CPKC publishes update on low carbon transition

Rhea-AI Summary

Canadian Pacific Kansas City (CP) has released its 2025 Climate Mileposts report, outlining key sustainability initiatives. The company is advancing its Hydrogen Locomotive Program, which achieved over 6,000 miles in freight service testing by end of 2024. CPKC plans to expand its hydrogen test fleet with seven additional locomotives and a tender car throughout 2025.

The company conducted over 1,100 fueling events in 2024 as part of its B20 locomotive biofuel trial in British Columbia, testing advanced renewable biofuel blends. Additionally, CPKC is preparing to receive 100 Tier 4 diesel-electric locomotives in 2025, designed to reduce emissions and improve fuel efficiency.

CEO Keith Creel emphasized rail transport's superior fuel efficiency for land-based freight movement and reaffirmed CPKC's commitment to improving locomotive operating efficiency and hydrogen locomotive testing.

Positive

• Successful completion of 6,000 miles in hydrogen locomotive freight service testing
• Expansion of hydrogen test fleet with 7 new locomotives in 2025
• Completed 1,100 B20 biofuel trial fueling events in 2024
• Upcoming delivery of 100 fuel-efficient Tier 4 locomotives in 2025

Negative

• None.

CALGARY, AB, Feb. 20, 2025 /PRNewswire/ - Canadian Pacific Kansas City (TSX: CP) (NYSE: CP) (CPKC) today published its 2025 Climate Mileposts report highlighting the actions being taken by CPKC to enhance sustainability.

"Shipping by rail is the most fuel-efficient way to move goods over land and our Climate Mileposts report outlines the steps we are taking to further advance the potential for future decarbonization of the CPKC locomotive fleet," said Keith Creel, CPKC President and Chief Executive Officer. "We are committed to working towards continuously improving our locomotive operating efficiency and advancing real-world testing of hydrogen locomotives."

CPKC is exploring and investing in innovative technology solutions and projects to reduce emissions from our locomotive operations and support CPKC's long-term sustainability objectives, including:

• Making significant strides with our pioneering Hydrogen Locomotive Program which has swiftly progressed from initial movement trials to recording more than 6,000 miles in freight service testing by the end of 2024.
• Doubling the size of our hydrogen test fleet in early 2025 to include three additional locomotives and an added tender car; then adding further to this test fleet with four more locomotives planned for later in 2025.
• Successfully conducting more than 1,100 fueling events in 2024 as part of our B20 locomotive biofuel trial in British Columbia. This initiative, in cooperation with the broader rail industry, aims to validate the operational impacts of using advanced renewable biofuel blends.
• Preparing for delivery of 100 Tier 4 diesel-electric locomotives in 2025, which are expected to reduce air pollutants and emissions and enhance fuel economy and reliability.

Read the full Climate Mileposts report at www.cpkcr.com.

Forward Looking Information

This news release contains certain forward-looking information and forward-looking statements (collectively, "forward-looking information") within the meaning of applicable securities laws, including with respect to the environmental, social, governance and sustainability priorities, policies, practices, programs, goals, targets, strategies and objectives of CPKC. Any statements about our expectations, beliefs, plans, goals, targets, predictions, forecasts, objectives, assumptions, information and statements about possible future events, conditions and results of operations or performance are not historical facts and may be forward-looking.

Forward-looking information in this news release includes, but is not limited to, plans, timelines or objectives of management for future operations, including with respect to locomotive decarbonization phases and anticipated mileposts; information regarding sustainability-related actions we plan to take in the future, including CPKC's climate strategy for reducing GHG emissions, our Commitment to Climate Action or other sustainability-related commitments; fuel efficiency of railways and our operations; future investments in and the availability of carbon emissions-reduction tools and technologies including through our fleet modernization program and technology upgrades; the impacts of existing and planned capital investments and our ability to work with governments and third parties to mitigate the impacts of climate change; and assumptions underlying or relating to any of the foregoing. Forward-looking information is often, but not always, made through the use of words or phrases such as "anticipates", "aims", "strives", "seeks", "believes", "can", "could", "may", "predicts", "potential", "should", "will", "estimates", "plans", "mileposts", "projects", "continuing", "ongoing", "expects", "intends" and similar words or phrases suggesting future outcomes.

Forward-looking information is based on current assumptions about our business and our strategy as well as economic, political, regulatory, market and environmental conditions affecting them. Although we believe the assumptions reflected in the forward-looking information presented in this news release are reasonable as of the date hereof, there can be no assurance that they may prove to be correct. Readers should not put undue reliance on forward-looking information, as it is not a guarantee of future performance. Forward-looking information involves many inherent risks and uncertainties that could cause actual results to differ materially from the forward-looking information. This includes risks such as: change in business strategies, general North American and global economic, credit and business conditions, changes in the availability and price of commodities and energy; the effects of competition; industry capacity; shifts in demand; changes in laws and regulations; natural or other disasters, including earthquakes, wildfires, pandemics or acts of terrorism affecting the markets in which we operate; the adverse effects of climate change on our business, investors, customers, suppliers and counterparts; our ability to successfully execute on initiatives relating to sustainability; cost increases; claims and litigation; labour disputes; liabilities arising from derailments and the outbreak of a pandemic or contagious disease and the resulting effects on economic conditions; and the successful integration of KCS into the Company among other things. The foregoing list of risks is not exhaustive.

These and other factors are detailed from time to time in reports we file with the securities regulators in Canada and with the U.S. Securities and Exchange Commission (SEC) in the United States. Readers should refer to Item 1A – Risk Factors, Item 7 – Management's Discussion and Analysis of Financial Condition and Results of Operations and Forward-Looking Statements in our 2023 Annual Report on Form 10-K and to our risk factor and forward-looking information disclosure in our quarterly reports on Form 10-Q filed on SEDAR+ (www.sedarplus.ca) and EDGAR (www.sec.gov).

In addition, our environmental, social, governance and sustainability priorities, policies, practices, programs, goals and objectives (including CPKC's climate strategy and our Commitment to Climate Action) remain under development as we continue to refine our analysis of and response to potential future climate and other risks and opportunities, and as the science, data and methodology underlying our analysis and strategy continue to evolve over time. Further, as we continue to integrate the operations of KCS into ours, we are conducting additional data-gathering and intend to further assess the climate and other environmental, social, governance and sustainability strategies and initiatives for the combined company, and may make changes to our existing strategies and initiatives as a result.

For these reasons, in future disclosures, we may include information that differs from information contained in this news release. Unless indicated otherwise or the context otherwise requires, forward-looking information in this news release speaks only as of the date hereof. We undertake no obligation to update or otherwise revise any information in this news release, including any forward-looking information, unless we are required to by applicable law.

About CPKC

With its global headquarters in Calgary, Alta., Canada, CPKC is the first and only single-line transnational railway linking Canada, the United States and México, with unrivaled access to major ports from Vancouver to Atlantic Canada to the Gulf of México to Lázaro Cárdenas, México. Stretching approximately 20,000 route miles and employing 20,000 railroaders, CPKC provides North American customers unparalleled rail service and network reach to key markets across the continent. CPKC is growing with its customers, offering a suite of freight transportation services, logistics solutions and supply chain expertise. Visit cpkcr.com to learn more about the rail advantages of CPKC. CP-IR

View original content to download multimedia:https://www.prnewswire.com/news-releases/cpkc-publishes-update-on-low-carbon-transition-302381574.html

SOURCE CPKC

FAQ

What progress has CP made in its Hydrogen Locomotive Program as of 2024?

CP's Hydrogen Locomotive Program completed over 6,000 miles in freight service testing by the end of 2024, progressing from initial movement trials to actual freight operations.

How many new hydrogen locomotives will CP add to its fleet in 2025?

CP plans to add seven new hydrogen locomotives to its test fleet in 2025, with three added in early 2025 and four more planned for later in the year.

What are the environmental benefits of CP's new Tier 4 locomotives?

The 100 new Tier 4 diesel-electric locomotives, scheduled for delivery in 2025, are expected to reduce air pollutants and emissions while improving fuel economy and reliability.

How many B20 biofuel trial fueling events did CP complete in 2024?

CP successfully conducted more than 1,100 fueling events in 2024 as part of its B20 locomotive biofuel trial in British Columbia.