The Dow Jones Sustainability Index last week named Cummins Inc. and Caterpillar to its World index for the third year in row and seventh consecutive year, respectively, recognizing the companies’ continued commitments to economic, environmental and social leadership. This index represents the top 10 percent of the world's largest 2,500 companies in these corporate sustainability metrics.
The updated indices, based on Dow Jones' annual review, become effective with the opening of the equity markets on Sept. 24.
The two companies represent two of the 11 U.S. companies among the 45 global members of the industrial goods and services sector on the World Index. In its annual review, the Dow Jones Sustainability Index analyzes companies in three broad categories - economic, social, and environment, counting for 22, 36 and 42 percent, respectively, of the total score in the industrial sector.
Specific issues considered include corporate governance, risk management, branding, climate change, supply chain standards, labor practices, corporate citizenship and philanthropy, employee development, environmental management systems, and environmental policy and procedures and the scope of their application.
“We are honored to be included among this elite group of companies that have demonstrated a commitment to sustainability issues,” said Christine Vujovich, vice president – marketing and environmental policy.
Cummins works to make improvements to its sustainable practices every year. For example, Cummins has committed to reducing its global greenhouse gas emissions by 25 percent as a percentage of net sales from 2005 to 2010, as part of its membership in the U.S. Environmental Protection Agency’s Climate Leaders Program. To meet this goal, Cummins has engaged the internal expertise of its environmental and facilities leaders to make energy assessments and improvements in its operations.
“Throughout Caterpillar, our employees look for opportunities to apply our expertise and technology in areas affecting sustainable development,” said Jody Howard, Caterpillar’s director of social responsibility who leads the company’s sustainable development initiatives and environmental, health and safety performance.
Dow Jones enlists the help of SAM Research in compiling its indices. Invitations to participate in the Index are sent to 2,500 companies worldwide; SAM Research analyzed approximately 1,100 companies through a combination of company-supplied and public information. The selection of index components follows a prescribed rules-based process and analysis is verified by an external auditor.
Columbus, Ind.-based Cummins is a corporation of complementary business units that design, manufacture, distribute and service engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems.
Peoria, Ill.-based Caterpillar had 2006 sales and revenues of $41.5 billion.