2012 sustainability highlights

Environmental

• Reached nearly 69 percent of our 2014 goal of reducing the company’s greenhouse gas emissions by 10 percent per revenue ton-mile, lowering our intensity of carbon emissions from 2011 levels by nearly 1.1 percent per revenue ton-mile
• Reduced our absolute emissions of carbon dioxide equivalents by 4 percent
• Lowered our Scope 2 carbon emissions by more than 3 percent, reflecting efforts to conserve and reduce electricity usage at our office buildings and railroad facilities
• Completed 40 percent of our Trees and Trains project, a $5.6 million initiative to reforest 10,000 acres in the Mississippi Delta
• Outfitted nearly half of our locomotive fleet with LEADER, a GPS-based computer system installed in locomotive cabs that prompts engineers on optimum speeds for achieving maximum fuel efficiency
• Equipped 72 percent of our locomotive fleet with idling reduction technology to avoid unnecessary fuel burn and emissions
• Expanded our locomotive rebuild program to include 1980s-era Dash 8 locomotives, reusing their frames and platforms and equipping them with cleaner-burning, more fuel-efficient engines
• Began using an indoor emissions-testing facility constructed at our Juniata Locomotive Shop to help us achieve in-house development of locomotive engines that are more cost-effective, more fuel-efficient, and cleaner-burning
• Became the first railroad to use a 100 percent renewable synthetic diesel fuel produced from waste animal fat and grease
• Opened new regional intermodal terminals in Rossville, Tenn., and McCalla, Ala., with administrative buildings constructed using LEED (Leadership in Energy and Environmental Design) Certification standards to reduce energy and water use
• Became a founding member and supporter of Destination Gigaton, an initiative developed by the Carbon Disclosure Project^® and the World Wildlife Fund to encourage industry to reduce greenhouse gases by one gigaton by 2020

Economic

• Surpassed $11 billion in railway operating revenues for the second consecutive year and achieved our second-best year ever for revenue, operating income, net income, and earnings per share
• Invested a record $2.24 billion in capital projects, focusing on maintenance and replacement of rail infrastructure, upgrades to our locomotive fleet, and construction projects at facilities and terminals
• Helped locate 64 new industries and expand 30 existing industries across our network, representing a $2.1 billion investment by customers expected to create more than 6,100 jobs and generate more than 141,000 carloads of new rail traffic annually
• Completed the first phase of our 11-state Crescent Corridor improvement program, including the opening of two regional intermodal terminals in 2012 and a third in early 2013
• Moved a record 3.1 million units of conventional intermodal freight, which includes domestic, international, and premium traffic, with overall intermodal volume up 5 percent, driven by an 11 percent increase in domestic volume

Social

• Achieved our second-best year ever in safety performance, with 239 federally reportable injuries in a workforce of more than 30,000, equating to a ratio of 0.81 injuries per 200,000 employee-hours
• Donated $6.98 million to local communities through our Norfolk Southern Foundation, a nearly 13 percent increase over 2011, for needs such as human services, environmental conservation, education for children, and arts and culture
• Hired approximately 2,300 new employees across our network, with the majority joining our unionized workforce, including conductor trainees, track laborers, signal trainees, carmen, and firemen/oilers
• Introduced behavioral science processes into our operations departments to improve safety and service and create a more positive work environment
• Commissioned a one-of-a-kind “Veterans Locomotive,” painted in patriotic colors, to honor military veterans
• Contributed more than 3,200 hours of community service – the equivalent of 80 40-hour work weeks – through our Thoroughbred Volunteers program in Roanoke and Norfolk, Va., Atlanta, Ga., and Harrisburg, Pa.
• Worked with Virginia to provide Amtrak passenger rail service to Norfolk on a 77-mile stretch of our track, helping to create a passenger rail link from Norfolk to Boston