2021 SUSTAINABILITY PROGRESS REPORT | Cummins Inc. 25 YEAR WASTE REDUCTION (% intensity change) 2018 Baseline 2019 1.9% 2020 2.6% 2021 4.1% 2030 GOAL 25% PROGRESS ON GOAL TO REDUCE WASTE This table looks at total Cummins waste as a percentage of revenue. ENVIRONMENTAL PROGRESS // and by deploying modular engine skids for customer shipments. Looking ahead, Cummins’ Returnable Packaging Management Program has significant investments planned over the next five years in returnable packaging, tracking software, third party logistics, packaging services, warehousing, and more. These improvements will be instrumental to achieving 78 million pounds of packaging waste reduction, helping the company achieve its overall 2030 waste reduction goal. However, Cummins saw packaging waste increase by 3.3 million pounds, a 2% absolute increase. Process-derived waste increased by 7 million pounds, a 10% absolute increase, and e-waste increased by 1.6 million, 3.75 times larger than 2018. The company has launched initiatives to reduce packaging waste, process-derived waste (such as used oil, coolants, paints and solvents) and general refuse. In 2021, the company reduced general waste by 15% from 2018. This reduction is mainly attributed to closures of most office spaces and cafeterias due to the pandemic. Cummins’ packaging strategy has laid out an important path to achieving the company’s goals and aspirations. In 2022 alone, global packaging waste reduction projects are expected to reduce 1.3 million pounds of waste while providing a cost avoidance of $3 million. Cummins will achieve this through intercompany reuse of expendable packaging, implementing returnable solutions for engine blocks, battery packs and other prioritized parts; expanding leased and supplier owned returnable packaging in India and China; CUMMINS MAKES PROGRESS ON WASTE REDUCTION GOAL In its 2030 goals, Cummins is shifting focus from the company’s 2020 goal around recycling waste to producing less waste in the first place. Cummins has examined the company’s processes and practices to identify and implement immediate changes as well as transformational projects to achieve both its 2030 waste reduction goal and the company’s 2050 aspiration to use natural resources in the most sustainable way. In 2021, Cummins achieved a 4.1% waste reduction as a percent of revenue from the company’s 2018 baseline and an absolute generation reduction of 3%. Metal scrap decreased by 20 million pounds (a 8% absolute reduction), general refuse declined by 8 million pounds (a 15% absolute reduction). GOAL 6: Generate 25% less waste in facilities and operations as a percent of revenue. DOING OUR PART BY THE NUMBERS 20 MILLION Reduction in metal scrap in pounds achieved by Cummins in 2021, an absolute reduction of 8%.