Partnering to End the Crisis in Darfur:
Calvert Advocacy Success: Cummins, Inc.

As Calvert focused on targeted divestment as a strategy to help end the crisis in Darfur last year, we compared the holdings in our socially screened funds to the Sudan Divestment Task Force (SDTF) list of companies active in Sudan. We found that Cummins, Inc. (CMI), an engine producer with an outstanding environmental record, was both on the SDTF engagement list and in several of our funds. According to the SDTF, Cummins confirmed that it ran a joint venture in China that resulted in its engines being installed in trucks that were then sold to the Sudanese government. The company had previously been contacted by Amnesty International regarding these engine sales to the Khartoum regime, and responded in June 2006 by stating that "[e]ffective immediately, Cummins will ban all sales of its products in Sudan." The ban applied to both equipment and components.

In September 2006, Calvert wrote to the company in order to ascertain the status of its involvement in Sudan. Specifically, we asked Cummins to confirm that its products were no longer sold to the Sudanese government. Within 10 days, Cummins' Vice President and General Counsel responded to our letter, noting that the company had strengthened its export controls policy to explicitly ban transactions that might result in Cummins products going to Sudan. Cummins notified its sales organizations, distributors, and dealers of this policy and specifically addressed the issue with its Chinese partners.

While Cummins remains on the SDTF engagement list pending independent verification of its actions and confirmation that the company is encouraging its Chinese partner to take a similar stand, Calvert appreciates the company's quick action and timely response. According to Devin Zeller, the Calvert Social Research Analyst charged with monitoring this company, "we have recognized Cummins as a leader in Corporate Social Responsibility in the past and were very pleased to receive such a rapid and extensive response on the company's involvement in the Sudan. Cummins' actions help make the case that Calvert's analysis can identify progressive and responsive management in the companies that meet our rigorous social investment criteria." Calvert will continue to watch our holdings to ensure that Cummins' products and services are not used to support the genocide in Darfur.

Partnering to End the Crisis in Darfur

Publication Date: January 22, 2008

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