The KCS Decarbonization Plan (Scope 1 and 2) outlines our planned approach in reducing carbon emissions and helping the MBTA transition to a commuter rail network that reduces greenhouse gas emissions. In 2024, we will refresh it to update our internal initiatives and the last external project approved by the MBTA. Over the next three years, our decarbonization plan will focus on carbon emissions reductions for our rolling stock and non-revenue (cars and trucks) vehicle fleet and through the supply chain. For example, for our locomotive fleet, we will refine KeoDrive, our locomotive fuel reduction program, to reduce carbon emissions more effectively by identifying, supporting, and improving locomotive engineer’s operational train handling technique. As we complete the installation of innovative remote monitoring technology on the locomotives KCS will accelerate and refine the fleet idling reduction program.

In the next business plan cycle, KCS will also optimize the non-revenue fleet size and advance the transition of vehicles to hybrid and electric. We will expand our existing fleet of 35 hybrid vehicles, while exploring opportunities for acquiring fully electric vehicles. In addition to these initiatives, we will develop a larger carbon emissions reduction strategy for an even greener fleet.

We will also assess and calculate our carbon emissions on scope 3 late 2024 and define and decide on potential initiatives for 2025 and 2026.

In navigating the changing environmental and climate trends, KCS will develop a sustainability plan in alignment with THE 17 GOALS program adopted by the United Nations. THE 17 GOALS program refers to Sustainable Development Goals (SDGs), an integrated set of targets that recognize that actions in one sustainability area impact outcomes in other areas. KCS has commissioned a gap analysis assessment of our operations against those SDGs, analyzing current sustainability actions across all pillars and identifying potential gaps. From the assessment, KCS will develop and present a company-wide sustainability program in late 2024.

Over 2024 and 2025, KCS will also perform an assessment and implement improvements across the network that strengthen the commuter rail infrastructure in light of growing risks presented by climate change and severe weather events. The earthworks improvements assessment will include soil cutting, rock cutting, and coastal embankment improvements for which recommendations will be proposed to the MBTA for their capital investment plans. We will pilot and extend remote monitoring systems at hot spot locations. Those assessments and monitoring will also feed into adjusting our operational plans for weather management. Overall, this will advance the resilience and safety of the commuter rail network for years to come.

We also plan to maintain our ISO14001 certification on the current scope and extend it to the entire operations. This workstream will provide assurance of the measuring of environmental impacts, along with reducing waste, streamlining supply chain processes, and meeting regulatory obligations.

As we develop our sustainability plan, it is important to partner with stakeholders and business partners to positively impact environmental change. Our 2026 goal is for 85% of our suppliers to have a corporate sustainability plan. We will also promote the utilization of the EcoVadis assessment framework for key vendors.