Berkshire Hathaway Inc.

Climate Impact & Sustainability Data (2022, 2023)

BNSF committed to a 30% reduction in GHG emissions by 2030 from its 2018 baseline. BHE reduced its annual GHG emissions by more than 27% compared to 2005 levels by retiring 16 coal generation units and investing in renewable energy sources. BHE plans to retire an additional 16 coal generation units between 2023 and 2030, aiming for a 50% reduction in GHG emissions from 2005 levels by 2030.

Berkshire and its subsidiaries employed approximately 383,000 people worldwide at the end of 2022, of which approximately 78% were in the United States. Policies and practices commonly address maintaining a safe work environment, offering competitive compensation and benefits, wellness programs, training, and hiring practices intended to promote diversity and inclusion.

Berkshire’s Board of Directors is responsible for assuring an appropriate successor to the Chief Executive Officer. The Berkshire Code of Business Conduct and Ethics emphasizes the commitment to ethics and compliance with government laws and regulations.

Medium-term Goals:

BNSF intends to continue improvements in fuel efficiency and increased utilization of renewable diesel fuel. BHE plans to continue investing in wind, solar, and other low-carbon generation and to retire an additional 16 coal generation units between 2023 and 2030.

Cybersecurity risks; Dependence on a few key people for major investment and capital allocation decisions; Need for qualified personnel; Competition and technology eroding business franchises; Unfavorable general economic conditions; Epidemics, pandemics; Regulatory changes; Climate change and the regulation of greenhouse gas emissions; Risks unique to regulated businesses (insurance underwriting losses, regulatory changes, railroad business regulations, utilities and energy business regulations); Raw material availability and pricing volatility; Supply chain disruptions; High claims costs at GEICO; Rising interest rates impacting demand for new home construction.

Business continuity planning, disaster recovery planning, and business impact analysis to mitigate cybersecurity risks; Succession plan for key personnel; Ongoing efforts to recruit, train, and retain qualified personnel; Disciplined underwriting practices to mitigate potential losses in insurance; Actions to improve operations, maintain safety, and prepare for increased demand at PCC; Measures to right-size operations and reduce product inventories; Actions to improve productivity and increase utilization of renewable diesel fuel at BNSF; Investing heavily in owned wind, solar, and geothermal generation at BHE; Obtaining premium rate increase approvals from certain states at GEICO; Continually monitors new and pending regulations and assesses their potential impact at JM; Pricing of products and services to customers to manage commodity price risks.

Additional GHG policies, including legislation, that accelerate the transition to a lower GHG-emitting economy

BNSF management has committed to a broad sustainability model, applying science-based approaches, that will provide a 30% reduction in BNSF Railway’s GHG-emissions by 2030 from its baseline year of 2018.
As of December 31, 2023, BHE reduced its annual GHG emissions by more than 34% as compared to 2005 levels.
BHE plans to continue investing in renewable and other low-carbon generation and storage in the future and to cease coal operations at an additional 15 coal generation units between 2025 and 2030 in a reliable and cost-effective manner, thereby achieving a 50% reduction in GHG emissions from 2005 levels in 2030.

Berkshire and its subsidiary business units employed approximately 396,500 people worldwide at the end of 2023, of which approximately 80% were in the United States (“U.S.”) and 20% were represented by unions.
Policies and practices commonly address, among other things: maintaining a safe work environment and minimizing or eliminating workplace injuries; offering competitive compensation, which includes various health insurance and retirement benefits, as well as incentives to recognize and reward performance; wellness programs; training, learning and career advancement opportunities; and hiring practices intended to identify qualified candidates and promote diversity and inclusion in the workforce.

Berkshire’s senior management is also responsible for establishing and monitoring Berkshire’s corporate governance practices, including monitoring governance efforts, including those at the operating businesses, and participating in the resolution of governance-related issues as needed.
Berkshire’s Board of Directors is responsible for assuring an appropriate successor to the Chief Executive Officer.
The Berkshire Code of Business Conduct and Ethics emphasizes, among other things, the commitment to ethics and compliance with government laws and regulations and provides basic standards for ethical and legal behavior of its employees.

Long-term Goals:

BHE's plan to achieve a 50% reduction in GHG emissions from 2005 levels by 2030.

Medium-term Goals:

Lower earnings in most non-insurance businesses in 2023.
Decline in earnings at BNSF due to lower revenues and higher wage increases.
Severe earnings disappointment at BHE due to an adverse regulatory climate in some states, resulting in potential zero profitability or bankruptcy.
Increased frequency and intensity of forest fires impacting BHE.
Uncertainty regarding future investments in vulnerable western states due to forest fires and regulatory environment.
Potential for significant underwriting losses in insurance businesses due to catastrophic events.
Challenges in estimating insurance claim costs due to imprecise nature and long claim-tails.
Changes in regulations and regulatory actions affecting operating results and capital allocation.
Intense competition and technological changes eroding business franchises.
Unfavorable general economic conditions reducing operating earnings and impairing access to capital markets.
Potential for adverse effects from geopolitical events.
Dependence on a few key people for major investment and capital allocation decisions.
Need for qualified personnel to manage and operate various businesses.
Concentration of equity security investments in a small number of issuers.
Impacts of climate change and regulation of GHG emissions on businesses.
Supply chain disruptions affecting various businesses.

BNSF's commitment to reduce GHG emissions by 30% by 2030.
BHE's investment in renewable energy and plans to cease coal operations.
Disciplined risk evaluation and risk mitigation strategies in insurance operations.
Maintaining high credit ratings to minimize the cost of debt.
Maintaining significant levels of shareholder capital and ample liquidity.
Succession plan for key personnel.
Ongoing efforts to recruit, train, and retain qualified personnel.
Extreme fiscal conservatism and preparedness for economic downturns.
Actions taken to reduce inventories and right-size operations in certain businesses.
Monitoring and remediation efforts for known environmental matters.