2021 SUSTAINABILITY PROGRESS REPORT | Cummins Inc. 32 The EPA’s GHG and fuel-efficiency regulations were required for all heavy- duty diesel and natural gas engines beginning in January 2014. Cummins’ GHG certification was the first engine certificate issued by the agency. Phase 2 of the U.S. GHG-fuel efficiency regulations, passed in 2016, includes separate engine standards. Cummins continues to support this approach. The company also continues working to reduce levels of NOx and PM in its product emissions both in the U.S. and globally. ADVOCATES FOR ACTION As attention has turned to the world’s climate challenges, Cummins has joined with like- minded companies to support climate action. Ahead of the global climate summit in Glasgow, Scotland (U.K.), in 2021, Cummins joined Business Ambition for 1.5°C, which encourages companies to set robust emission reduction goals for GHGs using science-based targets aligned to the 2015 Paris Climate Accords. By extension, the company also was accepted into the United Nations’ Race to Zero campaign, a global To achieve responsible regulations, the company is committed to working with the U.S. EPA, the California Air Resources Board, China’s Ministry of Environment and Ecology, the European Commission and other regulators as they develop new standards. Cummins work in this area is led by the company’s Product Compliance and Regulatory Affairs (PCRA) team. The team was created in 2019 to strengthen Cummins’ collaboration with agencies setting emissions regulations and certification processes. PCRA functions independently from, and provides oversight to, the product development teams and business segments at the company. The group’s leader reports directly to Cummins’ Chairman and CEO and is a member of two of the company’s top leadership teams. Keeping track of global standards is no small task. In 2020, the company certified or maintained more than 125 engine configurations with approximately 17 governing agencies around the world. These certifications represented at least 34 different emissions standards for diesel and natural gas products for on-highway, off-highway, marine and rail applications. Together, they enable the company to achieve four strategic goals:  The development of responsible regulations.  A balanced, global regulatory approach.  Incentives to accelerate progress on the environment.  Technology development. Here’s a closer look at each area, and how they work together to help Cummins accomplish those goals: REGULATORY SUPPORT Cummins supports tough clear and enforceable regulations. The company expects standards will continue to tighten for nitrogen oxides (NOx), particulate matter (PM), greenhouse gases (GHGs) and other emissions, not just in the United States, but around the world The company believes the technical knowhow of its employees give Cummins a competitive advantage in meeting tougher regulations, provided they are enforced equally to create a level playing field. PARTNERSHIPS AND ADVOCACY // THREE KEYS TO CUMMINS’ APPROACH TO ENVIRONMENTAL STRATEGY AND COMPLIANCE Regulatory support, policy advocacy, and effective partnerships all play critical roles in Cummins’ approach to environmental strategy and compliance.