2021 SUSTAINABILITY PROGRESS REPORT | Cummins Inc. YEAR WATER WITHDRAWN (in gallons) PERCENTAGE REDUCTION (from 2018) 2018 960 million Baseline 2019 895 million 6.7% 2020 772 million 19.5% 2021 838 million 12.7% 2030 GOAL 672 million 30% WATER GOAL PROGRESS This table looks at water use in comparison to the goal’s 2018 baseline ENVIRONMENTAL PROGRESS // PARTNERING ON WATER Cummins is part of several partnerships working to address the world’s water issues. The company joined the CEO Water Mandate, an extension of the United Nations’ Global Compact, in November 2019, and the related Water Resilience Coalition in 2021. Companies joining the coalition pledge to make the necessary investments in their own operations, as well as work together, to accomplish three goals by 2050:  A net positive impact in water-stressed areas.  Water resilience practices across a company’s value chain.  Collaboration to achieve water resilience. DOING OUR PART BY THE NUMBERS 672 Consumption target in millions of gallons of water use per year to reach 2030 reduction goal of 30%. 27 Cummins is already conserving millions of gallons of water through three relatively new on-site treatment systems at the Jamestown Engine Plant in Jamestown, New York; the Rocky Mount Engine Plant in Rocky Mount, North Carolina; and the Kothrud Engine Plant in Pune, India—three of the company’s largest plants. These multi-faceted systems are designed to treat water used at each location and return a significant amount to the plants for non- potable re-use. Cummins will continue to reduce water use through low- and no-cost efforts, notably fixing leaks and optimizing processes, and working to eliminate water use in them if possible. Finding alternative water sources or reusing water could include actions such as reuse of water from testing fire sprinklers and harvesting rainwater. The company has established some guidelines such as using treated wastewater whenever possible and utilizing fresh water for processes only after all other conservation options have been explored. Sites in water-stressed regions are working toward 100% wastewater reuse, including for irrigation. Cummins is moving away from water- intensive landscaping, using native grasses and other techniques more frequently in its landscaping as well as designs that keep rainwater on site rather than channel it to storm sewers. Efforts to meet the goal also include capital projects, primarily equipment efficiency upgrades and other high-impact projects such as single-pass cooling elimination, additional regenerative dynamometer installations to capture water used to cool test engines, and innovative wastewater reuse projects. CHALLENGING WATER GOAL PROMISES TO TEST COMPANY CREATIVITY Cummins’ PLANET 2050 water use goal is an absolute reduction of 30% by 2030, compared with the company’s 2020 goal, which was a reduction in water use intensity (water use adjusted by hours worked). In 2021, the company’s water use was 838 million gallons, a 12.7% reduction from the 2030 goal’s baseline year of 2018, but up 8.5% from 2020. Cummins used 960 million gallons of water in 2018, so a 30% reduction means reaching a consumption target of about 672 million gallons annually by 2030, even if the company grows. The 2030 goal is 100 million gallons below what the company consumed in 2020, when many Cummins facilities closed for significant time periods to help prevent the spread of COVID-19. Achieving that kind of reduction under more normal conditions will be a challenge. GOAL 8: Reduce absolute water consumption in facilities and operations by 30%.