Organization: Norfolk Southern Corp.

Year: 2010

Description:  
WHEREAS: According to the U.S. Environmental Protection Agency (EPA), moving freight accounts for 20% of all of the energy consumed in the transportation sector.
 
Corporate transparency regarding the business risks and opportunities related to climate change is particularly crucial, as climate risk is one of the most financially significant environmental issues currently facing investors. In October 2006, a report by former Chief Economist of The World Bank, Sir Nicolas Stern, estimated that climate change will reduce annual global gross domestic product between 5% and 20% if emissions are not reduced.  This is has negative implications for demand for Norfolk’s Southern’s shipping services.  
 
The Carbon Disclosure Project (CDP), representing 475 institutional investors globally with $55 trillion in assets, annually requests disclosure from companies on their climate change management programs. Companies are increasingly providing this climate change disclosure. The response rate to the 2009 CDP for the S&P 500 was 66%, compared to a response rate of 47% to the 2006 survey.  Norfolk Southern’s score for CDP 2009 was only 11.  
 
In June 2009, the U.S. House of Representatives passed a climate change bill to reduce GHG emissions to 17% below 2005 levels by 2020 and 83% by 2050.  In September 2009, a similar proposal was introduced to the Senate.  Twenty-four states have already entered into regional initiatives to reduce emissions in advance of the federal mandate. 
 
In December 2009, government and scientific leaders from around the world will gather in Copenhagen for formal talks on implementing the 1992 United Nations Framework Convention on Climate Change. The collective goal is the formulation of a climate treaty that sets emissions targets for industrialized and developing nations.
 
Norfolk Southern has initiatives to reduce fuel and energy use, and participates in EPA’s SmartWay Transport Partnership, but has not yet published quantitative, greenhouse gas reduction goals.  
 
RESOLVED: Shareholders request that the Board of Directors adopt quantitative goals, based on available technologies, for reducing total greenhouse gas emissions from the Company's operations and report to shareholders by December 31, 2010, on its plans to achieve these goals.  Such a report will omit proprietary information and be prepared at reasonable cost.
 
Supporting Statement: We recommend establishment of company-wide, quantitative greenhouse gas reduction goals for the short, medium and long term.  We believe this will benefit Norfolk Southern by setting benchmarks to monitor progress, facilitate innovation and provide incentives for compliance with company objectives during daily operations.  Reducing greenhouse gas emissions also can have the beneficial effect of reduced energy costs, and foster greater energy efficiency.  This saves money for our company.  These goals also will allow investors to measure the overall progress of the various company initiatives to reduce greenhouse gas emissions.
 
We ask for your support for this reasonable resolution.  Please vote in favor.