exo-is/governance-reporting-on-listed-companies huggingface dataset:
Keyword: governance
look at some of its key initiatives:INTRODUCTION ENVIRONMENT SOCIAL GOVERNANCE
2022–2023 SUSTAINABILITY PROGRESS REPORT | 64
GLOBAL SECURITY //
CRISIS ACTION TRAVEL SECURITY
MANAGEMENT PROGRAM
GLOBALLY ENGAGED The Travel Security program provides
The Crisis Action Management Program employees the tools needed for safe
Cummins has principal manufacturing coordinates local, regional and corporate and secure travel. The program offers
locations in eight states and six of the response teams to maintain or quickly regional security assessments, housing
seven continents. We’ve been doing restore Cummins operations. and transportation assessments,
business internationally for more than
emergency medical and security support,
60 years and our plants outside the U.S. The program enables Global Integrated
and pre-travel briefs
Keyword: governance
specific security strategies and programs.INTRODUCTION ENVIRONMENT SOCIAL GOVERNANCE
2022–2023 SUSTAINABILITY PROGRESS REPORT | 65
GOVERNMENT RELATIONS //
POLITICAL CONTRIBUTIONS
COMPANY ADVOCATES FOR Between the Bipartisan Infrastructure In the United States, political contributions
Bill, the Inflation Reduction Act, and are made by the Cummins Inc. Political
the CHIPS and Science Act, Cummins Action Committee (CIPAC) and funded solely
CLEANER, SAFER, MORE by voluntary employee contributions.
advocated for laws that will continue
CIPAC makes contributions to federal and
to improve the environment and the
state candidates on a bipartisan basis and in
EQUITABLE WORLD competitiveness of U.S. businesses
compliance with federal and state election laws.
for the next decade.
CIPAC is governed by corporate policies
and bylaws tha
Keyword: governance
with only a few outstanding issues action committee’s contributions.INTRODUCTION ENVIRONMENT SOCIAL GOVERNANCE
2022–2023 SUSTAINABILITY PROGRESS REPORT | 66
GOVERNMENT RELATIONS //
remaining that require regulatory approval Cummins supported the SEC’s efforts will continue to be a leader in establishing improving on the environmental profile of
before Cummins’ exit is complete. to standardize data for shareholders sensible expectations for the industry existing technologies, which will continue
and the company offered feedback to the while working towards substantial to be used throughout the transition.
ENVIRONMENTAL STANDARDS commission on aspects of the rule that may environmental improvements.
To that end, the company engaged with
have unintended consequences for business
As part of the company’s ongoing effort In Europe, Cummins actively engag
Keyword: governance
Inflation Reduction Act.INTRODUCTION ENVIRONMENT SOCIAL GOVERNANCE
2022–2023 SUSTAINABILITY PROGRESS REPORT | 67
GOVERNMENT RELATIONS //
and worked closely with U.K. officials increase access to capital for
as they look to both develop new lower Black-owned businesses.
LOBBYING
carbon energy policies and expand their
At the state-level, Cummins works to
use of hydrogen.
create strong communities with equal Cummins belongs to a number of trade organizations. While the company may
In India, Cummins’ Government opportunity for all by supporting early not agree with these associations on every matter, Cummins believes they help
ensure government leaders know where the company stands on key issues.
Relations function engaged with the childhood education and vocational
federal government on its national program
Keyword: governance
development organizations thatINTRODUCTION ENVIRONMENT SOCIAL GOVERNANCE
2022–2023 SUSTAINABILITY PROGRESS REPORT | 68
PRODUCT INNOVATION //
SPECIAL REPORT
BUILDING ON
A HISTORY OF
INNOVATION
TO PURSUE
DECARBONIZATION
GOALS
Cummins started rolling out its
Destination Zero strategy for
product decarbonization in 2022,
building on past successes reducing
greenhouse gas and other harmful
emissions to pursue the company’s
new goals and aspirations. U.S. President Joe Biden tours Accelera by
Cummins’ first electrolyzer manufacturing facility
in the United States in April 2023. The facility uses
existing space at Cummins’ Fridley, Minnesota, plant.INTRODUCTION ENVIRONMENT SOCIAL GOVERNANCE
2022–2023 SUSTAINABILITY PROGRESS REPORT | 69
PRODUCT INNOVATION //
Company leaders told financial analysts $903 million. The com
Keyword: governance
gas and a key contributor to smog.INTRODUCTION ENVIRONMENT SOCIAL GOVERNANCE
2022–2023 SUSTAINABILITY PROGRESS REPORT | 70
PRODUCT INNOVATION //
Accelera by Cummins’ electrolyzer technology
is playing a critical role in increasing the world’s
supply of low- and no-carbon fuel.
The base engine architecture offers 2022 to purchase 500 Cummins’ 15-liter
customers a high degree of parts hydrogen engines upon availability.
commonality as well as a familiar technology
Natural gas engines can also be an attractive
to work with to lower carbon and other
option to reduce emissions as zero-emission
emissions. Among the fuels the strategy
technologies gain widespread acceptance.
is first being applied to are natural gas
While natural gas is a fossil fuel, engines
and hydrogen.
using it can achieve low emission levels
Cummins
Keyword: governance
with an open flame.INTRODUCTION ENVIRONMENT SOCIAL GOVERNANCE
2022–2023 SUSTAINABILITY PROGRESS REPORT | 71
PRODUCT INNOVATION //
KNOWLEDGE IS POWER AT CUMMINS’ NEW MICROGRID LAB
All of these firsts and others led Accelera ventures exploring the potential for low-
Cummins is always working to stay at the forefront of innovation, which is why the company in February 2022 to expand its production capacity in and no-carbon power in commercial
opened a new microgrid lab called the Power Integration Center (PIC) at the company’s Power Systems facility 2022 and the first half of 2023 to meet applications. They include:
in Fridley, Minnesota. product demand.
A collaboration with Daimler Truck
The center is a state-of-the-art facility that allows for the configuration, integration, and testing of power syste
Keyword: governance
panels, battery storage systems, fuel cells and more.INTRODUCTION ENVIRONMENT SOCIAL GOVERNANCE
2022–2023 SUSTAINABILITY PROGRESS REPORT | 72
PRODUCT INNOVATION //
As demand for decarbonized solutions “We have to act now,” Cummins
accelerates, ePowertrains are expected to Chair and CEO Jennifer Rumsey
be a critical integration point within hybrid told reporters and visitors at IAA.
and electric drivetrains, providing advanced “Carbon, once emitted to the
clean mobility products. atmosphere, can’t be taken back,
and we can make the greatest impact
All three acquisitions will expand what
by focusing on a dual path approach.
Cummins can offer customers, as it works
Our estimated impact of doing just
to help them make the transition to a
that is an additional 1.4 gigatons
low-carbon economy.
of cumulative carbon reduction—
the equivalent
Keyword: governance
management technologies.INTRODUCTION ENVIRONMENT SOCIAL GOVERNANCE
2022–2023 SUSTAINABILITY PROGRESS REPORT | 73
PRODUCT INNOVATION //
PROJECT NAME SPONSOR PARTNERS DATE
Development of Advanced Combustion
COLLABORATING
Strategies for Direct Injection Heavy 10/1/2020–
DOE Colorado State University
Duty LPG Engines to Achieve 12/31/2023
Near-Diesel Engine Efficiency
FOR PROGRESS
High Efficiency, Ultra-low Emissions
National Renewable Energy
8/8/2019–
Heavy-duty Natural Gas Engine DOE Laboratory, South Coast Air
10/31/2022
Research and Development Quality Management District
Cummins works with the federal government, state agencies, universities and other companies
SuperTruck II Research and
to help develop technologies for the future. This chart looks at some of the collaborations the 10/1/2016–
Development
Keyword: governance
Drayage Trucks at the Port of Los Angeles Bipolar Plates by Atomic Layer DepositionINTRODUCTION ENVIRONMENT SOCIAL GOVERNANCE
2022–2023 SUSTAINABILITY PROGRESS REPORT | 74
SUPPLY CHAIN //
STRENGTHENING
THE COMPANY’S
SUSTAINABLE
SUPPLY CHAIN
At Cummins, environmental,
social and governance
excellence goes beyond just
the operations within Cummins’
plants and facilities.
The company believes the sustainable practices throughout Cummins’
supply chain are essential to the global power technology leader’s long-
term success. The company is committed to working with its suppliers
to reduce Cummins’ environmental impact, use natural resources
responsibly and promote ethical and sustainable social practices.
By prioritizing sustainability in Cummins’ supply chain, the company
believes it can achieve its business goals while also contributing to
a better future for Cummin
Keyword: governance
produces some of the company’s largest engines.INTRODUCTION ENVIRONMENT SOCIAL GOVERNANCE
2022–2023 SUSTAINABILITY PROGRESS REPORT | 75
SUPPLY CHAIN //
TRACKING PRODUCT CONTENTS in Cummins’ products, allowing the IMPROVING SUPPLIER PERFORMANCE
Cummins believes the materials that go company to better identify risks from The company has a team in the Procurement EYES OPEN AUDITS
hazardous and supply-constrained
into the company’s products are just as function dedicated to identifying and
materials and react appropriately.
important as the quality, performance and mitigating risk in the supply chain. This team
SUPPLIER REVIEWS
dependability of those products. manages and mitigates risks, both forward- REBOUND IN 2022
SUPPLIER CODE OF CONDUCT looking and reactive.
Over the last few years, Cummins has After travel restrictions relat
Keyword: governance
to the treatment of others.INTRODUCTION ENVIRONMENT SOCIAL GOVERNANCE
2022–2023 SUSTAINABILITY PROGRESS REPORT | 76
CUSTOMER SUPPORT //
DELIVERING THE SUPPORT As Cummins works to lead on climate action than 2,000 service bays to get the job done.
through its PLANET 2050 environmental The Sales & Service function includes more
sustainability strategy and Destination Zero, than 3,000 Cummins Power Generation
CUSTOMERS NEED TO ACHIEVE
the company’s strategy to go further, faster dealers and more than 4,000 active
to reduce the greenhouse gas and air quality Cummins engine dealers.
SUSTAINABLE SUCCESS impacts of its products, customer support
Outside North America, support is
has never been more important.
delivered by a network of service locations,
The company serves a diverse product dealerships, and joint ve
Keyword: governance
at their very best.INTRODUCTION ENVIRONMENT SOCIAL GOVERNANCE
2022–2023 SUSTAINABILITY PROGRESS REPORT | 77
CUSTOMER SUPPORT //
HIGH TECH TOOLS recommendations to keep their Cummins’ Connected Diagnostics™: CUSTOMER SUPPORT
products operating efficiently and effectively. A solution using telematics to wirelessly
As the world becomes faster and more
BY THE NUMBERS
Here are five examples: connect Cummins engines to the
digital, customers increasingly expect the
company for immediate diagnosis of
support they receive to be convenient, and in RemoteConnect: This special suite
engine system fault alerts to provide
many instances accessible at their fingertips. of tools allows Cummins technicians in
customers valuable information— 700,000+
the field to collaborate effectively with
Cummins again delivers, u
Keyword: governance
See website above.INTRODUCTION ENVIRONMENT SOCIAL GOVERNANCE
2022–2023 SUSTAINABILITY PROGRESS REPORT | 78
FINANCIAL //
CUMMINS Excluding the acquisition of Meritor Inc., Full year results for the company included five “In 2022, Cummins continued to advance
completed in August of 2022, revenues months of operations following the acquisition its Destination Zero growth strategy through
were $26.2 billion, 9% higher than 2021. of Meritor. Meritor results within 2022 include the acquisitions of Jacobs Vehicles Systems,
SETS REVENUE
$1.9 billion in revenue and EBITDA of Meritor and the Siemens Commercial
Sales in North America increased 18%
$26 million, including a $32 million negative Vehicles business,” said Cummins
while international revenues decreased
RECORD DURING impact from an inventory adjustme
Keyword: governance
* Revenues excluding Meritor were $26.2 billion in 2022.INTRODUCTION ENVIRONMENT SOCIAL GOVERNANCE
2022–2023 SUSTAINABILITY PROGRESS REPORT | 79
FINANCIAL //
2022 REVENUE BY SEGMENT*
Destination Zero is Cummins’ strategy to Other 2022 highlights included:
33% 27%
make meaningful reductions in carbon and
Consistent with Destination Zero,
other emissions through advanced internal
Cummins also unveiled in 2022 the ENGINE DISTRIBUTION
combustion technologies widely accepted
industry’s first unified, fuel-agnostic
by the market today, while continuing
internal combustion powertrain platforms.
to invest in and advance zero emission 1%
This technology approach helps fleets
technologies ahead of widespread market
begin reducing carbon emissions by
adoption. The 2022 acquisitions are NEW POWER**
expected to help Cummins’ execute enabling vehicle
Keyword: governance
** The New Power segment is now Accelera by Cummins.INTRODUCTION ENVIRONMENT SOCIAL GOVERNANCE
2022–2023 SUSTAINABILITY PROGRESS REPORT | 80
ENGINE BUSINESS DISTRIBUTION
2022 REVENUE BY APPLICATION 2022 REVENUE BY REGION 2022 SALES 2022 REVENUE BY PRODUCT 2022 REVENUE BY REGION 2022 SALES
17% OFF HIGHWAY 75% US & CANADA 20% ENGINES 67% US & CANADA
2022 $10.95 BILLION 2022 $8.93 BILLION
16% LIGHT-DUTY AUTOMOTIVE 6% CHINA 20% POWER GENERATION 4% CHINA
32% MEDIUM-DUTY TRUCK & BUS 1% INDIA 17% SERVICE 2% INDIA
35% HEAVY-DUTY TRUCK 7% LATIN AMERICA & MEXICO 2021 $9.95 BILLION 43% PARTS 2% LATIN AMERICA & MEXICO 2021 $7.77 BILLION
7% EUROPE/CIS 11% EUROPE/CIS
4% ASIA PACIFIC 11% ASIA PACIFIC
2020 $8.02 BILLION 2020 $7.14 BILLION
3% MIDDLE EAST & AFRICA
2019 $10.06 BILLION 2019 $8.07 BILLION
2018 $10.57 BILLION 2018 $7.83 BILLION
0 2 4 6 8
Keyword: governance
excludes Meritor Inc.INTRODUCTION ENVIRONMENT SOCIAL GOVERNANCE
SECTION //
2022–2023 CONTRIBUTORS CONTACT
TO THIS REPORT
Meredith Sanders (designer), BLAIR CLAFLIN (EDITOR)
SUSTAINABILITY
Laurie Counsel (environment section), Director – Sustainability Communications
Heather Abshire, Jason Cromes, 301 E. Market St.
Nathaniel Cullen, Rachel Hardwick, Dennis Indianapolis, IN 46204
PROGRESS REPORT Heathfield, Amber Hughes, Josh Inman, blair.claflin@cummins.com
Brian Jaskot, Laura Jones, Anna Lintereur,
Terry Magid, Katie Moreau, Brian Mormino,
Zsofia Nagy, Louise Norman, Eduardo
Patron, Neha Purandare, Meredith Sanders,
Brian Sumedha Sharma, Robert Simmons,
Kelli Steill, Michelle Stokes, Jean St. Pierre,
Scott Saum, Paul Wellings
This year’s report is dedicated to
James B. Wide, Jr., 1973–2023.
Cummins Inc
Keyword: bribe
anti-bribery laws.
executives and is chaired by 3M’s
Examples of recent training
Vice President and Chief Ethics &
The program consists of: modules include:
Compliance Officer. This committee
oversees 3M’s compliance efforts to • A core set of business conduct • Data Privacy and Protection
assure that 3M has an effective and principles
• Understanding Information Security
world-class compliance program —
• Education and training and Protection
A “Speak Up” culture that keeps one that is agile and anticipates
changes in the external landscape • Periodic evaluations, audits, risk • Gifts, Entertainment, and Travel
and internal business strategy. assessment, and procedures to • Avoiding Bribery and Corruption:
ethics and business conduct measure and asses
Keyword: bribe
phone or via email for non-anonymous periodic compliance and anti-bribery and operations for future review.
reporters. For anonymous reporters evaluations in various 3M subsidiaries
Additionally, a “local evaluation”
who used 3MEthics.com to raise a and operating units each year.
process was developed to address
concern, the follow-up is handled Subsidiaries or operations are selected
site-specific risk with more agility
through 3MEthics.com to maintain for an evaluation using objective and
and speed. Now part of the annual
anonymity. If claims of retaliation are subjective risk factors. An evaluation
evaluation planning process, a
identified, the investigation team will process includes a review of financial
local evaluation has a more focused
follow up on them. 3M takes a strong transactions, compliance record
Keyword: bribe
professionals on our team regularly bribery. The course is available in
a relationship with a business partner 3M respects our employees’ right
participate, present, and are members 30 languages. The brochure, available
if the risk presented is determined to engage in the political process,
of organizations and associations in 27 languages, provides another
to be too high and cannot be and, at the same time, 3M is
working to improve compliance way for 3M to communicate with
appropriately mitigated. committed to preventing potential
controls and reduce legal risk. our business partners regarding our
corruption. When allowed by law,
commitment to combat global bribery.
Further, the Ethics & Compliance any corporate political contributions
3M’s Code of Conduct requires
Department colla
Keyword: bribe
bribery laws, including the U.S. Foreign Affairs on due-diligence processes approval by the Area Vice President “For more than a
related to potential equity investments and assigned legal counsel.
Corrupt Practices Act, the U.K. Bribery
and mergers and acquisitions. These century, 3M has
Act, Brazil’s Clean Company Act, and
processes help identify risks in the For additional information, please visit
local laws where 3M operates. It
target company before an acquisition the Ethics and Compliance webpage. done things the
applies to 3M employees, as well as
or investment is initiated. This process
to our business partners. In addition, right way, assuring
accelerates our efforts to integrate an
3M’s Anti-Bribery Principle and anti-
acquired company’s
Keyword: bribe
bribery policies and procedures have integrity is at the
3M’s compliance program and culture.
been communicated to all employees.
Ultimately, the Ethics & Compliance heart of what we
Our Avoiding Bribery and Corruption
Department is charged with conducting
training is required of most non-
a risk review and implementing any do. Our Code of
production employees and specifically
necessary remediation activities upon
employees in higher-risk roles, Conduct provides
the closing of every acquisition. As
including those in legal, audit, sales,
a part of our ethics and compliance
marketing, export, and global trading. the foundation for
integration process, in 2019, we
The Vice President and Chief Ethics &
completed a compliance culture the values we liv
Keyword: bribe
Practices Act and other anti-bribery and anti-corruption laws, and other matters. the full Board and executive-level internal General Auditor and Chief Ethics & Compliance Officer
The outcome of these legal proceedings is often difficult to reliably predict. For appointed by and reporting directly to the Audit Committee.
a more detailed review of this topic, see the discussion in Note 16 “Commitments
and Contingencies” within the Notes to Consolidated Financial Statements in the 3M has operations in over 70 countries, with regionalized supply chains that enable more localized
company’s Annual Report on Form 10-K. and diversified production of our products. This helps reduce our risk from local climate impacts
on our operations. 3M’s four business groups bring together common
Keyword: bribe
positives and mitigate the potential working age (no child labor), and must prohibit any form of bribery health and safety of workers and the value chains
negatives by aligning our supplier appropriate working hours and and corruption and prevent conflicts languages. public. Additional information can be
expectations with our own corporate wages. Setting these expectations of interest found at 3M Supplier Direct. In addition to the global SRC
values. We expect our suppliers to be helps assure our suppliers’ actions expectations for all suppliers, certain
transparent about their environmental will reflect 3M’s values on human • Management systems: We expect We expect our suppliers to establish and Our general supplier performance areas warrant additional and specific
and social practices, provide rights as well as the values underlying our sup
Keyword: bribe
on topics such as global bribery and described earlier, we focus efforts on advance our aspirational Sustainability rights atrocities, especially in regard
corruption awareness, eliminating the salient issues in categories where goals in 3M’s Circular Economy to human trafficking, forced labor, 6,000
forced labor, slavery, and human human rights and environmental risks Supplier Letter. modern slavery, and other related
trafficking from the global supply are the greatest. More broadly, we crimes. 3M is committed to doing our 5,000
chain, and preventing corruption conduct robust risk prioritization to Verifying our supplier part to eradicate human trafficking in
and mitigating compliance risk for determine other suppliers we will performance any form from the global supply
Keyword: corruption
We value the recognition we receive, voluntary steps to prevent corruption,
as it shows we are a company driven creating a more ethical, transparent, FTSE Russell confirmed that 3M,
by employees who are truly making and honest business environment. EcoVadis awarded 3M a Gold in 2019, had been independently
a difference in the world. 3M Brazil was recognized for top Recognition Level for achievements in assessed according to the FTSE4Good
management’s commitment to ethics, the 98th percentile of suppliers assessed criteria and satisfied the requirements
their policies and procedures, and in corporate social responsibility (CSR) to become a constituent of the
their risk monitoring and analysis. in global supply chains. FTSE4Good Index Series. Created
by the global index provider FTSE
Best Places to Work Russell, th
Keyword: corruption
on investments and capabilities in R&D, employees, investors, and stakeholders corruption. We align this Report to
commercialization and Sustainability — and grow our business — by the guidelines of the Sustainability
for our success, this new committee continuing to make bold Sustainability Accounting Standards Board (SASB)
aligns with 3M’s strategic priorities and commitments and taking stronger actions. and the Task Force for Climate-
enables the Board greater focus and related Financial Disclosures (TCFD)
3M has a long-standing commitment
engagement on a critical element of recommendations for helping
to Sustainability, from our
our strategy. businesses disclose climate-related
groundbreaking Pollution Prevention
financial information. Together
Pays program that began in 1975
with our ambition of improving
to our increasing
Keyword: corruption
and internal business strategy. assessment, and procedures to • Avoiding Bribery and Corruption:
ethics and business conduct measure and assess the compliance A Global Overview
The Business Conduct Committee, program’s effectiveness
annually or as needed, updates the • Understanding Global Competition
• A 24-hour global helpline and
front and center. Audit Committee of the 3M Board website through which employees, • Creating a Harassment-Free Workplace
of Directors and 3M’s executive
customers, vendors, and other • Code of Conduct and Ethical
Corporate Operating Committee.
external parties can report concerns Decision-Making
Additionally, similar committees
and ask questions, anonymously in
exist at country and regional levels • Recognizing Conflict of Interest
most countries
Our The Code of Conduct is our guide, Executives and manag
Keyword: corruption
100 How we work Corporate Code of Conduct 3M 2020 Sustainability Report #improvinglives 101Commitment to 3M’s commitment to anti-corruption Finally, the Ethics & Compliance Raising third-party
is also reflected in our management of Department has a group of specialists
anti-corruption awareness of 3M
third-party intermediaries and other focused on assuring that 3M
business partners. 3M conducts due- conducts government contract and Ethics & Compliance
As a participant of the United Nations
diligence reviews of our third parties subcontractor business in compliance expectations
Global Compact (UNGC), 3M is
based on an assessment of risk factors, with all laws. This group trains, assists,
committed to supporting Principle 10
including transaction size, type of and coaches 3M employees on
on Anti-Corruption. Our commitment To enhance our communications and
relationship, governmen
Keyword: corruption
related to work against corruption in all and refreshed the content of the online
relevant contractual terms, and other Political values
its forms. Additionally, the compliance third-party training course on anti-
risk-mitigating controls. 3M may end
professionals on our team regularly bribery. The course is available in
a relationship with a business partner 3M respects our employees’ right
participate, present, and are members 30 languages. The brochure, available
if the risk presented is determined to engage in the political process,
of organizations and associations in 27 languages, provides another
to be too high and cannot be and, at the same time, 3M is
working to improve compliance way for 3M to communicate with
appropriately mitigated. committed to preventing poten
Keyword: corruption
corruption. When allowed by law,
commitment to combat global bribery.
Further, the Ethics & Compliance any corporate political contributions
3M’s Code of Conduct requires
Department collaborates with 3M Legal outside of the United States require
compliance with all applicable anti-
bribery laws, including the U.S. Foreign Affairs on due-diligence processes approval by the Area Vice President “For more than a
related to potential equity investments and assigned legal counsel.
Corrupt Practices Act, the U.K. Bribery
and mergers and acquisitions. These century, 3M has
Act, Brazil’s Clean Company Act, and
processes help identify risks in the For additional information, please visit
local laws where 3M operates. It
target company before an acquisition the
Keyword: corruption
Our Avoiding Bribery and Corruption
Department is charged with conducting
training is required of most non-
a risk review and implementing any do. Our Code of
production employees and specifically
necessary remediation activities upon
employees in higher-risk roles, Conduct provides
the closing of every acquisition. As
including those in legal, audit, sales,
a part of our ethics and compliance
marketing, export, and global trading. the foundation for
integration process, in 2019, we
The Vice President and Chief Ethics &
completed a compliance culture the values we live
Compliance Officer provides quarterly
survey with an acquisition to identify
updates on all activities to the Audit and prioritize compliance integration by. These values
Committee of the Board of Directors an
Keyword: corruption
Convention against Corruption child labor, forced labor, or recruitment fees to obtain employment, and human trafficking)
other assessment and management
processes and are based on material
Holistic approach
issues regardless of where they’re
to human rights
identified within the value chain.
due diligence In our view, human rights due diligence requires a holistic
Based on this assessment process, we
have determined that in our various approach. We assess our own business as well as those who
The 3M Corporate Code of Conduct
spheres of influence (our own business
describes the company’s business
are acting on our behalf.
and in others acting on 3M’s behalf),
conduct principles, or core values,
the sphere with the greatest potential
which set forth global corporate
for
Keyword: corruption
Practices Act and other anti-bribery and anti-corruption laws, and other matters. the full Board and executive-level internal General Auditor and Chief Ethics & Compliance Officer
The outcome of these legal proceedings is often difficult to reliably predict. For appointed by and reporting directly to the Audit Committee.
a more detailed review of this topic, see the discussion in Note 16 “Commitments
and Contingencies” within the Notes to Consolidated Financial Statements in the 3M has operations in over 70 countries, with regionalized supply chains that enable more localized
company’s Annual Report on Form 10-K. and diversified production of our products. This helps reduce our risk from local climate impacts
on our operations. 3M’s four business groups bring together common or related 3M techno
Keyword: corruption
negatives by aligning our supplier appropriate working hours and and corruption and prevent conflicts languages. public. Additional information can be
expectations with our own corporate wages. Setting these expectations of interest found at 3M Supplier Direct. In addition to the global SRC
values. We expect our suppliers to be helps assure our suppliers’ actions expectations for all suppliers, certain
transparent about their environmental will reflect 3M’s values on human • Management systems: We expect We expect our suppliers to establish and Our general supplier performance areas warrant additional and specific
and social practices, provide rights as well as the values underlying our suppliers to establish processes implement their own relevant policies verification process begins with a formal expectations to driv
Keyword: corruption
corruption awareness, eliminating the salient issues in categories where goals in 3M’s Circular Economy to human trafficking, forced labor, 6,000
forced labor, slavery, and human human rights and environmental risks Supplier Letter. modern slavery, and other related
trafficking from the global supply are the greatest. More broadly, we crimes. 3M is committed to doing our 5,000
chain, and preventing corruption conduct robust risk prioritization to Verifying our supplier part to eradicate human trafficking in
and mitigating compliance risk for determine other suppliers we will performance any form from the global supply chain. 4,000
distributors and business partners. engage via an assessment against We have robust policies and systems in
place to cont
Keyword: corruption
anti-corruption. 3M committed to the current industry standard classifications.
(contributing neither toward total increase does not impact previously Assurance statement.
UNGC principles in early 2014. This 3M is grouped as a primary SICS Contact 3M
waste nor toward good output). reported Scope 3 category 2 values,
and the 2019 Scope 3 category 2 value Global principles report includes an index of our COP Sector: Resource Transformation,
3 20M 1’ 5s a2 s0 t2 h5 e S bu as st ea i yn ea ab ri .l i Sty ta G rto ina gls i nu tilize is comparable with previous years. and guidelines aim s p al le igm nmen et nin tg w t ih the t1 h0 e p Uri nn ic teip dl e Ns a a ts io w nse ll p Pr ai cm ka ar gy i nS gIC . US s I in nd gu os utr r y 5: 1C To en ct ha nin oe l
Keyword: corruption
GRI 205: Anti-corruption 303-3 Water withdrawal Circular materials 146 UNGC Principle 8
Metric tables: environmental performance, water 244 SDG 6, 8, 12
103-1 to Management approach Corporate Code of Conduct 98
303-4 Water discharge Circular materials 146 UNGC Principle 8
103-3 disclosures
303-5 Water consumption Metric tables: environmental performance, water 244 UNGC Principle 8
205-1 Operations assessed Corporate Code of Conduct 98 UNGC Principle 10
for risks related to SDG 16 GRI 305: Emissions
corruption
103-1 to Management approach Climate and energy 160
205-2 Communication and Corporate Code of Conduct 98 UNGC Principle 10
103-3 disclosures
training about anti- SDG 16
corruption policies and 305-1 Direct (Scope 1) GHG Climate and energy 160 UNGC Principle 7
Keyword: corruption
corruption and actions SDG 16 305-2 Energy indirect Climate and energy 160 UNGC Principle 7
taken (Scope 2) GHG Metric tables: historical metrics, environmental footprint; 244 and 8
emissions environmental performance, greenhouse gas SDG 3, 12, 13, 14, 15
GRI 206: Anti-competitive behavior
305-3 Other indirect (Scope 3) Climate and energy 160 UNGC Principle 7
103-1 to Management approach Corporate Code of Conduct 98 GHG emissions Metric tables: historical metrics, environmental footprint; 244 and 8
103-3 disclosures Antitrust and Competition Principle environmental performance, greenhouse gas SDG 3, 12, 13, 14, 15
206-1 Legal actions for Antitrust and Competition Principle SDG 16 305-4 GHG emissions Climate and energy 160 UNGC Principle 8
anti-compet
Keyword: tax
income taxes $USD
1. A mounts for operating income; research, development, and related expenses; and total operating expenses were reclassified back to 2015 to reflect the
adoption of an accounting standard (ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost)
effective January 1, 2018 on a retrospective basis.
Community engagement
Million
Total global giving 72.8 67.3 73.5 66.3 73.3 10.6 0.687
$USD
Million
Total cash donations 34.1 34.8 35.9 35.6 32.4 -8.99 -4.99
$USD
Million
Total in-kind donations 38.4 32.5 37.6 30.7 40.9 33.2 6.51
$USD
Volunteer
3M Impact 20,600
hours
244 About report Metric tables 3M 2020 Sustainability Report #improvinglives 2452018-2019 2015-2019 2018-2019 2015-20
Keyword: governance
Message from our CSO 6 Feature stories 12 3M Value Model 48 Corporate governance 86 Our customers 192
Sustainable Development Goals 220
Site spotlights 34 Our Vision 49 Enterprise risk 94 Innovation management 198
GRI index and UNGC 226
Our Values 49 Corporate Code of Conduct 98 Our products 208
SASB index 236
Our Strategic 50 Human rights 106
Sustainability Assurance statement 238
Framework Compensation 116
Metric tables 244
Advancing impact 56 Employee programs 120
Communities 60 Health and safety 132
Employee diversity and inclusion 70 Environmental management 140
Recognition 78 Circular materials 146
On the cover
Climate and energy 160
In 2019, the 3M Industrial Mineral Products Division California
site installed solar cells containing 3M™ EPE Film. For information Suppliers 176
on our renewable energy efforts in 2
Keyword: governance
Governance is provided by the 3M addition to assisting groups and
in cash and product contributions in
Foundation Board of Directors and organizations in need, each one of these
3M communities.
Corporate Contributions Committee, projects is designed to support 3M’s
which is comprised of senior-level Strategic Sustainability Framework,
company executives. advancing our commitments to Science
for Circular, Science for Climate, and/
To assure that our support delivers
Since 1953, 3M or Science for Community. See more
the maximum benefit to the
in our feature story “Making an impact
communities being served, 3M and and 3M Foundation around the world.”
3M Foundation assess the impact
of prospective grants and employee have invested
engagement initiatives
Keyword: governance
to Work for LGBTQ Equality.” environmental, social, and governance
standards and practices internally,
(ESG) performance. Index components
enabling managers and employees to Best Places to Work for
are reviewed and updated twice a
make good choices, and shaping future
Disability Inclusion year, in June and in December.
industry standards by introducing
Companies included in this index
tomorrow’s best practices today.”
In the fifth annual Disability have achieved the highest scores, as
According to the institute, honorees
Equality Index® (DEI®) survey, 3M determined by nearly 330 indicators,
have also historically outperformed
other companies from a financial earned a top score of 100%, making assessed by the agency. ISS Environmental and
3M one of the “Best Places to Work
perspective, supporting the notio
Keyword: governance
social, and governance performance.
organizations globally. Since 2011,
3M has made the Derwent Top 100
Global Innovators list.
80 Who we are Recognition 3M 2020 Sustainability Report #improvinglives 81Introduction 84
Corporate governance 86
How we
Enterprise risk 94
Corporate Code of Conduct 98
Human rights 106
work Compensation 116
Employee programs 120
Health and safety 132
Environmental management 140
Circular materials 146
Climate and energy 160
Suppliers 176
82 How we work Introduction 3M 2020 Sustainability Report #improvinglives 83How we
work
Just as Sustainability is R&D at 3M is a
embedded throughout
little different:
our Value Model,
We separate the
sustainable thinking
R and the D.
is embedded into the
core of 3M and in the
First, the “R.” Scientists
Keyword: governance
governance
The Board of Directors believes Board’s role in the
that this leadership structure provides
company’s long-term
independent Board leadership and
engagement while deriving the strategy
benefits of having our CEO also
serve as Chairman of the Board. Each year management presents to the
3M believes that good 3M’s Board of Directors has adopted
As the individual with primary Board, and the Board discusses and
Corporate Governance Guidelines
corporate governance responsibility for managing 3M’s approves, detailed long-term strategic
which provide a framework for the
day-to-day operations and with in- plans for the company. In addition to
practices serve the effective governance of the company.
depth knowledge and understanding the overall strat
Keyword: governance
earned from more than Governance Committee is responsible avoiding unnecessary confusion Our long-term
for overseeing and reviewing the regarding the Board’s oversight
a century of operating guidelines, at least annually, and responsibilities and the day-to-day strategy is outlined
with uncompromising recommending proposed changes to management of business operations.
the Board for approval. The Corporate in the 3M Value
integrity and doing
Governance Guidelines, Certificate The Board plans the succession to
Model. The 3M
business the right way. of Incorporation and Bylaws, charters the position of Chairman/CEO and
of the Board committees, Director other senior management positions. Value Model is
Independence Guidelines, and Board To assist the Board, the Chairman/
Our
o
Keyword: governance
the framework for the governance of Human Resources annually assess
commitment our company in the
the company and are available on our senior managers and their succession
website at 3M.com, under Investor potential for the position of Chairman/
marketplace.
Relations — Governance. CEO and other senior management
Our corporate governance principles
positions. As a result of a thorough
govern how we do business daily,
The Board’s current leadership and thoughtful succession planning It’s how we create extraordinary value
enabling us to outperform and lead
structure is characterized by: process, in February 2019, Inge G. for customers and premium returns
the way to sustainable growth. They
Thulin, Executive Chairman of the for shareholders. The model is built
provide a fram
Keyword: governance
86 How we work Corporate governance 3M 2020 Sustainability Report #improvinglives 87Lobbying and Political It is the intent of the Board that the Board refreshment Corporate governance highlights The Guidelines specify the criteria
Board itself will be a high-performance by which the independence of our
Activities Principle
organization creating competitive We regularly add directors to infuse directors will be determined, including
advantage for the company. To new ideas and fresh perspectives Director Tenure Director Age Gender Diversity Board size and strict guidelines for directors and their
As a concerned member of our
communities, 3M actively participates perform as such, the Board will be into the boardroom. Five out of the Avg. 7 Avg. 64.3 33.3% independence immediate family members with
composed of individuals who have 10 independent director nominees years years Women Directors 11/12 respect to past employment
Keyword: governance
character, judgment, and whether to our commitment to good governance 5 circumstance that might be perceived
vis o a lu n no tan rp ya ert mis pa ln o yfu en ed a c no dm stp or cis ke hd o o ldf e r the candidate possesses and and essential to maintaining our strong • I wnd ite hp re on bd ue sn t t a L ue thad o rD iti yrector • O anve dr ca oll mat mte itn td ea en mce e ea tt i nB go sard 3 1 3 as a conflict of interest.
maintains throughout service on the corporate governance practices. • Combined Chairman • There were eight Board
contributions that is used to make Board a reputation in the community We engage regularly with our global and CEO positions meetings in 2019 0 1 2 3 Diversity
contributions to U.S. federal, state, BoardsBoardBoardsBoards
at large of integrity, trust, respect, investors to gai
Keyword: governance
competence, and adherence to the the governance issues about which For 3M, diversity, in its myriad
by law. These activities must always
highest ethical standards they care most. We aim to seek a manifestations, is fundamental to
comply both with applicable laws
and 3M’s Lobbying and Political • Relevant knowledge and diversity collaborative and mutually beneficial The meetings included an overview Director independence innovation, performance,
Activities Principle. of background and experience in approach to issues of importance to of the company and a discussion of and relevancy.
business, manufacturing, technology, investors that affect our business, and the company’s practices on corporate The Corporate Governance Guidelines
The Board of Directors regards diversity
Our actions finan
Keyword: governance
ce and accounting, marketing, to assure that our corporate governance governance, including Board and Director Independence Guidelines
as an important factor in selecting
international business, government, practices remain industry-leading from refreshment and diversity, director provide that independent directors
Board nominees to serve on the Board.
and other areas; and their perspectives. evaluation, directors’ skills matrix, must comprise a substantial majority
Although the Board has no specific
Board membership Board leadership structure, as well of the 3M Board. A director is
• Whether the candidate is free of During 2019, members of senior diversity policy, when selecting
as on strategic priorities, capital “independent” if the Board affirmatively
criteria conflicts and has the time required management met with
Keyword: governance
3M’s Corporate Governance attendance at all meetings directors, such as gender, race, and
29% company culture. In general, investors directly or as a partner, shareholder,
Guidelines contain Board Membership national origin. The current composition
In addition to these minimum viewed the company’s governance or officer of an organization that has
Criteria which include a list of key skills of our Board reflects those ongoing
requirements, the committee will practices favorably, including the a relationship with the company and
and characteristics deemed critical to efforts and continued importance of
also evaluate whether the nominee’s Board Chairman transition, the mix otherwise meets the requirements for
serve 3M’s long-term business strategy diversity to the Boa
Keyword: governance
Governance Committee periodically
in certain areas, and will assess the 42% feedback from these meetings was the Board decisions on corporate
reviews with the Board the appropriate
nominee’s impact on Board dynamics, shared with the Board of Directors and governance matters.
skills and characteristics required of
effectiveness, and diversity of helped inform the Board on corporate
Board members given the current
experience and perspectives. governance practices and trends.
Board composition.
of our institutional
shareholders.
88 How we work Corporate governance 3M 2020 Sustainability Report #improvinglives 89An inclusive culture at 3M is built on In addition to forming the Science, As a global Announced by CEO Mike Roman on
our Be Respectful Principl
Keyword: governance
Governance actions Commitment to home and improving
economic, environmental, responsibility
every life.
As we continually seek ways to improve
and social topics to advance the
corporate governance, our Board
announced in November 2019 that
At 3M, we are inspired and motivated United Nations
it had established a new committee
by our Vision of advancing every
to strengthen oversight of the Sustainable
company, enhancing every home and
company’s strategies related to
improving every life. In collaboration
research and development, Development
with our employees, customers,
commercialization, Sustainability,
partners, government, and communities, Goals across
environmental stewardship and
we apply our expertise and technology
other related activities. Th
Keyword: governance
90 How we work Corporate governance 3M 2020 Sustainability Report #improvinglives 91g
n
i d
k
r
o a
o w
L
r
Our continued work across the 3M’s Code of Conduct Governance links o
Strategic Sustainability Framework f
helps advance 3M’s progress toward More than a century of operating with For more information on corporate More than a century
our 2025 Sustainability Goals, which is uncompromising integrity has earned governance at 3M, see:
reported on in this Report. Sustainability 3M trust from our customers, credibility of operating with
• Corporate Officers
at 3M is also guided by our Innovation with our communities, and dedication
uncompromising We regularly post governance news,
Steering Committee which includes from our employees. And for the • Board of Directors
events,
Keyword: governance
oversight and strategy to encourage World’s Most Ethical Companies®. • Governance Documents 3M trust from of our website. See 3M Events and
presentations.
and assure Sustainability opportunities • Annual Reports and Proxy
are recognized, and strong policies and The Code of Business Conduct and Statements our customers,
procedures are in place. Ethics for Directors of the company
incorporates long-standing principles credibility with our
In November 2019, the 3M Board of conduct 3M and the Board follow
communities, and
of Directors established a new to assure the company’s business
Board-level committee to provide and the activities of the Board are
dedication from
general oversight of the significant conducted with integrity and adherence
scientific and technological aspects to the highest ethical standards, and our emp
Keyword: governance
92 How we work Corporate governance 3M 2020 Sustainability Report #improvinglives 93Enterprise risk
Assessing and planning for risk at
The Vice President and General Our actions Together with subject-matter experts
Auditor, Corporate Auditing, whose and senior management, the outcomes
all levels.
appointment and performance are mapped to demonstrate the relative
is reviewed and evaluated by the Corporate-level level of risk and likelihood of risk.
Audit Committee, is responsible for This “heat map” identifies the highest-
leading the formal risk assessment 3M’s Enterprise Risk Management risk areas and shows where to focus
Our and management process within (ERM) initiative, launched in 2001, has our internal efforts. In addition, external
the company. The General Auditor, he
Keyword: governance
governance practices serve the long-
engagement of general risk matters on protecting
term interests of our stockholders, While the Board’s oversight of risk
throughout the company. The approach
strengthen 3M’s Board of Directors is primarily performed by the Audit
provides a customized capability our company
and management, and further enhance Committee, the Board has also
that leverages 3M’s comprehensive,
the public trust 3M has earned from delegated to other committees the against emerging
experience-based global knowledge
more than a century of operating with oversight of risks within their areas
and capabilities while also considering
uncompromising integrity and doing of responsibility and expertise. risks in an ever-
tools often used in finan
Keyword: governance
business the right way. Governance We believe this governance of risks
insurance-oriented businesses. changing world.
includes broad risk oversight by the by Board committees, who share
Board and its committees. Risk analysis information with the full Board,
To assure long-
is reported to the full Board, the is appropriate for a diversified Case in point: cybersecurity. Strong
General Auditor, and the Chief Ethics & technology and manufacturing term success, we cybersecurity programs are essential,
Compliance Officer. Both the General company like 3M. 3M’s 10-K, Item and we continue to invest in information
Auditor and Chief Ethics & Compliance 1A outlines risk factors applicable are committed to technology systems and activities
Officer are appointed by, and report to, to the company. around cyberse