FOR IMMEDIATE RELEASE

MEDIA CONTACT: Sophia Wilson, swilson@asyousow.org, (341) 600-1832

BERKELEY, CALIFORNIA—MAY 14, 2024—Today, shareholders will vote on a shareholder proposal at Cummins’ Annual General Meeting asking the Company to disclose a plan linking its CEO pay to the Company’s GHG emission reduction goals. Cummins, a global engine and power equipment manufacturer, is ranked among the highest emitters in the transportation sector. The proposal was filed by shareholder representative As You Sow.

As You Sow’s 2024 Pay for Climate Performance report found that Cummins has no direct link between its CEO pay and its climate goals, resulting in an “F” grade for the Company. This is particularly relevant given that Cummins agreed to pay a record-breaking $1.675 billion penalty in 2023 for allegedly installing “defeat devices” on approximately 1 million pickup trucks over 10 years to cheat emissions tests, resulting in the largest civil fine ever levied under the Clean Air Act.

While Cummins has taken steps to set and verify GHG reduction goals through the Science-Based Targets initiative (SBTi), emissions from the use of Cummins’ products are rising, exposing it to fuel efficiency penalties and taxes.

“This proposal offers Cummins the opportunity to harness CEO pay as a powerful motivator for meeting its climate goals,” said Danielle Fugere, President and Chief Counsel at As You Sow. “Too often, setting an emissions reduction target is not enough to hold management accountable. Investors want assurance that Cummins will meet its GHG goals and remain competitive in a decarbonizing economy.”   

In 2023, the California Air Resources Board unanimously approved the Advanced Clean Fleets rule, banning the sale of new diesel trucks by 2036 and requiring heavy-duty trucks to be zero-emissions by 2042. Heavy-duty trucks, mostly powered with diesel, make up more than 33% of Cummins’ engine sales.

“Linking executive pay to climate performance is crucial for integrating climate impacts into management decisions,” said Diana Myers, Climate and Energy Coordinator at As You Sow. “However, it is vital to ensure these links drive meaningful action, not just inflated bonuses. Best practices emphasize transparent pay packages with clear thresholds and relevant goals.”

###

As You Sow is the nation's leading shareholder representative, with a 30-year track record promoting environmental and social corporate responsibility and advancing values-aligned investing. Its issue areas include climate change, ocean plastics, pesticides, racial justice, workplace diversity, and executive compensation. Click here for As You Sow's shareholder resolution tracker.