NS Sustainability Report Brochure 2010

8/7/2019 NS Sustainability Report Brochure 2010

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SUSTAINABILITY

REPORT


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3

CEO MESSAGE

CSO MESSAGE

A KEY GOAL

5

7

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OUR ECONOMIC PERFORMANCE

OUR ENVIRONMENTAL PERFORMANCE

OUR SOCIAL PERFORMANCE

SUSTAINABILITY

REPORT

Our 2010 sustainability report thoroughly describes progress toward our

corporate objective to achieve transportation industry leadership in uel

conservation, emissions reduction, efcient energy use, recycling, use

o renewable materials, and environmental partnerships. This booklet

highlights selected material. I invite you to read the ull report, available

exclusively on our environmental website at www.nssustainability.com.

A highlight o the report is our frst-ever goal or reducing our carbon

ootprint. We have committed to a 10 percent reduction in greenhouse

gas emissions per revenue ton-mile by 2014, using 2009 as the base year.

We plan to achieve the goal through continuing investments in more uel-

efcient locomotives and technology, innovative inormation systems,

and public-private partnerships to meet the rising demand or reight

transportation services that keep Americas economy competitive while

reducing uel consumption and greenhouse gas emissions.

As you click through our 2010 sustainability report, you will read about

how our people have embraced responsible business practices that will

help ensure the ongoing strength o our company, the livability o their

communities, and the quality o their lives. At Norolk Southern, working

toward sustainable economic, environmental, and social perormance is

more than a corporate goal: Its a way o living.

Wick Moorman

CEO

CEO MESSAGE

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Read our complete sustainability report at www.nssustainability.com


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In the three years since Norolk Southern gave me the opportunity to serve

as corporate sustainability ofcer, we have made signifcant progress on our

sustainability journey. We are committed to industry leadership on a path

toward achieving best practices in responsible economic, environmental,

and social perormance.

Looking ahead to 2011, we will ocus on our priorities.

First, we will dedicate ourselves to making gains toward accomplishing our

fve-year goal o reducing greenhouse gas emissions. At the same time,

we will redouble our eorts to improve energy efciency in our acilities.

Also, we will empower our employees more than ever beore to initiate

and implement recycling and other programs that improve the companys

sustainability perormance. Our ourth priority in the coming year will be

to continue engaging the communities we serve, looking or ways to have

impact in the areas o conservation, volunteerism, and civic leadership.

With our people and our communities marching hand-in-hand along the

sustainability path, Norolk Southern will remain ocused on the journey.

Blair Wimbush

Vice President Real Estate and Corporate Sustainability Ofcer

CSO MESSAGE


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SUSTAINABILITY 2010

Reducing greenhouse gas emissions

A year ago, Norolk Southern began publicly disclosing greenhouse gas

emissions generated by our business operationsrom diesel-burning

locomotives to electricity consumed at rail yards and ofce buildings.

Now, we are committing to an aggressive fve-year goal to lower those emissions. By

2014, our goal is to reduce our carbon ootprint by 10 percent per revenue ton-mile

o reight we haul, compared with the railroads 2009 emission levels.

Based on emissions generated by our business operations in 2009, a 10 percent

reduction would result in 475,000 ewer metric tons o greenhouse gases going into

the atmosphere annually by 2014.

Setting a goal to reduce emissions is a public statement to show our commitment to

environmentally responsible business practices and to transparency in operations.

2.4%

6%

0.6% RAILROADS

RAILROADS

TRUCKS

TRUCKS

Source of information: U.S. Environmental Protection Agency report on U.S.

greenhouse gases in 2008

U.S. Greenhouse Gas Emissions: Trucks vs. Trains

percent of emissions from transportation related sources

percent of total U.S. emissions

percent of emissions from transportation related sources

percent of total U.S. emissions

TRUCKING INDUSTRY

TRUCKING INDUSTRY

RAILROADS

RAILROADS

22%

6%

2.4%

0.6%

A KEY GOAL


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A look at our carbon ootprint in 2009

Diesel locomotives, the railroads workhorses, were the single largest source o greenhouse gases produced

by Norolk Southerns business operations in 2009. They generated 4.07 million metric tons o emissions, or

about 86 percent o the railroads total 4.7 million metric tons o carbon dioxide equivalents.

Part o that total includes approximately 318 metric tons o methane and 103 metric tons o nitrous oxide,

accounting or about 90 percent o the companys emissions o those greenhouse gases.

To put our railroads emissions into perspective, all modes o ossil uel-based transportation, including

trucks and automobiles, produced 1.8 billion metric tons o carbon dioxide equivalents in 2008, according

to the U.S. Environmental Protection Agency. O that, railroads emitted around 44 million metric tons

2.4 percent o transportation-related emissions, and just 0.6 percent o total U.S. emissions.

Norfolk Southern sources of greenhouse gas emissions

Norfolk Southerns total emission of carbon dioxide

equivalents in 2009 = 4.7 million metric tons

4.3 million metric tons

243,357 metric tons

101,093 metric tons

83,302 metric tons

DIESEL FUEL(for locomotives, and fuel oil/off-road diesel)ELECTRICITY

GASOLINE

OTHER(coal, jet fuel, natural gas, and propane)

91%

5%

2%

2%


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OUR ECONOMIC

PERFORMANCE

Better ways of doing business

Many people think o sustainability in terms o protecting the health

o our natural environment. At Norolk Southern, we look or ways to

sustain business that are both green and good or the bottom line.

Economic perormance is a key component o our sustainability eorts. Our aim isto lower costs, improve customer service, and increase proftability. Oten, we fnd new

or smarter ways o operating that are more economical and help us and our customers

work greener.

During 2009, our employees launched various initiatives that highlight what we mean

by economic sustainability. Just a ew examples:

Our paper, clay, and orest products group and a major paper customer developed

an innovative solution that improved use and ow o rail cars moving paper product

across our supply chain while enhancing the production o recycled paper.

Our e-commerce division and customer service group introduced new online

tools that provide customers with real-time inormation on shipments, including

text-message alerts sent to their cell phones.

Our transportation planning group and GE Transportation pioneered a train-

movement technology that will expedite train perormance across the railroads

22-state network and potentially save hundreds o millions o dollars in annual

capital and inrastructure expenses.

5 SUSTAINABILITY 2010


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Heartland Corridor opening heralds success o public-private partnerships

One o the most extensive railroad engineering projects in modern times, Norolk Southerns

Heartland Corridor opened Sept. 9, 2010, ater three years o construction to raise vertical

clearances o 28 tunnels and remove 24 overhead obstacles to make room or double-

stacked container trains.

The Heartland Corridor is a template or public-private partnerships that strengthen the

nations transportation inrastructure. It sets the stage or an even more ambitious project,

the Crescent Corridor, now in the works. Both o these projects and other public-private

partnerships will create jobs, reduce uel consumption and greenhouse emissions, take

trucks o congested highways, and generate economic development.

For more inormation on these and other public-private partnerships to enhance Americas

rail reight transportation network, go to www.theutureneedsus.com.

Engine of the future:As recovery rom recession continues,

Norolk Southern is prepared to handle the transportation

needs o a growing economy, creating green jobs moving

reight by energy-efcient, environmentally riendly rail.


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Innovation propels our quest to stay ahead

Encouraging employees to think out o the box is integral to Norolk

Southerns success. It has helped us lower costs, improve customer service,

boost perormance, reduce our ootprint on the environment, and bring

new products to the rail industry.

Innovation is a core corporate value or us, included in our SPIRIT valuesSaety,

Perormance, Integrity, Respect, Innovation, and Teamwork.

Our willingness to experiment is reected in our development o NS 999, a prototype

switcher locomotive powered entirely by lead-acid batteries and eaturing ground-

breaking energy-storage technology. NS 999 represents a signifcant benchmark in

our quest or alternative uel sources to power our locomotives.

We are exploring a range o alternatives in addition to batteries. We are in a yearlong

trial to evaluate biodiesel blends, a renewable uel derived rom vegetable oils. We

are an advisor to a frm trying to develop an ethanol locomotive equipped with high-

perormance engines similar to race-car motors. Were intrigued by the possibility

o converting coal into cleaner-burning synthetic liquid uel. For the past year, weve

run tests on a dual-engine road locomotive under development by Progress Rail that

aims to reduce uel use and emissions.

We have invested heavily in locomotive engine upgrades and other initiatives to

improve uel efciency and our environmental perormance. By the end o 2010,

more than 88 percent o our locomotives will meet or exceed recent, more stringent

ederal emissions standards.

OURENVIRONMENTAL

PERFORMANCE



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The power of green: Norolk Southern is committed to being an industry

leader in environmental responsibility. Strong sustainability practices are

good or our business, the economy, and the environmentbenefting

our people, communities, customers, and shareholders.


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CROSSTIES UTILIZED FOR ENERGY RECOVERY

CROSSTIES SOLD FOR LANDSCAPING

CROSSTIES USED IN INTERNAL CASCADING EFFORTS

TONS OF METAL RECYCLED

TONS OF SCRAP STEEL RECYCLED

POUNDS OF BATTERIES RECYCLED

2007 2008 2009

Material Recycled

1.1 million

868,000

201,000

179,000

225,000

923,500

1.4 million

626,000

314,000

167,440

214,000

779,724

1.8 million

563,000

301,000

92,590

210,069

1,060,120

GALLONS OF DIESEL FUEL

GALLONS OF GASOLINE

GALLONS OF PROPANE AND HEATING OIL

KILOWATT-HOURS OF ELECTRICITY

CUBIC FEET OF NATURAL GAS 1

2007 2008 2009

Energy Consumption

500.4 million

11.3 million

1.5 million

480.7 million

372.6 million

483.8 million

13.1 million

2.2 million

512.0 million

404.0 million

397.3 million

11.4 million

2.0 million

468.8 million

622.9 million

12009 increase attributable to temporary switch from coal to natural gas

at Juniata Locomotive Shop

POUNDS OF LEAD

POUNDS OF CADMIUM

POUNDS OF NICKEL

2007 2008 2009

Battery recycling resulted in the following

quantities not being deposited in landfills:

465,164

61,766

83,510

566,920

47,398

72,607

709,592

21,447

24,762

Thats a lot of crossties, rail, and ballast

Norolk Southern is a major provider o trans-

portation services in North America and

operates approximately 21,000 route miles.

Maintaining this inrastructure requires us to

procure signifcant amounts o crossties, rail,

and stone ballast.

Throughout our system, we use recycled materials,

such as paper and packaging. Approximately

15 percent o the paper, packaging, and ofce

supplies we purchase includes recycled or

recovered materials. Beore we dispose o

oil flters, we crush them to remove the oil or

recycling and to reduce deposits in landflls.

We also recycle used oil rom our major

locomotive shops.

Transporting reight by rail is more

uel-efcient and less carbon-intensive

than transporting reight by truck.

Getting the most out of rails

energy efciency

Norolk Southern consumes diesel uel to operate

our trains and electricity to power our buildings

and systems.

Transporting reight by rail is more uel-efcient,

and thereore less carbon-intensive, than trans-

porting reight by truck. In 2009, Norolk Southern

moved an average o 404 revenue ton-miles (oneton o reight moved one mile) o reight on a

gallon o diesel uel. By contrast, average truck

uel economy is 110 ton-miles per gallon.


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Partners in sustainability

Norolk Southern is a partner in the ederal Environmental Protection Agencys SmartWay Transport

program. As part o the partnership, Norolk Southern and other reight transporters have committed

to develop and implement plans to improve uel efciency and reduce carbon emissions in coming years.

Norolk Southern is the frst railroad member o SEE Change (Society, Environment, Economy), launched

in 2005 by Business Roundtable, www.businessroundtable.org.

Norolk Southern in 2009 became the frst Class 1 railroad to join the U.S. Green Building Council, a nonproft

organization committed to a prosperous and sustainable uture or the nation through cost-efcient and

energy-saving green buildings.

2007 2008 2009

Energy Efficiency

12009 increase attributable to temporary switch from coal to natural gas at Juniata

Locomotive Shop

22009 increase attributable to improved data collection procedures rather than to large

increase in consumption

394

53,053 gallons

1,198 gallons

164 gallons

50,965 kWh

38,000 cu.ft.

No data

REVENUE TON-MILES PER GALLON DIESEL FUEL

DIESEL FUEL PER MILLION DOLLARS OF REVENUE

GASOLINE PER MILLION DOLLARS OF REVENUE

PROPANE & HEATING OIL PER MILLION DOLLARS OF REVENUE

ELECTRICITY PER MILLION DOLLARS OF REVENUE

NATURAL GAS PER MILLION DOLLARS OF REVENUE 1

FUEL OIL & NONLOCOMOTIVE DIESEL PER MILLION DOLLARS OF REVENUE2

405

45,380 gallons

1,227 gallons

206 gallons

48,029 kWh

37,987 cu.ft.

641 gallons

404

49,860 gallons

1,430 gallons

248 gallons

58,826 kWh

78,173 cu.ft.

2,926 gallons


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Employee buy-in has been key to achieving gains in sustainability. We encourage

employees to oer suggestions on how to make the railroad greener, saer, and

more efcient.

With corporate backing, employees at our Harrisburg, Pa., terminal in 2009 launched

an initiative to recycle paper, bottles, and cans. Within six months, the collection o

recycled material in two rail yards had increased by nearly 2,000 pounds a month.

Eorts are under way to spread recycling across the fve-state Harrisburg Division,

including distribution o a how to tool kit developed by the group.

An employee-sponsored consumer electronics recycling event in Atlanta resulted in

more than 1 ton o electronics being collected over a two-day period, and spurred

employees in Norolk and Roanoke to hold similar events.

Roanoke employees, among other things, recycled and sold aluminum cans and

printer cartridges, using proceeds to assist local schools.

Recycling is important because its good or the environment, its good or our

business, and its good or our communities, said Karin Stamy, a Norolk Southern

general attorney who serves on our corporate sustainability team.

Employees make things happen

Employee workplaces across our 22-state rail system are ertile ground

or brainstorming ways to reduce waste, cut costs, and improve

operating efciencies.

OURSOCIAL

PERFORMANCE



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Sharing the sustainability vision:Norolk Southern employees embrace

the corporate commitment to oster a sae work environment, treat

everyone with respect, cultivate diversity as a strength o the organizatio

and enhance quality o lie in the communities the company serves.


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Norfolk Southern sets industry safety standard

Norolk Southern takes special pride in its employee saety record. For 21 consecutive

years, the people o Norolk Southern have earned the rail industrys top award or

employee saety, the prestigious E.H. Harriman Gold Medal Award. Norolk Southerns

strong saety culture has set the standard or railway workplace saety.

Norolk Southern is committed also to public saety eorts to eliminate injuries and

deaths resulting rom collisions between motor vehicles and trains at highway-rail grade

crossings, as well as rom trespassing on railroad property.

Others recognize us as a leader

Norolk Southern strives to be the industry leader in every area o the rail business,

whether saety, customer service, community involvement, or as an employer o

choice. We are honored and gratifed when others recognize our eorts.



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For an unprecedented 21st consecutive year, we won the E.H. Harriman

Gold Medal Award or having the best employee saety record among

North Americas largest railroads.

In 2009, or the 10th time overall and the eighth consecutive year, the

railroad earned a TRANSCAER National Achievement Award or our

commitment to sae handling o hazardous materials. TRANSCAER

Transportation Community Awareness and Emergency Responseis

a voluntary, nationwide outreach eort that helps communities prepare

or and respond to transportation incidents involving the release o

hazardous materials.

Inbound Logistics magazine named our railroad to its inaugural list

o 25 green supply chain partners, identifed as companies on the

cutting edge o green. The magazine cited uel-efciency upgrades to

our locomotives and our Green Machine, a carbon ootprint analyzer

that allows shipping companies to estimate emissions savings by

choosing rail instead o highway.

BusinessWeek magazine named us one o the 50 best places to launch

a career.

For the seventh time, Toyota Logistics Services awarded us its

Presidents Award or overall logistics excellence among rail carriers,

based on overall perormance in customer service, on-time perormance,

and quality.

Black Enterprise magazine named us to its sixth annual list o 40 Best

Companies or Diversity.

The American Council o Engineering Companies o Tennessee presented

us with an Engineering Excellence Honor Award or using sustainable

design materials to construct a wastewater treatment plant at our

Shefeld Yard in Alabama, including glass blocks, recycled masonry

walls, and other eatures to lower energy costs.

Midtown Transportation Solutions in Atlanta recognized 10 o our

employees as Clean Air Commuter Champions or carpooling, vanpooling,

walking, biking, or riding transit instead o driving to and rom work.

Here are examples of recognition that Norfolk Southern

and our employees received during the past year:


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Norolk Southern Corporation is one o the nations premier transportation companies. Its Norolk

Southern Railway subsidiary operates approximately 21,000 route miles in 22 states and the District

o Columbia, serves every major container port in the eastern United States, and provides efcient

connections to other rail carriers. Norolk Southern operates the most extensive intermodal network

in the East and is a major transporter o coal and industrial products.

www.nssustainability.com

Documents

NS Sustainability Report Brochure 2010