3/10/2019 Green Supply Chain Principles & Supplier Expectations

Green Supply Chain Principles & Supplier

Expectations

Cummins wanted to take our commitment to sustainability a step further by Related Links
partnering with our suppliers who have an important role in the lifecycle and
environmental footprint of our products. In our Green Supply Chain Principles, Supplier Code of Conduct
we used our own sustainability principles and environmental management policy
Cummins Sustainability
as guides. There is nothing we are asking of our suppliers that we are not doing
ourselves, and we are confident the advances our suppliers make will only further ISO 14001:2015
our own sustainability journey. We have clarified our expectations from suppliers
below.

We look forward to working with our suppliers as together we work for a cleaner, healthier safer environment.

Cummins Green Supply Chain Principles

The Principles

Create mutual environmental improvements by committing to collaborate with Cummins concerning

achievements, trends, and possibilities towards environmental sustainability.
Reduce environmental impact of all products, processes and materials.
Reduce environmental impact over the full life cycle of all products, processes, and materials by
measuring, setting reduction goals and monitoring progress.
Develop products and processes that are less harmful to the environment.
Minimize adverse environmental impact on air, land, and water.
Reduce greenhouse gas emissions in production, logistics and other processes, by establishing a
baseline, setting reduction goals and monitoring progress.
Minimize and properly manage waste.
Minimize water consumption and water-related risks.
Minimize the consumption of natural resources, raw materials, and fossil fuel inputs.
Promote recycling and evaluate the potential to use recycled or used materials when they are available.
Design and deliver to all customers, including Cummins, the most sustainable packaging by assessing its
quality and cost over the full life cycle.

As Cummins desires to co-operate and collaborate with its suppliers, our supply base should make a similar
commitment to work with its suppliers to create a process through which environmental improvements and
achievements can be shared upstream and downstream.

For questions regarding compliance with these principles, please contact getenvolved@cummins.com. Please do not
send solicitations for business to this email address.

The graphic below illustrates the results of our environmental assessment, which shows the tremendous potential to
make a positive environmental impact in our supply chain.

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At the very least, Cummins' suppliers must comply with all applicable environmental laws and regulations in areas
where they do business. In addition, suppliers must adhere to Cummins' Prohibited Substances standards as well as
provide required documentation, e.g. Material Safety Data Sheets (MSDS).

Cummins also expects suppliers to understand the Cummins Green Supply Chain Principles above and follow-up and
engage with us on packaging and transportation efficiency programs and communicate their own plans to meet or
exceed these standards through an environmental policy.

The below links will direct you to the relevant requirements.

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Shipping Requirements

Transportation Expectations

Packaging Requirements

Committed, Sustainable
Cummins is proud of its environmental commitments and sustainability achievements.

Dow Jones North American Sustainability Index member since 2006

Carbon Disclosure Project climate reporter since 2006; water reporter since 2012
Trucost Natural Capital Decoupling Leader 2014
Robert W. Campbell Award winner 2014
Clean Energy Ministerial Award of Excellence in Energy Management in 2016
Global Reporting Initiative "core compliance" reporter
Signatory to the U.N. Global Compact
AAA rated by MSCI ESG Research

Supplier Expectations

Suppliers should prioritize their actions and partner with us in the following four categories:

Reducing Environmental Footprint (packaging and transportation guidelines)

Mitigating Risk (water, energy)
Creating Opportunities (sharing ideas on processes that affect Cummins)
Supporting ISO 14001:2015 implementation

Periodic voluntary updates on your activities should be directed to the relevant Sourcing Manager from Cummins
Purchasing. These updates will provide a healthy source of best practices and new ideas for Cummins to consider and
incorporate into our own operations.

In addition as we consider potential suppliers for new work, evidence of activity in these areas will be of growing
importance.

For Cummins Category Partners there is an even higher expectation to strengthen their focus on environmentally
sustainable business practices and reporting.

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Helpful Resources

We have compiled a list of resources to provide some guidance in complying with the Green Supply Chain Principles.

Learn more about how Cummins collaborates with customers

Fuller discussion of water-related risk
EPA Climate Leaders GHG measurement and reporting tools
GHG protocol Corporate Accounting and Reporting Standard
GHG protocol Product Life Cycle Accounting and Reporting Standard
GHG protocol Scope 3 Accounting and Reporting Standard

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