Cummins Sustainability

Table Of Contents

1. Sustainability According to Cummins
2. CSR Intervention
3. Integration of CSR and Business model
4. Critical Analysis
5. References

Sustainability according to Cummins

Sustainability for Cummins is the future and the way forward, and it is particularly necessary for them as they are a resource heavy industry. Without sustainable development, it won’t be possible for them to survive in the market and this fact is what guides their approach towards CSR. The dependability of Cummins products is of paramount importance for the sustainability of the company and hence the Cummins engineers strive to achieve perfection in their production methods before the end product reaches masses. Cummins views sustainability on a much broader aspect, and thus includes various factors such as environment, corporate responsibility, safety, diversity and inclusion, employee development and governance as key performance indicators. Corporate Social Responsibility has always been one of the core values of it, with the motto of ‘Serving and improving the communities in which we live’.

In India, Cummins works alongside of Cummins India Foundation (CIF), incorporated in 1990. It is a public charitable trust registered under the Bombay Public Trusts Act, 1950, the Income Tax Act, 1961 and the Foreign Contribution (Regulation) Act, 2010 and it focuses its attention on serving the community and in the process enhancing the quality of life of the people of those communities. CIF doesn’t accept charity from public at large. It has addressed various issues in the fields of environment, society, etc., Cummins has made significant contributions in 2017 18 with projects on Education, Rural Development, Water Neutrality, Solid Waste Management, Scholarship Program and Coach Them Young just to name a few. The three primary areas of focus of the Cummins India Foundation are Higher Education, Energy and Environment and Equality of Opportunity.

To promote and encourage employee participation such activities, Cummins introduced the ‘Every Employee Every Community ‘(EEEC) initiative, wherein it is mandatory for each employee to devote four working hours for any CSR project. For the fifth consecutive year, your Company achieved a 100% score under this initiative. The Foundation works closely with its local communities to identify the right projects and channelize CSR contribution.

CSR Committee

The Board of Directors of Cummins India constitute what is known as the “CSR Committee”, and this committee comprises of the following Members:

1. Mr.Prakash M. Telang (Chairman)
2. Mr. P. S. Dasgupta (Member)
3. Mr. Nasser Munjee (Member)

CSR Policy and Projects

The Committee has formulated a CSR Policy indicating the activities to be undertaken by it as per the Companies Act, 2013.

It also monitors and then makes suggestions regarding the amount of expenditure to be incurred on various activities in addition to reviewing the CSR Policy of the Company at regular intervals.

CSR Spend

1 Average Net Profit of the Company for Financial Years 2014 15, 2015 16 and 2016 17 830.64

2 Prescribed CSR Expenditure (i.e., 2% ) 16.61

3 Details of the CSR Spent during the Financial Year 2017 18

a. Total amount spent for the Financial Year 16.61

b. Amount unspent, if any Nil

CSR Interventions:

Higher Education

• Cummins realizes the importance of education greatly. Apart from rigorously recruiting from the top institutions of the nation, Cummins also focuses on enhancing employability by providing better education opportunities. Following projects were undertaken
• Established in 1991 in Pune, the college was set up exclusively for women known as Cummins College of engineering for women (CCEW). It focussed on Higher Education in STEM (Science, Technology Engineering, and Mathematics) for school going girl children.
• Apart from providing various facilities like faculty, student exchange programs, and placements to students, it has set up a Centre for Research and Intellectual Entrepreneurship (CeRIE).
• The ‘Cummins scholarship program’ has also been successful for 12 consecutive years, with this year an addition of 200 scholarships for meritorious and needy students.

Social Justice and Infrastructure

• The Khadakwasla water conservation project saw active partnerships from various other corporate players and NGOs and has been successful in saving over 13,300 million litres of water.
• Scientific implementation of watershed management techniques and holistic use of modern hydro geological studies has helped Cummins reach over 5500 villagers through our strategic project of Monsoon Resilient Maharashtra. The project has been piloted in four villages in KoregaonTaluka of Satara district in Maharashtra and they also plan to scale the project to fourteen more villages in MaanTaluka, which are significantly more drought prone regions.

EmpowerHER ‘Powering HER for a better tomorrow’

• This initiative was focused on aid income generation activities for the women at some Model Villages.
• Through this initiative, self help groups and entrepreneurship models have been developed, enabling women to become self reliant and financially capable

Education and Environment

• Padarwadi, a village situated 120 kilometers from Pune, was a paddy producing region. But due to lack of connectivity, the dehusking required them to go to another village leading to a lot of non productive work. Cummins solved this problem by establishing a ‘Distributed Generation Model for Rural Electrification’, which was economically sustainable and scaled across multiple villages.
• In order to educate the residents about garbage disposal and giving dignity to waste collectors, the ‘Zero Garbage project’ was introduced. It not only was successful measure but also made garbage as one of the renewable and profitable resource.
• It implemented the project ‘Safe Chula’, which aimed at reducing the wood consumption for cooking as it posed as an environmental and health hazard. It introduced the Energy saving cooking gas among households as an alternative.
• Cummins launched the ‘Paper Bag Project’; this project attempted to usher in newspaper bags in place of plastic bags. They not only spread awareness in the community about the harmful effects of plastic bag usage, but also provided various NGOs with the relevant skills to make paper bags, which would be completely recyclable and not as polluting as plastic bags from daily newspapers, in the process, providing under privileged people a source of livelihood to help them make ends meet.
• Project ‘Coach them young’ was launched in 2012, with a view to educate school children, has reached close to 3.3 million since its inception.
• Project ‘Clean Air Delhi’ in collaboration with Government NITI Aayog has been implemented to address the detrimental issues of pollution. Cummins plans to submit set of recommendations and regulations to the government in regard with this.
• To resolve the imbalance between e waste generation and its management in Pune and people’s limited knowledge about e waste, Cummins partnered with various NGOs, schools and local communities to create awareness on e waste through the project ‘E Cycle! – Reduce, Reuse and Recycle’. Through this project, 22.7 MT of e waste was collected and processed scientifically.
• Ganesh Chaturthi , a festival which is celebrated widely in India, wherein towards the end the decorated idols are immersed in water bodies, thus causing pollution. Cummins came up with ‘Ideal Immersion’ Innovative and eco friendly way of dissolving Plaster of Paris (PoP) idols during festival times, thus protecting the flora and fauna.
• Gre Engage is a pan India afforestation campaign that aims at sustainable tree plantation across all of our manufacturing and office locations in the country. This project helps build oxygen hubs by planting trees, harvesting rain water, adding organic supplements to improve soil fertility, and building nesting structures to attract birds, thus eventually creating a full fledged ecosystem. In the year 2017, more than 24,000 trees were planted while close to 95,000 trees were sustained.

Employee Safety

Cummins’ commitment to Health, Safety and Environment continued in 2017, reinforcing its responsibility towards employees, natural resources and the environment. Sites have taken efforts through various projects and have focused on training to strengthen the safety culture.