Norfolk Southern Railways devoted approximately 5 percent of its 2021 expenditures to ESG climate activism, shorting essential programs like rail safety, a review of Norfolk Southern documents reveals. The revelations that Norfolk Southern prioritized ESG climate activism over rail safety occur at the same time Norfolk Southern refuses to reimburse the people of East Palestine, Ohio, for their health problems, lost homes, and destroyed lives resulting from the February 3 catastrophic train derailment and toxic chemical spill.
Norfolk Southern reported operating expenses of $6.6 billion in 2021. Those expenses include labor costs, fuel, and many other items that have nothing to do with safety. In fact, only a very small percentage of Norfolk Southern’s expenditures directly relate to maintaining and improving safety. Nevertheless, Norfolk Southern devotes substantial time, attention, and expense to climate activism. For example, Norfolk Southern in 2021 announced with great fanfare that it was devoting $500 million in a two-year period – including $330 million in 2021 – to “green bonds” promoting “low-carbon initiatives.”
Included in Norfolk Southern’s $500 million climate agenda is a $275 million program to refurbish locomotives to reduce carbon dioxide emissions. Another $10 million is devoted to implement expensive technology to reduce fuel use and, therefore, carbon dioxide emissions. An assortment of other programs comprise the remainder.
Perhaps Norfolk Southern should have devoted just as much money, with just as much fanfare, to safety improvements. According to the National Transportation Safety Board, Norfolk Southern has a concerning safety record, including five significant accidents since December 2021. Three of the accidents were train derailments.
Even if we assume, against the weight of evidence, that society is facing a serious climate problem, railroads should not be shorting safe operations in order to make infinitesimally small reductions in global carbon dioxide emissions. Half a billion dollars, including a full five percent of Norfolk Southern’s 2021 expenditures, could have made a big difference in preventing deadly derailments and catastrophes like East Palestine. It is a railway’s first and foremost job to provide safe and efficient rail service, while it is government’s job to assess and address public policy.
Norfolk Southern’s climate focus appears especially disproportionate considering the railway’s CEO, Alan Shaw, reportedly refused to commit to paying for medical tests and healthcare needs of the people of East Palestine resulting from the catastrophic derailment and toxic chemical spill. Absent outright malice, Norfolk Southern’s refusal to commit to covering these expenses likely stems from the costs of conducting such tests and treatment. Residents of East Palestine, you may be experiencing severe and potentially deadly health problems, your homes may now be worthless, and Norfolk Southern may claim it would cost the company too much to reimburse you for the harm it caused, but you can take solace that Norfolk Southern’s $500 million climate activism may have shaved 0.0000001 degree Celsius from future temperatures. Norfolk Southern refuses to take its eye off the ball of one of its most important business goals – combating climate change.
The revelation follows a separate report published on March 20 documenting how Norfolk Southern spent an inordinate amount of time, attention, and railway funds pursuing a woke Diversity, Equity, and Inclusion (DEI) agenda. According to the Daily Caller, Norfolk Southern devoted significant company resources appointing multiple DEI officials. The railway also praised itself in company press releases for devoting railway funds to “diverse” student groups across the country.
“A key element of the Board’s understanding of human capital management strategies is ensuring that we create a workplace that is committed to DEI,” Norfolk Southern Lead Director Steven F. Leer wrote to shareholders, according to the Daily Caller.
Rather than spending so much time, attention, and expense promoting woke ESG and DEI agendas, companies like Norfolk Southern should focus on safe operations and their industry’s core mission of serving the public. Let voters and policymakers assess and address climate change and other woke agendas.
James Taylor (JTaylor@heartland.org)