Cummins named to prestigious world ESG index for second year in a row
Cummins Inc. has been named to the prestigious S&P Dow Jones Sustainability World Index for a second consecutive year, scoring in the 98th percentile in the 2022 review.
The global power leader joined 34 other companies from 19 different countries receiving the honor Dec. 9 in the capital goods sector. The company was also named to the S&P Dow Jones Sustainability North America Index for a 16th consecutive year.
“It is very gratifying to have our efforts in the areas of the environment, social and governance recognized and to know that investors believe they are important elements of Cummins’ story,” said Karen Cecil, the company's Director of Global Environmental Sustainability. “These efforts are part of Cummins’ core values and mission to power a more prosperous world.
“I’m especially proud of the 60,000 employees who work every day to envision what’s possible and identify sustainable solutions to go further, faster,” Cecil added.
A COMPREHENSIVE REVIEW
S&P Global, the world’s largest market index provider, says a record 1,728 companies eligible for selection into one of S&P Dow Jones Sustainability Indexes participated in the review in 2022, an increase of 9% over 2021. The initiative reviewed an estimated 13.4 million data points to arrive at its 2022 indexes.
“Last year, more companies than ever participated in S&P Global’s Corporate Sustainability Assessment (CSA),” said President and CEO Douglas Peterson in a report accompanying the release of the indexes. “The CSA forms the backbone of the research on which this report is based. We thank the companies that participated in this process, demonstrating their ongoing commitment to transparency about their ESG performance.”
Unlike ESG datasets that rely only on publicly available information, S&P Dow Jones says its review is based on a combination of company disclosures via an exhaustive survey as well as media coverage of the companies reviewed and stakeholder analysis.
The world sustainability index was first launched in 1999, making it one of the oldest sustainability/ESG (environmental, social and governance) rankings.
Cummins last made the S&P Dow Jones world sustainability index in 2013 before returning to the list in 2021 and now 2022. The company is committed to playing a leadership role on the global effort to reduce carbon emissions while also initiating programs to promote gender equity around the world and address institutional racism in the United States.
The rating from S&P Dow Jones follows an upgrade last month to AAA, the highest rating possible, in Cummins’ MSCI (Morgan Stanley Capital International) ESG ratings. Earlier in the year, the company received a 2022 gold medal for sustainability achievement from EcoVadis, a leading provider of business sustainability ratings, and a “Low Risk” ESG Risk Rating from Sustainalytics, a global leader in ESG research and data.
MANAGEMENT TOP 250 RANKING
In another sustainability related ranking released over the weekend, Cummins tied with the American Express Co. for No. 63 in The Wall Street Journal’s 2022 Management Top 250 ranking. Cummins improved 16 places from the company’s No. 79 ranking in 2021.
The ranking evaluates America’s largest publicly traded companies in five key areas – customer satisfaction, employee engagement and development, innovation, social responsibility, and financial strength – to come up with an effectiveness score.
The ranking is prepared for the newspaper by The Drucker Institute at Claremont Graduate University. It is based on the principles of Peter F. Drucker (1909-2005), a management consultant, educator and author, who wrote a monthly column at The Wall Street Journal for some two decades.