Employee Engagement From the Shop Floor to the Top Floor. Brian Mormino Director, Energy Policy Cummins Inc.

Transcription

1 Employee Engagement From the Shop Floor to the Top Floor Brian Mormino Director, Energy Policy Cummins Inc.

2 Cummins Inc. Headquarters: Columbus, Indiana (founded in 1919) 2009 financials: $10.8 B revenues, $428 M net income Employees: approx. 35,000 worldwide; 15,000 United States Corporate structure: four complementary business units Engines, Power Generation, Distribution and Components Major markets: global HD/MD truck markets; Asia LD trucks; construction; oil, gas and mining; agriculture; construction; government; commercial/consumer power generation; parts/service; diesel engines for Dodge Ram pick-up truck International presence: operations in more than 190 countries and territories worldwide; more than half of sales generated outside the United States; leading maker of diesel engines and related products in China, India, Brazil, United Kingdom and Brazil 2

3 Climate Change?? Carbo on Sequestration Carbon dioxide (CO 2 ) Methane (CH 4 ) Nitrous oxide (N 2 O) Hydrofluorocarbons (HFCs) Perfluorocarbons (PFCs) Sulfur hexafluoride (SF 6 ) Heating Temperature & Evaporation water holding capacity atmospheric moisture greenhouse effect & rain intensity Floods & Droughts Cradle to Grave 1,428 page US House Bill 923 page US Senate Bill AB32 3

4 Employee Engagement Make the Business Case Create Manageable Structure Educate and Make Visible Provide an Outlet for Action 4

5 Business Case Climate change initiatives position Cummins for sustainable success It s Good Business and Good For Our Business Energy Efficiency Drives Greenhouse Gas Reduction Regulations are Coming Our Customers Can Count on Us It s the Right Thing to Do 5

6 GHG Reduction = Energy & Cost Savings 25% intensity reduction from 2005 baseline by 2010 Mobile sources, 4% All Other, 1% Fugitive SF6, CO2, 15% Stationary combustion 22% Electricity 58% Carbon footprint mainly energy use GHG reduction avoids ~$20 million of annual utility spend 6

7 Value of Fuel Economy Improvement 1 Truck 120,000 miles / yr 6.0 mpg (20,000 gallons of fuel used / yr) 5% Fuel Fuel Improvement Improvement == 200 1,000 gallons diesel saved 1% gallons of of diesel saved and tonnes tonnesco CO Savings Savingsper pertruck truck==$3,000 $600 and 22 Let s assume: Diesel = $3.00/gal 7

8 Employee Engagement Make the Business Case Create Manageable Structure Educate and Make Visible Provide an Outlet for Action 8

9 Cummins Climate Change Principles Demanding that Everything We do Leads to a Cleaner, Healthier, Safer Environment Company Actions Policy Advocacy Improve Product Efficiency Grow and Develop New Businesses Collaborate with Suppliers and Customers Develop Responsible Regulations Promote Technology Development Make Work Spaces Green Spaces Harness the Energy of Employees Support Community Efforts Accelerate Progress through Incentives Create a Balanced Global Approach 9

10 Climate Change Working Group Climate Change Working Group Leader for Each Area Monthly Meetings Specific Workplans Company Actions Policy Advocacy Products Facilities United States States International Businesses Employees Responsible Regulations Technology Development Suppliers/Customers Communities Incentives Global Approach 10

11 Employee Engagement Make the Business Case Create Manageable Structure Educate and Make Visible Provide an Outlet for Action 11

12 Educate Broadly with Varied Vehicles Articles Intranet stories s Newsletter Factbook Web and Video Webcast Web conferences Slides w/audio Social networking In Person Site visit roadshow Staff meetings 12

13 Keep Everyone Updated Dedicated intranet portal website * Progress and success stories GHG tracking and reduction scorecard Energy Champion training Energy and green building awards 13

14 Make Energy Use Visible Light Switch Card Printer Sticker 14

15 Make Energy Use Personal Real employees engaged in energy efficiency actions Home energy use / fuel savings tips 15

16 Make Energy Use Visible and Personal 16

17 Employee Engagement Make the Business Case Create Manageable Structure Educate and Make Visible Provide an Outlet for Action 17

18 Expand the Scope Engine Business India Distributors Climate Change Working Group China Power Generation European Union 18

19 Celebrate Energy Experts One per Site Coaching and Projects One in every area/team at a Site Operations Improvement 19 Wave 5 EC Launch, Daventry UK February Goal: 100 Energy Champions trained ~20 sites with Energy Leaders programs Every site save at least 10% with low/no cost actions (~$10M savings) Pilot Graduation Energy Leader Class CIC/CKEC, January 2010

20 Support Community Efforts 90 th Anniversary Environmental Project Challenge 3,200 employees from 11 countries 33,450 hours on 62 green initiatives 538 metric tons of greenhouse gases conserved President s Winner Projects Rural electrification project (India) Water scarcity (India) Inspire Orchard project (UK) River Chater bio-diversity and habitat improvement (UK) Removing barriers to recycling (Minnesota) 20

21 Ask for Employee Help Energy efficiency intranet portal for information relevant to workplace and home Model personal energy efficiency at work and home address for ideas Support for Energy Champions at each site Environmental Challenge Grant applications 21

22 Engage Employees Personally Take the Pledge!! Capture carbon footprint before and after individual energy efficiency efforts Intranet site for information and resources 22

23 Provide Tools Need only gas and electric bills, fuel use Stores data Home energy use and fuel savings tips on website Link to purchase trees as offset 23

24 Employee Engagement Make the Business Case Create Manageable Structure Educate and Make Visible Provide an Outlet for Action 24