Genesee & Wyoming Inc.

Climate Impact & Sustainability Data (2017, 2020-2021, 2021)

Reporting Period: 2017

Environmental Metrics

Total Carbon Emissions:757,859 tCO2e/year

ESG Focus Areas

Environment
Safety
People
Community
Governance

Environmental Achievements

Reduced GHG emissions through locomotive overhauls, purchases of more efficient locomotives, and technology enhancements. Estimated total carbon emissions for 2017 were 757,859 metric tons.
Equipped 142 U.S. locomotives with emission control components, reducing GHG emissions by 42% collectively.
In 2018, purchased two Tier 4 locomotives for California Northern Railroad, leading to 25% fuel savings and 80% reduction in diesel emissions compared to existing locomotives.
Significant reduction in landfill waste through recycling programs in North America and Europe.
Improved fuel efficiency through various initiatives, including driver training programs (SAFED) and OptiDrive 360.

Social Achievements

Achieved an IFR of 0.79, better than any Class I railroad for the ninth consecutive year and three times safer than the average short line railroad.
Launched a Mentor Program in 2016 to provide opportunities for employee knowledge expansion.
Offered comprehensive benefits including health, dental, vision, gym membership, tuition reimbursement, and more.
Awarded nearly 20 scholarships annually to children of subsidiary employees.
High customer satisfaction scores (9.0 for commitment to safety, 8.8 for professionalism of customer service, 8.5 for availability of customer service).

Governance Achievements

Established a Code of Business Conduct and Ethics, outlining core values of safety, service, integrity, respect, transparency, accountability, innovation, and excellence.

Climate Goals & Targets

Medium-term Goals:

Continue to track gross ton miles and fuel use year over year to identify ways to improve energy efficiency.

Short-term Goals:

Set a quantitative goal to reduce emissions (following baseline establishment).
Overhaul 27-38 locomotives per year worldwide.
Overhaul 20-26 locomotives per year in North America.
Overhaul 7-12 locomotives per year in UK/Europe.
Convert Freightliner fleet to OptiDrive 360 by 2020.
Upgrade entire UK/Europe trucking fleet to Euro 6 engines with idling cut-off technology by 2020. Achieve 5% increase in fuel efficiency.

Environmental Challenges

Global nature of the business made complete quantification of past sustainability efforts difficult.
Aging workforce in the U.S. rail industry.
Varying regulations and initiatives across different regions.

Mitigation Strategies

Investing in a comprehensive global asset management system to better quantify environmental impact and set performance targets.
Implementing Target Zero training program to improve safety and reduce incidents.
Focusing on attracting and retaining talent through competitive compensation and benefits.
Implementing knowledge transfer programs to address the aging workforce.

Supply Chain Management

Responsible Procurement

Contracts with chemical representatives and contractors requiring adherence to environmental and operational regulations.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB

Reporting Period: 2020-2021

Environmental Metrics

Total Carbon Emissions:427,802 tCO2e (Scope 1) + 18,599 tCO2e (Scope 2) + 124,504 tCO2e (Scope 3)

Scope 1 Emissions:427,802 tCO2e

Scope 2 Emissions:18,599 tCO2e

Scope 3 Emissions:124,504 tCO2e

Renewable Energy Share:0%

Total Energy Consumption:6,039,709 MWh

Carbon Intensity:22.85 metric tons CO2e per MGTM in 2020

ESG Focus Areas

Climate Change
Employee Safety and Wellbeing
Community Engagement
Diversity and Inclusion
Ethical Business Practices

Environmental Achievements

Reduced CO2 emissions by more than 6% through locomotive fleet investment.
Repurposed approximately 18% of spent wood crossties into roadbed surfaces.
Established a GHG emissions reduction goal aligned with the Science-Based Target initiative, aiming for a 37% reduction in GHG emissions intensity by 2035.

Social Achievements

Actively managed over 2,250 COVID-19 cases and supported employees with paid leave.
Educated 330,000 people through Operation Lifesaver on rail crossing safety.
Launched Freight 2030 to accelerate the transition to zero-emissions locomotives.

Governance Achievements

Updated Code of Ethics and Conduct policy in 2020.
Improved cybersecurity through partnerships and training, reducing phish-prone percentage.

Climate Goals & Targets

Long-term Goals:

Transition to zero-emissions locomotives.

Medium-term Goals:

Reduce GHG emissions intensity by 37% by 2035.

Environmental Challenges

Reducing GHG emissions from diesel locomotive fleet.
Maintaining safety standards across a large and geographically dispersed operation.
Managing the impact of COVID-19 on employees and operations.

Mitigation Strategies

Investing in fuel-efficient locomotives and technologies (AESS, APUs, fuel sensors).
Implementing robust safety programs and training initiatives.
Providing paid leave and support to employees during the COVID-19 pandemic.

Supply Chain Management

Responsible Procurement

Repurposing of materials, partnerships with suppliers for locomotive refurbishment.

Climate-Related Risks & Opportunities

Opportunities

Development of zero-emission locomotives.

Reporting Standards

Frameworks Used: SASB, GRI

Awards & Recognition

71 ASLRRA Jake Safety Awards with Distinction
3 ASLRRA Jake Safety Awards

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:666,404 tCO2e

Scope 1 Emissions:201,280 tCO2e (EU/UK) + 433,818 tCO2e (North America)

Scope 2 Emissions:12,633 tCO2e (EU/UK) + 18,673 tCO2e (North America)

Scope 3 Emissions:220,121 tCO2e (EU/UK) + 134,281 tCO2e (North America)

Renewable Energy Share:0%

Total Energy Consumption:6,124,287 GJ

Carbon Intensity:18.24 tCO2e/MGTM (EU/UK) + 21.32 tCO2e/MGTM (North America)

ESG Focus Areas

Environment
Social
Governance

Environmental Achievements

Reduced Scope 1 & 2 GHG emissions by more than 3% globally in 2021. North American operations reduced Scope 1 & 2 emissions intensity by more than 6% in 2021. UK/Europe operations reduced Scope 1 & 2 emissions intensity by more than 2%.
Submitted a science-based emissions reduction target to the Science Based Target initiative (SBTi) with a proposed target of reducing GHG emissions intensity by approximately 42% by 2035.
Installed AESS and APU technology on more than 25% of the locomotive fleet, expecting to save more than 14,500 metric tons of CO2e annually.

Social Achievements

Launched Employee Engagement and Opinion Surveys and held DE&I Focus Groups to strengthen employee engagement and foster an inclusive workplace.
G&W’s operations worldwide were more than two times safer than the U.S. short line industry safety metric average.
Received highest ever overall customer satisfaction score of 8.14 (out of 10) in North America.

Governance Achievements

No confirmed incidents of corruption in 2021.
Two employees were dismissed or disciplined for corruption in 2021 (North America).

Climate Goals & Targets

Medium-term Goals:

Reduce GHG emissions intensity by approximately 42% by 2035

Environmental Challenges

Reducing Scope 3 emissions (emissions generated upstream or downstream through customer supply chains).

Mitigation Strategies

Developing Omnia software to allow customers to monitor and report their overall or per-journey rail freight-related emission figures.