Cummins Inc. 2022 HUMAN CAPITAL MANAGEMENT REPORT

Transcription

Cummins Inc.2022 HUMAN CAPITALMANAGEMENT REPORT

At Cummins, we arecommitted to what isnow a more than 100-yeartradition at our company—creating and maintaininga dynamic andexciting workplace.Chairman and CEO Tom Linebarger2022 Human Capital Management Report Cummins Inc.2

CEO LETTEROur commitment toour most importantasset—our peopleWe are steadfast in our commitment tobuilding a dynamic workplace where allemployees are inspired and encouragedto achieve their full potential.This is how we define Leadership Culture at Cummins. To be successful,it must be embedded at every level of our company as helping our employeesreach their full potential impacts our ability to innovate, serve our stakeholdersand maintain our position as an industry leader.THE ROLE OF LEADERSChairman and CEO Tom Linebarger meetswith a women’s employee resource group.2022 Human Capital Management Report Cummins Inc.This work starts at the top with our Board of Directors. In 2020, we renamedour Compensation Committee as the Talent Management and CompensationCommittee, reflecting the much-needed emphasis on employees at our boardlevel. The committee focuses on our employee experience, recently overseeingthe creation of global implementation plans and process improvements inresponse to employee feedback.We focus on leadership at all levels of Cummins because leaders playsuch a pivotal role in creating a great work environment. More than anyone,3

CEO LETTERleaders shape the experience for employeesacross the company.We have invested significant time and resources intoleadership development programs. Diversity among theparticipants is intentional – spanning our various businesssegments, functions, and regions around the world andtargeting employees at different levels in the organization.Our curriculum recognizes the need for today’s leadersto build business acumen and emotional intelligenceto successfully drive business results while effectivelyengaging with a diverse set of stakeholders.The result of our investment is a resilient, experienced, agileand accountable group who is well prepared for complexglobal challenges. I am confident that the pipeline of leaderswe have developed is one of our most sustainable strengthsirrespective of industry changes and business cycles.DIVERSITY, EQUITY AND INCLUSIONDiversity, equity and inclusion (DE&I) is our competitiveadvantage. We have a history of bringing people togetherwith different talents to solve complex problems and driveinnovation for our customers. We can do this better andfaster by creating an environment for everyone to reachtheir full potential.Our commitment to diversity enables us to attract thebest talent, and our commitment to equity and inclusion2022 Human Capital Management Report Cummins Inc.positions us to deploy our talent more effectively than others.There are many companies working to solve complicatedglobal challenges. What sets Cummins apart is that we areexperts in using the power of difference to address toughissues – leveraging the capability of our leaders and thediverse perspectives of our teams to deliver the best solutionsto customers around the world in a way that is customized totheir culture, language and needs.MEETING FUTURE CHALLENGESCreating and maintaining a dynamic work environmenthas never been more important. We are entering anunprecedented period in Cummins’ history. Climate change isthe existential challenge of our time, and the companies thatsucceed in the future will deploy their diverse talent to solvingcomplex problems while using fewer of the world’s resources.We are confident that our path to zero carbon emissionsis the best for the planet, our stakeholders and Cummins’continued success. All our employees have a role to playin this. Our children and their children will look back andask what we did to address climate change, and we mustdedicate our talent and resources toward solving it.This is the challenge in front of us and there is nocompany better positioned to confront it. Tom LinebargerChairman and CEO, Cummins Inc.Cumminsat a glanceCummins Inc. is a global power leader made upof complementary business segments that design,manufacture, distribute and service a broadportfolio of power solutions, including diesel,natural gas, electric and hybrid powertrainsand powertrain-related components.ESTABLISHED:1919HEADQUARTERS:Columbus, Indiana (U.S.A.)SALES/EARNINGS:Cummins earned 1.8 billionon sales of 19.8 billion in 2020.EMPLOYEES:59,900 as of Dec. 31, 2021OPERATIONS:Cummins serves customers aroundthe world, with principal manufacturinglocations in eight U.S. states andsix of the seven continents.WEBSITE:cummins.comFORTUNE 500 RANKING:STOCK SYMBOL:CEO:150 (as of 2021)CMI (New York Stock Exchange)Tom Linebarger (2012 to present)4

MISSION, VISION AND VALUESCummins’ storyOur approach to human capital managementis guided by the Cummins’ vision, missionand values and the company’s LeadershipCulture. Cummins’ history and values inspireour compassion and actions.MISSIONMaking people’s lives better bypowering a more prosperous worldVALUESINTEGRITYDoing what you say you willdo and doing what is rightInspiring and encouragingall employees to achievetheir full potentialDIVERSITY & INCLUSIONCummins’ Leadership Cultureis supported by a leadershipdevelopment frameworkreflecting three overarching beliefs:Valuing and including ourdifferences in decision makingis our competitive advantage1Demonstrating awarenessand consideration for thewellbeing of othersLeaders need to buildbusiness acumen andemotional intelligence.2Leaders have a responsibilityto teach and coach others.EXCELLENCE3A leader’s developmentstarts with individualdevelopment then movesto team development.CARINGVISIONAlways delivering superior resultsInnovating for our customersto power their successTEAMWORK2022 Human Capital Management Report Cummins Inc.LEADERSHIPCULTURECollaborating across teams,functions, businesses andborders to deliver the best workTo learn more about how greatleaders make Cummins a greatplace to work, see page 25.5

Report contentsOur commitment to our most important asset—our people. 3Cummins’ story. 5Creating a great workplace starts with the Cummins board. 7Putting human capital management to work. 10Our global reach. 11Our workforce strategy. 12Diversity, equity and inclusion: our competitive advantage. 15Our workforce. 18Engaging employees and families in improving wellness. 23Developing enlightened leaders to drive Cummins’ success. 26Working to be the company of the future, now. 28Cummins workplace honors. 302022 Human Capital Management Report Cummins Inc.6

BOARD OF DIRECTORSCreating agreat workplacestarts with theCummins boardThe Cummins Board of Directorsis leading by example on humancapital management, addingmore women and ethnicallydiverse members while aligningits focus to creating dynamicwork environments.Working with our company leadership, the boardfor much of the past year has been taking a broaderview of the plans, policies and practices impactingCummins employees, with a special focus on the newand unprecedented issues around talent managementand compensation emerging since 2020.2022 Human Capital Management Report Cummins Inc.President and Chief Operating Officer Jennifer Rumsey welcomesback Cummins employees in Columbus, Indiana, in April 2022 afteroffices were allowed to reopen under recommendations by theU.S. Centers for Disease Control and Prevention.In 2022, longtime memberAlexis M. Herman announcedher retirement from theCummins Board of Directors.These include the calls for racial equity and socialjustice that swept across the United States in 2020,as well as the movement toward flexible and remoteworking arrangements since the onset of the globalpandemic two years ago.GAINS IN BOARD DIVERSITYThe board ended 2021 with five women members—the most at any time in the company’s more than100-year history—and then added a 14th memberand a sixth woman in early 2022 when CumminsPresident and Chief Operating Officer JenniferRumsey joined the board. Later, long-time LeadDirector Alexis Herman announced her retirement,effective at Cummins’ Annual Meeting May 10.ALEXIS M.HERMANHerman, a former U.S. Secretary of Labor,joined the board in 2001 and served asLead Director at the time of her retirement.In that position, she played an importantrole conferring with the Chairman on,and approving, board agendas as wellas serving as the leader of the board’sGovernance & Nominating Committee.She guided the board through the suddenonset of the COVID-19 pandemic in 2020as it provided vision, strength and stability.The board met 15 times in 2020 – threetimes its normal number of meetings.Herman is Chairman and Chief ExecutiveOfficer of New Ventures, LLC, a corporateconsulting company.7

BOARD OF DIRECTORSFemale board members in addition to Rumsey andHerman as of March 31, 2022, include Georgia R.Nelson, retired President and CEO of PTI Resources LLC,who joined the board in 2004; Karen H. Quintos, retiredChief Customer Officer of Dell Technologies, a boardmember since 2017; Kimberly A. Nelson, retired SeniorVice President of External Relations at General Mills, Inc.,a board member since 2020; and Carla A. Harris, ViceChairman and Managing Director at Morgan Stanley,who joined the board in 2021.Members across other dimensions of diversity includeHarris, Herman, Kimberly A. Nelson, Franklin R. ChangDiaz and Bruno V. Di Leo. Chang Diaz, a board membersince 2009, is a former U.S. astronaut who today isPresident of the Ad Astra Rocket Company. Di Leo,a board member since 2015, is the Managing Directorof Bearing North LLC, an independent advisory firmfocused on business expansion. Prior to that role,he served as a Senior Vice President of IBM.Cummins Board of DirectorsROBERT J.BERNHARDDR. FRANKLIN R.CHANG DIAZBRUNO V.DI LEOSTEPHEN B.DOBBSCARLA A.HARRISROBERT K.HERDMANALEXIS M.HERMANN. THOMASLINEBARGERTHOMAS J.LYNCHWILLIAM I.MILLERTaken together, more than half of the Cummins Boardof Directors consist of women or members of otherdimensions of diversity.The board also has diversity in terms of businessexpertise and experience, including backgrounds in theautomotive and transportation sectors, technology andIT, sales and marketing, academia and financial expertise.2022 Human Capital Management Report Cummins Inc.(Board as of March 31, 2022)GEORGIA R.NELSONKIMBERLY A.NELSONKAREN H.QUINTOSJENNIFER W.RUMSEY8

BOARD OF DIRECTORSTwelve of the 14 members including Herman are fullyindependent directors, consistent with the definitionestablished by the U.S. Securities and ExchangeCommission and the New York Stock Exchange.Cummins’ Chairman and CEO Tom Linebarger wasthe only board member employed by the companybefore Rumsey’s appointment in 2022.Since 2020, Cummins has taken many stepsin the talent management area including:Board diversity Executed robust safety protocols foressential on-site personnel.The Cummins Board of Directors isbecoming increasingly diverse bothby gender as well as race and ethnicity.EXPANDING FOCUS Launched a global mental health awarenesscampaign to destigmatize conditions such asdepression and encourage employees to seeksupport offered by the company.In 2020, the board broadened the focus ofits Compensation Committee to include talentmanagement. The Talent Management andCompensation Committee’s expanded charterreflects both the critical role employees play inthe success and sustainability of the companyand the impact of the ongoing pandemic.It’s also consistent with Cummins’ commitmentto diversity, equity and inclusion, both in therecruiting and retention of talented employeesand the establishment of great work environments.Finally, the committee has aligned its focus to thecompany’s overarching Leadership Culture themeof “inspiring and encouraging all employees toreach their full potential.” Implemented a remote working environment foremployees who could perform their duties off site. Developed and piloted a diversity, equity andinclusion learning curriculum with a focus onawareness of privilege and unconscious bias. Extended key elements of Cummins’ talentmanagement programs to hourly employeesto advance their capabilities and careers.The challenge of attracting, developing andretaining the best employees has never beengreater and the stakes are high for all of thecompany’s stakeholders. Cummins’ Boardof Directors is determined to take a leadershiprole to meet that challenge, so the companyflourishes for the next 100 years. BY GENDERThis chart looks at the boardby gender as of March 31, 2022.WOMEN43%MEN57%BY RACE, ETHNICITYThis chart looks at the board by raceand ethnicity as of March 31, 2022.ASIAN 0%BLACK 21.4%LATINX / HISPANIC 7.1%WHITE 64.3%OTHER 0%TWO OR MORE RACES 7.1%2022 Human Capital Management Report Cummins Inc.9

Putting human capitalmanagement to work1IMPLEMENTED robust healthand safety protocols includingpersonal protective equipmentfor essential employees.8ENCOURAGEDemployees to access availabletelehealth resources.9OFFERED key talentmanagement programsto help hourly employeesadvance their careers.2022 Human Capital Management Report Cummins Inc.COVID-19 tested Cummins and its human capitalmanagement practices. Here are 12 steps we tookto help employees during the pandemic.2INSTITUTED mandatoryhealth screenings beforeentry into essential facilities.7LAUNCHED global mentalhealth awareness campaignto destigmatize depression,anxiety and other conditions.10INITIATED virtualoptions to maintaincommitment to leadershipdevelopment training.3ESTABLISHED productioncenters to make masks forglobal distribution.6EXTENDED ergonomicsupport to employeesworking remotely.11INTRODUCED virtualcollaboration tools tosupport talent acquisitionand intern programs.4EXPANDED employee leavepolicies to help maintainsafe and productivework environments.5DEPLOYED virtualcollaboration tools to helpemployees working remotely.12SPONSORED vaccinationclinics delivering more than45,000 shots to Cumminsemployees, contractorsand their families.10

HUMAN CAPITAL AT CUMMINSOur global reachUNITED KINGDOM7.6%Cummins employeeassignments around-the-world:40.6%15.3%CHINA9%REST OF WORLDMEXICOUNITED STATESINDIA10.6% 2.6%BRAZIL11.6%AUSTRALIA2.7%WORKFORCE 9,900(Dec. 31, 2021)Latinx/Hispanicpercentage ofU.S. workforcePercentage of womenin global workforceBlack percentageof U.S. workforce2022 Human Capital Management Report Cummins Inc.Percentage ofwomen on CumminsExecutive TeamPercentage ofethnically/racially diverseboard members asof March 31, 2022Percentageof workforcerepresented by unionNon-whitepercentage ofU.S. workforce11

OurworkforcestrategyCummins’ strategicroadmap is centered onthe critical enablers torealizing our company’sLeadership Culture andits vision of inspiring andencouraging all employeesto reach their full potential.2022 Human Capital Management Report Cummins Inc.12

OUR WORKFORCE STRATEGYHow we do itWORK-LIFE AT CUMMINSThe company’s workforce strategy cultivates anenvironment where all employees, regardless ofemployee type and location, know what is expectedof them, are rewarded based on performance andhave access to differentiated experiences, toolsand leadership coaching to help them develop.We embarked on a multi-year initiative to addressthe recognition that there is variation in how talentprocesses are applied to the hourly workforce,leading to lower quality outcomes and inefficiency,and impacting the company’s ability to maximizethe capabilities of a deep talent pool.At a strategic level, we want the same talent andcompensation polices, processes and mindset forthe company’s hourly workforce as Cummins hasfor its salaried and exempt workforce.Cummins’ aspirational goal is to build a robusttalent pipeline where over half of the exemptvacancies are filled by internal hourly talent.Leadership Culture is foundational to the company’sworkforce strategy. It speaks to the criticality ofleaders at all levels of the organization creating2022 Human Capital Management Report Cummins Inc.Cummins powers customer successthrough five different business segments:ENGINE SEGMENTThe Engine business segment designs andbuilds diesel and natural gas engines forheavy and medium-duty trucks, buses, aswell for use in rail and marine, agriculturalmachinery and construction equipment.POWER SYSTEMS“I’ve never had towait for someoneto quit or move onin order to moveup. That’s one ofmy favorite thingsabout Cummins.You can create yourown career path.”ANNA NEESEFinance, IndianaCummins Power Generation designs andmanufactures power generation systems,including standby and prime power,distributed power generation andcombined heat and power systems.COMPONENTS SEGMENTThe Components segment designsand builds exhaust aftertreatmentsolutions, filtration systems, fuelsystems and turbochargers tomaximize engine performance.NEW POWERThe New Power segment designs andbuilds battery electric and hydrogen fuelcell platforms as well as products used inrenewable hydrogen production.DISTRIBUTIONThe Distribution segment provides sales,service and support to customers aroundthe world through the largest number ofcertified service and support locationsof any engine manufacturer.13

OUR WORKFORCE STRATEGYWorkforce strategythe right environment for employees to achievetheir full potential, and coach and manage teammembers for success.FOCUS AREASSponsored by senior leaders, several streamsof work embed the foundational elements of thecompany’s talent processes in each organizationacross Cummins’ global footprint.1The roadmap is focused on: performancemanagement, talent acquisition and onboarding;individual development and careers; andmerit-based compensation.2For our company’s business, Cumminsexpects improved productivity and engagement;skill-building that keeps the company currentwith advances in technology and changingcustomer needs; and access to a deeper poolof diverse talent as we look to fill open positionsfrom within. 2022 Human Capital Management Report Cummins Inc.34BENEFITSDeveloping self-awareand effective leaders.1Leaders prioritize the time toobserve performance and coachand manage talent for success.Creating a diverse, equitableand inclusive work environment.2Leaders at all-levels role modelthe company’s key leadershipbehaviors and the rightbehaviors are rewarded(informally and formally).3Employees are encouraged andsupported in their developmentand have the time and accessto the tools to do this.4Employees are healthy physically,mentally, and financially.Engaging employees and theirfamilies in improving wellness.Extending Cummins’ talentprocess to the company’sworkforce at every leveland job type.14

DIVERSITY, EQUITY AND INCLUSIONDiversity, equityand inclusion:our competitiveadvantageCummins is united in the desireto see a world and a workplacewhere all people are embracedfor who they are and who theyaspire to be.We want a workforce that is representative at everylevel of the communities where Cummins operatesaround the world; and a workplace that is welcoming,so every employee can bring their authentic selves towork, learning from and appreciating each other.Our goal is a workforce in which all employeesbelieve they can reach their full potential becausethey experience a truly diverse, accessible, equitableand inclusive work environment.2022 Human Capital Management Report Cummins Inc.15

DIVERSITY, EQUITY AND INCLUSIONleadership is held accountable for advancing ourcompany’s vision, setting goals, achieving results,coaching others, and developing and being role models.WORK-LIFE AT CUMMINSBusiness teams dedicate time on their agendasto drive action toward diversity, equity and inclusiongoals and learn from one another. Progress ismeasured and reported internally and externally.The company is working to develop the talentmanagement and accountability systemsand processes necessary to mitigate biasand ensure the equitable acquisition andadvancement of all employees.Cummins prospers from harnessing the value ofdiverse ideas and perspectives. Diversity, equity andinclusion contribute to the kind of work environmentthat comes up with the most creative ideas to ourstakeholders’ biggest challenges.The company has invested in an integrated, sustainableand global approach to diversity, equity and inclusion.We consider this to be a business imperative and2022 Human Capital Management Report Cummins Inc.Cummins leaders and employees also promotepositive change in the communities where they liveand work, through our community engagementinitiatives, supplier diversity programs and otherefforts to create the world we want to see.Our commitment to diversity, equity andinclusion contributes to thriving economiesand stronger communities.Cummins leverages this business advantageto create value for all of our stakeholders,including the company’s employees,customers and shareholders. “At Cummins, I haven’t had alot of obstacles because thecompany is so driven by diversityand inclusion. The leadershipteam is incredibly diverse,and that representation atthe next level makes me feelrepresented and empowered.”CRYSTAL GWYNNEngineer, North Carolina16

DIVERSITY, EQUITY AND INCLUSIONKey strategy elementsCummins’ Global Diversity, Equity & Inclusion (DE&I) Strategy is centered onenabling a diverse, equitable and inclusive environment. Some key elements include:LEADERSHIPACCOUNTABILITYLeaders demonstrateindividual and collectiveleadership accountability forenabling a diverse, equitableand inclusive culture.RECRUITMENT,RETENTION,DEVELOPMENTAND ADVANCEMENTCummins’ talent developmentprocesses deliver equitable andaccessible recruitment, retention,advancement, and a pervasivefeeling of inclusion.BENEFITS, WORKARRANGEMENTSAND COMPENSATIONASSESSMENT,MEASUREMENTAND RESEARCHBenefits, work arrangementsand compensation systemsare equitable and optimizeemployee well-being,potential and performance.Comprehensive assessment,measurement and researchguides DE&I actions andperformance is shared withall stakeholders.LEARNING ANDEDUCATIONCOMMUNICATIONSDE&I skills and competenceare enabled in company leadersand employees througheducation and development.COMMUNITY,GOVERNMENTAND SOCIALRESPONSIBILITYCummins will take a leadingrole within local communitiesand society at large to dismantlesystemic inequities andadvance justice for all.2022 Human Capital Management Report Cummins Inc.DE&I communications are apowerful and pervasive forcein achieving a more inclusive,equitable and prosperousworkplace and world.Putting our values into actionSeveral Cummins’ community engagementactivities reflect the company’s commitmentto diversity, equity and inclusion.CUMMINS POWERS WOMEN, for example, is a global community programto advance equity for women and girls. Launched in 2018, the 22 million(to date) initiative has served about 26 million women and enabled equal rightsand opportunity for thousands of women and girls around the world,. It hasfunded advocacy grants leading to 32 gender equality law and policy changes.CUMMINS ADVOCATING FOR RACIAL EQUITY (CARE) is a new initiativeto help dismantle institutional racism in the United States. In its first year itpartnered to invest more than 23 million into communities to address economicempowerment, criminal justice reform, police reform and social justice, leadingto support for 311 black-owned enterprises. CARE volunteers were part of17 advocacy initiatives resulting in eight law and policy changes, includingrevisions to two public safety use-of-force protocols.17

WORKFORCE DEMOGRAPHICSOur workforceCummins strives for a workforce reflectingthe population where it does business.That means the company’s goal is a workforce evenly split amongmen and women. Cummins’ goals for race and ethnicity vary by region.In the United States, the company’s goal is 12% for Black employeesand 18% for Latinx/Hispanic employees.GLOBAL WORKFORCECummins had 59,900 employees as of Dec. 31, 2021.Hourly employees made up the largest share of thecompany’s A Cummins employee works at theCummins Fuel Cell & Hydrogen Technologycampus in Mississauga, Ontario (Canada).ABOUT OUR NUMBERS: All data in this section is as of Dec. 31, 2021. Data is roundedto no more than two decimal points for simplicity and on occasion may add to just underor just over 100%. Gender and demographic numbers are self-reported by employees.2022 Human Capital Management Report Cummins Inc.18

WORKFORCE DEMOGRAPHICSGENDER DIVERSITYAT CUMMINSCummins’ goal is to reflect themarkets where we do business.Globally, that would be50% men and 50% women,according to most estimates.Here’s were we stood in 2021.TOP LEADERSHIP BY GENDERAs Cummins works to attract more womento the company, it is putting a special effortin its leadership ranks. Here’s a look at thegender breakdown of the company’s topexecutive teams.CUMMINS EXECUTIVE TEAMWOMENGLOBAL WORKFORCEBY /Exempt70.9%29.1%MEN73.9%26.1%74.3%25.7%60%40%ALL EMPLOYEESLEADERSHIPDirectors and Executive DirectorsVice President and above (officers)2022 Human Capital Management Report Cummins Inc.MENMEN60%40%CUMMINS LEADERSHIP TEAM47.6%52.4%CUMMINS OPERATING TEAMWOMENMEN42.9%57.1%19

WORKFORCE DEMOGRAPHICSCummins Leadership TeamThe Cummins Leadership Team, one of three top senior leadershipgroups at the company, is an example of how Cummins’ has strivedto live its diversity, equity and inclusion value.Tom LinebargerChairman and Chief Executive OfficerTony SatterthwaiteJennifer RumseySharon BarnerAmy DavisTracy EmbreeMahesh NarangVice ChairmanPresident andChief Operating OfficerVice President – Chief Administrative Officer,Corporate Secretary andChief Human Resource OfficerVice President and President –New Power SegmentVice President and President –Distribution SegmentVice President and President –Components SegmentNorbert NustererSrikanth PadmanabhanSherry AaholmMary ChandlerBonnie FetchJim FierVice President and President –Power Systems SegmentVice President and President –Engine SegmentVice President –Chief Digital OfficerVice President –Corporate ResponsibilityVice President – Global SupplyChain and ManufacturingVice President –Chief Technical OfficerNicole Lamb-HaleMelina KennedyEarl NewsomeMark SmithNathan StonerJeff WiltroutVice President –General CounselVice President – Product Complianceand Regulatory AffairsVice President –Chief Information OfficerVice President –Chief Financial OfficerVice President – China ABOVice President –Corporate Strategy2022 Human Capital Management Report Cummins Inc.20

WORKFORCE DEMOGRAPHICSU.S. DIVERSITYOur diversity goal isto reflect the marketswhere we do business.In the U.S., that would be 57.8% white, 18.7% Latinx,12.1% Black and 5.9% Asian, according to the U.S.Census. Here’s where Cummins stood in 2021.The charts below look at Cummins’ U.S. workforcebased on self-identification as of Dec. 31, 2021.The overall U.S. workforce was 24,306 on that date.TOTAL U.S. WORKFORCEEmployee classification (U.S.)DIVERSITY OFU.S. WORKFORCEASIANBLACKLATINX /HISPANICWHITEOTHERTWO ORMORE RACESDECLINEDTO 3%6.2%6.4%72.7%0.5%0.8%0.2%Directors and Executive Directors13.5%5.9%6.5%72.6%0.5%0.9%0.2%Vice President and above (officers)6.7%15.6%4.4%73.3%0%0%0%ALL 022 Human Capital Management Report Cummins Inc.HourlySalaried / exemptLEADERSHIP21

WORKFORCE ut a third of the Cumminsglobal workforce is representedby various unions.LANGUAGES SPOKENCummins employees speaka variety of languages.SALARIED/EXEMPT64.6%72%ONE LANGUAGEAGE* Cummins employees represented by a union undercollective bargaining agreements expiring between2021 and 2025.More than half of the Cummins’ globalworkforce is under the age of 39.ASSIGNMENTCOUNTRIES60 YEARSMore than half of the Cumminsglobal workforce was on assignmentoutside the United States.5.9%50-59 YEARS16.3%40-49 YEARS23.8%UNIONMEMBERS*35.4%AGE30-39 YEARS33.7%20-29 YEARS19.8%UNDER 20 YEARS0.5%All data is of Dec. 31, 2021.2022 Human Capital Management Report Cummins Inc.14.8%TWO OR MORE7%EMPLOYEESWORKINGIN THE U.S.40.6%THREE ORE MORE6.2%FOUR OR MOREEMPLOYEESWORKINGOUTSIDE THE U.S.59.4%TOP 10 LANGUAGESHere are the most popularlanguages spoken at Cummins.COUNTRY OF BIRTHMore than half of the Cumminsglobal workforce was bornoutside the United States.AUSTRALIABRAZILCHINAINDIAMEXICOREST OF WORLDUNITED KINGDOMUNITED F thiHindiPortugueseFrenchGermanRomanianTamil22

IMPROVING WELLNESSEngaging employeesand families inimproving wellnessThere are significant businessbenefits that come from having aworkforce that is healthy physically,mentally, and financially.A holistic philosophy that includes a broad approach to overallemployee wellness considers an employee’s whole self and theinterconnectedness of these components. Cummins’ strategyactively engages

2022 Human Capital Management Report Cummins Inc. 3 Our commitment to our most important asset—our people We are steadfast in our commitment to building a dynamic workplace where all employees are inspired and encouraged to achieve their full potential. This is how we define Leadership Culture at Cummins. To be successful,