2015 SUSTAINABILITY REPORT

Message from the CSO

About this Report

SUSTAINABILITY DASHBOARD

how norfolk southern advanced
sustainable transportation in 2014

Environmental Performance

GHG Emissions

  • Reduced greenhouse gas emissions by 8.5 percent per revenue ton-mile of freight moved, avoiding nearly 524,800 metric tons of GHG emissions and achieving 85 percent of a five-year goal set in 2010 to reduce ton-mile emissions by 10 percent.

Fuel Efficiency

  • Locomotives operating in revenue service were 2.2 percent more fuel efficient than in 2013, moving a ton of freight an average 415 miles on a gallon of diesel, saving an estimated 10.8 million gallons of diesel fuel, and avoiding more than 109,500 metric tons of GHG emissions.

Energy Efficiency

  • Upgraded lighting fixtures and bulbs at 32 rail facilities, improvements that are expected to cut electricity use at the facilities by 60 percent, reduce GHG emissions by more than 22,000 metric tons, and save $1.5 million in power costs.
  • Launched a $53 million energy-conversion project at Juniata Locomotive Shop in Altoona, Pa., that is expected to cut the shop’s current GHG emissions by 58 percent, save $4 million in annual energy costs, and boost energy efficiency by 50 percent.

Carbon Conservation

  • At the end of four years, completed 93 percent of a five-year, $5.6 million commitment to reforest 10,000 acres in the Mississippi Delta with 6.04 million cottonwoods and hardwoods that eventually will absorb the equivalent of nearly 20 percent of the railroad’s annual GHG emissions.

Waste Management

  • Recovered, recycled, or reused more than 82 percent of waste from approximately 200 offices, shops, and rail yards.
  • Recycled 100 percent of used oil from 32 locomotive and rail car shops.

Economic Performance

Financials

  • Set new milestones, including record railway operating revenue of $11.6 billion, net income above $2 billion for the first time, and a best-ever operating ratio of 69.2 percent.
  • Increased traffic volume by 5 percent.
  • Raised stock dividend payouts by 10 percent, closing the year with a record 130 consecutive quarters of paying dividends on our common stock.

Economic Development

  • Helped locate 72 new and expand 22 existing industries in 18 states along Norfolk Southern rail lines, representing $5.7 billion in customer investment, more than 4,420 new customer jobs, and more than 205,000 carloads of new rail traffic.
  • Generated $2.3 billion in employee payroll, $6 billion in purchases and other payments, and $319.2 million in local and state taxes across our operating territory of 22 states and the District of Columbia.

Rail Efficiencies

  • Completed a $160 million expansion of our Bellevue, Ohio, yard that enables the classification facility to sort up to 3,600 rail cars daily, double its former capacity.
  • Completed rollout in early 2015 of a next-generation train dispatching system that gives dispatchers a shared network view and generates the most efficient plans for moving trains across the entire network, improving on-time performance and customer service.

Capital Investment

  • Invested $2.1 billion in capital projects and assets to maintain the franchise and expand business opportunities.
  • Installed 507 track miles of new rail, surfaced 5,248 miles of track with new ballast rock, and installed 2.7 million new crossties.

Supply Chain

  • Nearly tripled the number of minority-, women-, and small-business suppliers from 2011 through 2014, to 177 from 68, and nearly doubled the contract value, to $157 million from $80 million.
  • Developed a formal Sourcing Sustainability Statement and a performance scorecard that assesses suppliers on sustainable business practices.

Social Performance