Making space for planet and profit

Show ID (00:04):
This is Power Onward, the podcast that wheels how power technology shapes your everyday life.

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Transform the area you are listening to, power our work.

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What is power in your world? Onward. This is Power Onward, the podcast that unveils how power technology shapes your everyday life.

Kim (00:33):
You're out for a walk on a crisp, clear morning. It's peaceful, but the world is already humming with activity. What powers our world isn't always visible, but it's everywhere it feels. The things we rely on and shapes the world will leave behind. At first it might feel simple, but behind it all are the complexities of power, technology and even more complex decisions. Decisions about how we design power and build for the future. Decisions about what we protect and what we're willing to change. For Tara, this is far from abstract, it's personal. As a mother of two, she's thinking about sustainability. Long-term. Tara grew up believing you should choose the work that makes an impact today. That means pushing for cleaner air, cleaner water, and a strategy that makes space for both planet and profit. I'm Kim.

Tara (01:28):
And I'm Tara.

Kim (01:29):
Tara, when did sustainability become the work you wanted to dedicate yourself to?

Tara (01:34):
I remember when I went to college, I said, oh, I'm going to be an environmental engineer, and I was convinced to be a mechanical engineer because it broader, but I never lost that passion. And after however many 16, 17 years at Cummins, I finally wanted to dive into that sustainability area more, and I got the opportunity to do that. And I interviewed, called my mom and said, I got the job. And she said, well, you always said you were going to save the rainforest one day. It's something that's been really, really a passion for me at the forefront of what I do and who I am. I love to help people, and so I feel that helping people physically is a big thing that we can do. And then if we can help people mentally as well, that's even more so. And then the environment kind of overlaps them both. And so I feel like the easiest way for me to help people and impact people is to help the environment.

Kim (02:37):
You say that so lightly, but it is really impactful and all of these things are intertwined. Tara, I've seen a lot of updated messaging around Destination Zero. Can you tell our audience what Destination Zero is?

Tara (02:49):
Sure. Yeah. So we have just gone through our midpoint review of our goals, and we did a rebranding of our sustainability strategy, which is now called Destination Zero. So really when you look at Destination Zero, it's our commitment to sustainability and then helping our customers navigate this energy transition all while growing our business. And so that's really where we marry the purpose of our company, mission of our company with the profitability and growth.

Kim (03:20):
Now at Cummins, we always talk about simplifying sustainability. What exactly does that mean?

Tara (03:26):
That's a good one, because when you think of sustainability, climate change, it can be intimidating, debilitating, even. I mean, even for me. So really when I think of simplifying it for Cummins, it's about three things I focus on. It's let's figure out, when we talk about sustainability, what it means to us. When I'm thinking about simplifying it, it's like, okay, let's clarify what sustainability means to us. Let's explain what we're doing and then let's connect it to people's work. So when we clarify it, it's not just, oh, I'm going to go out and hug a tree. How are we sustaining our company? How are we sustaining our employees and pulling them along through this energy transition as well, and making sure they still feel relevant with their skills, and then they can adapt to this changing environment. How do we sustain our communities where we operate? That's huge. And then how do we continue to help our customers and sustain our customers and their growth that's going to help us as a

Kim (04:31):
Company. Exactly.

Tara (04:32):
So sustainability is, it's simple when you put it in those terms, and then you think about explaining what are our goals and aspirations in this space, and then making sure we connect those things with people's work and so that they can feel a part of the strategy so that we can bring them along. And that's what I've been pushing for in the sustainability

Kim (04:56):
Space. That's a big part. I recently participated in a e EEC where we were helping to garden and harvest some different crops in Indianapolis. To me, it's so impactful to see that I think 61,000 of our employees are participating in volunteering within the communities to make it a better space. And it all starts with those three goals that you laid out, which understandably it is, you said debilitating. And to me, I felt that same way when my parents had asked me, what is Cummins doing for sustainability?

Tara (05:29):
Because

Kim (05:29):
There's so many things you don't know where to start. And identifying those three pillars really does lay it out in a simple way. Let's talk about decarbonization. Why does decarbonization matter? And what are we doing at Cummins to work towards that?

Tara (05:46):
Oh, well, that's a big question because we're doing so much, which is amazing. So I'm not going to list everything, but decarbonization does matter. We want to see our communities, our company, our employees thrive. So how do we do that from an aspect of making sure where we provide healthy communities, a healthier planet to allow that to happen, even when you look at our company's mission, making people's lives better by powering a more prosperous world. And in order to do that, you need a healthier planet. So decarbonization is the catalyst to be able to make that happen, to make that healthier planet. And some of the ways that we're doing that at Cummins, when you look at our products, we have fuel agnostic engines that we're working on.

Kim (06:31):
And what does that mean for our audience that may not know?

Tara (06:34):
It's where you just keep the base engine and then you change all the bits on top, basically. And then you can use different types of fuels, and that helps our customers. And if they want to use lower carbon fuels or wherever they are in their sustainability journey, we can help them along

Kim (06:53):
Meeting them where they

Tara (06:54):
Are. Yeah, exactly. So it's really customer focused. And we have hybrids where we have our diesel mixed with the electric. We have some of the things that we're doing with fuel economy projects. So those are making sure, even for those customers that we have out in the field, how can we improve their fuel efficiency? So how did they use less fuel?

Kim (07:15):
Very cool.

Tara (07:16):
Very cool. Which saving money, less carbon. Yeah, yeah, I was going to get to that. Right? For us, it's a win-win because it's less carbon emissions for us from the use of our products, but also for our customers. They spend less money on the fuel that's needed to carry out their everyday truly a win. So there's that. And then we have renewable energies, which we focus on with our facilities. So solar arrays that we have at different plants that help us to power our facilities and our manufacturing and manufacturing facilities. So

Kim (07:51):
Very cool. There are a lot of times where we see commercials and we see all these things in action, but knowing that they're in place at the locations that we work in is really inspiring. It's here, it's real life. This is not something that's future casted, something that's far along the way. It's here now for us.

Tara (08:09):
Exactly. And it works. Yes. And it's great to see it at work saying that, oh, we've provided this customer with an engine that was built on renewable energy and helping to green that grid. So it's really, it's encouraging.

Kim (08:23):
It's fulfilling, and I can see the pride in your face. We're just excited about it. Yeah. Oh, I am. I'm earlier. You mentioned fuel economy, but I've also heard you mention something about circular economy. Can you walk us through what that means?

Tara (08:38):
Yes. So circular economy is also very big. It's something like sustainability can be big If you Google circular economy, I think there are over 200 definitions of what circular economy could be. So for Cummins, what circular economy is is really simple. It's just how do we use less, use better and use again? So when we're looking at even making our products, how do we use less material? How do we extract less from the earth so that we're not ending up having to put more into landfill or ruining those natural resources? How are we're using our materials better? So when we look at the production of our products, the design of our products, can we say, oh, you know what? I probably don't need this much material to be able to make this part. So how do we continue to improve our engines and our dependability in there while using less and using the material in a better way? So not interrupting or ruining the structural integrity of our components, but continuing to make them stronger and use them better as we move forward. When we look at materials within our products, how do we say, okay, at the end of life, this can be used again, this can go to remanufacturing, or this can be recycled. What do we do at the end of life with those parts? It's really those three simple things like how do we use less? How do we use better? And how do we use,

Kim (10:10):
Again, there is a lot of thought and intention in each of those actions, and this feels like a more corporate version of reduce, reuse, recycle the things that we've learned when we were kids in implementing them Now. Exactly. Earlier you had also mentioned the energy transition, and now we all know there's no perfect playbook. There's no step-by-step plan for this energy transition. So in a space full of unknowns, how do you stay focused and continuing to

Tara (10:37):
Move forward? That's a really important question. So every year we have a session with our CEO to talk about our sustainability strategy and other key stakeholders within leadership, what we are currently doing, what we have planned for the future, make sure we're aligned with the business. And this year, she said something that really resonated with me, and it was focus on your sphere of influence and not your sphere of concern. And that is really critical in this sustainability space, because I've said before, I mean, it can be debilitating. You can just be a deer in a headlights because there's so much to do and you're constantly worrying, oh, am I doing enough? Am I going too slow? Am I too far in front? Is this going to way too many

Kim (11:26):
Complexities that just continue to layer upon each other?

Tara (11:30):
So really focusing on what we can control. And so that makes me think forward to, okay, so let's remember our purpose. What is our mission as a company? So how do I help create that healthier planet? What can Cummins do in that space? You just keep going layer by layer. Okay, what can we do? What can we influence? 99% of our footprint is from the use of our products, so let's make sure we have initiatives around that space, and we're pushing forward there because that's going to help us, help our customers, help our communities, help our employees. So things like that just help keep me focused. It's like, okay, let me make sure I'm just looking at my sphere of influence and doing what we can here.

Kim (12:16):
That's very powerful. And I can see that focusing right there in your influence can help you move forward with confidence because you are very aware of all the things that we can influence. Indeed. We know Cummins has made a long-term commitment to sustainability. What does that look like in practice, especially when so many others are pulling back?

Tara (12:35):
I have always thought that sustainability is linked with business. And I've said before, I think people sometimes talk about sustainability in a way that's just, oh, it's great. We can save trees and we can save water. But when you're in corporate America, when you're in a business and you talk about sustainability, it's great to talk about it in dollar signs and monetary because it can be very financially lucrative if you do it correctly. So when you look at the growth strategy, what can we do within that space to help with the life of our products? What do we do at the end of our product life? When I look at the business strategy, we have to make sure that we are aligned with it. And I think that when you look at how we are going forward, how the world is moving forward, how is sustainability playing a part in that? And you see, regardless of the geopolitical atmosphere across the world, sustainability is not going away. So I feel like those are linked with what we do, even with being able to grow a business. If we look at our new and recon parts business, what can we do at the end of life for our products so that we can continue to grow that space and grow that business?

(13:55):
Because that's a big opportunity. And then you look at the innovation within our employees, because sustainability isn't going away. We need people to come up with brilliant ideas, and how are we going to adjust? We're going to have climate change here causing wildfires. We're going to have floods, we're going to have all different sorts of things. How do we ensure that our products and our facilities and things like that are continuing to thrive in those spaces? Do we need new technologies? Do we need to think about things differently? So it really helps to spur innovation, I believe, within our employees and our workforce. And then it tracks talent as well. These days, I think it's maybe a little bit of a prerequisite to people who are looking for companies to work for, to see whether they have a purpose, whether they do care about the environment, whether they do care about the communities.

Kim (14:51):
I personally vet out those things. What are your company

Tara (14:53):
Values? What do you care about? And I've seen that even from questions from interns I've gotten, and they're challenging questions, they put me on the spot, and I have to think about those and answer those and actually take those in and see what can we do? This is how people feel, and let's make sure we're doing the right thing. Let's make sure we're driving towards this purpose that we have so that we can get the best talent. We need

Kim (15:21):
That. And they're already dedicated to the cause. Exactly. They're not new to this, they're true to this. And they're here to help us get to that goal as well.

Tara (15:27):
Exactly. Exactly.

Kim (15:30):
So Tara, what gives you hope right now when you think about your kid's future, the planet's future, what keeps you going?

Tara (15:38):
I would say young people with conviction. I don't know whether I'm classified as a young person anymore. We're always young,

Kim (15:47):
Forever

Tara (15:47):
Young at heart. But the people that I talk to these days, the awareness that they have that wasn't there maybe 25 years ago or so, I am so encouraged because they want to do something and they want to make a difference, and they push you. What are we doing in this space? So I think that is very, very encouraging, and it does push me. And then I guess on a lighter note, just being out in nature.

Kim (16:20):
Yeah, 100%

Tara (16:22):
Being out, nothing

Kim (16:22):
Like it.

Tara (16:23):
And then knowing that people are working towards preserving stuff like this, that I'm working towards preserving this, it helps keep me going. I think that's what really encourages me. I want my kids to be able to walk through this forest, or I want my kids to be able to go on this lake, make sure the lake is still there in 20 years. So that's really what helps me. So when we talk about sustainability at Cummins, there are so many projects out there that we're doing, just simplifying it, even for everyday employees in their everyday life. Some of the things that we've just done through June environmental month a while back were really fun. So we had a no new clothes challenge, and that's still going on, and that's basically, you can't buy any new clothes for 90 days, and we're tracking what that means for the environment.

(17:16):
How much water have we saved, how much is saved from a landfill, and how much energy is saved? And that's really exciting to see. And I think it's something that gets people who aren't normally involved in this space to ask questions and to say, oh, how can I get more knowledge in this area? How can I get more involved in this area? What else are you guys doing? And so it's kind of like a gateway. It is a gateway to sustainability, but things like that, I encourage other people to and to put on projects like that, it's great. And it really feeds into kind of like a circular economy aspect of things as well. I'm

Kim (17:58):
Glad you brought that up because in the midst of this no new clothes challenge, I had to buy one thing. My partner and I decided to elope, so I had to buy a wedding dress, but that was the one thing I bought. But we'll get into that another time. There was also a clothing exchange, a clothing swap. So I think that goes into your circular economy bit as well, because we were, not that we were fending for new clothes, but it was a really great way to exchange Cummins gear, like different hats, different shirts. We all collect things at trade shows, we stuffed them in our tote, and now we're exchanging our totes, exchanging our cups and drinkware. It was a really fun project,

Tara (18:33):
And it's still going on. I think it's going on until I think September 3rd. So it really makes you think, I said, oh, I want to buy something for this day. And I'm thinking, oh, wait, I'm not allowed to buy any new clothes, but we are allowed to buy secondhand, which again, keeps it out of landfills. And when you look at circular economy, that is a way to think about it. But then there are other aspects of circular economy within Cummins that we're starting to grab hold of. It's really a new initiative that we have within the company. And it's exciting because it's really complex that we're trying to make simple. That's always a challenge and a fun challenge. So we're trying to make sure that we bring people along for this journey and relate it to where they are and what they can do. And so I'm really, really excited about that initiative that we've started this year.

Kim (19:25):
And now I'm really excited. Should be, you always have a great way of every white paper, in case that I've ever worked on with you. There's so much to look forward to.

Tara (19:33):
Yeah. Yeah. So there's just, if you look at it, there's so much that can be done. But again, what are those things that we can do now? And then how do we get others engaged? That's another one that I'll probably just go on and on. But employee engagement is a big one that we've started our sustainability influencers a few years back,

(19:54):
And now we're getting to the point of action and mobilization. So we went from awareness and learning to spreading the word, and now we're getting our employees, our influencers mobilized, and that means they're out there helping with progressing our goals and doing projects. Though people can sign up for things and they're, we have extra arms and legs to do this because you're always thinking, we don't have enough people. How do we move faster? And now we can, because people are getting involved in these sorts of projects, and so we can do more. So that really, really excites me.

Kim (20:29):
Well, Tara, thank you so much for such an inspiring and insightful conversation knowing that the strategy that we are working on make space for planet and profit feels like a bold statement, but it's honest, it's raw, it's true, and it matters.

Tara (20:44):
Yeah, I completely agree. And if we can get more people talking about it in that way, I think we would get more help, more advocacy, more everything to just get us there faster. So yes,

Kim (20:57):
Thank you for your time today, Tara.

Tara (20:58):
Thank you so much. It was great talking to you.

Kim (21:01):
Likewise. Alright, so what's the big idea for this episode? Sustainability is both a long-term goal and a daily choice. Tara reminded us that clean air and water start with design decisions, smarter strategies and business models that make room for both purpose and profit. If you work in business, start asking, how are we building for the full life of what we make? Because sustainability doesn't happen later, it happens now or not at all.

Show ID (21:30):
Power onward. Thank you for listening to Power Onward. Your support means the world to us. If you enjoyed this episode, please don't forget to subscribe, rate and review on your favorite podcast platform. If you want to dig deeper on what we covered today, check out the show notes for additional links or go to cummins.com/podcast. Until next time, power onward. We are from Cummins, the company that's been innovating toward the future for more than a hundred years. We're no strangers to rapid change, global shifts and economic uncertainty. We want to be your constant during the energy transition whenever, wherever, forever Power Onward.