Sustainability Metrics and Frameworks
Providing detailed, transparent, and accessible information on ESG topics is an important component of our ESG strategy. This webpage combines the ESG-related data reported in our sustainability reports (Building America Report, Climate Action Plan, We Are One, and portions of our Proxy Statement) into one combined data table so that this information is more accessible to our stakeholders.
Some of the figures and information in the following tables have been compiled and, where necessary, restated from previous sustainability reports to reflect changes in reporting. All currency-related values are reported in US dollars.
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Environmental Key Performance Indicators (KPI)
Environmental Data | Unit | 2018 | 2019 | 2020 | 2021 |
---|---|---|---|---|---|
Emissions | 2018 | 2019 | 2020 | 2021 | |
Direct (Scope 1) GHG Emissions | Metric Tons CO2Eq | 11,313,933 | 10,083,282 | 8,896,946 | 9,236,750 |
Energy Indirect (Scope 2) GHG Emissions | Metric Tons CO2Eq | 277,200 | 261,372 | 241,805 | 229,081 |
Other Indirect (Scope 3) GHG Emissions (Locomotive Fuel Well-to-Tank) | Metric Tons CO2Eq | 3,624,596 | 3,226,663 | 2,847,397 | 2,956,497 |
Other Indirect (Scope 3) GHG Emissions (Non-Locomotive Fuels, Rail Ties, Combustion, Business Travel and Employee Commuting, and Various Purchased Products) | Metric Tons CO2Eq | 2,184,882 | 829,069 | 711,083 | 624,330 |
Total Calculated Scope 1 & 2 Emissions | Metric Tons CO2Eq | 11,591,133 | 10,344,654 | 9,138,751 | 9,465,831 |
Total Calculated Scope 1, 2 & 3 Emissions | Metric Tons CO2Eq | 17,400,611 | 14,400,386 | 12,697,231 | 13,046,658 |
Absolute GHG Emissions for SBT | Metric Tons CO2Eq | 15,215,729 | 13,571,317 | 11,986,148 | 12,422,328 |
GHG Emissions Intensity (Scope 1 & Scope 2) | Metric Tons CO2Eq/MGTM | 12.5 | 12.2 | 11.8 | 11.6 |
GHG Emissions Intensity (Target Scope) | Metric Tons CO2Eq/MGTM | 16.4 | 16.0 | 15.5 | 15.2 |
Emissions of Ozone-Depleting Substances (ODS) | Metric Tons CO2Eq | 55,758 | 39,947 | 32,699 | 34,573 |
Fuel & Energy Consumption | 2018 | 2019 | 2020 | 2021 | |
Total Energy Usage | Megawatt Hours | 45.3 Million | 40.4 Million | 36.4 Million | 37.4 Million |
Non-Rewnewable Energy Consumption | Megawatt Hours | 45,033,372 | 40,112,387 | 35,871,243 | 36,760,103 |
Renewable Energy Consumption | Megawatt Hours | 316,422 | 327,309 | 479,185 | 677,481 |
Water Consumption | 2018 | 2019 | 2020 | 2021 | |
Withdrawal: Total Municipal Water Supplies | Million cubic meters | 2.115 | 2.516 | 2.140 | 2.951 |
Withdrawal: Fresh Surface Water | Million cubic meters | 0.60 | 0.51 | 0.37 | 0.054 |
Withdrawal: Fresh Groundwater | Million cubic meters | 1.438 | 0.453 | 0.50 | 0.50 |
Water Discharge | Million cubic meters | 1.878 | 2.964 | 1.535 | 1.376 |
Waste | 2018 | 2019 | 2020 | 2021 | |
Total Waste Generated | Tons | 2,090,000 | 1,430,000 | 2,110,000 | 1,077,503 |
Total Waste Diverted from Landfill | % | 71% | 68% | 47% | 56% |
Social KPIs
Social Data | Unit | 2018 | 2019 | 2020 | 2021 |
---|---|---|---|---|---|
Workforce | 2018 | 2019 | 2020 | 2021 | |
Total Workforce | # | 44,312 | 36,855 | 32,204 | 32,124 |
Craft Professionals | # | 38,279 | 31,353 | 26,893 | 26,835 |
Management Employees | # | 6,033 | 5,502 | 5,311 | 5,289 |
Average Age | Years | 44.5 | 46.1 | 46.8 | 46.4 |
Average Years of Service | Years | 13.7 | 15.4 | 16.3 | 15.7 |
Employee Turnover Rate | % | 9 | 11 | 12 | 12 |
Retention Rate | % | 91 | 90 | 89 | 89 |
Retention Rate - Female | % | 87 | 86 | 87 | 88 |
Retention Rate - POC | % | 91 | 90 | 89 | 89 |
Gender | 2018 | 2019 | 2020 | 2021 | |
Total Female | % | 5.3 | 5.5 | 5.6 | 5.3 |
Total Male | % | 94.7 | 94.5 | 94.4 | 94.7 |
Females in All Management Positions | % | 23 | 23 | 21 | 21 |
Females in Junior Management Positions | % | 23 | 23 | 21 | 21 |
Females in Top Management Positions | % | 21 | 23 | 22 | 28 |
Females in Management Positions with Revenue Generating Functions | % | 36 | 38 | 37 | 35 |
Females in Craft Positions | % | 3 | 3 | 3 | 2 |
Females in STEM-Related Functions | % | 20 | 18 | 16 | 16 |
People of Color | 2018 | 2019 | 2020 | 2021 | |
Asian Total | % | 2 | 2 | 2 | 2 |
Black Total | % | 12 | 12 | 12 | 12 |
Hispanic Total | % | 14 | 14 | 14 | 14 |
Native American Total | % | 1 | 1 | 2 | 2 |
White Total | % | 71 | 71 | 70 | 69 |
2 or More Total** | % | x | x | 1 | 1 |
*Some of the data above does not equal 100% due to rounding |
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Generation | 2018 | 2019 | 2020 | 2021 | |
Traditionalists | % | <1 | <1 | <1 | <1 |
Baby Boomers | % | 21 | 21 | 19 | 17 |
Generation X | % | 52 | 55 | 57 | 58 |
Millennials | % | 26 | 23 | 23 | 25 |
Generation Z | % | <1 | <1 | <1 | 1 |
Veterans | 2018 | 2019 | 2020 | 2021 | |
Number of Veterans | # | 8,628 | 6,985 | 6,040 | 6,038 |
Percent of Veterans | % | 20 | 19 | 19 | 19 |
Self-Reported Information* | 2018 | 2019 | 2020 | 2021 | |
LGBTQ+ | % | x | x | <1 | <1 |
Individuals with Disabilities | % | x | x | 2 | <2 |
*This data was not reported until 2020, reported data is self-reported |
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New Hires | 2018 | 2019 | 2020 | 2021 | |
Hires Total | # | 4,679 | 953 | 310 | 1,322 |
Hires - Management | # | 672 | 327 | 181 | 387 |
Hires - Craft Professionals | # | 4,007 | 626 | 129 | 935 |
Positions Filled by Internal Candidates | # | 1,237 | 690 | 805 | 978 |
Internal Hiring Rate | % | 21% | 42% | 72.2% | 42.5% |
Hires - POC | % | 43 | 41 | 35 | 48 |
Management Hires - POC | % | 31 | 28 | 33 | 40 |
Craft Professional Hires - POC | % | 45 | 47 | 37 | 51 |
Hires - Female | % | 7 | 12 | 17 | 13 |
Management Hires - Female | % | 31 | 31 | 23 | 35 |
Craft Professional Hires - Female | % | 3 | 3 | 8 | 4 |
Average Hiring Cost | $ | # | # | # | # |
Management Promotions | 2018 | 2019 | 2020 | 2021 | |
Promotions | # | 1,108 | 1,095 | 1,168 | 994 |
POC Promotions | % | 26 | 28 | 24 | 30 |
Female Promotions | % | 21 | 23 | 16 | 20 |
Employee Development | 2018 | 2019 | 2020 | 2021 | |
Employee Engagement (Favorability Index) | % | * | 54 | 49 | 55 |
Management Employees who Receive Formal Performance Reviews | % | 99 | 99 | 99 | 99 |
Management Employees with Individual Development Plans | % | 13 | 15 | 39 | 93 |
Reported Employee Volunteer Hours** | % | 9,309 | 6,532 | 4,028 | 3,821 |
Employees Involved in Employee Resource Groups | # | 2,619 | 2,499 | 1,848 | 2,573 |
*Data prior to 2019 was collected using a different methodology |
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Training | 2018 | 2019 | 2020 | 2021 | |
Average Hours of Training per Employee* | Hours | 71 | 33 | 23 | 29 |
Average Hours of Training for Male Employees** | Hours | 73 | 34 | 23 | 30 |
Average Hour of Training for Female Employees** | Hours | 39 | 22 | 14 | 24 |
Average Hours of Training for Diverse Employees** | Hours | 92 | 36 | 24 | 33 |
Ethics Training Participation | % | 21 | 20 | 17 | 98 |
Diversity & Inclusion Training Particaption | % | 21 | 20 | 81 | 98 |
Online Training Courses Completed | # | 1,188,360 | 1,045,872 | 921,907 | 860,365 |
Average Amount Spent per Employee on Training and Development*** | $ | 2,205 | 1,362 | 696 | 959 |
*Reduced hours due to new hire training efficiencies and reduced skill enhancement training due to the pandemic. |
Governance KPIs
Governance | Unit | 2018 | 2019 | 2020 | 2021 | 2022 |
---|---|---|---|---|---|---|
Board of Directors | 2018 | 2019 | 2020 | 2021 | 2022 | |
Board Size | # | 11 | 12 | 12* | 12** | 12 |
People of Color | # | 3 | 4 | 4 | 4 | 3 |
Female | # | 2 | 2 | 2 | 3 | 4 |
*Erroll B. Davis, Jr. retired at the 2020 Annual Meeting |
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Network Maintenance | 2018 | 2019 | 2020 | 2021 | 2022 | |
Ties Replaced | Millions | 3.94 | 3.13 | 4.39 | 3.83 | – |
Track Miles of Rail Replaced | # | 700 | 534 | 468 | 502 | – |
Miles of Track Surfaced | # | 9,466 | 7,741 | 10,414 | 10,441 | – |
Frequency of Internal Integrity Inspections | (weekly inspections x miles of track on which they took place) / (total main track miles) | 6,123 | 5,496 | 5,655 | 5,574 | – |
Incidents | 2018 | 2019 | 2020 | 2021 | 2022 | |
Train-Related Incidents & Accidents | # | 583 | 632 | 451 | 430 | – |
Train-Related Accidents Involving the Release of Hazardous Materials | # | 3 | 11 | 15 | 24 | – |
Non-Accident Release of Hazardous Materials | # | 170 | 148 | 128 | 130 | – |
Trespassing Accidents | # | 288 | 319 | 336 | 413 | – |
Crossing Accidents | (per million train miles) | 2.69 | 2.72 | 3.04 | 3.51 | – |
Reportable Personal Injury Rate | (per 200,000 employees) | 0.82 | 0.90 | 0.90 | 0.98 | – |
Reportable Equipment Incident Rate | (# accidents/million train miles) | 3.28 | 4.28 | 3.54 | 3.80 | – |
Number of Federal Railroad (FRA) Recommended Violation Defects* | # | 1,118 | 1,385 | 1,335 | 1,314 | – |
Lost-Time Injury Frequency Rate (LTIFR) - Employees | (n/million hours worked) | 0.60 | 0.67 | 0.71 | 0.68 | – |
Lost-Time Injury Severity Rate - Employees | (Number of dats lost due to injury x 1,000 / total hours worked) | 0.51 | 0.71 | 0.77 | 0.61 | – |
**These figures are based on FRA inspectors writing inspection reports with recommended violations, Union Pacific did not receive violations on all of these. |
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Fatalities | 2018 | 2019 | 2020 | 2021 | 2022 | |
Employee Fatalities | # | 3 | 2 | 1 | 2 | – |
Contractor Fatalities | # | 3 | 1 | 1 | 4 | – |
Employee Fatality Rate | (employee work-related fatalities / total number of FTEs) | 0.000068 | 0.000054 | 0.000031 | 0.000062 | – |
Cybersecurity | 2018 | 2019 | 2020 | 2021 | 2022 | |
Number of Information Security Breaches or Incidents* | # | 0 | 0 | 0 | 0 | – |
Total Number of Customers and Employees Affected by Data Breach | # | 0 | 0 | 0 | 0 | – |
Total Amount of Fines/Penalities Paid in Relation to Information Security Breaches or Other Cybersecurity Incidents | # | 0 | 0 | 0 | 0 | – |
Number of Substantiated Complaints - Breaches of Customer Privacy | # | 0 | 0 | 0 | 0 | – |
*Union Pacific defines a breach as a penetration of the system in which the attacker obtains confidential information. |
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Suppliers | 2018 | 2019 | 2020 | 2021 | 2022 | |
Number of Suppliers | # | 8,126 | 5,314 | 4,672 | 4,828 | – |
Diverse Suppliers | # | 541 | 330 | 286 | 287 | – |
Diverse Supplier Spend | millions | $275 | $328 | $423 | $522 | – |
Minority-Owned Supplier Spend* | millions | TBD | $99 | $56 | $74 | – |
Women-Owned Supplier Spend** | millions | TBD | $189 | $347 | $422 | – |
Veteran-Owned Supplier Spend*** | millions | TBD | $35 | $14 | $13 | – |
Other Diverse Supplier Spend**** | millions | TBD | $5 | $7 | $13 | – |
Local Supplier Spend | millions | 16.7 | 15.2 | 15.1 | 37.8 | – |
Strategic Suppliers | # | 18 | 21 | 19 | 16 | – |
Strategic Supplier Audits | % | 100 | 96 | 41 | 100 | – |
* Minority-Owned includes African-American, Asian-Indian American, Asian-Pacific American, Latino American, and Native American | ||||||
Community Giving | 2018 | 2019 | 2020 | 2021 | 2022 | |
Investment in Capital Expenditures | millions | $3,437 | $3,453 | $2,927 | $2,936 | – |
In-State Purchasing | millions | $7,413 | $6,766 | $5,427 | $6,192 | – |
Community Ties Giving Program | $ | $20,136,900 | $22,174,800 | $26,794,010 | $22,535,037 | – |
Ethics | 2018 | 2019 | 2020 | 2021 | 2022 | |
Total Values Line Reports | # | 1,485 | 1,260 | 1,271 | 1,238 | – |
Substantiated Values Line Cases | % | 27 | 29 | 26 | 24* | – |
Number of Confirmed Corruption Cases | # | 0 | 0 | 0 | 0 | – |
* At the time of publication, a subset of the reported cases were still subject to investigation. |
Sustainability Accounting Standards Board (SASB)
Greenhouse Gas Emissions
TR-RA-110a.1 Gross global Scope 1 emissions. See Climate Action Plan, pg. 20.
Greenhouse Gas Emissions
TR-RA-110a.2 Discussion of long-term and short-term strategy or plan to manage Scope 1 emissions, emissions reduction targets, and an analysis of performance against those target. See Climate Action Plan, pg. 7-15.
Greenhouse Gas Emissions
TR-RA-110a.3 Total fuel consumed, percentage renewable. See Climate Action Plan, pg. 20.
Air Quality
TR-RA-120a.1 Air emissions of the following pollutants in Metric Tons: (1) NOx (excluding N2O) and (2) particulate matter (PM10). NOx - 87,889 ; PM - 2,068
Employee Health & Safety
(1) Total recordable incident rate (TRIR), (2) fatality rate, and (3) near miss frequency rate (NMFR). See 2021 Building America Report, pg. 36.
Competitive Behavior
TR-RA-520a.1 Total amount of monetary losses as a result of legal proceedings associated with anticompetitive behavior regulations. UP was not subject to monetary losses as a result of legal proceedings associated with anticompetitive behavior regulations in 2021.
Accident & Safety
TR-RA-540a.1 Number of accidents and incidents. See 2021 Building America Report, pg. 36.
Accident & Safety Management
TR-RA-540a.2 Number of (1) accident releases and (2) nonaccident releases (NARs). See 2021 Building America Report, pg. 36.
Number of Federal Railroad Administration (FRA) Recommended Violation Defects. See 2021 Building America Report, pg. 36.
Frequency of internal railway integrity inspections. See 2021 Building America Report, pg. 36.
TR-RO-000.A Number of carloads transported. See 2022 10-K, pg. 23.
TR-RO-000.B Number of intermodal units transported. See 2022 10-K, pg. 23.
TR-RO-000.C Track miles. See 2022 10-K, pg. 13.
TR-RO-000.D Revenue ton miles (RTMs). See 2022 10-K, pg. 26.
TR-RO-000.E Number of employees. See We Are One Report, pg. 6.
Global Reporting Initiative (GRI)
General Disclosures (102)
102-1: Name of the Organization
Union Pacific Corporation
102-2: Activities, brands, products and services
Union Pacific Corporation (NYSE:UNP) is one of America's leading transportation companies. Its principal operating company, Union Pacific Railroad, is North America's premier railroad franchise, covering 23 states across the western two-thirds of the United States
102-3: Location of Headquarters
Omaha, Nebraska
102-4: Location of Operations
The company operates across 23 states in the United States
102-5: Ownership and Legal Form
Union Pacific Corporation is a publicly traded company, incorporated in Utah. The official trading symbol is 'UNP'.
102-6: Markets served
See We Are One Report, pg. 34.
102-7: Scale of the Operation
See We Are One Report, pg. 31; 2022 10-K, pgs. 36-38, 40
102-8: Information on employees and other workers
See We Are One Report, pg. 6, 31-34
102-9: Supply Chain
See 2021 Building America Report, pgs. 28-29
102-10: Significant changes to the organization and its supply chain
See 2021 Building America Report, pgs. 28-29
102-11: Precautionary principle or approach
Union Pacific does not formally use the precautionary approach, but has a formal risk management process for environmental risks. All new business initiatives and construction-related projects are subject to relevant environmental laws and regulations and an environmental risk assessment by the company.
102-12: External initiatives
Union Pacific participates in/subscribes to the following external initiatives: CDP, Dow Jones Sustainability Index, UN Sustainability Goals, EcoVadis, SASB, GRI, TCFD
102-13: Membership of associations
See 2021 Building America Report, pg. 16
Strategy (102)
102-14: Statement from senior decision-maker
See Climate Action Plan, pg. 3; We Are One Report, pg. 3; 2021 Building America Report, pg. 3
102-15: Key impacts, risks, and opportunities
See 2022 10-K, pg. 9-12; 2021 Building America Report, pgs. 7-8
Ethics and Integrity (102)
102-16: Values, principles, standards, and norms of behaviors
See The How Matters, pgs. 4-5
102-17: Mechanisms for advice and concerns about ethics
See The How Matters, pgs. 37
Governance (102)
102-18: Governance structure
See 2022 Proxy, pgs. 26-30
102-19: Delegating authority
See 2022 Proxy, pg. 7-8
102-20: Executive-level responsibility for economic, environmental and social topics
See 2022 Proxy, pg. 8
102-21: Consulting stakeholders on economic, environmental and social topics.
See 2022 Proxy, pg. 10; 2021 Building America Report, pgs. 14-15
102-22: Composition of the highest governance body and its commitees
See 2022 Proxy, pgs. 7, 17-22
102-23: Chair of highest governance body
See 2022 Proxy, pgs. 7, 17-22
102-24: Nominating and selecting the highest governance body
See 2022 Proxy, pgs. 16-22
102-25: Conflicts of interest
See The How Matters, pgs. 16-17
102-26: Role of highest governing body in setting purpose, values, and strategy
See 2022 Proxy, pg. 8; Climate Action Plan, pg. 16
102-27: Collective knowledge of highest governance body
See 2022 Proxy, pg. 5-9
102-28: Evaluating the highest governance body's performance
See 2022 Proxy, pg. 23-24
102-29: Identifying and managing economic, environmental and social impact
See 2022 Proxy, pg. 8
102-30: Effectiveness of risk management processes
See 2022 Proxy, pg. 8
102-31: Review of economic, environmental and social topics
See 2021 Building America Report, pgs. 5-6
102-32: Highest governance body's rule in sustainability reporting
See 2022 Proxy, pg. 8
102-33: Communicating critical concerns
See The How Matters, pgs. 37
102-35: Renumeration policies
See 2022 Proxy, pgs. 55-62
102-36: Process for determining renumeration
See 2022 Proxy, pgs. 55-62
102-38: Annual total compensation ratio
See 2022 Proxy, pg. 79
Stakeholder Engagement (102),
102-40: List of stakeholder groups
See 2021 Building America Report, pg. 14-16
102-41: Collective bargaining agreements
See We Are One Report, pg. 6
102-42: Identifying and selecting stakeholders
See 2021 Building America Report, pg. 14-16
102-43: Approach to stakeholder engagement
See 2021 Building America Report, pg. 14-16
102-44: Key topics and concerns raised through stakeholders engagement around the report
See 2021 Building America Report, pgs. 7-9
Reporting Practices (102)
102-45: Entities included in the consolidated financial statement
Our 2021 Building America Report, Climate Action Plan and We Are One Report cover Union Pacific Corporaton and its subsidiaries' activities and performance across our entire network. All operating and financial data in this report is presented in US dollars.
102-46: Defining report content and topic boundaries
See 2021 Building America Report, pgs. 7-9
102-47: List of Material Topics
See 2021 Building America Report, pgs. 7-9
102-48: Restatements of Information
2018, 2019, and 2020 emissions data has been restated from prior publications to reflect an emissions factor change used to calculate Scope 3 emissions related to fuel and a recalculation of Scope 2 emissions related to purchased electricity
102-49: Changes in Reporting
See 2021 Building America Report, pgs. 7-9
102-50: Reporting Period
January 1, 2020-December 31, 2021
102-51: Date of Most Recent Report
4/11/2022
102-52: Reporting Cycle
UP currently reports on an annual basis
102-53: Contact point for questions regarding the report
See 2021 Building America Report, pg. 15
102-54: Claims of reporting in accordance with the GRI Standards
Our 2021 Building America Report was prepared in accordance with the Global Reporting Initiative (GRI)
102-55: GRI Index
See 2021 Building America Report, pgs. 39-44
102-56: External Assurance
We obtained external assurance of our GHG emissions data for 2020, 2021 verification of such data is underway. Other data within this report is not externally verified.
Employment (401)
103-1: Explanation of material topic and its boundary
See We Are One Report, pgs. 4-5
103-2: Management approach and its components
See We Are One Report, pgs. 4-5; 2022 Proxy, pg. 6-7, 8
103-3: Evaluation of management approach
See We Are One Report, pgs. 4-5
401-1: New employee hires and employee turnover
See We Are One Report, pgs. 31, 33
401-2: Benefits provided to full-time employees that are not provided to temporary or part-time employees
See Benefits Summary Page
401-3: Parental Leave
See Benefits Summary Page, Non-Agreement Benefits
Occupational Health & Safety (403)
103-1: Explanation of material topic and its boundary
See Union Pacific's Commitment to Health & Safety; 2021 Building America Report, pgs. 19-20
103-2: Management approach and its components
See Union Pacific's Commitment to Health & Safety; 2021 Building America Report, pgs. 19-20
103-3: Evaluation of management approach
See Union Pacific's Commitment to Health & Safety; 2021 Building America Report, pgs. 19-20
403-1: Occupational health and safety management
See Union Pacific's Commitment to Health & Safety; 2021 Building America Report, pgs. 19-20
403-2: Hazard idenitification, risk asessment, and incident investigation
See Union Pacific's Commitment to Health & Safety; 2021 Building America Report, pgs. 19-20; 2022 10-K, pg. 7
403-3: Occupational health services
See Union Pacific's Commitment to Health & Safety; 2021 Building America Report, pgs. 19-20
403-4: Worker participation, consultation, and communication on occupational health and safety
See Union Pacific's Commitment to Health & Safety; 2021 Building America Report, pgs. 19-20
403-5: Worker training on occupational health and safety
See 2021 Building America Reports, pg. 21
403-6: Promotion of worker health
See We Are One Report, pg. 24-25; Benefits Summary Page
403-8: Workers covered by an occupational health and safety management system
See Union Pacific's Commitment to Health & Safety; 2021 Building America Reports, pgs. 21
403-9: Work-related injuries
See 2021 Building America Report, pg. 36
Training and Education (404)
103-1: Explanation of material topic and its boundary
See We Are One Report, pgs. 21-22
103-2: Management approach and its components
See We Are One Report, pgs. 21-22
103-3: Evaluation of management approach
See We Are One Report, pgs. 21-22
404-1: Average hours of training per year per employee
See We Are One Report, pgs. 21, 33
404-2: Programs for upgrading employee skills and transition assistance programs
See We Are One Report, pg. 21-22
404-3: Percentage of employees receiving regular performance and career development reviews
See We Are One Report, pg. 33
Diversity and Equal Opportunity (405)
103-1: Explanation of material topic and its boundary
See We Are One Report, pgs. 12-13
103-2: Management approach and its components
See We Are One Report, pgs. 12-13
103-3: Evaluation of management approach
See We Are One Report, pgs. 12-13
405-1: Diversity of governance bodies and employees
See 2022 Proxy, pg. 7; We Are One Report, pg. 32
Local Communities (413)
103-1: Explanation of material topic and its boundary
See 2021 Building America Report, pgs. 30-34
103-2: Management approach and its components
See 2021 Building America Report, pgs. 30-32
103-3: Evaluation of management approach
See 2021 Building America Report, pgs. 30-32
13-1: Operations with local community engagement, impact assessments, and development programs
See 2021 Building America Report, pgs. 30-34
Economic Performance (201)
201-1: Direct economic value generated and distributed
See 2022 10-K, pgs. 22-29
201-2: Financial implications and other risks and opportunities due to climate change
See 2022 10-K, pg. 11; Climate Action Plan, pg. 18-19
103-1: Explanation of material topic and its boundary
See 2022 10-K, pg. 6
103-2: Management approach and its components
See 2022 10-K, pg. 6
103-3: Evaluation of management approach
See 2022 10-K, pg. 6
301-1: Material used by weight or volume
See 2022 10-K, pgs. 5-6
Energy (302)
103-1: Explanation of material topic and its boundary
See 2020 Building America Report, pg. 72
103-2: Management approach and its components
See 2020 Building America Report, pg. 64-65
103-3: Evaluation of management approach
See 2020 Building America Report, pg. 64-65
302-1: Energy consumption within the organization
See Climate Action Plan, pg. 14
302-4: Reduction in energy consumption
See Climate Action Plan, pg. 14
Water & Effluents (303)
103-1: Explanation of material topic and its boundary
See 2020 Building America Report>, pg. 74
103-2: Management approach and its components
See 2020 Building America Report, pg. 64-65
103-3: Evaluation of management approach
See 2020 Building America Report, pg. 64-65
303-3: Water withdrawal
See 2020 Building America Report, pg. 26
Emissions (305)
103-1: Explanation of material topic and its boundary
See Climate Action Plan, pgs. 3-6
103-2: Management approach and its components
See Climate Action Plan, pgs. 16-19
103-3: Evaluation of management approach
See Climate Action Plan, pgs. 16-19; 2022 Proxy, pgs. 6-7, 8
305-1: Direct (Scope 1) GHG Emissions
See Climate Action Plan, pg. 20
305-2: Energy Indirect (Scope 2) GHG Emissions
See Climate Action Plan, pg. 20
305-3: Other indirect (Scope 3) GHG Emission
See Climate Action Plan, pg. 20
305-4: GHG Emissions Intensity
See Climate Action Plan, pg. 20
305-5: Reduction of GHG Emissions
See Climate Action Plan, pg. 6
305-6: Emissions of Ozone-Depleteing Substances (ODS)
See Climate Action Plan, pg. 20
Effluents & Waste (306)
103-1: Explanation of material topic and its boundary
See 2020 Building America Report, pg. 73
103-2: Management approach and its components
See 2020 Building America Report, pg. 73
103-3: Evaluation of management approach
See 2020 Building America Report, pg. 73
306-3: Waste generated
See 2020 Building America Report, pg. 26
306-4: Waste diverted from disposal
See 2020 Building America Report, pg. 26
306-5: Waste directed to disposal
See 2020 Building America Report, pg. 26
Supplier Social Assessment (414)
103-1: Explanation of material topic and its boundary
See 2021 Building America Report, pgs. 28-29
103-2: Management Approach and its components
See 2021 Building America Report, pgs. 28-29
103-3: Evaluation of management approach
See 2021 Building America Report, pgs. 28-29
414-1: New suppliers screened using social criteria
Suppliers engaged by Purchasing must certify compliance with UP's Supplier Code of Conduct.
Political Contributions (415)
103-1: Explanation of material topic and its boundary
See Political Contributions Policy and Procedures
103-2: Management Approach and its components
See Political Contributions Policy and Procedures
103-3: Evaluation of management approach
See Political Contributions Policy and Procedures
415-1: Political Contributions
See 2021 Contributions to State and Local Candidates, Political Committees and Political Organizations
Task Force on Climate-related Financial Disclosures (TCFD)
Governance
Disclose the Organization's Governance around Climate-Related Risks and Opportunities
a) Describe the board's oversight of climate-related risks and opportunities.
The Board of Directors is responsible for overseeing the assessment and management of the critical enterprise risks affecting the company. The Board delegates to the Audit Committee primary responsibility for oversight of managing risks related to operations of the company. The Audit Committee also receives reports throughout the year from the Chief Compliance Officer and the senior executives responsible for financial reporting, cybersecurity, and environmental matters. In addition, the Audit Committee oversees the company’s internal audit of enterprise risks selected for review and evaluation based upon the company’s annual risk assessment model with the purpose of evaluating the effectiveness of mitigating controls and activities of company personnel. The company’s internal auditors present to the Audit Committee findings regarding the mitigating controls and processes for the enterprise risks selected for review. The Audit Committee, in turn, reports those findings to the entire Board.
b) Describe management's role in assessing and managing climate-related risks and opportunities.
Our Executive Vice President – Sustainability and Strategy oversees ESG strategy and sustainability efforts. Our Sustainability Steering Committee is comprised of senior leaders from Law, Finance, Marketing and Sales, Operations (Mechanical & Engineering), Supply Chain, Environmental Management, Corporate Relations, Investor Relations, and Workforce Resources, who meet quarterly to drive decision-making, accountability and ownership of specific ESG initiatives. Our sustainability management team has individuals dedicated to overseeing the day-to-day implementation of our ESG strategies.
Management identifies and prioritizes enterprise risks, including climate-related risks, and regularly presents them to the Board for its review and consideration. The senior executives responsible for implementation of appropriate mitigation strategies for the company’s top enterprise risks, along with the Chief Compliance Officer, provide reports directly to the Board during the year.
Strategy
Disclose the Actual and Potential Impacts of Climate-Related Risks and Opportunities on the Organization's Business, Strategy and Financial Planning
a) Describe the climate-related risks and opportunities the organization has identified over the short, medium and long-term.
Union Pacific defines the short-term horizon as 0-3 years, the medium-term horizon as 3-10 years, and the long-term horizon as 10-30 years. With respect to climate-related risks, we are most likely to be affected in the short term by acute physical risks. As a railroad with a vast network, we are exposed to severe weather conditions and other natural phenomena, including earthquakes, hurricanes, forest fires, floods, mudslides or landslides, extreme temperatures, avalanches, and significant precipitation. Track outages and other interruptions caused by these conditions can adversely affect our rail network, potentially negatively affecting revenue, costs, and liabilities, despite efforts we undertake to plan for these events. Chronic physical risks associated with shifting climate patterns and increased temperatures present longer-term risks.
Additionally, we are subject to transition risks involving policy and legal risks and market risks. Regulatory policies restricting our taxing emissions could significantly increase the cost of our operations and that of certain customers. We are also managing shifts in demand for fossil fuels and other commodities that are being affected by the energy transition that is underway. The medium- and long-term effects of transition risks are less certain, but we are working to better understand these impacts through our planning processes.
b) Describe the impact of climate-related risks and opportunities on the organization's businesses, strategy and financial planning.
Impacts on our transportation product: Challenges and risks associated with climate change extend beyond our network. Interconnectedness of North American rail networks and the interoperability of equipment among railroads presents a challenge and an opportunity. Disruptions caused by severe weather events on one carrier’s network affect its interchange partners.
Impacts on our financial planning and partnerships: Railroading is a capital-intensive industry with long-lived assets, so we must be thoughtful about how we explore potential solutions. There is no simple solution to climate change, so we believe the rail industry should work collaboratively throughout its value chain to develop the best solutions for the industry.
Impacts on our technology and R&D initiatives: Within the rail industry, Union Pacific participates in AAR’s Decarbonization Working Group and Locomotive Committee to identify emerging technology to support the decarbonization of the rail industry. We are exploring ways to partner with the other rail carriers and our equipment and energy suppliers to develop locomotive technologies and fuel availability that can move the industry forward in this effort.
Impacts on how we approach public policy: Union Pacific engages in discussions with government agencies and non-governmental organizations to help identify reasonable strategies designed to achieve the long-term goals of the climate action plan.
c) Describe the potential impact of different scenarios, including at 2'C scenario, on the organization's businesses, strategy and financial planning.
To facilitate our understanding of climate-related risks and opportunities over the longer term, we are conducting a climate scenario analysis to better understand the range of impacts of climate change on our business.
Our climate scenario analysis estimates potential impacts to our business, including revenues, operations, costs, strategy, and our interaction with our public and private stakeholders under two scenarios: 1) a well-below 2°C climate scenario (“low carbon”), with more stringent energy and climate policies and stakeholders fulfilling their climate commitments, and 2) an above 4°C climate scenario (“high carbon”), with existing climate policies, GHG emission reduction commitments, and fuel diversification trending forward without significant step-change improvement.
As we complete this climate scenario analysis, it will further inform our internal processes and business strategies by helping us integrate climate-related risks into our enterprise risk management process and quantify the potential impacts of climate change. It will also contribute to the foundation for future climate disclosures.
Risk Management
Disclose how the Organization Identifies, Assesses, and Manages Climate-Related Risks
a) Describe the organization's processes for identifying and assessing climate-related risks.
Union Pacific’s enterprise risk management process is dynamic and regularly monitored so the company can timely identify and address any potential risks that arise in the ever-changing economic, political, legal and technology threat environment in which it operates, as well as address business continuity and long-term operational resiliency.
b) Describe the organization's processes for managing climate-related risks.
The Board of Directors is responsible for overseeing the assessment and management of the critical enterprise risks affecting the company. The Board delegates to the Audit Committee primary responsibility for oversight of managing risks related to operations of the company.
To address climate risk, our enterprise risk management program provides for the review, monitoring and mitigation of climate change risks and how these risks may affect the Company’s ability to participate in emerging commodity or financial markets or impact rail’s environmental advantage over other modes of transportation. The Audit Committee and our Board receive updates on Company activities and mitigation strategies related to climate risk.
c) Describe how processes for identifying, assessing and managing climate-related risks are integrated into the organization's overall risk management.
The Board of Directors is responsible for overseeing the assessment and management of the critical enterprise risks affecting the Company. Management identifies and prioritizes enterprise risks and reviews them with the Board at least once a year to answer any questions and obtain input related to mitigation strategies and categories of risk. Our enterprise risk management process is designed to identify and consider risks throughout our entire operations, including climate-related risks. The Audit Committee receives reports throughout the year from the Chief Compliance Officer and the senior executives responsible for financial reporting, cybersecurity, and environmental matters. In addition, the Audit Committee oversees the company’s internal audit of enterprise risks selected for review and evaluation based upon the company’s annual risk assessment model with the purpose of evaluating the effectiveness of mitigating controls and activities of company personnel. The company’s internal auditors present to the Audit Committee findings regarding the mitigating controls and processes for the enterprise risks selected for review. The Audit Committee, in turn, reports those findings to the entire Board.
Metrics and Targets
Disclose the Metrics and Targets Used to Assess and Manage Relevant Climate-Related Risks and Opportunities
a) Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process.
Our Marketing & Sales team is developing processes to identify climate-related commercial risks and opportunities and including our Sustainability Team in our customer conversations where appropriate.
Our Finance team has established mechanisms to capture climate related capital, and is expanding those efforts to track spending more broadly. In addition, our capital project review process challenges investments where a clean energy alternative is readily available.
Our employees are leading an effort to increase workforce engagement on environmental issues through our new sustainability business resource group, Planet Tracks.
We will continue to evolve ESG-related key performance indicators in our executive compensation scorecard.
b) Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 greenhouse gas (GHG) emissions and the related risks.
See Environmental Data section.
c) Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets.
In February 2021, Union Pacific announced its target to reduce absolute Scope 1 and 2 GHG emissions and GHG emissions on a well-to-wheel basis from locomotive operations 26% by 2030 from a 2018 baseline. Well-to-wheel emissions include well-to-tank emissions, which are Scope 3 emissions generated upstream in the value chain during fuel production and transport, and tank-to-wheel emissions, which are Scope 1 emissions related to the consumption of the fuel. The target boundary includes biogenic emissions and removals from bioenergy feedstocks and has been validated by the Science Based Target initiative (SBTi).
Our SBTi-approved target is in line with what climate scientists say is needed to meet the Paris Agreement goals – limiting global warming to well below 2° above pre-industrial levels. We are aware of the IPCC’s recent finding regarding more urgent actions necessary to address climate change and will revalidate our target in 2025 or sooner for alignment with the most current science and on the path to net zero emissions by 2050.
For a more detailed discussion of our target, see our Climate Action Plan.