Cummins Commits to Greater Efficiency Improvements through Better Buildings, Better Plants Challenge

COLUMBUS, Ind.--(BUSINESS WIRE)-- After achieving significant energy efficiency and greenhouse gas (GHG) reductions over the last five years, Cummins (NYSE: CMI) is now raising the bar on its efforts by becoming a Partner in the Better Buildings, Better Plants Challenge.

President Obama announced the Challenge today. The criteria for being a Challenge Partner in the U.S. Department of Energy’s program include reducing energy use by at least 25 percent per dollar revenue from 2005-2015, committing to complete a larger-scale energy efficiency project, and reporting details on energy use and progress.

Cummins joined the U.S. Environmental Protection Agency’s Climate Leaders Program in 2006 and set the goal of a 25 percent reduction of GHG emissions per dollar revenue from 2005 to 2010. In May 2011, the Company announced that it had exceeded the goal with a 28 percent reduction.

In becoming a Partner in the Better Buildings, Better Plants Challenge, Cummins will be building on this effort as approximately half of that 28 percent GHG reduction came as a result of energy efficiency improvements. The Company’s new 25 percent energy efficiency goal over the 2005 to 2015 timeframe is equivalent to about a 40 percent GHG reduction.

“Cummins strongly believes in the business case for energy efficiency,” said Tom Linebarger, Cummins President and Chief Operating Officer. “It is good business, good for our business, and it is the right thing to do. By being a Challenge Partner, Cummins commits to aggressively pursue energy efficiency which will continue to move our work forward. The Challenge also provides a forum to both share our knowledge and learn from fellow Partners that can encourage other companies to pursue energy efficiency actions.”

The Company’s wide-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. Energy efficiency is also incorporated in the Company’s global environmental management system – which is implemented at 69 sites around the world and the key mechanism for driving environmental improvements at Cummins facilities.

Cummins 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. In addition to implementing capital projects, the Company has trained a broad network of Energy Champions who coach and mentor site Energy Leaders to find and implement low and no-cost energy projects that also save money for their sites. These combined efforts have saved Cummins more than $20 million dollars annually.

About Cummins
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.

Forward-looking disclosure statement
Information provided in this release that is not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the company’s expectations, hopes, beliefs and intentions on strategies regarding the future. It is important to note that the company’s actual future results could differ materially from those projected in such forward-looking statements because of a number of factors, including, but not limited to, general economic, business and financing conditions, labor relations, governmental action, competitor pricing activity, expense volatility and other risks detailed from time to time in Cummins Securities and Exchange Commission filings.

Cummins Inc.
Janet Williams, 317-610-2488
Director - Corporate Communications
janet.williams@cummins.com

Source: Cummins Inc.