ns sustainability report brochure 2010
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SUSTAINABILITY
REPORT
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1
2
3
CEO MESSAGE
CSO MESSAGE
A KEY GOAL
5
7
11
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
1 SUSTAINABILITY 20 10
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