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Cummins Health, Safety, Environmental and Energy Management Systems
Alan ResnikDirector, Global Facilities and Operations
Environmental Management, Cummins Inc.
October 27, 2016
NAEM EHS & Sustainability
Management Forum
Agenda
Cummins Inc.
“Enterprise” HSEMS
– Common Global Standards
– Lead Auditor Certification Program
– Implementation Tools
– Data Analysis
– HSEMS/EnMS
HSEMS and Sustainability
2Public
“…we believe that our survival in the very long run is as
dependent upon responsible citizenship in our
communities and in the society, as it is in responsible
technological, financial and production performance.”- - J. Irwin Miller
Former Chairman and CEO
Cummins Legacy and Core Values
4
Cummins’ Enterprise HSEMS
371 Integrated HSEMS Certified Sites
• One, common set of global
standards
• Pre-assessment process
• Growth of safety and energy
systems enabled
• 3rd party audits by sample
approach
– √ No. Sites * .6
– Cost avoidance $6.1M
Public 5
Common Global StandardsEvaluation Process and Example
6
Identify the Issue
BenchmarkEvaluate
Environmental Considerations
Analysis Implementation
• Treated Wastewater
Discharges to Land
Surface
• Varying standards
and levels of rigor
by country
EXAMPLE• Explore issue with
other global
manufacturing
environmental
leaders
• Environmental
quality standards for
discharges
• CMI discharge
quality baseline
• Soil background
conditions
• “Uptake” capacity
• Sensitive receptors
• Treatment system
upgrade
considerations
• Cost/Benefit
• Consideration of
global standard
(Decision Point
Governance)
• Application of
standard locally
• Possible actions
include discharge
“ceiling” limits,
process reformulation,
treat for process
reuse, etc.
• Monitoring and
measurementPublic
Lead Auditor Certification Program
Audit reciprocity approach to fill registrar audit
sample gaps
Training, audit participation, graded lead audit =
Lead Auditor Certification
– Annual audit to maintain status
Benefits: consulting, best practice sharing, employee
development
7Public
Implementation Tool Kits
Model site procedures
Audit tool/IT application
HIRA (piloting new aspect/impact assessment tool for
revised 14001 Standard)
50001 Energy Review tool
Site 14001 transition toolkit
Corp level/sustainability group implementation toolkit
8Public
Enterprise HSEMS Data Analysis
Lead Auditor Development by Region
Non-conformances:
Internal Audit
Non-conformances:
External Audit
Public
9
ISO 50001 Business Case
10
Enterprise approach allows
EnMS implementation payback:
- 18.4 months for first 3 Pilot
sites in 2013
- 8.4 months for the six 2015
sites
Total costs for our nine EnMS certified SitesPublic
Cummins’ Experience
11
HSEMS/EnMS AttributeMaintains 3rd party Certification Administrative Burden
Saves $Millions Single, global registrar
Corporate documentation/tools facilitate implementation Translation
Common Global Approach Identifying global normalization factors
Common Standards Requirements Safety heavy lifting
Shared People and Common Forums Engagement of other functions is imperative
Common Audit Approach Can reduce auditor discretion
Enables Auditor Capability Magnitude = resources X time
Yields Meaningful Audit Score
Cummins' Energy Review Requires Energy Balance & Deep Dive Identification of relevant normalization factors
Engagement of People/Practitioners for Low Cost - No Cost Projects Develop and sustain Env Champion Program
Employee Engagement Cultural Shift Raise awareness on energy efficiency
Leadership Engagement Integration of HSE Management Into Business practicesEngagement to be driven from organization's
Top Management
Energy Performance Improvement
Audit Tool Application
Benefits/Challenges
Health, Safety and Energy Integration
Enterprise Approach
Public
Setting the Bar Higher
12
Comprehensive environmental sustainability plan
Prioritizes our actions to make the most impact
Continuously improve environmental performance and stewardship, accelerating
the biggest environmental opportunities beyond regulatory compliance
Looking across our entire product lifecycle
Gather data to understand Cummins relative impacts
Establish visions, benchmark others, consult experts
Set public, quantitative goals to focus the organization and be accountable
12
Communications
& Marketing
Support
EMS Future Required Scope
14
Employees
Communities
Regulators
Customers
Products in Use
Environmental Performance Improvement
Environmental Data Monitoring & Reliability
Suppliers
Interested
Parties
Compliance
Procurement
Employees
Communities
Suppliers
ProcurementInterested
Parties
Products
in-Use
Facilities &
Operations
Design for
EnvironmentLogistics Supplier
Engagement
Employee and
Community
Engagement
Business Strategy
Interested Parties
Suppliers
Compliance
Technology
Life Cycle Analysis
Design
Interested
Parties
Suppliers
Public