CSX: Highlights from our RBC-hosted investor meetings and lunch with management

Research evidence excerpt

CSX: Highlights from our RBC-hosted investor meetings and lunch with management

CSX Corporation

Key sustainability questions

This section is intended to highlight key sustainability discussion points relevant to this company, as well as our views on the outlook. Both the

questions we highlight and our responses will evolve over time as the dialogue between management, analysts and investors continues to

advance. We welcome any feedback on the topics.

Our view

What are the most material Emissions, safety, and diversity are the most important sustainability issues facing

sustainability issues facing this the rail industry. CSX’s materiality matrix outlines sustainability topics important to

company? both CSX and its stakeholders, including employee and community safety, delivering

excellent customer service, and ethical business conduct.

Does the company integrate CSX does integrate sustainability considerations into its strategy and we highlight

sustainability considerations into its its Governance Committee, whose members are elected annually by the Board, as

strategy? an example of senior leadership integrating sustainability considerations into CSX’s

strategy. The Governance Committee oversees the development and execution

of CSX’s sustainability strategy and reporting. Additionally, an Audit Committee

of the board is responsible for risk oversight and evaluation of climate-related

issues, including risks associated with energy and environmental policy. We also

note that sustainability considerations are used to determine compensation, as

safety performance metrics were recently added to the management incentive

compensation plan. We view this alignment between management compensation

and sustainability performance as a positive and expect it to positively impact