Climate Change Data

Environmental Metrics

ESG Focus Areas

• Decarbonization
• Facilities
• Circularity
• Suppliers
• Nature
• Diversity, Equity, and Inclusion
• Safety
• Community Engagement
• Governance

Environmental Achievements

• Improved fuel efficiency by 9.4% (exceeding the 8.6% goal set for 2020), saving over 130 million gallons of diesel fuel and avoiding 1.3 million metric tons of emissions.
• Reduced emissions intensity by 7% in 2020.
• Nearly doubled renewable energy usage to 18% in deregulated markets.
• Diverted 81% of waste from landfills.
• Recycled 100% of old crossties and more than 90% of steel.
• Recycled 100% of replaced rail, with over 90% of new rail manufactured from recycled material.
• Reclaimed over 6,200 tons of used oil.
• Completed a living shoreline on the Elizabeth River, restoring 900 feet of eroded shoreline.

Social Achievements

• Completed implementation of positive train control (PTC) technology on 8,023 miles of track, enhancing safety.
• Provided virtual safety training to over 1,350 first responders.
• Reduced total reportable injuries by 19%, employees who lost work days due to injury by 18%, and serious injuries by 20%.
• Reduced train accidents by 8%, highway-rail grade-crossing incidents by 16%, and trespasser incidents by 18%.
• Invested $13.1 million in total contributions across its 22-state network.
• Launched a Community Impact Grant Program (CIGP).
• Contributed $5 million to the Hampton Roads, Virginia community.

Governance Achievements

• Issued $500 million in green bonds, becoming the first major North American railroad to do so.
• Established a science-based target for greenhouse gas emissions reduction consistent with the Paris Agreement.
• Added oversight of cybersecurity and cyber incident response to the Finance and Risk Management Committee’s charter.
• Added oversight of human capital management (HCM) strategies to the Compensation Committee’s charter.
• Established a Board Safety Committee.

Climate Goals & Targets

Environmental Challenges

• Climate change impacts (severe weather, energy price volatility)
• Cyberattacks
• Economic and political landscape shifts

Mitigation Strategies

• Enterprise Risk Management (ERM) program to proactively manage threats and uncertainties.
• Integrated Risk Management initiative to identify significant risk interdependencies.
• Proactive risk assessment, management, and reporting for cybersecurity.
• Cybersecurity education programs and phishing awareness campaigns.
• Science-based target for GHG emissions reduction.

Supply Chain Management

Responsible Procurement

• Spent $166 million with diverse suppliers in 2020.
• Collaborating with suppliers for sustainable procurement and responsible sourcing.
• Investigating alternative fuels to reduce carbon intensity.

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather

Transition Risks

• Legislative and regulatory changes related to greenhouse gas emissions
• Volatility in energy prices

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB, TCFD

Awards & Recognition

• 2021 River Star Business Hall of Fame Winner
• 2021 List of America’s Most Responsible Companies (Newsweek)
• 2021 Military Friendly Company
• 2020 Environmental Award (Toyota Logistics Services)
• 2020 Kaizen Award (Toyota Logistics Services)
• 2020 TRANSCAER national award
• 2020 Disability Equality Index
• 2020 List of the 100 Most Sustainably Managed Companies in the World (Wall Street Journal)
• 2020 List of 75 Green Supply Chain Partners (Inbound Logistics)
• 2020 Trendsetter for political disclosure practices and accountability (Center for Political Accountability)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Safety
• Employee Well-being
• Diversity, Equity, & Inclusion
• Responsible Sourcing
• Community Engagement
• Governance

Environmental Achievements

• 6% reduction in Scope 1 and 2 greenhouse gas emissions intensity since 2019 baseline.
• 30,000 MWh of electricity consumption offset by renewable energy in 2022.
• 22% reduction in overall water usage over the past two years.
• 8% improvement in waste diversion rate from 2021, avoiding over 139,000 tons of material in landfills.
• 100% of replaced rail recycled and 70% of rail purchased in 2022 made from recycled steel.

Social Achievements

• Reached national agreements with all 12 unions resulting in a 24% net pay increase for craft employees.
• Became the first Class I railroad to provide paid sick leave to 100% of its craft workforce.
• Lowest employee injury rate in the past 10 years.
• Over 50% of management hires and over 40% of overall hires in 2022 were people of color.
• Trained over 5,000 first responders through Operation Awareness & Response (OAR) program.

Governance Achievements

• Separation of CEO and Board Chair roles.
• Revised and updated Thoroughbred Code of Ethics.
• Established a dedicated Board-level Safety Committee.
• Took responsive actions following the East Palestine derailment, including appointing a new VP of Safety and approving new compensation metrics aligned with safety performance.

Climate Goals & Targets

Environmental Challenges

• East Palestine derailment and its environmental and social impacts.
• Supply chain emissions (average company produces over 11 times more supply chain emissions than operational ones).

Mitigation Strategies

• Environmental remediation and testing in East Palestine (78,000+ tons of waste soil shipped off-site, 100+ air purifiers distributed, etc.).
• Community support in East Palestine (>$62.5 million committed).
• Six-point safety plan implemented.
• Independent safety review conducted by Atkins Nuclear Secured.
• Development of a Climate Transition Plan.
• Development of next-generation safety inspection technology using AI and machine vision.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Partnership with companies demonstrating sustainable projects and policies.
• Supplier diversity program.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulations
• Legal exposure
• Market changes
• Reputational risks

Opportunities

• Increased customer demand for low-carbon transportation.
• Transition to low-carbon operations and services.
• Participation in carbon markets.

Reporting Standards

Frameworks Used: GRI Universal Standards, SASB, TCFD, UN SDGs

Certifications: Responsible Care Management System (27th consecutive year)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 4 (Quality Education)
• Goal 5 (Gender Equality)
• Goal 6 (Clean Water and Sanitation)
• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 11 (Sustainable Cities and Communities)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 14 (Life Below Water)
• Goal 15 (Life On Land)

Norfolk Southern's initiatives contribute to these goals through various programs and operations.

Sustainable Products & Innovation

• Rail Emissions Report tool
• Carbon Calculator

Awards & Recognition

• John H. Chafee Environmental Excellence Award
• National TRANSCAER Achievement Award
• America’s Most Responsible Companies 2023
• America’s Greatest Workplaces for Women 2023
• George Lottier Rising Star Award