CUMMINS ACHIEVED TWO MAJOR ENVIRONMENTAL MILESTONES IN 2015, EXCEEDING ITS 2015 ENERGY/GREENHOUSE GAS REDUCTION GOALS AND REACHING ITS 2020 WATER GOALS FIVE YEARS EARLY
"The environmental teams around the globe truly had an outstanding year," said Mark Dhennin, Cummins’ Director of Energy Efficiency and Environment. "There was a lot of effort that went into delivering on our commitments, which our environmental professionals met with great skill and enthusiasm."
Here’s a 12-month progress report on each of the environmental goals Cummins has established:
ENERGY AND GHGs
Cummins exceeded its energy and greenhouse gas reduction goals in 2015. The company achieved a 36 percent reduction in GHG intensity and a 33 percent reduction in energy intensity (both adjusted for sales) from the 2005 baseline year.
In 2015, the company’s GHG emissions decreased by 14,000 tons on an absolute basis and 1 percent adjusted for sales from the prior year.
Cummins had a number of challenges in maintaining progress on the goal, including several new buildings that used energy but did not produce revenue. The company also acquired all but one of the North American joint venture distributors, increasing Cummins’ facility footprint. Finally, the company invested more in research and development and the production of high horsepower engines, which substantially increased fuel usage in test cells.
The company used tools and resources available from programs such as the ISO50001 (international) energy management system and the Department of Energy’s Superior Energy Performance (SEP) program to achieve the goal.
In 2015, Cummins used 953 million gallons of water, a 19.6 million gallon decrease from 2014. Since the goal’s baseline year of 2010, direct water use is down by 16 percent, while water use adjusted for hours worked is down by 41 percent despite an increase in the number of in-scope facilities during the period.
Since 2010, Cummins in-scope facilities increased by 200 sites to about 440 sites by end of 2015. The increase in the footprint was due to the addition of new office buildings, regional distribution centers and acquisition of North American distributors.
Cummins plans on setting a new water goal by the end of 2016. For the global water goals, Cummins considers all the managed, consolidated and 50:50 joint ventures that are part of its Environmental Management System.
In 2015, Distribution Business entities reduced about 43 million gallons of water by performing water balances, or evaluations, to identify and fix low-cost and no-cost activities. With several new facilities open that are continuing to increase production, Cummins as a company must ensure it continues producing results through the next phase of growth and production demands.
Cummins continues to make progress on its public waste management goals. The company in total recycled 90.4 percent of its total waste generated in 2015, equivalent to approximately 172,000 tons of waste. Cummins’ European sites have already achieved a collective 98 percent recycling rate.
Since the baseline year of 2010, Cummins’ total waste disposed decreased by about 18 percent in absolute terms, while experiencing a 43 percent reduction in disposal adjusted for hours worked. Compared with 2014, Cummins’ total waste disposed in 2015 increased slightly by 858 tons on an absolute basis but decreased 3 percent, adjusted for hours worked.
The four sites that achieved Zero Disposal in 2014 were confirmed again in 2015, and one new site was validated in 2015, bringing the total validated to five. Two new sites are currently pending validation.
Under Cummins’ definition of Zero Disposal, waste can only be burned as a last resort to create energy and then only if there is a net energy gain, creating more energy than is needed merely to sustain combustion.
Cummins fuel economy teams throughout the world implemented more than 100 fuel economy projects in 2015 for on- and off-highway customers. The company is already nearly half way toward its 2020 goal, with particular success in the off-highway market where Cummins has more than tripled its original projections. As of the end of 2015, the company had achieved an annual 1.6 MMT reduction toward its goal of a 3.5 MMT annual reduction.
On a cumulative basis, counting work done in both 2014 and 2015, Cummins has saved customers $926 million and 232 million gallons of diesel fuel.
There are a number of factors contributing to the success of the company’s fuel economy improvement efforts. The fuel savings for some large initiatives delivered results greater than originally estimated. In addition, Cummins exceeded its initial estimate of achieving between two and five percent improvement per project for its customers, averaging instead 6.7 percent.
Cummins has achieved a 2.8 percent reduction through 2015 on CO2 per kilogram of goods moved against its goal of a 10 percent reduction.
Logistics teams worked on several initiatives that helped Cummins’ transportation network become more efficient in 2015. The company has created strategic transportation partnerships, moving from more than 40 carriers to a core group of five that now moves 85 percent of Cummins’ freight. These carriers are encouraged to use natural gas, a low carbon fuel.
The company has moved to multiple consolidation centers across the globe to more effectively handle international shipments. Routing changes are also allowing Cummins to move goods more efficiently.