The Business Case for Sustainability at Cummins Inc.

Abstract

ABSTRACT This report presents the business case for why Cummins Inc., a 10-billion-dollar diesel engine and power company, should adopt a sustainability strategy, and provides suggestions for how the company can incorporate the concept of sustainability into its existing processes. The Four-Question Sustainability Framework, a tool created specifically for this project, is used throughout the report. The five reasons why Cummins should adopt a sustainability strategy are: • Sustainability is part of Cummins’ history. • Sustainability is in line with Cummins’ vision, mission, and values. • A sustainability strategy will help Cummins address macro-environmental trends. • A sustainability strategy will enable Cummins to reap financial benefits. • A sustainability strategy is necessary for Cummins to remain competitive. We present a case study of Fleetguard’s creation of the Mach filter to demonstrate how the interplay of these factors influenced a Cummins business unit to pursue a new product linked to sustainability. To explain how Cummins can integrate a sustainability strategy, we develop a sustainability vision statement for Cummins. We then draw upon the Four-Question Sustainability Framework to systematically analyze existing processes and suggest enhancements for how the company can become more sustainable. We recommend implementing these changes through four main channels: overall company objectives, planning processes, operational practices, and financial analyses.