Climate Change Data

Norfolk Southern

Climate Impact & Sustainability Data (2008, 2011)

Reporting Period: 2008

Environmental Metrics

Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:50 million kilowatt-hours (annual reduction projected after lighting upgrade)
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Environmental Sustainability
  • Social Responsibility
  • Economic Performance

Environmental Achievements

  • Reduced energy use by 16-18% (nearly 40% of lighting upgrade complete), projected 40%+ reduction after completion.
  • Systemwide lighting upgrade at 600 facilities, expected to pay for itself within 2.5 years.
  • Installation of two 50-kilowatt wind turbines to power wastewater treatment plants.
  • Development of a web-based carbon footprint calculator (Green Machine).
  • Donation of a conservation easement to preserve nearly 12,500 acres of Brosnan Forest.

Social Achievements

  • Joined S.E.E. Change sustainability initiative.
  • Increased employee involvement in sustainability initiatives.
  • Expanded recycling programs in Atlanta and Roanoke.
  • Improved public profile through media coverage and speaking engagements.
  • Partnership with Waste Management Co. for solid waste disposal.

Governance Achievements

  • Appointment of first executive-level sustainability officer among U.S. railroads.
  • Issued first sustainability report based on international standards.
  • Improved operating ratio to a record low 71.1% in 2008.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Track 2012 goals: safety, revenue growth, service improvement, fuel efficiency, asset utilization, workforce productivity (5-year plan).
Short-term Goals:
  • Expand recycling, improve energy efficiency, increase employee involvement (2009 goals).

Environmental Challenges

  • Reducing diesel fuel consumption and emissions from locomotives.
  • Improving recycling rates across the 22-state network.
  • Addressing the environmental impact of coal transportation.
  • Meeting evolving EPA emission standards.
Mitigation Strategies
  • Research and development of battery-powered locomotives.
  • Exploration of alternative fuels (biodiesel, ethanol, hydrogen fuel cells).
  • Investment in clean-coal technologies and land reclamation.
  • Advocating for legislation that incentivizes rail transportation.
  • Improved fuel efficiency through technology and employee training (LEADER).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Partnership with Waste Management Co. for solid waste disposal.

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Potential for stricter emission regulations.
  • Shifting market demand for coal.
Opportunities
  • Development of energy-efficient technologies (battery locomotives).
  • Growth in intermodal transportation to reduce highway congestion.

Reporting Standards

Frameworks Used: Internationally accepted standards (not specified)

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Battery-powered locomotives
  • Green Machine carbon footprint calculator

Awards & Recognition

  • SPIRIT award for innovation in Elkhart.

Reporting Period: 2011

Environmental Metrics

ESG Focus Areas

  • Safety
  • Sustainability
  • Fuel Efficiency
  • Customer Service
  • Cost Reduction

Environmental Achievements

  • Achieved best safety ratio in NS’ history (injury ratio of 0.89 in 2010)
  • Commitment to reduce carbon emissions by 10 percent over the next four years

Social Achievements

  • Improved systemwide injury ratio each quarter in 2010, reaching 0.68 in Q4 (better than the 2011 goal of 0.75)
  • Systemwide production gangs worked an entire year without a single reportable injury
  • Hiring 2,500 new employees in 2011, including 1,500 conductors, to return workforce to pre-recession levels

Governance Achievements

  • Continued efforts to create a Geographical Information Systems map of the railroad’s property and track infrastructure
  • Participation in Corporate Compliance & Ethics Week

Climate Goals & Targets

Short-term Goals:
  • Reduce carbon emissions by 10% in four years
  • Achieve a 0.75 injury ratio in 2011

Environmental Challenges

  • Service challenges in 2010 due to economic growth exceeding expectations and shortage of train and engine crews
  • Performance problems in the unit train network (coal and grain)
  • Winter storms in December 2010
  • Potential for harmful federal legislation to reregulate the rail industry
  • Concerns about rates paid by captive shippers
  • STB considering expanding jurisdiction over rate cases to include various commodities
  • Positive Train Control (PTC) implementation as an unfunded mandate
Mitigation Strategies
  • Expanding technology to reduce operating costs and boost efficiencies
  • Improving fuel efficiency
  • Focusing on ways to improve service and grow the business
  • Ramping up hiring of train and engine crews
  • Working with other Class 1 railroads on PTC issues and seeking appropriate funding
  • Negotiating with the FRA to change burdensome PTC regulations
  • Investing in capital equipment purchases (locomotives, coal hoppers, gondolas, grain cars, intermodal containers)

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

  • Wick Moorman named 2011 Railroader of the Year