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

CN releases its 2023 Sustainability Data Supplement

CN 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/

About Canadian National

CN is a world-class transportation leader and trade-enabler. Essential to the economy, to the customers, and to the communities it serves, CN safely transports more than 300 million tons of natural resources, manufactured products, and finished goods throughout North America every year. CN’s network connects Canada’s Eastern and Western coasts with the U.S. South through an 18,800 mile rail network. CN and its affiliates have been contributing to community prosperity and sustainable trade since 1919. CN is committed to programs supporting social responsibility and environmental stewardship.

Contact:

Jonathan Abecassis – Director, Public Affairs and Media Relations – media@cn.ca – (438) 455-3692

Source: Canadian National Railway Company