OVERVIEW A MESSAGE FROM OUR CEO ...................................................................................................... 1 A MESSAGE FROM OUR CSO ......................................................................................................2 ABOUT OUR 2011 REPORT ..........................................................................................................3 SUSTAINABILITY HIGHLIGHTS IN OUR 2011 REPORT ............................................................ 4 SUSTAINABILITY: THE BIG PICTURE ......................................................................................... 6 Rail’s environmental advantage ................................................................................................. 6 OUR GOAL ......................................................................................................................................8 Seeking fuel and energy efficiencies .........................................................................................8 Making Progress ........................................................................................................................... 9 Fuel Economy Gains ...................................................................................................................10 2010 CARBON FOOTPRINT ........................................................................................................11 Locomotive fleet is largest source ............................................................................................11 EMISSIONS REDUCTION ............................................................................................................ 12 Key elements of our strategy .................................................................................................... 12 Improving train handling ............................................................................................................ 12 Rebuilding enhanced locomotives ........................................................................................... 13 Idling engines less ....................................................................................................................... 15 Monitoring train performance ................................................................................................... 15 Improving wheel/rail interaction ..............................................................................................16 Using more distributed power................................................................................................... 17 Improving train dispatching ...................................................................................................... 17 Buying new locomotives ............................................................................................................ 17 Exploring alternatives ................................................................................................................. 18 OUR ENVIRONMENTAL PERFORMANCE A DEEPER SHADE OF GREEN ...................................................................................................19 OUR CONSERVATION STRATEGY ............................................................................................20 REDUCING ENERGY USE ........................................................................................................... 23 Saving money, reducing emissions .......................................................................................... 23 Our headquarters earns Energy Star rating ........................................................................... 24 The right heating and cooling .................................................................................................. 25 Corridor projects feature green design ................................................................................. 25 RECYCLING EFFORTS ............................................................................................................... 26 Employees take the lead ........................................................................................................... 26 E-waste events are popular ...................................................................................................... 29 Intermodal begins recycling effort .......................................................................................... 30 Reducing, reusing, and recycling ............................................................................................ 31 Connecting with partners on sustainability efforts .............................................................. 32 Excellent report card on environmental audits ..................................................................... 33 Managing hazardous wastes .................................................................................................... 33 Investing in environmental performance ................................................................................ 33 Protecting our waterways ......................................................................................................... 34 OUR ECONOMIC PERFORMANCE THE BUSINESS OF CONSERVATION ........................................................................................ 35 Telepresence: greener meetings ............................................................................................. 37 PUBLIC-PRIVATE CONNECTIONS CARRY WIDESPREAD BENEFITS ................................. 38 Heartland Corridor ..................................................................................................................... 38 Crescent Corridor ....................................................................................................................... 39 CREATE ........................................................................................................................................40 PROMOTING ECONOMIC DEVELOPMENT .............................................................................. 42 PUBLIC SAFETY AND SECURITY ARE KEY BUSINESS CONCERNS ...................................44 Chemical transport a key focus ................................................................................................44 Rigorous employee training ..................................................................................................... 45 Work with emergency responders .......................................................................................... 45 An assist to communities .......................................................................................................... 46 Tapping technology ................................................................................................................... 46 Partners with government ........................................................................................................ 46 Recognition of our customers .................................................................................................. 47 MANAGING BUSINESS RISKS ................................................................................................... 47 REGULATORY ENVIRONMENT GOVERNS RAIL OPERATIONS ........................................... 48 OUR SOCIAL PERFORMANCE CONNECTING WITH OUR COMMUNITIES .............................................................................. 49 Trying to make a difference ...................................................................................................... 50 Helping to build community ..................................................................................................... 51 Expanding recreation for communities .................................................................................. 53 Promoting rail safety ................................................................................................................. 53 New social tools help us connect ............................................................................................ 55 Helping others understand what we do .................................................................................. 56 Spreading the word on sustainability ..................................................................................... 56 Partnering on passenger rail .................................................................................................... 57 CONNECTING WITH GOVERNMENT TO SUPPORT SUSTAINABILITY GOALS .................. 58 Company Contributions to Candidates, Committees, and Political Organizations ....................................................................................................... 58 Good Government Fund ............................................................................................................ 59 Participation in Trade Organizations ...................................................................................... 59 CONNECTING WITH EMPLOYEES ............................................................................................60 A culture of safety ......................................................................................................................60 Training is key ............................................................................................................................. 62 We support employee diversity ...............................................................................................64