For the fourth year in a row, Cummins Inc. has been named to the Dow Jones Sustainability World index, which represents the top 10 percent of the world’s largest 2,500 companies in corporate sustainability. Also as part of the 2008 review, Cummins was recognized as one of the world’s top 11 leaders in sustainability among industrial companies and was included in the North American index for the second straight year.
The updated indices, based on Dow Jones Sustainability Index’s annual review, become effective with the opening of the equity markets on Sept. 22. In its annual review, DJSI analyzes companies in three broad categories – economic, social, and environment, with a higher weighting given to environmental performance in industrial companies such as Cummins.
Specific issues considered include corporate governance, risk management, customer relationship management, climate change strategy, supply chain standards, labor practices, corporate citizenship and philanthropy, employee development, product stewardship, environmental management systems, and environmental policy and procedures and the scope of their application.
“Cummins appreciates the work DJSI does to promote and recognize good sustainable practices, and it’s an honor to be included in a list of such fine companies,” says Tom Linebarger, president and chief operating officer of Columbus, Ind.-based Cummins. “Cummins believes that strong performance in governance, social and environmental arenas is not only the right thing to do, but benefits all our stakeholders. There are always areas in which we can improve, but our inclusion for the fourth time in the World Index is an indication that we are making good progress.”
Cummins says it works hard to improve its sustainable practices every year. In 2008, the company expanded its customer support excellence initiatives to all parts of the corporation; received awards for excellence in corporate governance and business ethics; revamped its Code of Conduct for employees; made solid progress in achieving its greenhouse gas reduction commitment; adopted more stringent safety targets to move Cummins to best in class in safety; and was acknowledged as a leader in diversity and our employment of Asians and Asian-Americans.
Sustainable Asset Management (SAM) Group works in partnership with Dow Jones in analyzing companies and compiling its indices. The selection of index components follows a prescribed rules-based process, and analysis is verified by an external auditor.