Kansas City Southern (NYSE: KSU) announced its commitment to set a more stringent emission reduction target that aligns with the Paris Agreement’s goal to limit global warming to well below 2 degrees Celsius above pre-industrial levels Tuesday.
Kansas City Southern (KCS) said it submitted a commitment letter to the Science Based Targets Initiative (SBTi) to reduce greenhouse gas (GHG) emissions. KCS did not mention specific emission reduction goals in the statement. However, based on 2018 data, the 2019 Sustainability report said that KCS aims to reduce GHG emissions intensity by at least 12% by 2025.
KCS said it plans to continue to build on current GHG emission reduction strategies such as utilizing precision scheduled railroading and investing in other technologies to increase fuel efficiency.
“Our pledge to issue a science-based target reinforces our commitment to further improving fuel efficiency and lowering emissions in support of a more sustainable North American supply chain,” said Patrick Ottensmeyer, KCS CEO, in a statement.
Sustainability in rail
Moving freight via rail instead of truck can reduce GHG emissions by up to 75%, according to a statement. While rail is the most efficient way to transport freight in terms of emissions per ton-mile, sustainability continues to grow in importance among railways, customers and investors. Customers and investors seek climate action and transparency from railway companies. KCS will join several major railways that have committed to and set emission reduction targets with the SBTi.
CN (NYSE: CNI), CSX (NASDAQ: CSX) and Canadian Pacific (NYSE: CP) achieved climate change leadership status from the Carbon Disclosure Project in 2020 for their efforts to fight climate change and reduce GHG emissions.
CP launched a hydrogen-powered locomotive project in December that will use hydrogen fuel cells and battery technology to reduce emissions. If successful, CP said it would be the first company in North America to run a line-haul hydrogen-powered locomotive.