2019 Environmental, Social, and Governance Report Table of Contents 2 12 32 68 94 120 A Message From our ESG at CSX Safety Communities 2019 ESG TCFD Index President and CEO Performance Data 6 16 46 80 108 124 About CSX The Future of Freight Environment Governance GRI Standards Index Appendix 10 20 56 88 118 Awards and Customer Experience People ESG Fundamentals SASB Index Accomplishments chain. We are on a mission to Plan Performance Tool, CSX created supply chain challenges demonstrate that the future customers can now see detailed across the global economy. CSX of freight rail is delivering safe delivery performance data on has been privileged to ensure efficient, reliable, and sustainable every container and trailer they timely delivery of essential goods A Message From our President service to all of our customers. ship. Also, by the end of this year, and keep America’s economy autonomous track assessment moving. Now more than ever, our 2019: A Milestone Year cars will conduct regular track ability to provide safe, reliable, and and Chief Executive Officer, While transformation initiatives inspections on more than half of efficient rail service will be essential continue, the results of our hard our core mainline tracks. These to our nation’s economic vitality. work truly began to show this cars and their data collection James M. Foote past year. In 2019, CSX set a capabilities have already been As we navigate through the crisis, new company safety record instrumental in reducing accidents my top priority is our people. Over for the fewest Federal Railroad and we are optimistic that we will the past several months, we have Administration (FRA) reportable see even greater safety gains as implemented rigorous measures personal injuries and had the we expand their use. to protect their health and safety lowest injury rate of all Class and that of their families. As 2020 I railroads. We also set a new This past year, we celebrated the continues to unfold with all of CSX’s goal is to be the best-run railroad company record for fewest FRA– first anniversary of CSX Pride its unknowns, safeguarding our reportable train accidents. in Service, our company-wide employees is foremost in our in North America. Fundamental to that commitment to honor and serve decision-making. We delivered superior customer those who serve our country and goal is strong environmental, social, service, achieving faster transit our communities — our nation’s I want to take this moment to times, greater schedule reliability, veterans, military, and first extend my gratitude to all of the and governance (ESG) performance. and transparency of network responders. While Pride in Service CSX employees who are answering performance. is a long-term commitment, the call to duty with unwavering our initial goal was to positively dedication. This remarkable group of In addition to achieving record fuel impact more than 100,000 heroes railroaders does the essential jobs, efficiency, we exceeded our 2020 and family members by the end day in and day out, that need to be GHG emissions reduction target of 2020. With the enthusiastic done to keep a great freight railroad As a railroad, we have the opportunity and the environmental performance, but also within each of ahead of schedule. Further, CSX involvement of CSX employees, running at peak performance. It is imperative to help decrease transportation-related our ESG priorities, including keeping our employees became the first railroad in the U.S. by the end of 2019 we had already their dedication and commitment greenhouse gas (GHG) emissions. Trains are on and communities safe; delivering excellent customer to align with the Science Based reached 85,000 individuals. that gets critical supplies where average three to four times more fuel efficient than service; building a diverse, world-class workforce; and Targets initiative, setting a goal to they need to go during these trucks – producing up to 75% fewer GHG emissions. upholding high ethical standards. reduce GHG emissions intensity by This report discusses these difficult times. Thank you for your Not only is this an enormous environmental advantage 37.3% by 2030, using 2014 as our achievements and other service, thank you for your grit and for freight rail, it is a significant opportunity for The Future of Freight baseline. milestones, as well as the perseverance, thank you for your customers looking to reduce their own carbon Since 2017, CSX has undergone a significant opportunities still ahead. We are teamwork. I am honored to be footprints. transformation. We revolutionized our operating model, Smart use of data and technology proud of the progress we have part of this resilient group. Looking wholly transforming the company’s financial and ESG is a key pillar of the transformation. made and are ready to undertake ahead, we are ready to embark on At CSX, we take this advantage as a baseline. We are profile. The transformation has allowed us to achieve Upgraded and expanded use of the challenges that remain. the next phase of sustainable growth constantly searching for and applying new ways to new levels of reliability, customer service, safety, and data and technology across our and to make CSX the sustainable achieve greater environmental savings. In 2019, CSX environmental efficiency. It has allowed CSX to be business have helped us advance A Thank You transportation mode of choice. While became the first U.S. Class I railroad to operate at a more adaptable and more nimble, qualities that are a range of business priorities – Foremost among the challenges the path ahead may be challenging, fuel efficiency rate of less than one gallon of fuel per ever more critical today. including increasing efficiency, ahead will be continuing to the people of CSX are resolved to thousand gross ton miles for a quarter. optimizing workplace safety, support our nation’s recovery from continue our momentum as we Our company’s remarkable transformation over the enhancing customer service, and unprecedented disruption. The transform the future of rail freight We are proud of this achievement, but we press past three years has shown us how freight rail can achieving environmental gains. coronavirus pandemic, in addition transportation. forward with urgency to improve further, not only on provide significant benefits to the country’s supply For example, through our Trip to upending our daily lives, has 2 CSX 2019 Environmental, Social, and Governance Report CSX 2019 Environmental, Social, and Governance Report 3 A Message From our President and CEO Responding to the For communities: We are working COVID-19 Crisis closely with our Pride in Service As the COVID-19 pandemic nonprofit partners to ensure that continues to unfold, CSX is military families, veterans, and first implementing a rigorous plan responders still receive the support to manage the situation and they need – even and especially do right by our stakeholders. A in the midst of social distancing brief overview of our activities is restrictions and closures. We have below. For more information, visit also joined with Pride in Service CSX’s coronavirus prevention and partners Operation Gratitude and response strategy page. the First Responders Children’s Foundation to establish new For employees: CSX issued coalitions and funds to provide a Coronavirus Prevention and special support to frontline Response Policy and implemented responders in the coronavirus measures to safeguard employees’ crisis, including hospital workers, health, such as deploying paramedics, emergency medical automation technologies where technicians, and 911 dispatchers. possible to help our employees maintain physical distancing while ensuring our network operates as safely and efficiently as possible. We have also implemented remote James M. Foote work arrangements for employees President and Chief Executive Officer whose job functions permit. For customers: CSX has implemented protective protocols designed to ensure our rail system continues to perform at a high level and is ready to meet the needs of our customers as the situation unfolds. We remain committed to providing efficient and reliable rail service to keep supply chains fluid as the nation responds to this challenge. In addition, we remain steadfast in our commitment to safely moving our customers’ freight, while working with them on any supply chain adjustments needed during this time. In Q1 of 2020, even in the midst of the pandemic, our levels of service with regard to efficiency and on- time delivery were the best they have ever been. 4 CSX 2019 Environmental, Social, and Governance Report CSX 2019 Environmental, Social, and Governance Report 5 About CSX Syracuse CSX, a Class I railroad, is one of the nation’s leading transportation Buffalo Selkirk suppliers. The company’s rail and intermodal businesses provide Detroit rail-based transportation services including traditional rail service Cleveland Chicago Toledo and the transport of intermodal containers and trailers. Willard Baltimore Columbus Cumberland The CSX transportation network encompasses As a pioneer in the most energy-efficient form of land- Avon approximately 20,000 route miles of track in 23 states, based freight transportation, CSX is dedicated to ESG Cincinnati the District of Columbia, and the Canadian provinces and innovation in the freight industry. As the demand Richmond of Ontario and Quebec. for reliable, efficient freight services grows and Louisville Russell technology advances, we intend to take a leadership We move a broad portfolio of products across the role in demonstrating that rail transportation has a country in a way that reduces our impact on the growing part to play in North American supply chains Rocky Mount environment, takes traffic off congested roads, and in the decades to come. minimizes fuel consumption and transportation costs. Nashville We provide key freight services across an array of Hamlet markets, including energy, industrial, construction, Our transportation network serves Florence agricultural, and consumer products.