2021 SUSTAINABILITY PROGRESS REPORT | Cummins Inc. 19 ENVIRONMENTAL PROGRESS // 2030 GOAL UPDATE More than 3,000 businesses and financial institutions, including Cummins, are working with the Science Based Target initiative (SBTi) to reduce their emissions in line with climate science. Following the Paris Climate Agreement in 2015, organizations including the United Nations Global Compact, the CDP (formerly the Carbon Disclosure Project), the World Wildlife Fund and the World Resources Institute partnered to develop the SBTi to set science-based emissions reduction targets. In 2017, Cummins pledged to develop targets within the SBTi framework. In 2019, the company announced two goals aligned to the framework—one for newly sold products and the other for facilities and operations. The facilities and operations goal is specifically tied to keeping global warming to a 1.5º C temperature increase over pre-industrial levels while the newly sold products goal is aligned to a 1.5º C to 2º C range. Cummins also set seven other 2030 goals as part of PLANET 2050 , the company’s environmental sustainability strategy. This is Cummins’ first progress report on them. 1. Reduce absolute greenhouse gas (GHG) emissions from facilities and operations by 50%. 2. Reduce Scope 3 absolute lifetime GHG emissions from newly sold products by 25%. 3. Partner with customers to reduce Scope 3 GHG emissions from products in the field by 55 million metric tons. 4. Reduce emissions of volatile organic compounds from paint and coating operations by 50%. 5. Create a circular lifecycle plan for every part to use less, use better, use again. 6. Generate 25% less waste in facilities and operations as a percent of revenue. 7. Reuse or responsibly recycle 100% of packaging plastics and eliminate single-use plastics in dining facilities, at employee events and as amenities. 8. Reduce absolute water consumption in facilities and operations by 30%. 9. Produce net water benefits that exceed Cummins’ annual water use in all Cummins regions. CUMMINS’ 2050 ASPIRATIONAL TARGETS DOING OUR PART TO ADDRESS CLIMATE CHANGE AND AIR EMISSIONS 2050 TARGETS: Customer success is powered by carbon neutral technologies that address air quality.   Carbon neutrality and near zero pollution in Cummins’ facilities and operations. 2050 TARGETS: Net positive impact in every community where Cummins operates. Near zero local site environmental footprin t. COMMUNITIES ARE BETTER BECAUSE WE ARE THERE USING NATURAL RESOURCES IN THE MOST SUSTAINABLE WAY 2050 TARGETS: Design out waste in products and processes. Use materials again for next life. Reuse water and return clean to the community. NINE 2030 GOALS CIRCULAR ECONOMY SCIENCE-BASED TARGETS NOTE: Company facilities include all consolidated operations and joint ventures that are part of the Cummins Enterprise Environmental Management System.