By Danny Gavin, AEM Communications Coordinator --
AEM member company Cummins has had a longstanding history of operating by its core values, putting sustainability and community at the forefront of its business.
The company’s Destination Zero strategy has been driving business decisions since its formation, laying out a clear strategy to reduce greenhouse gas emissions, use natural resources responsibly, and serve the communities in which it operates.
The company stresses that Destination Zero is not just about environmental causes – it’s a business strategy. Destination Zero permeates into every facet of the company’s operation, setting a notable example with its facilities, and laying out various reasons that other companies should be operating sustainably.
“When you hear our CEO Jennifer Rumsey talk about Destination Zero, it’s apparent that our business strategy is deeply tied with our value system, and who we are as a company – and we’ve stuck to these values for decades,” said Cummins Executive Director of Technical and Environmental Systems Brian Mormino, who has been working on environmental strategy with the company for nearly 20 years.
The AEM Manufacturing Express is proud to make a stop at Cummins on Aug. 7. For more information and to follow along with the tour, visit manufacturingexpress.org.
Destination Zero: A Public Commitment to Sustainability
Cummins has long championed sustainability as a value and business imperative, and the company cites its stakeholder approach as the ‘why’ behind the public nature of its goals. Employees, customers, suppliers, and communities are just part of a long list of stakeholders, and the company wants to be open about its goals.
“We want to be clear with our stakeholders on what we’re doing, why we’re doing it, and invite them to look into our operation,” said Mormino. “That openness is important because of the collective nature of our goals – we can’t do it alone.”
The company’s commitment to sustainable operation is longstanding, and it’s evident that its values stem from a true desire to power a more prosperous world. The Destination Zero strategy focuses on three main areas:
- Decarbonization: delivering meaningful greenhouse gas (GHG) emissions reductions in the near- and long-term
- Materials: using natural resources in the most sustainable way and reducing waste.
- Communities: supporting communities to ensure they are better because Cummins is there “You can look back at our more than 100 years as a company and see that we’ve had a strongly value-driven mission statement – even going back to when it wasn’t as popular to talk about in the 50’s, 60’s, and 70’s,” said Mormino.
“When you hear our CEO Jennifer Rumsey talk about Destination Zero, it’s apparent that our business strategy is deeply tied with our value system, and who we are as a company – and we’ve stuck to these values for decades.” -- Cummins' Brian Mormino
Sustainability as Business Strategy: Two Sides of the Same Coin
Reducing waste is one of the main impacts of profitability for a company, as factors like how a facility runs, and how much water and electricity used can make a difference. Many companies want to be successful, and many forget that sustainability can be more than an inconvenience.
“We don’t differentiate between our sustainability goals and our business – it’s just how we operate,” said Mormino. “If you’re not viewing waste as cost, you may have a narrow view of waste.”
And in terms of workforce, if a company wants to attract the best and brightest talent, putting sustainability first is a great tactic. Who doesn’t want to work for a company who is working to protect the planet for future generations? Workforce development is top-of-mind for many companies, and all organizations should consider taking a sustainable approach to operations as a workforce strategy.
Industry Challenges to Overcome
No business operates alone, and looking at external business factors is just as important as focusing on sustainability internally. Of course, internal sustainability is something that all businesses should address – lighting, HVAC, and sustainable energy are all important, but it can’t end there.
While not everyone in the industry is moving at the same pace, external factors such as regulations and infrastructure investment continue to shape the landscape and influence decision-making. These pacing factors highlight the importance of ongoing advocacy – by maintaining a unified industry voice manufacturers can navigate the ever-changing regulatory landscape and continue to innovate and adapt at their own pace.
While not everyone in the industry is moving at the same pace, external factors such as regulations and infrastructure investment continue to shape the landscape and influence decision-making. These pacing factors highlight the importance of ongoing advocacy for technology-neutral regulations, ensuring that all manufacturers can innovate and adapt according to their unique trajectories. By maintaining a unified yet flexible approach, the industry can navigate these differences and promote progress for all stakeholders.
“That's what I think is the biggest challenge because we've all got our own businesses and our own interests to look out for, but we've got to find places where we can work together,” said Mormino.
In terms of supply chains, it’s equally important that businesses figure out partnerships that align with sustainable values. If businesses hope to make sustainable products, they must try to source sustainable materials.
“Collaborating throughout the supply chain, waste in particular being one of those significant areas, makes it possible for us all to reach our goals,” said Mormino. “That is why, during a recent review of our environmental sustainability goals, we added a new goal to address upstream GHG emissions from key suppliers through supplier engagement and extend our impact across the value chain.”
Building Community
Sustainability extends far beyond eco-friendly practices – building up local communities is just as much a part of the concept. Businesses are only as strong as the communities that they operate in – if a community is on the decline, a company can’t tap into the resources around it and flourish.
“If companies manage their energy, water and waste better, it creates a positive impact,” said Mormino. “If you take that impact and magnify that across every site that we operate in, that does add up to collective global impact, but it starts locally – that’s where the true work is done.”
Ultimately, it comes down to people. Building a strong culture, building the best teams, and making a better future for generations to come – these are the key reasons for companies to take up the sustainability torch. All sustainable goals and practices are tied to a much bigger effort than just one company can tackle. And if manufacturers can come together, the equipment manufacturing industry can increase profitability together, and build a better world while doing it.
“All of our goals at Cummins are tied to a much bigger mission than just ourselves – and that is rewarding, positive, exciting, and motivating,” said Mormino. “If we all do our part, we can make a measurable difference as an industry.”
