CSX has released a new environmental, social and governance (ESG) report, covering its performance in 2021.
The report (download below) was prepared in accordance with sustainability reporting frameworks, including the Global Reporting Initiative (GRI) Standards, the Sustainability Accounting Standards Board (SASB), and the Task Force on Climate-related Financial Disclosures (TCFD), to ensure transparency and accountability, according to CSX.
Among the Class I railroad’s 2021 report highlights:
• Green-House Gas Emissions: CSX achieved a 15.6% reduction in Scope 1 and 2 emissions intensity since 2014; improved fuel efficiency; piloted alternative fuels and engine enhancements to reduce fuel burn and overall emissions from locomotives.
• Safety: Although CSX’s Federal Railroad Administration (FRA)-reportable personal injury rate increased 12%, the railroad reported that injury severity declined. At the same time, its FRA-reportable train accident rate decreased 8%, approaching all-time lows for CSX, it said. CSX noted that it “continued to focus on critical rules compliance and increased training for field contacts to reinforce positive safety behaviors.”
• Capex: The railroad invested $1.4 billion in critical infrastructure improvements to ensure safety across tracks, bridges, signals and equipment—the same as in 2020 and $1.0 million more than in 2019. Total capex: $1.8 billion. In 2020, capex was $1.6 billion; in 2019, $1.7 billion.
• Technology: CSX launched its second Train Inspection Portal (TIP) in 2021 to identify train problems while in transit. The advanced machine vision technology is said to identify defects and automatically flag cars for repair using ultra-high-definition cameras and high-powered illumination to produce 360-degree scans of railcars passing through the portal at track speed.
• Renewables: By 2030, CSX plans to increase the its use of renewable energy to 50% of the Scope 2 footprint. While the railroad reported that it “is working to find appropriate power purchase agreements to meet our long-term goals, we have entered into community solar agreements and are purchasing RECs to maintain forward progress.”
• Waste: The Class I railroad’s goal by 2030 is to reduce the amount of hazardous waste generated from ongoing operations by 30% and decrease the amount of ongoing operations waste disposed in a landfill to less than 10% of volume. In 2021, it began a crossties recycling program and terminal “Clean Sweep” clean ups.
• Diversity and Inclusion: CSX released workforce EEO-1 data (see below) as it “works to build a workforce that reflects our communities”; launched new recruiting and interview training initiatives to mitigate unconscious bias; and relaunched its Military Business Resource Group.
• Social Justice and Racial Equality: The railroad supported the Congressional Black Caucus Foundation; sponsored the Jacksonville, Fla., Black Expo and Martin Luther King Jr. Day Breakfast; introduced a new partnership with the National Association of Black Accountants; and continued its partnership with City Year servicing under-resourced school districts.
• Workforce Development: CSX expanded its Total Rewards benefits; introduced the One-CSX culture initiative to emphasize employee value; created a formal Employee Engagement Survey; and expanded training capacity and increased pay for new conductors in training, which it said helped contribute to three times as many conductors being hired in 2021 than the previous two years combined.
• Community Engagement: The railroad honored the U.S. military, veterans and first responders across 23 states through the third year of its signature community investment initiative, Pride in Service.
“By continuing to invest in our people and communities, innovating to introduce new environmental solutions, and expanding our network capacity and service offerings, we have positioned CSX to accelerate highway-to-rail freight conversion while adding to a solid operating foundation that will support CSX’s future growth and our ability to create lasting value for our stakeholders,” CSX President and CEO James M. Foote said.