2021 SUSTAINABILITY PROGRESS REPORT | Cummins Inc. 20 YEAR SCOPE 1 GHG EMISSIONS SCOPE 2 GHG EMISSIONS TOTAL GHG EMISSIONS % REDUCTION FROM BASELINE 2018 308 581 889 Baseline 2019 303 386 689 23% 2020 258 336 594 33% 2021 269 343 612 31% 2030 GOAL 50% GHG REDUCTION PROGRESS This table looks at the company’s progress toward the 2030 goal of reducing GHGs by 50% at company facilities in thousands of metric tons of CO 2 e. CUMMINS OFF TO GOOD START IN REACHING FACILITIES’ GHG GOAL In 2021, Cummins began to see a return to something closer to normal operations after the company’s low point for energy use in 2020, due primarily to the COVID-19 pandemic. The PLANET 2050 goal for 2030 shifted from the company’s 2020 goal based on an energy intensity measure to an absolute greenhouse gas (GHG) reduction. While business growth in 2021 in some markets increased absolute energy use, GHG emissions overall for Cummins declined. From the goal’s baseline year of 2018 to 2021, GHGs decreased by 277,000 metric tons, equivalent to a 31% reduction from the baseline. The reduction can be attributed to several factors:  Completion of India solar projects and a virtual power purchase agreement with an Indiana windfarm.  LED lighting and compressed air efficiency projects across the company.  The impact of the pandemic on energy use. Normal operations were in place at most manufacturing facilities in 2021, but some offices remained closed where employees could do their jobs working from home. In 2021, Cummins completed more than 155 projects reducing GHGs, investing approximately $20 million. As a result, the company achieved GHG savings of 22,495 metric tons of CO 2 e (carbon dioxide equivalent). Thirty percent of the GHG reductions can be attributed to solar projects in India and Australia. Several facilities made equipment upgrades to chillers, boilers, and air conditioning units. Although most large sites have converted to LED lighting, lighting still contributes to GHG reductions, representing 15% of the 2021 GHG savings. ENVIRONMENTAL PROGRESS // GOAL 1: Reduce absolute greenhouse gas emissions from facilities and operations by 50% by 2030. GREENHOUSE GAS IS GROUPED INTO THREE GROUPS OR SCOPES SCOPE 1: Includes direct emissions from the use of fuel for stationary and mobile applications, fugitive and refrigerant emissions. SCOPE 2: Includes indirect emissions from the generation of purchased electricity and steam. SCOPE 3: Includes all other indirect emissions that occur in a company’s value chain. Crews install a solar array at the company’s engine plant in Rocky Mount, North Carolina (U.S.). When complete in 2022 it will be the second largest array at a Cummins facility. NOTE: Goal calculation uses market-based Scope 2 emissions.