2021 SUSTAINABILITY PROGRESS REPORT | Cummins Inc. 62 The act also provides opportunities to invest in both low carbon and zero emission school and transit bus technology, and to build out the national charging infrastructure necessary for them. Additionally, the legislation contains significant funding for grid modernization, additional smart transmission, and distribution infrastructure to support more renewable energy development. The IIJA passed after extensive engagement with Congress and the Administration and will provide opportunities for ample investment in advanced technologies across the United States. WORKING WITH REGULATORS In Europe, the Government Relations team has been involved in mitigating the policy risks related to internal combustion engine technologies to ensure the focus is on improving environmental performance. On the implementation of the Euro VII emission standards, leaders from Product Compliance and Regulatory Affairs at Cummins met with high-level officials from the European Commission on several occasions to discuss challenges linked to the future regulation. The Government Relations team in Latin America, meanwhile, worked with Dual Carbon Initiative to promote alignment between carbon, pollutant emission and fuel efficiency. In Brazil, Cummins joined the Sustainable Low Carbon Movement to assist policy makers in their development of a strategic plan for a path to zero emissions. This plan will help frame the phases of the automotive policy in the country. Additionally, Cummins identified opportunities for new technologies and participated in the inauguration of the first hydrogen Cummins Electrolyzer and Fuel Cell project in Brazil. Finally, at the close of 2021, after years of advocacy from the business and social community alike, Congress passed the Infrastructure, Investment and Jobs Act (IIJA) and President Biden signed it into law. The IIJA includes several provisions that Cummins advocated for over the past four years, including in the Congressional testimonies of Cummins’ Tony Satterthwaite, Vice Chairman, and Dr. Wayne Eckerle, Vice President – Solid Oxide and Advanced Technology Exploration. The legislation will allow, for example, investment in hydrogen, including requiring the U.S. Government to propose a national hydrogen strategy, and build cross-sectoral hydrogen hubs across the country. ADVOCATING FOR CLIMATE ACTION Cummins Chairman and CEO Tom Linebarger and Amy Davis, the company’s Vice President and President of Cummins’ New Power business segment, attended the United Nations Conference of Parties 26th climate change (COP26) summit in Glasgow, Scotland. The event provided the company an opportunity to champion Cummins’ investment in the technologies of the future and engage with high level government officials and business leaders focused on the world’s climate challenges. The company also worked on Fit for 55, the European Union plan to reduce GHG emissions 55% by 2030. The climate initiative deals with renewable energy, taxation, and infrastructure, with the goal of strengthening the role of new and cleaner technologies in the path-to-zero emissions. Cummins also promoted hydrogen internal combustion engine technology to different policy leaders across the continent as an important step to reduce carbon quickly that should be encouraged to achieve a no-carbon economy. The company advocated for a similar approach in China with hydrogen internal combustion engines, engaging on China’s GOVERNMENT RELATIONS PARTNERS FOR PROGRESS ON SUSTAINABILITY The Cummins Government Relations function partners with business leaders to advocate for a positive business environment that fosters profitable growth, a cleaner environment, and more prosperous communities. 2021 was a historic year for climate and infrastructure policy. The Government Relations team worked to educate policymakers on the company’s commitment to Destination Zero , Cummins’ strategy to reduce greenhouse gases (GHGs) and improve air quality, and the importance of federal, state and local investment in low carbon and zero emission fuels, now and in the future. GOVERNMENT RELATIONS //
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