price                                  More likely
        1    Reputation                                                                                         1-5 years    Direct                       Low-medium
                                   sustainability leader.                          (market valuation)                                     than not
             Changing
                                   Consumers will become more interested in        New products/business
        2    consumer                                                                                           1-5 years    Direct       Likely          Medium-high
                                   fuel efficient products.                        services
             behaviour
                                   The desire for more goods as a result of a
             Fluctuating socio-
                                   growing global middle class would create        Increased demand for
        3    economic                                                                                           Current      Direct       Very likely     Medium-high
                                   greater demand for products to be shipped in    existing products/services
             conditions
                                   trucks.
             Increasing
                                   Cummins firmly believes that our business is                                                           More likely
        4    humanitarian                                                          Wider social benefits        Current      Direct                       Medium
                                   only as healthy as the communities it serves.                                                          than not
             demands



6.1f

       Please describe (i) the potential financial implications of the opportunity; (ii) the methods you are using to manage this opportunity; (iii) the costs
       associated with these actions

       1ii Having a reputation as a sustainability leader could cause the financial community to reward Cummins with a higher market valuation.
       1ii We will contine to improve our sustainability efforts, which are already global and well-established.
       1iii We believe no incremental costs to exist, as most of the structures and resources are in place .


       2i The financial implication is hard to quantity, as the shift in consumer preference would happen slowly over time.
       2ii We would use existing corporate strategy and growth office structure to evaluate new business oppportunites in adjacent markets and technology.
       2iii We have identified no incremental costs.

       3i The potential implications could be large, but hard to quantify, as sales increases happen over time. But Cummins projects increased sales in China and India as
       the size of the middle class increases and more and more goods need to be shipped in trucks equipped with Cummins engines. In addition, as emissions
       regulations become more stringent globally, Cummins is in the best position to profit from those regulations.
       3iii We would manage this opportunity by using existing corporate strategy and growth office structure to evaluate new business oppportunites in adjacent markets
       and technology.
       3iii We see no incremental costs beyond what sites would normally do to prepare for increased demand.

       4i Cummins does already give humanitarian financial aid and sometimes product donations to countries wheres there has been a need.
       4ii Our Corporate Responsbility department and The Cummins Foundation handle this work
       4iii In any given year, the total would be less than 1 percent of operational spend.




6.1g

       Please explain why you do not consider your company to be exposed to opportunities driven by changes in regulation that have the potential to
       generate a substantive change in your business operations, revenue or expenditure




6.1h

       Please explain why you do not consider your company to be exposed to opportunities driven by physical climate parameters that have the potential to
       generate a substantive change in your business operations, revenue or expenditure




6.1i

       Please explain why you do not consider your company to be exposed to opportunities driven by changes in other climate-related developments that
       have the potential to generate a substantive change in your business operations, revenue or expenditure




Module: GHG Emissions Accounting, Energy and Fuel Use, and Trading [Investor]

Page: 7. Emissions Methodology
7.1

       Please provide your base year and base year emissions (Scopes 1 and 2)

                                          Scope 1 Base year                Scope 2 Base
                Base year              emissions (metric tonnes        year emissions (metric
                                               CO2e)                       tonnes CO2e)

        Sat 01 Jan 2005 - Sat 31
        Dec 2005                     323028                         447557




7.2

       Please give the name of the standard, protocol or methodology you have used to collect activity data and calculate Scope 1 and Scope 2 emissions

                 Please select the published methodologies that you use

        Other



7.2a

       If you have selected "Other", please provide details below

       The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition) in conjunction with the US EPA’s Climate Leaders Greenhouse
       Gas Protocol: Design Principals provide the overarching methodology for the greenhouse gas inventory. The following source specific documents are used as
       guidance emission factors and the collection of activity data:

       US EPA Climate Leaders: Mobile Source Guidance

       USEPA Climate Leaders: Direct Emissions from Stationary Combustion

       US EPA Climate Leaders: Indirect Emissions from Purchases/ Sales of Electricity and Steam

       US EPA Climate Leaders: Direct HFC and PFC Emissions from use of Refrigeration and Air
       Conditioning Equipment
7.3

      Please give the source for the global warming potentials you have used

          Gas                                  Reference

       CO2            IPCC Second Assessment Report (SAR - 100 year)
       CH4            IPCC Second Assessment Report (SAR - 100 year)
       N20            IPCC Second Assessment Report (SAR - 100 year)
       HFCs           IPCC Second Assessment Report (SAR - 100 year)



7.4

      Please give the emissions factors you have applied and their origin; alternatively, please attach an Excel spreadsheet with this data

              Fuel/Material/Energy                Emission Factor          Unit        Reference




Further Information

      Please see attached file for a complete list of emissions factors.

Attachments

      https://www.cdproject.net/Sites/2011/36/4136/Investor CDP 2011/Shared Documents/Attachments/InvestorCDP2011/7.EmissionsMethodology/Investor CDP 2011
      Question 7 4 Emission Factors - Cummins.xlsx


Page: 8. Emissions Data - (1 Jan 2010 - 31 Dec 2010)

8.1
       Please select the boundary you are using for your Scope 1 and 2 greenhouse gas inventory

       Operational control



8.2a

       Please provide your gross global Scope 1 emissions figure in metric tonnes CO2e


       229654



8.2b

       Please provide your gross global Scope 1 emissions figures in metric tonnes CO2e - Part 1 breakdown

           Boundary                Gross global Scope 1 emissions (metric tonnes CO2e)               Comment




8.2c

       Please provide your gross global Scope 1 emissions figures in metric tonnes CO2e - Part 1 Total

                    Gross global Scope 1 emissions (metric tonnes CO2e) - Total Part 1               Comment




8.2d

       Please provide your gross global Scope 1 emissions figures in metric tonnes CO2e - Part 2

         Gross global Scope 1 emissions (metric tonnes CO2e) - Other operationally       Comment
                         controlled entities, activities or facilities



8.3a
       Please provide your gross global Scope 2 emissions figure in metric tonnes CO2e



       434843



8.3b

       Please provide your gross global Scope 2 emissions figures in metric tonnes CO2e - Part 1 breakdown

           Boundary                 Gross global Scope 2 emissions (metric tonnes CO2e)
                                                                                                        Comment



8.3c

       Please provide your gross global Scope 2 emissions figures in metric tonnes CO2e - Part 1 Total

                   Gross global Scope 2 emissions (metric tonnes CO2e) - Total Part 1                   Comment




8.3d

       Please provide your gross global Scope 2 emissions figures in metric tonnes CO2e - Part 2

         Gross global Scope 2 emissions (metric tonnes CO2e) - Other operationally
                         controlled entities, activities or facilities                      Comment




8.4

       Are there are any sources (e.g. facilities, specific GHGs, activities, geographies, etc.) of Scope 1 and Scope 2 emissions which are not included in your
       disclosure?
8.4a

       Please complete the table

             Reporting Entity            Source           Scope                Explain why the source is excluded




8.4

       Are there are any sources (e.g. facilities, specific GHGs, activities, geographies, etc.) of Scope 1 and Scope 2 emissions which are not included in your
       disclosure?

       No



8.4a

       Please complete the table

            Source          Scope              Explain why the source is excluded




8.5

       Please estimate the level of uncertainty of the total gross global Scope 1 and Scope 2 figures that you have supplied and specify the sources of
       uncertainty in your data gathering, handling, and calculations

                                          Main
        Scope    Uncertainty Range     sources of                                     Please expand on the uncertainty in your data
                                       uncertainty

                More than 2% but      Data Gaps       For facilities that do not have actual energy consumption data, the data are extrapolated using data from other
        Scope
                less than or equal    Extrapolation   facilities. Cummins attempts to continually increase the amount of actual data available and the number of
        1
                to 5%                                 estimates required is very low. There is the potential for facilities or emission sources to be omitted from the
                                           Main
        Scope    Uncertainty Range      sources of                                      Please expand on the uncertainty in your data
                                        uncertainty

                                                        inventory. Measures are taken to include all facilities and emissions sources. Other potential sources of
                                                        uncertainty are errors in billing by fuel suppliers, and errors in data entry and transferring of the data. We have
                                                        quality control procedures in place to review monthly and annual consumption data, checking that it conforms to
                                                        expected seasonal patterns and that there are no larger-than-expected discrepancies from month to month or
                                                        year to year.
                                                        For facilities that do not have actual energy consumption data, the data are extrapolated using data from other
                                                        facilities. Cummins attempts to continually increase the amount of actual data available and the number of
                                                        estimates required is very low. There is the potential for facilities or emission sources to be omitted from the
                 More than 2% but      Data Gaps
        Scope                                           inventory. Measures are taken to include all facilities and emissions sources. Another potential source of
                 less than or equal    Extrapolation
        2                                               uncertainty is errors in billing by fuel suppliers, and errors in data entry and transferring of the data. We have
                 to 5%
                                                        quality control procedures in place to review monthly and annual consumption data, checking that it conforms to
                                                        expected seasonal patterns and that there are no larger-than-expected discrepancies from month to month or
                                                        year to year.



8.6

       Please indicate the verification/assurance status that applies to your Scope 1 emissions

       Verification or assurance complete



8.6a

       Please indicate the proportion of your Scope 1 emissions that are verified/assured

       More than 90% but less than or equal to 100%



8.6b

       Please provide further details of the verification/assurance undertaken, and attach the relevant statements

           Type of verification or assurance           Relevant standard                             Relevant statement attached
            Type of verification or assurance         Relevant standard                        Relevant statement attached

                                                                           See Statement Attached: Cummins Verification Statement for 2010 GHG
        Limited assurance                        ISO14064-3
                                                                           Emissions - CDP.pdf



8.7

       Please indicate the verification/assurance status that applies to your Scope 2 emissions

       Verification or assurance complete



8.7a

       Please indicate the proportion of your Scope 2 emissions that are verified/assured


       More than 90% but less than or equal to 100%



8.7b

       Please provide further details of the verification/assurance undertaken, and attach the relevant statements


            Type of verification or assurance         Relevant standard                        Relevant statement attached

                                                                           See Statement Attached: Cummins Verification Statement for 2010 GHG
        Limited assurance                        ISO14064-3
                                                                           Emissions - CDP.pdf



8.8

       Are carbon dioxide emissions from the combustion of biologically sequestered carbon (i.e. carbon dioxide emissions from burning biomass/biofuels)
       relevant to your company?

       No
8.8a

       Please provide the emissions in metric tonnes CO2e




Attachments

       https://www.cdproject.net/Sites/2011/36/4136/Investor CDP 2011/Shared Documents/Attachments/InvestorCDP2011/8.EmissionsData(1Jan2010-
       31Dec2010)/Cummins Verification Statement for 2010 GHG Emissions - CDP.pdf


Page: 9. Scope 1 Emissions Breakdown - (1 Jan 2010 - 31 Dec 2010)

9.1

       Do you have Scope 1 emissions sources in more than one country or region (if covered by emissions regulation at a regional level)?

       Yes



9.1a

       Please complete the table below

                   Country                    Scope 1 metric tonnes CO2e

        United States of America         127581
        Australia                        5342
        Brazil                           8541
        China                            9248
        India                            21638
        Mexico                           5194
        South Africa                     3797
        United Kingdom                   32956
                     Country                    Scope 1 metric tonnes CO2e

        Rest of world                   15358



9.2

       Please indicate which other Scope 1 emissions breakdowns you are able to provide (tick all that apply)

       By activity




9.2a

       Please break down your total gross global Scope 1 emissions by business division

              Business Division             Scope 1 metric tonnes CO2e




9.2b

       Please break down your total gross global Scope 1 emissions by facility

             Facility
                                  Scope 1 metric tonnes CO2e



9.2c

       Please break down your total gross global Scope 1 emissions by GHG type

            GHG type              Scope 1 metric tonnes CO2e
9.2d

        Please break down your total gross global Scope 1 emissions by activity

                         Activity                      Scope 1 metric tonnes CO2e

         Stationary Combustion                     186483
         Mobile Sources                            29010
         Refrigerant                               6933
         Other Fugitive                            250
         Generation of Sold Electricity            6978



Page: 10. Scope 2 Emissions Breakdown - (1 Jan 2010 - 31 Dec 2010)

10.1

        Do you have Scope 2 emissions sources in more than one country or region (if covered by emissions regulation at a regional level)?

        Yes



10.1a

        Please complete the table below

                    Country                   Scope 2 metric tonnes CO2e

         United States of America         309408
         Australia                        9551
         Brazil                           2704
         China                            24870
         India                            27579
         Mexico                           21214
         South Africa                     2975
         United Kingdom                   27598
                       Country                    Scope 2 metric tonnes CO2e

         Rest of world                     8942



10.2

        Please indicate which other Scope 2 emissions breakdowns you are able to provide (tick all that apply)

        By activity




10.2a

        Please break down your total gross global Scope 2 emissions by business division

               Business division               Scope 2 metric tonnes CO2e




10.2b

        Please break down your total gross global Scope 2 emissions by facility

              Facility               Scope 2 metric tonnes CO2e




10.2c

        Please break down your total gross global Scope 2 emissions by activity

              Activity               Scope 2 metric tonnes CO2e

         Electricity             430968
         Steam                   3112
              Activity            Scope 2 metric tonnes CO2e

         Hot Water          763



Page: 11. Emissions Scope 2 Contractual

11.1

        Do you consider that the grid average factors used to report Scope 2 emissions in Question 8.3 reflect the contractual arrangements you have with
        electricity suppliers?

        Yes



11.1a

        You may report a total contractual Scope 2 figure in response to this question. Please provide your total global contractual Scope 2 GHG emissions
        figure in metric tonnes CO2e




11.1b

        Explain the basis of the alternative figure (see guidance)




11.2

        Has your organization retired any certificates, e.g. Renewable Energy Certificates, associated with zero or low carbon electricity within the reporting year
        or has this been done on your behalf?

        No



11.2a
       Please provide details including the number and type of certificates

               Type of certificate                 Number of certificates       Comments




Page: 12. Energy

12.1

       What percentage of your total operational spend in the reporting year was on energy?

       More than 0% but less than or equal to 5%



12.2

       Please state how much fuel, electricity, heat, steam, and cooling in MWh your organization has consumed during the reporting year

             Energy type             MWh

        Fuel                       1023130
        Electricity                703924
        Heat                       1916
        Steam                      7460
        Cooling                    0



12.3

       Please complete the table by breaking down the total "Fuel" figure entered above by fuel type

                        Fuels                  MWh

        Jet kerosene                         22102
        Diesel/Gas oil                       69189
        Distillate fuel oil No 2             425054
                        Fuels                    MWh

         Natural gas                           467772
         Propane                               13539
         Motor gasoline                        24486
         Other: Stationary gasoline            987



Page: 13. Emissions Performance

13.1

        How do your absolute emissions (Scope 1 and 2 combined) for the reporting year compare to the previous year?

        Increased



13.1a

        Please complete the table

                                 Emissions
                                                Direction
             Reason                 value                                                                    Comment
                                                of change
                                (percentage)

                                                            Throughout 2010 Cummins realized emissions reductions from a number of energy efficiency activities that
         Emissions
                                                            include both capital measures and low or no-cost measures undertaken by Energy Champions. The impact
         reduction         12                   Decrease
                                                            of these activities is estimated to contribute a reduction of emissions of about 12%, helping to offset the
         activities
                                                            increased emissions associated with a large increase in output between 2009 and 2010.
         Change in                                          Cummins experienced a large increase in output between 2009 and 2010 as evidenced by the 22% growth
                           21                   Increase
         output                                             in revenue.
         Acquisitions      1                    Increase
         Change in                                          These emissions have been updated from prior reporting to include emissions associated with the
                           1                    Increase
         boundary                                           generation of electricity that is sold to customers. This change represents a 1% increase in emissions.



13.2
       Please describe your gross combined Scope 1 and 2 emissions for the reporting year in metric tonnes CO2e per unit currency total revenue

                                                                   Direction of
                                                      % change
                                                                     change
         Intensity       Metric        Metric           from
                                                                      from                                              Explanation
           figure      numerator    denominator       previous
                                                                    previous
                                                        year
                                                                       year

                                                                                    The 12% decrease in emissions intensity per unit total revenue is driven by a
                      metric                                                        substantial increase in revenue (22%) coupled with an increase in overall Scope 1
                                    unit total
        0.00005659    tonnes                          12           Decrease         and Scope 2 Emissions (11%). Emissions reduction activities helped mitigate the
                                    revenue
                      CO2e                                                          increase in emissions due to increased output. This is based on inflation adjusted
                                                                                    revenue in constant 2005 dollars to be consistent with our reduction goal.



13.3

       Please describe your gross combined Scope 1 and 2 emissions for the reporting year in metric tonnes CO2e per full time equivalent (FTE) employee

                                                    % change     Direction of
        Intensity      Metric         Metric          from       change from
                                                                                                                      Explanation
          figure     numerator     denominator      previous       previous
                                                      year           year

                                                                                  The decrease in intensity factor per FTE is driven by a 12% increase in number of
                     metric                                                       employees between 2009 coupled with the increase in emissions of 11%. Both the
                                   FTE
        16.95        tonnes                       4              Decrease         increase in number of employees and the increase in overall emissions are closely tied
                                   Employee
                     CO2e                                                         to the increase in output and revenue that Cummins experienced between 2009 and
                                                                                  2010. Emissions reduction activities helped mitigate the increase in emissions.



13.4

       Please provide an additional intensity (normalized) metric that is appropriate to your business operations

                                                                                    % change from      Direction of change
          Intensity figure       Metric numerator          Metric denominator                                                                Explanation
                                                                                    previous year      from previous year

                                                                                                                               Cummins does not track another
                               metric tonnes CO2e
                                                                                                                               intensity metric.
Page: 14. Emissions Trading

14.1

        Do you participate in any emission trading schemes?

        No, and we do not currently anticipate doing so in the next two years



14.1a

        Please complete the following table for each of the emission trading schemes in which you participate

                               Period for which                                                             Verified emissions in
          Scheme name                                  Allowances allocated     Allowances purchased                                Details of ownership
                               data is supplied                                                             metric tonnes CO2e




14.1b

        What is your strategy for complying with the schemes in which you participate or anticipate participating?




14.2

        Has your company originated any project-based carbon credits or purchased any within the reporting period?

        No



14.2a

        Please complete the following table
             Credit                                                                   Number of        Number of credits
         origination or     Project         Project          Verified to which      credits (metric     (metric tonnes          Credits           Purpose e.g.
             credit          type        identification          standard             tonnes of       CO2e): Risk adjusted      retired           compliance
           purchase                                                                     CO2e)               volume




Page: 15. Scope 3 Emissions

15.1

        Please provide data on sources of Scope 3 emissions that are relevant to your organization

           Sources of        metric                                                                                                       If you cannot provide a
            Scope 3          tonnes                                              Methodology                                                figure for emissions,
           emissions          CO2e                                                                                                         please describe them

                                      All air travel data are tracked through a service provided to Cummins by AmEx. Emissions are
         Business travel   25431      calculated by AmEx using UK Defra methodologies, based on short, medium, and long-haul travel
                                      categories and the associated emission factors.



15.2

        Please indicate the verification/assurance status that applies to your Scope 3 emissions

        Not verified or assured



15.2a

        Please indicate the proportion of your Scope 3 emissions that are verified/assured




15.2b
        Please provide further details of the verification/assurance undertaken, and attach the relevant statements

                 Type of verification or assurance                Relevant standard                Relevant statement attached




15.3

        How do your absolute Scope 3 emissions for the reporting year compare to the previous year?

        Increased



15.3a

        Please complete the table

                         Emissions value        Direction of
           Reason                                                                                            Comment
                          (percentage)            Change

                                                               Cummins experienced a large increase in output between 2009 and 2010 as evidenced by the 22%
         Change in
                       199                    Increase         growth in revenue. Of the total 337% increase in business travel emissions, 199%, can be attributed to
         output
                                                               growth in output.
                                                               In addition to increased output, business travel emissions also increased due to increasing the
         Change in
                       138                    Increase         boundary of emissions included in business travel. This change represents an increase of
         boundary
                                                               approximately 138% when compared to business travel emissions reported in CDP 2010.



Module: Sign Off

Page: Sign Off




        Please enter the name of the individual that has signed off (approved) the response and their job title

        Laurie Counsel, Director of Energy and Environmental Relations
Carbon Disclosure Project

				
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