CN Announces Net-Zero Target Approved by Science Based Targets initiative

Rhea-AI Summary

Canadian National Railway (CN) announced that its net-zero greenhouse gas (GHG) emissions target by 2050 has been validated by the Science Based Targets initiative (SBTi). CN's 2023 Sustainability Data Supplement highlights its progress and targets, including a 90% reduction in absolute Scope 1, 2, and 3 GHG emissions by 2050 and a 43% reduction in Scope 1 and 2 GHG emissions intensity by 2030. Despite slight increases in GHG emissions and intensity in 2023, CN has made notable progress towards its goals. Additionally, CN diverted 94% of operational waste from landfills and planted nearly 113,000 trees. Social and governance targets include reducing personal and operational safety incidents and increasing diversity. CN was also named to Corporate Knights’ Best 50 Corporate Citizens list for the 16th consecutive year. More details can be found on CN's website.

CN releases its 2023 Sustainability Data Supplement

MONTREAL, July 03, 2024 (GLOBE NEWSWIRE) -- CN (TSX: CNR) (NYSE: CNI) is proud to announce that its net-zero by 2050 target has been validated by the Science Based Targets initiative (SBTi). In using a science-based approach to its climate commitments, CN and the broader North American rail industry are aligned to reducing emissions and decarbonizing to deliver a sustainable future for all.

“At CN, we are focused on the long-term success and sustainability of our business. We know that we cannot achieve our commitments alone which is why we continue to collaborate with fuel producers and locomotive manufacturers, supply chain partners, governments, customers, and peers in support of an effective transition to a low-carbon future.”

– Tracy Robinson, President and CEO of CN

CN 2023 Sustainability Data Supplement
CN continues to maintain its position as a leader in sustainability while continuing to progress towards its sustainability targets, as highlighted in the Company’s newly released 2023 sustainability data supplement report.

CN’s key ESG targets and 2023 progress include:

Area	Topic	Target		2023 Performance
Environment	GHG Emissions	Reducing absolute Scope 1, 2, and 3 GHG emissions by 90% by 2050 from a 2019 base year.1		CN experienced a slight increase in its total Scope 1, 2, and 3 GHG emissions from 2022. CN has realized a 17.3% progress towards its 2050 target.
		Reducing Scope 1 and 2 GHG emissions intensity by 43% by 2030 based on 2019.1, 2		CN experienced a slight increase in its GHG emission intensity for Scope 1 and 2 as compared to 2022. CN has realized a 19.7% progress towards its 2030 target.
		Reducing Scope 3 GHG emissions covering fuel- and energy-related activities from locomotive, truck and vessel fleets by 40% per gross ton miles by 2030 from a 2019 base year. CN also commits to reduce all other absolute Scope 3 GHG emissions from fuel- and energy-related activities by 27.5% by 2030 from a 2019 base year.1, 2		CN experienced a slight increase in its GHG emission intensity for Scope 3 fuel- and energy-related activities as compared to 2022. CN has realized a 30.8% progress towards its 2030 target.
	Waste	Diverting approximately 95% of operational waste from landfills annually.		CN diverted approximately 94% of its waste from landfill, nearly achieving its annual target.
	Biodiversity	Planting three million trees by 2030.		CN planted nearly 113,000 trees. CN has realized an 81% progress towards its 2030 target.
Social	Personal Safety3	Reducing the personal injury frequency rate (per 200,000 person hours) by 55% by 2030, based on 2019.		CN improved its injury frequency rate by 13% from 2022, based on the Federal Railroad Administration (FRA) methodology. CN has realized a 93% progress towards its 2030 target.
	Operational Safety3	Reducing the accident rate (per million train miles) by 45% by 2030, based on 2019.		CN’s train accident rate, based on the FRA methodology, improved by 17% from 2022. CN has realized a 49% progress towards its 2030 target.
	Executive Diversity4	Attaining and maintaining an executive management team in which at least 35% are women by 2027.		9 of the 32 executive management roles (28%) were held by women. CN continues to focus on increasing diversity through its succession planning strategies.
Governance	Board Diversity4	Attaining and maintaining a Board composition in which men and women each represent at least 40% of the independent directors.	5 of the 10 independent directors (50%) self-identify as women.
		Attaining and maintaining a Board in which at least two independent directors come from broader under-represented groups, beyond gender.	Two of the 10 (20%) independent directors self-identify as visible minorities.

1)		The target boundary includes land-related emissions and removals from bioenergy feedstocks.
2)		Under the former commitment model of the SBTi (available between June 2019 and October 2021), a subset of companies committed to setting near-term science-based targets aligned with well-below 2°C over an interim period as part of their wider net-zero commitment (referred to as Option 2 of the Business Ambition for 1.5°C Campaign). There is a strictly enforced timeline for these companies, which includes CN, to ratchet ambition to 1.5°C for their near-term targets within a maximum of five years from the time of near-term target validation. At this point, they will be expected to decarbonize in line with their 1.5°C-aligned long-term science-based targets.
3)		Safety statistics are based on estimated data and continue to be restated as actuals settle.
4)		Our targets for representation of under-represented groups in Board and executive management positions were revised in January 2024 and the data reported is as at March 4, 2024, as reported in CN’s most recent Management Information Circular.

CN’s annual sustainability disclosures are reported in accordance with rigorous international standards, including the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB), the Greenhouse Gas Protocol, and the Task Force on Climate-related Financial Disclosures (TCFD) framework.

CN is also proud to announce it has earned a place on Corporate Knights’ Best 50 Corporate Citizens list for the sixteenth year in a row as well as placed first among its peers within the freight transport, all modes category. CN’s first place ranking among its peers stems from the Company’s efforts to consistently improve its sustainability performance.

For more information on CN’s 2023 Data Supplement and on CN’s commitment to a sustainable future, visit www.cn.ca/en/delivering-responsibly/

CN Forward-Looking Statements
Certain statements included in this news release constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and under Canadian securities laws, including relating to CN’s environmental, social and governance (ESG) strategies and targets, including CN’s climate goals and sustainability commitments. By their nature, forward-looking statements involve risks, uncertainties and assumptions. CN cautions that its assumptions may not materialize and that current economic conditions render such assumptions, although reasonable at the time they were made, subject to greater uncertainty. Forward-looking statements may be identified by the use of terminology such as “believes”, “expects”, “anticipates”, “assumes”, “outlook”, “plans”, “targets” or other similar words.

Forward-looking statements are not guarantees of future performance and involve risks, uncertainties and other factors which may cause actual results, performance or achievements of CN to be materially different from the outlook or any future results, performance or achievements implied by such statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements. Important risk factors that could affect the forward-looking statements include, but are not limited to, general economic and business conditions, including factors impacting global supply chains such as pandemics and geopolitical conflicts and tensions; industry competition; inflation, currency and interest rate fluctuations; changes in fuel prices; legislative and/or regulatory developments; compliance with environmental laws and regulations; actions by regulators; increases in maintenance and operating costs; security threats; reliance on technology and related cybersecurity risk; trade restrictions or other changes to international trade arrangements; transportation of hazardous materials; various events which could disrupt operations, including illegal blockades of rail networks, and natural events such as severe weather, droughts, fires, floods and earthquakes; climate change; labor negotiations and disruptions; environmental claims; uncertainties of investigations, proceedings and other types of claims and litigation; risks and liabilities arising from derailments; timing and completion of capital programs; the availability of and cost competitiveness of renewable fuels and the development of new locomotive propulsion technology; reputational risks; supplier concentration; pension funding requirements and volatility; and other risks detailed from time to time in reports filed by CN with securities regulators in Canada and the United States. Reference should also be made to the Management’s Discussion and Analysis in CN’s annual and interim reports, Annual Information Form and Form 40-F, filed with Canadian and U.S. securities regulators and available on CN's website, for a description of major risk factors relating to CN. Information contained on, or accessible through, our website is not incorporated by reference into this news release.

Forward-looking statements reflect information as of the date on which they are made. CN assumes no obligation to update or revise forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs, unless required by applicable securities laws. In the event CN does update any forward-looking statement, no inference should be made that CN will make additional updates with respect to that statement, related matters, or any other forward-looking-statement.

About CN
CN powers the economy by safely transporting more than 300 million tons of natural resources, manufactured products, and finished goods throughout North America every year for its customers. With its nearly 20,000-mile rail network and related transportation services, CN connects Canada’s Eastern and Western coasts with the U.S. Midwest and the Gulf of Mexico, contributing to sustainable trade and the prosperity of the communities in which it operates since 1919.

Contacts:
Media	Investment Community
Jonathan Abecassis	Stacy Alderson
Director, Public Affairs and	Assistant Vice-President
Media Relations	Investor Relations
(438) 455-3692 media@cn.ca	(514) 399-0052 investor.relations@cn.ca

FAQ

What is CN's net-zero target for 2050?

CN aims to reduce absolute Scope 1, 2, and 3 GHG emissions by 90% by 2050, a target validated by the Science Based Targets initiative.

How much progress has CN made towards its 2030 GHG emissions targets?

CN has achieved a 19.7% progress towards reducing Scope 1 and 2 GHG emissions intensity by 43% by 2030, and a 30.8% progress towards reducing Scope 3 GHG emissions intensity related to fuel and energy activities by 40% by 2030.

What environmental initiatives has CN implemented?

CN has implemented initiatives to reduce GHG emissions, divert operational waste from landfills, and plant trees. It diverted 94% of operational waste and planted nearly 113,000 trees in 2023.

What are CN's goals for waste management?

CN aims to divert approximately 95% of operational waste from landfills annually, achieving 94% in 2023.

What diversity targets has CN set for its executive management and board?

CN aims for 35% of executive management roles to be held by women by 2027, with 28% achieved in 2023. For its board, it aims for at least 40% representation by women and 20% by under-represented groups.

What safety improvements has CN made?

CN improved its personal injury frequency rate by 13% and its train accident rate by 17% from 2022, making significant progress towards its 2030 safety targets.

How has CN been recognized for its sustainability efforts?

CN has been named to Corporate Knights’ Best 50 Corporate Citizens list for the 16th consecutive year, ranking first among its freight transport peers.