UNION PACIFIC RAILROAD

2022 Building America Report
A report to stakeholders on our social, environmental and economic sustainability progress.

Table of Contents
Letter to Stakeholders  .  .  .  .  .  .  .  .  .  .  .  . 3

Human & Labor Rights  .  .  .  .  .  .  .  .  .  .  .  . 19

Infrastructure Investment & Protection .  .  .  . 27

Building a Sustainable Future 2030 .  .  .  . 4

Employment Practices and Development .  .  21

Stakeholder Engagement .  .  .  .  .  .  .  .  .  .  .  29

Increasing Transparency .  .  .  .  .  .  .  .  .  .  . 6

Diversity, Equity & Inclusion .  .  .  .  .  .  .  .  .  .  21

Community Engagement  .  .  .  .  .  .  .  .  .  .  . 33

Materiality Assessment .  .  .  .  .  .  .  .  .  .  .  .  7

Emissions & Energy Use  .  .  .  .  .  .  .  .  .  .  . 22

Land Rights & Management .  .  .  .  .  .  .  .  . 38

Health, Safety & Well-Being  .  .  .  .  .  .  .  .  .  . 8

Climate Change .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  22

Looking Forward .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 39

Business Ethics and Conduct  .  .  .  .  .  .  .  . 13

Waste Management & Recycling .  .  .  .  .  .  .  23

Data  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 40

Cybersecurity .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  15

Responsible Sourcing .  .  .  .  .  .  .  .  .  .  .  .  .  . 24

Risk Management  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 18

Socio-Economic Impact .  .  .  .  .  .  .  .  .  .  .  .  26

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2022 BUILDING AMERICA REPORTLetter to Stakeholders
At Union Pacific, our strategy is based on delivering safe, consistent and reliable service day in and day out. Safety and service
are the foundation of our ‘Serve, Grow, Win – Together’ strategy. We Serve with customer-centered operational excellence; Grow
carloads, products and services that meet the customer’s needs, and Win by providing value across our enterprise. We accomplish
all of this Together – one railroad, one team – as we create value for all stakeholders.
That means employees must be fulfilled in their work and feel valued; customers must experience Union Pacific helping them win
in their markets; communities must see that we are supporting them in improving citizens’ lives; and our shareholders must be
rewarded with returns that encourage further investment.
That path toward success includes our commitment to sustainability initiatives outlined in our comprehensive strategy, Building a
Sustainable Future 2030. This report – along with our 2022 Climate Action Plan, 2022 We Are One Report, 2023 Proxy Statement
and other communications – keeps you apprised of our progress toward our sustainability goals and where we’re headed in the
future. These reports are updated annually as we discover new ways to achieve our goals and follow through on our commitment
to transparent communication of our sustainability efforts.
Our Materiality Assessment in 2021 involved engaging internal and external stakeholders to identify and prioritize our company’s
most important sustainability focus areas. Among our top issues were health, safety and well-being, business ethics and conductand cybersecurity.
Health and Safety: Our commitment to safety remains unrelenting and ever-present, reflected in our low employee personal injury rate, which has seen improvement year
over year. We know from recent events in the industry that this is more important than ever before. In this report we outline our processes and ongoing efforts to reduce
derailments and how we respond if a hazardous materials incident were to occur.
Business Ethics: Union Pacific’s reputation and success are determined by the decisions we make as employees, as a company and by the people with whom we choose to
do business. Providing the training and tools needed to help employees make the right decisions is a priority. Last year, 99% of employees completed The How Matters training,which outlines our policy on ethics and business conduct.
Cybersecurity: Union Pacific has implemented an industry-leading qualitative cybersecurity risk management process to protect its operations from cyber events. We haveseveral processes and redundancies in place so that we operate as safely as possible and work to prevent any potential cyberattack. We also perform regular vulnerability
scanning and system penetration testing to validate our security controls and assess our infrastructure and software applications. We block hundreds of millions of unwanted
emails each year, and regularly monitor such attacks and coach our employees on how to respond.
The world is more dynamic and expects more from us. Placing our stakeholders at the center of our decision making helps us find the best solutions. Helping our customers
get their jobs done, supporting and connecting our communities and building on our growth track record – while every employee goes home safely – are what define Union
Pacific and why I know our future is bright.
Lance Fritz
Chairman, President and CEO

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2022 BUILDING AMERICA REPORTBuilding a Sustainable Future 2030
Union Pacific operates across 23 states in the western two-thirds of the nation, touching everything from bustling
metropolitan cities to rural farming communities, to remote wilderness. Our wide reach means it’s important we act
as stewards of the communities and terrain we operate through. It is our responsibility to emphasize the importance of diversity and inclusivity within our workforce, pursue innovative technologies, protect clean air and water,and set targets to reduce our carbon footprint so we can achieve net-zero emissions by 2050.
Last year tested the mettle of Team UP through supply chain challenges, economic uncertainty and labor negotiations.
Through the highs and lows, employees overcame countless barriers with grit, ingenuity and hard work, guided by
our five-pillar Building a Sustainable 2030 Strategy:

Fast Facts

32,534 ROUTE MILESIN 23 STATES WITH 7 BORDERCROSSINGS

8.2 MILLION**
ANNUAL CARLOADS

7,338 LOCOMOTIVES
33,179 EMPLOYEES
30,000**
Building Responsible
Foundations

Investing in Our
Workforce

Driving Sustainable
SolutionsChampioning
Environmental
Stewardship

Strengthening Our
Communities

This approach addresses the evolving interests of our stakeholder groups and is more inclusive of our overall impact.
Most importantly, it builds on our foundation of safety – our highest priority. It also addresses our most material
sustainability risks, while aligning our commitment with the United Nation’s Sustainable Development Goals (SDGs).
Each pillar is described on the next page.

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RAILROAD CROSSINGS

16,700**BRIDGES*As of December 31, 2022. **Figures are rounded.

2022 BUILDING AMERICA REPORTBuilding Responsible Foundations
This pillar encompasses the importance of: Health, Safety and Well-being, Business Ethics and Conduct, Cybersecurity and Risk
Management & Internal Control. These areas are described in detail later in this report and in our 2023 Proxy Statement. The
health and safety of employees is at the foundation of everything we do. We are committed to engaging with employees to discussand understand the risks they may encounter in their daily work so that we can address them. We continuously monitor our
dynamic risk management process to identify and address potential concerns, including those arising in the ever-changing
economic, political, legal and technological environments in which Union Pacific operates.

Fast Facts

Investing in Our Workforce

FREIGHT RAILROADS ARE 3 TO
4 TIMES MORE FUEL EFFICIENT
THAN TRUCKS, ON AVERAGE.

At Union Pacific, our goal is to help employees develop skill sets, which enable them to grow, develop in new positions across thecompany and become experts in their roles. To do that, we must be committed to fostering a diverse and inclusive environmentthat reflects the varied markets and communities we serve. Recognizing we still have work to do, we continue to focus on building
an inclusive culture, and a talented workforce, with a goal to reach 40% people of color and 11% female representation by 2030.
Read more about our workforce initiatives in our 2022 We Are One Report.

Driving Sustainable Solutions
We strive to become the transportation solutions provider of choice for an increasing number of customers via a safe, reliable andcustomer-centric service product. Capitalizing on the many advantages rail transportation and our network franchise offer, we cangrow our volumes over less-efficient forms of transportation. As the most fuel-efficient way to move freight over land, rail is a key
decarbonization enabler for our economy. Our value proposition creates economic strength and supports profitable and responsible
growth, allowing us to invest more in our future. We are positioned to support a transition to a low-carbon economy through the
shipment of sustainable recyclable goods as those markets grow.

ONE TRAIN CAN CARRY THE
FREIGHT OF HUNDREDS OFTRUCKS, WHICH REDUCESHIGHWAY CONGESTION

MOVING FREIGHT BY TRAIN
INSTEAD OF TRUCK REDUCES
GHG EMISSIONS BY UP TO 75%.
RAILROADS ACCOUNT FOR
AROUND 40% OF LONG-DISTANCEFREIGHT VOLUME BUT ONLY
2% OF U.S. TRANSPORTRELATED GHG EMISSIONS.
AAR Freight Railroads and Climate
Change, pg 2

Championing Environmental Stewardship
Railroads are the most fuel-efficient means of transporting freight by land. However, we know that there are more actions railroads must take to reduce their carbon footprint.
In early 2021, the Science Based Targets Initiative approved our targets to reduce absolute scope 1 and 2 and locomotive well-to-wheel GHG emissions from our operations
26% by 2030 against a 2018 baseline. In 2022, we formally committed with SBTi to revise our near-term emissions reduction target to support a 1.5ºC climate ambition, as
well as set and validate a net-zero emissions target. We are continuing to develop our decarbonization and residual emissions strategies in conjunction with this commitment.
Read more about our environmental strategy in our 2022 Climate Action Plan.

Strengthening Our Communities
Union Pacific is dedicated to investing in communities and improving the quality of life where our employees live and work. Union Pacific’s capital investments create economic
opportunity through employment and supply chain activity, building a rail network that supports sustainable economic growth for generations to come. The more we invest inbuilding a safe and efficient railroad today, the better our infrastructure can support communities in the future. Additionally, we pride ourselves on being a good corporate citizenin the communities in which we operate and a champion for diverse suppliers.

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52022 BUILDING AMERICA REPORTWe Are Committed to Transparency
The Building America Report provides a top-level look at our progress toward achieving the goals surrounding our sustainability approach: Building a Sustainable Future 2030.
Its focus is derived from our 2021 Materiality Assessment, which reflected the progress of our sustainability program. Compared to our 2019 assessment, we saw a rise inimportance in our talent management practices, environmental actions and the broadening of our diversity and inclusion initiatives to include equity issues.
To guide our sustainability disclosures we rely on several reporting standards and frameworks, including the Global Reporting Initiative’s (GRI) reporting standards, the UN’s
Sustainable Development Goals (SDGs) and the Sustainability Accounting Standards Board (SASB). Environmental disclosures will incorporate the Task Force on ClimateRelated Financial Disclosures (TCFD) and CDP (formerly the Climate Disclosure Project) frameworks.
We are committed to improving the relevance and transparency of our disclosures in all of our sustainability reporting, including:

UNION PACIFIC RAILROAD

2022 Climate Action Plan

Climate Action Plan

Proxy Statement

The 2022 Climate Action Plan (CAP), published in
November 2022, outlines efforts to reduce our environmental impact, to achieve our science-based targetof reducing absolute scope 1 and 2 GHG emissions
from our operations by 2030 against a 2018 baseline,
and ultimately pursue net zero emissions by 2050.

The 2023 Proxy Statement outlines Union Pacific’s
commitment to strong corporate governance, effective
risk management and strong independent oversight ofmanagement by the Board, which is reflected in our
sound governance practices and policies.
2023 Proxy Statement

We Are One Report

UNION PACIFIC’S

2022 We Are One Report& NOTICE OF ANNUAL MEETING OF SHAREHOLDERS

The 2022 We Are One Report was published in March
2023. It outlines our strategy to deliver a world-classemployee experience and build a more diverse andinclusive culture that better reflects the communities
we serve. That commitment is underscored by our2030 diversity goals to reach 11% women and 40%
people of color representation in our workforce.

Green Financing Framework

Sustainability Metrics & Frameworks
UNION PACIFIC CORPORATION

Providing detailed, transparent and accessible information on sustainability topics is an important component of our sustainability strategy. Our Sustainability
Metrics and Frameworks webpage combines datareported in our sustainability reports into one combined
data table to make information more accessible toour stakeholders. All data are reviewed and/or updated
at least annually.

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Green Financing
Framework
1

6

Union Pacific is committed to being part of the climate
solution by proactively seizing opportunities to invest ininitiatives to meet, and exceed, our sustainability goals.
Through our Green Financing Framework, Union Pacificmay from time-to-time issue green bonds to support
projects with environmental benefits. As part of this effort,
Union Pacific Corporation issued a $600 million green
bond tranche on Sept. 9, 2022. UP’s Framework addresses
the four core components and key recommendationsof the International Capital Markets Association (ICMA)
Green Bond Principles 2021.

2022 BUILDING AMERICA REPORTMateriality Assessment Defines Key Stakeholder Topics
M ATE R I A LIT Y M ATR IX ALI G N E D W ITH U N ITE D N ATIO N S S US TA IN A B LE D E V E LO PM E NT G OA L S

Championing Environmental Stewardship
A Emissions & Energy Use
B 	Waste Management & Recycling
C Climate Change
Driving Sustainable Solutions
A Responsible Sourcing
B Socio-economic Impact
C 	Infrastructure Investment & Protection
Strengthening Our Communities
A Stakeholder Engagement
B 	Community Engagement & Giving
C 	L and Rights & Management

VERY HIGH

A

United Nations Sustainable
Development Goals
1.	 No Poverty
2.	 Zero Hunger

C

3. Good Health and Well-Being

A
B
D

HIGH

Investing in Our Workforce
A Human & Labor Rights
B 	Employment Practices & Development
C Diversity, Equity & Inclusion

B

B

B

A

4. Quality Education
5. Gender Equality

C

6.	 Clean Water and Sanitation

C

7.	 Affordable and Clean EnergyA

8.	Decent Work andEconomic GrowthA
C

9.	Industry, Innovation andInfrastructureB

10.	 Reduced Inequalities
11.	Sustainable Cities andCommunitiesC

12.	Responsible Consumption
and Production

MODER ATE

Building Responsible FoundationsA 	Health, Safety & Well-being
B 	Business Ethics & Conduct
C Cybersecurity
D 	Risk Management & Internal Control

I M P O R TA N C E T O S TA K E H O L D E R S

We’ve organized this report around the material topics identified through our 2021 Materiality Assessment, which depicts the most material sustainability topics for our stakeholders.
We also highlight which United Nations Sustainable Development Goals (SDGs) Union Pacific contributes to most significantly. Each report section focuses on one material
topic, the aligned SDG (if any), and updates our progress over the past year. Topics aligned with SDG goals are identified throughout the report. This streamlined organization
makes it easier to follow our goals and efforts as we strive to meet our sustainability objectives.

13. Climate Action
14.	 Life Below Water
15. Life On Land
MODER ATE

HIGH

IMPAC T TO BUS IN E S S

VERY HIGH

16.	Peace, Justice and Strong
Institutions
17.	 Partnerships for the Goals

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2022 BUILDING AMERICA REPORT

1. Health, Safety and Well-Being
Putting safety first across all elements of our activities to protect our workforce, our culture and our communities.

N ATIO N A L IN C I D E NTS PL AC E R A IL SA FE T Y IN TH E S P OTLI G HT
The health, safety and well-being of our employees have always been a priority at Union Pacific. Therefore, it wasno surprise that both internal and external stakeholders identified this topic as our most important sustainability
topic. World-class personal injury safety is not embodied in a number but rather in the goal that every Union Pacificteam member goes home safely to their loved ones at the end of each day.

PRO G R E S S IN G OU R E M PLOY E E S A FE T Y C U LTU R E
AN D IN ITI ATI V E S TO WO R LD C L A S S
As detailed in our 2022 We Are One Report, Union Pacific is committed to a safety-focused culture that engages andempowers employees to recognize potential safety risks and speak up and take action to mitigate those risks. We
utilize a multilayered approach with both system wide and local engagement activities to help drive our safety culture.
While we have consistently maintained an ultimate goal of zero incidents and zero injuries, from 2018-2022 oursafety performance struggled to make the next significant step change improvement toward our goal of world-classsafety performance. To reach our goals, safety must be embraced as a core value of each employee and ourcompany as a whole. We must not treat safety as a race to a number. Rather, we work relentlessly to drive activities
and encourage peer-to-peer and manager-employee interactions that reinforce safety as our number one priority.
With the help of our internal Safety team, external safety experts and field employees at all levels of our organization, we continue to refresh our approach and evolve our safety practices and tools. We are driving to reduce notjust reportable injuries, but also control overall employee exposure to safety risks.

Peer-to-Peer Safety Approach
Reaches World ClassSouthern Region Track Program employees areliving their values with a comprehensive, team-firstsafety strategy taught by craft professionals andsupported by local leadership.
As of Jan. 10, 2023, the team of 1,183 people from
Rail South, Tie South, Southern Region Track
Construction and Southern Region Work Equipment
has worked more than 2.4 million employee-hours,or 417 days reportable injury-free.
This win in peer-to-peer safety, the next progressionof the deeply rooted Total Safety Culture approach,encourages teams to look out for each other with ahigh level of engagement, commitment and attention. Safety data is incorporated into team safety
engagement plans and used in daily job briefings.

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82022 BUILDING AMERICA REPORTWorld-Class Safety Pillars
Organizational Culture. Managers and peers treat safety interactions as coaching opportunities to encourage and sustain
safe behavior and practices
Operational and Workplace. Anticipate, identify and evaluate hazardous conditions and practices. Design, implement andoptimize behavior-based safety processes that control risk exposure
Tech & Advanced Analytics. Support field operations with real time train handling observation and monitoring, data analytics
and coordination of field safety efforts between operating crafts
Consistent & Reliable Operations. Attack & reduce network variability to reduce risk exposure
Compliance & Regulatory. Compliance with regulatory requirements, training, reporting and program submissions

While we have consistently maintained an ultimate goal of zero incidents and zero injuries, from2018-2022 our safety performance struggled to make the next significant step change improvement
toward our goal of world-class safety performance. To reach our goals, safety must be embraced asa core value of each employee and our company as a whole.

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92022 BUILDING AMERICA REPORTSafe Rail Transport of Chemicals Requires Preparedness
The rail accident that occurred Feb. 3, 2023, in East Palestine, Ohio, has generated significant interest, curiosity and concern
about hazardous materials being transported by rail. Union Pacific and all carriers and producers of hazardous materials arereflecting on how well they’re prepared to respond if a similar situation occurs.
Hazardous materials play a part in our everyday life. They are used to produce a variety of necessities we take for granted,
including fuels, cleaners, plastics, medications, and pesticides. They are even necessary to ensure we have access to safe
drinking water. Federal law requires common carriers, like Union Pacific, to transport hazardous materials. Railroads haul about
40% of the hazmat used in the United States. From 2018-2022, railroads had 50 times fewer incidents involving hazardous
materials and 10 times fewer injuries from hazmat-related incidents.*

INCIDENTS INVOLVINGHAZARDOUS MATERIALS*
ANNUAL AVERAGE BY MODE, 2018-2022
20,863

Hazardous materials are generally hauled in tank cars. Our regionally based hazardous materials teams perform about 5,000
tank car inspections annually, auditing everything from tank car fittings and car markings to safety appliances. They also work
alongside our contractors, our customers, and government regulators to inspect, report and remedy findings.
Our vigilance goes well beyond our hazmat team. All Union Pacific employees are trained regarding hazardous materials safety.
Our train crews know, understand and carry proper instructions when operating a train carrying hazardous materials. If ourinspections identify a shipper with recurring issues, one of our hazmat team members provides on-site training so the shipper
knows and understands the importance of best practices for handling hazardous materials shipments.

1,376
TRUCK

AIR

411
RAIL

We take our hazmat responsibilities seriously and work with communities who are impacted when accidents occur. We aretransparent with our efforts and coordinate with key parties to remediate environmental impacts as required.

Derailment Prevention Key to Keeping Trains on Track
Derailment prevention initiatives are fundamental to safe train operations at Union Pacific. There are several approaches to accomplishing this work. Union Pacific utilizes
technology, optimal response and maintenance methodologies, and an aggressive capital renewal strategy to help keep trains on the tracks. And it’s working. Comparing lastyear to 2019, total derailments on Union Pacific have declined by 21%.
Union Pacific’s robust network of more than 7,000 wayside detection devices monitors the condition of freight cars and locomotives in real time. These wayside detectors areelectronic sensors installed along the tracks used to measure strain, temperature, acoustic signature and dimensions of various components such as bearings, wheels, trucks andbraking systems. These alerts are used to drive UP responses to determine safe handling and repair of rolling stock. Robust use of wayside detectors vastly improves proactive risk
identification and enhances repair capabilities.
Track-related derailment prevention is at the forefront of what Union Pacific’s Engineering Department does every day, and in the last 10 years track-caused derailments haveseen a 55% reduction. While that is an accomplishment to be proud of, it has not stopped us from continuing to use training and technology to drive that number to zero.
Derailment prevention occurs many ways, but when it comes to track, it boils down to inspection, assessment, and capital renewal.

* US Bureau of Transportation Statistics, Table 2-6: Hazardous Materials Fatalities, Injuries, Accidents, and Property Damage Data; US DOT Federal Railroad Administration, “Hazardous Materials
Transportation,” Last updated March 8, 2023.

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2022 BUILDING AMERICA REPORTComprehensive Training at the Heart of Rail Safety
Union Pacific’s 33,000 employees are responsible for the safe movement of freight that powers our lives, keeps
our store shelves stocked and builds our homes and communities. To do this requires an array of skills that spans
every craft, along with a commitment to comprehensive, state-of-the-art training. In 2022, we provided more than
1.5 million hours of best-in-class training to our workforce, including craft professionals who work to enable safe
train operations.
From day one, we make sure our team has the tools and skills needed to keep the nation’s supply chain moving.
Newly hired train crew employees spend up to 14 weeks learning railroad safety and operating basics – including
the cycle of a car, from origin to final destination, as well as how to effectively manage critical resources and safely
apply rules. To check for understanding, exams are given during the training.

Focus Includes Contractor Safety

Training Compliance is Essential
All Union Pacific employees are trained to performtheir jobs safely and efficiently. Our training
compliance system assigns each team member amandatory training plan consistent with his or her
job duties. Supervisors track progress via an online
website that generates training notifications andcompliance reports. Our Training Department
constantly reviews training needs across our systemand coordinates with supervisors to provide needed
training classes.

The safety of everyone supporting our company’s mission is critical. All parties – employees, contractors andothers – must do their part collaboratively to help our operations run safely.
All contractors are required to register with eRailSafe prior to coming on Union Pacific property. eRailSafe is theClass I and shortline industry standard for contractor safety and security management for railroads and the vendorsthat serve them. We require our contractors to follow all applicable safety regulations, including Union Pacificstandards as well as OSHA, FRA and FMCSA requirements. Contractors must report all cases of personal injury
and occupational illness that occur while on duty or on company property to the appropriate manager.
We have begun working with a third-party solution provider with expertise in contractor safety data collection, trend
analysis, compliance and benchmarking. During 2023 we plan to implement processes and systems that will improve
contractor safety data transparency, help us identify and mitigate contractor safety incident trends, and enhancecontractors’ training and qualification compliance in accordance with UP’s requirements.
For more information on our contractor safety measures, please see our contractor safety website.

Command Center Provides Around-the-Clock Derailment Prevention
Union Pacific’s Operating Practices Command Center (OPCC) was created in November 2019 as a 24/7
resource for enabling safety protocol compliance with local, federal and companywide standards across all ourservice units. Craft and management personnel receive accurate, consistent information about current rules andregulations, along with instant support from a team of 21 experts on safe train operations.

With a variety of technology at his fingertips, Steve Terrell,manager-Operating Practices, assists a train crew from inside
the Operating Practices Command Center (OPCC) located atUnion Pacific’s Harriman Dispatching Center.

In addition to being an information resource, the OPCC takes a proactive stance by using state-of-the-art technology toanalyze unintended train stops across the network as well as perform recertifications and other annual requirements
for all employees.

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2022 BUILDING AMERICA REPORTCommitted to a Safe Chemical Supply Chain:
UP Maintains Industry-Best Certification
Union Pacific received recertification as a member of the American Chemistry Council’s (ACC) Responsible CareManagement System (RCMS) in February 2023 – reaffirming its commitment to the safe transportation of customers’chemical commodities leveraging industry-best safety practices.

Union Pacific Is Proud to Be Recertified for
the American Chemistry Council’s
Responsible Care Management System®

We’re committed to safely transporting chemical commodities in the communities where we live and work. As a
Responsible Care Partner, UP adheres to the same standards as our ACC customers. This partnership allows us
to work closely with chemical customers to develop safe and efficient supply chain solutions.
RCMS certification signals UP values safety in all of its endeavors, beyond regulatory compliance – from employee
training to the processes in place to consistently deliver customer shipments incident-free.

Leveraging Technology for Safe, Reliable Operations
Here are some examples of technology Union Pacific is either developing or using every day to maintain a safe,
efficient rail infrastructure.
Autonomous Geometry Systems – Union Pacific is utilizing autonomous geometry systems to greatly increase
its track inspection footprint. Two different platforms currently are being leveraged – one located on a locomotive,
the other a custom-developed boxcar. The fleet currently consists of seven locomotive systems with plans to increase
to ten by the end of 2023. It also includes three boxcar-based systems. By utilizing these different systems, we wereable to increase our track miles inspected by a geometry system to over 300,000 miles annually.
Automated Tie Rating – Union Pacific is utilizing automated tie rating. The rating process was previously done byhuman inspectors on track. By using an autonomous system, we are able to greatly increase the speed and consistency of inspections while reducing manual inspection of ties. We plan to inspect just over 5,000 miles of the UP
network using these trucks in 2023.
Rail Replacement Algorithms – Union Pacific uses complex algorithms to identify locations requiring rail replacement or maintenance. By leveraging data from the rail inspection fleet, geometry fleet and human inspections, arisk-based model has been developed that helps identify locations showing signs of degradation. This process allows
UP to intervene and replace the rail proactively.
New On/Off Track Crane-Bridge Construction – Engineering is developing a new “On/Off” crane, which canbe used either on or off the track, depending on terrain. It is self-erecting and can be transported via truck to thework site. The new crane reduces the need for an on-track footprint and will improve the productivity of our bridge
construction team.

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2. Business Ethics & Conduct
Upholding the highest standards of legal and ethical conduct through good governance, effective policies, processes and strong values.

TH E H OW M AT TE R S TO ALL U P E M PLOY E E S
Union Pacific’s reputation and success are determined by the decisions we make as
employees, as a company and by the people with whom we choose to do business.
Employees are our first line of defense against enterprise risks such as regulatorycompliance, environmental, hazardous materials and cybersecurity. Ongoing training
and education are critical. Providing the training and tools needed to help employees
make the right decisions is a priority. We have an internal Guidelines on Ethics andBusiness Conduct for employees webpage with links to our policies, Q&A, reporting
information and more.

Our employees are encouraged to speak openly and honestly about business ethics
and compliance concerns with their supervisors or Workforce Resources business
partners. Union Pacific recognizes there may be times when employees would liketo discuss issues, voice concerns, or report violations in a confidential or anonymous
manner. In these instances, employees are encouraged to call the Values Line or the
EEO Hotline. When an employee calls the UP Values Line or EEO Hotline, an intake
specialist from the third-party vendor, Navex, creates a report and sends it to UP’s
Compliance Team where the report is assigned for investigation.

The How Matters, our policy on Ethics and Business Conduct, explains our expectation of ethical conduct. All Union Pacific employees are required to complete annual
training on The How Matters. Separate training modules are provided to management employees versus craft professionals, highlighting the areas most relevant totheir daily work. In 2022, 99% of employees completed that training. In certain instances,
employees are required to take additional training on specific ethics issues, such as
sexual harassment and anti-bribery and anti-corruption.

We review our ethics programs, including The How Matters, annually, utilizing
the guidelines for effective ethics and compliance programs detailed in the U.S.
Sentencing Commission Guidelines Manual. Policy and content owners for The How
Matters review and update their sections, and any policy changes are subsequently
reviewed by senior staff and the CEO and approved by the Audit Committee and
Board of Directors, before being formally updated and communicated to all employees.

Union Pacific employees operate under the following high ethical standards:

Union Pacific does not tolerate inappropriate behavior involving Equal
Employment Opportunity (EEO) and retaliation and encourages
employees who witness behavior they believe violates EEO policy
to report the incident to the company’s confidential Values Line.

•	Honesty – Being truthful when dealing with customers, suppliers, shareholders
and fellow employees.
• Fairness – Treating everyone fairly.
• Integrity – Voicing concerns when we believe our company or colleagues are
not acting ethically or complying with the law.
• Respect – Maintaining a foundation of trust and respect with colleagues,
customers, regulators, suppliers and other stakeholders.

To reinforce our annual ethics training, our Compliance Department periodicallypublishes Compliance Connections online internally and via email for employee
viewing. These Compliance Connections communications may cover a broad rangeof risks, ethics, compliance and policy issues. The topics are selected based on an
analysis of trending issues at our company. We also publicly disclose core ethics
data, such as the total number of Values Line cases and the percentage of thosecases that were substantiated.

• Loyalty – Ensuring no employee is, or appears to be, subject to influences,interests or relationships that conflict with the company’s best interests.
• Accountability – Holding ourselves, peers and customers to the company’s
high ethical standards.
•	Adherence to the law – Complying with all laws.
•	Compliance with policies – Complying with the letter and spirit ofcompany policies.

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2022 BUILDING AMERICA REPORT

Ethics and Compliance – By the Numbers

2021

2022

% of Employees Completing The How Matters Ethics Training

98%

99%

% of Required Employees Reporting Whether or not They Had a
Conflict of Interest*

100%

100%

% of Required Employees Reporting Whether or not They Made Gifts orPayments to Public Officials Disclosure*

100%

100%

% of Required Employees Completing Sexual Harassment Training**

99%

99%

% of Required Employees Completing Foreign and Corrupt Practices Act
Training (FCPA)***

88%

84%

% of Required Employees Completing Anti-Trust Training***

96%

98%

Number of Internally Published Compliance Connections

3

12

Number of Confirmed Corruption Incidents00*	Required for management and American Railway and Airway Supervisors Association(ARASA) employees.
** Required for specific locations, not entire employee population (CA, NY, IL).
*** Required for certain management employees only.

For more information on our ethics standards, please see the following policies
and reports:• The How Matters• Union Pacific’s Policy on Human Rights• Sustainable Procurement Statement• Supplier Code of Conduct• 2022 We Are One Report

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2022 BUILDING AMERICA REPORT3. Cybersecurity
Protecting and preserving information by embedding effective data privacy and information security practices and complying with relevant legislationand standards.

V I G IL A N C E A N D IN G E N U IT Y K E Y TO CY B E R S E C U R IT Y E FFO R TS
Now more than ever, Union Pacific’s success is powered by innovations and technology used every day in theoffice and in the field by our employees, suppliers and customers. As a result, cybersecurity is taken very seriously.
On our most recent materiality assessment, respondents ranked cybersecurity as one of the top-three issues ofconcern to stakeholders.
Cybersecurity matters for all facets of our value chain: our customers should feel safe when using our online tools,
our suppliers must know they have a partner that will protect their data, and our employees need to know that theirpersonal information is secure.
As technology has become a more central part of our operations, so has our focus on maintaining the security of
our systems and protecting the data that we collect and generate from our business.
Our staff of information security professionals continually assesses cybersecurity risks and implements mitigation
programs that evolve with the changing technology threat environment.
To date, we have not experienced any material disruption of our operations due to a cyber threat or attack.
We work closely on physical and cybersecurity initiatives with government agencies, including the U.S. Departmentof Transportation (DOT); the Department of Homeland Security (DHS), the Cybersecurity & Infrastructure Security
Agency (CISA) and Transportation Security Administration (TSA); as well as local police departments, fire departments,and other first responders. In connection with new guidance from the TSA, effective January 1, 2022, we wererequired to report cyber incidents to CISA, perform a cyber vulnerability self-assessment and submit results to the TSA
by March 31, 2022, assemble and adopt a cyber incident response plan by June 29, 2022, and appoint cybersecurity
coordinators. We have fully met the requirements of the first directive and have submitted our cybersecurity plan
for approval by TSA. We anticipate a few rounds of refinement over the next few months.
We have significantly increased investment in technologies to support our cybersecurity efforts. Union Pacific has
implemented an industry-leading qualitative cybersecurity risk management process to ensure its operations areappropriately protected from cyber events. We have several processes and redundancies in place so UP is as safe
as possible from any potential cyberattack.
We understand we may not be able to prevent all cyber incidents from occurring. As a result, detective controls androbust incident response programs are in place to enable us to detect, delay and quickly respond to an intrusion.

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2022 BUILDING AMERICA REPORTIN FO R M ATI O N PR I VACY
Union Pacific is committed to maintaining web users’ confidence and trust when on our website. In general, anyone
can visit our website without telling us who they are or revealing personal information; however, customers andother users can choose to participate in additional secured applications. At times, additional information collection
is necessary to complete business transactions, enhance our services, better meet the needs and preferences ofour customers and other visitors, and enhance the security of our online and digital properties. In 2022, there
were zero substantiated complaints concerning breaches of our customers’ privacy. For more details, see ourWebsite Privacy Policy.

DATA S E C U R IT Y
Our Information Assurance team, led by our Chief Security Officer, is responsible for the confidentiality, integrity
and availability of Union Pacific’s infrastructure and assets. The team has a robust strategy in place to prevent,detect and respond to potential threats. We also perform regular vulnerability scanning and system penetration
testing to validate our security controls and assess our infrastructure and software applications. Like many organizations our size, we are continuously probed by cyberattacks from around the world. In 2021 alone, the Union Pacificnetwork was probed 714 billion times, and one breach occurred. However, to date we have not experienced any
material disruption of our operations due to these probes or any other attacks directed at us. Extensive incident
response, disaster recovery and business resumption plans are in place and tested annually, ensuring the computing
environment can withstand a wide range of scenarios.
The Railway Alert Network is the industry’s intelligence and security information center. Each day, its staff reviews
intelligence and related security information to produce analyses of terrorist tactics, malicious cyber activity, rail
related threats and incidents, and suspicious activity. Union Pacific uses these materials for threat hunting and in
our security awareness communications.

E M PLOY E E PA R TI C IPATIO N
Union Pacific employees know the importance of robust cybersecurity measures. We require annual training that
includes information on data security policies and procedures. All employees must also work to protect the company’sbusiness information and computer systems against unauthorized use, including unauthorized personal use.

CISA Appoints Rahul Jalali to
Cybersecurity Advisory Committee
Union Pacific’s Rahul Jalali, senior vice presidentTech and chief information officer, has been
appointed by the Cybersecurity and Infrastructure
Security Agency (CISA) to its Cybersecurity
Advisory Committee (CSAC). CISA recently
brought onboard additional experts from the public
and private sectors to advise on policies andinitiatives enhancing the nation’s cyber defense.
Established in June 2021, the CSAC is comprisedof experts on cybersecurity, technology, risk
management, privacy and resilience, who advise
the director on policies and programs related to
CISA’s mission.

Union Pacific blocks hundreds of millions unwanted emails each year, of which some attempt to gain access tocompany or private information. Employees are regularly coached on how to identify phishing attacks, and how to
avoid being victimized. They are also required to report suspicious activity through our Response Management
Communication Center.

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2022 BUILDING AMERICA REPORTCybersecurity Requires Leveraging New Technologies and Processes
We have implemented an industry-leading qualitative cybersecurity risk management process to ensure UP’s operations are appropriately protected from cyber events.
Some highlights of enabling secure tech include:•	Enabling our mobile workforce throughout all our facilities by providing secure, easy-to-use handheld devices, such as Zebra devices, to help perform their work
efficiently and safely.
•	UP’s cloud journey is progressing with a secure-build mindset thanks to a cross-functional team from Security and other Tech groups. We are engaged with third-party
cloud security firms to help assess and implement secure hosting solutions to provide new opportunities for our business partners.
•	The Security and other Tech teams, including infrastructure and applications development, have partnered to create the Security Champions program. Security
Champions are provided opportunities to upskill in the area of application security, which they use to drive the secure design, creation, and implementation of applications
within their teams. This focus on secure design throughout the lifecycle of an application drives a more seamless, secure development lifecycle.
•	We have removed the most common tool of a hacker by providing our management employees with security keys to help ensure they do not fall victim to a cybercriminal.
The final phase of this will be to require usage of the tokens by craft employees later this year.

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2022 BUILDING AMERICA REPORT

4. Risk Management & Internal Controls
Embedding a strong risk management and internal control process to protect from risks or effectively mitigate if they do occur.

S TRO N G R I S K M AN AG E M E NT PRO C E S S E S C O R E TO S TRO N G BUS IN E S S
The Board of Directors is responsible for overseeing the assessment and managementof the critical enterprise risks affecting the company. Management identifies andprioritizes enterprise risks and reviews them with the Board at least once a year toanswer any questions and obtain input related to mitigation strategies and categories
of risk. The Board has delegated to the Audit Committee primary responsibility foroversight of risks related to financial and operational controls of the company, as wellas compliance, regulatory, safety, sustainability, climate and cyber risks.

The Corporate Governance, Nominating and Sustainability Committee monitors the
allocation of risk and sustainability oversight among the Board and its Committees.
It also annually reviews the company’s political activities and political activity reporting.
The Compensation and Benefits Committee is responsible for assessing risks
arising from the company’s compensation policies and programs and oversees
human capital-related risks, including with respect to the recruitment, development
and retention of company personnel and employee engagement and effectiveness.

To address and mitigate cybersecurity risks, our Senior Vice President-Information
Technologies and Chief Information Officer and our Assistant Vice President andChief Security Officer lead a team responsible for establishing enterprise-wide
security strategy, standards, architecture, policies and processes, and report to theBoard or Audit Committee at each of its regularly scheduled meetings.

For more information, see our 2023 Proxy Statement.

To address climate risk, our enterprise risk management program provides for thereview, monitoring and mitigation of climate change risks and how these risks may
affect the company’s ability to participate in emerging commodity or financial markets
or impact rail’s environmental advantage over other modes of transportation. The
Audit Committee and our Board receive updates on company activities and mitigation
strategies related to climate risk.
The company’s enterprise risk management process is dynamic and continuallymonitored so that the company can timely identify and address any potential risks
that arise in the ever-changing economic, political, legal and technology threat
environment in which the company operates.
The Chief Accounting, Risk and Compliance Officer, who reports to the Chief Financial
Officer and is responsible for the company’s enterprise risk management program,meets with the Audit Committee at each of its scheduled meetings. The Audit
Committee regularly receives reports throughout the year from the Chief Accounting,
Risk and Compliance Officer and the senior executives responsible for financial
reporting processes, safety and compliance, cybersecurity, and environmental andlitigation matters. Additionally, the senior executives responsible for implementation of
appropriate mitigation strategies for the company’s top enterprise risks provide reports
and updates directly to the Audit Committee and/or the Board throughout the year.

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2022 BUILDING AMERICA REPORT

5. Human & Labor Rights
Respecting human and labor rights to protect those around us from harm and to provide decent jobs to our workforce.

H U M A N R I G HTS E FFO R TS ALI G N W ITH U N ITE D N ATIO N S S TAN DA R DS
Union Pacific exists to build America. How we accomplish that is as important as what we do – connecting businesses and communities to the world. We are committed torespecting the human rights of our workforce by fostering a safe, respectful and inclusive workplace for each of our employees. We’re also working to ensure that our value
chain partners have a commitment to universal human rights that mirrors our own.
Union Pacific’s Human Rights Policy aligns with the United Nations’ Universal Declaration of Human Rights and other internationally accepted standards and outlines our
expectations for our supply chain partners. Every employee is expected to understand and comply with this policy. Through our annual The How Matters training, all employees
are trained on our Human Rights policy.

OU R H U M A N R I G HTS M ITI G ATIO N M E A S U R E S
Union Pacific understands the importance of protecting human rights, not just of our own employees, but of all people. Throughout our network, we have taken several actions
to embed proper management of human rights into our business, including:

Policies and Standards
Union Pacific has multiple policies that touch on the protection of human rights, including our Human Rights Policy, our Supplier Code of Conduct and our Commitment to
Health & Safety. These policies are reviewed annually and updated when necessary to allow for broad coverage and appropriate standards. Employees are expected tounderstand and comply with all Union Pacific policies. All employees are required to participate in annual training that covers human rights issues.

Supplier Assessments and Audits
In 2022, a sustainability questionnaire was sent to our top suppliers assessing several topics including human rights, safety and ethics. Throughout 2023, the results of thequestionnaire have been incorporated into supplier scorecard review meetings. Starting in 2023, Union Pacific anticipates incorporating human rights issues into our category
supplier risk assessments.

Indigenous Communities and PeopleMany of the lands we operate on are, and always have been, held in reverence by several First Nations. Working alongside Indigenous communities across our network,
we aim to strengthen our ties to build strong and mutually beneficial relationships that support economic opportunities.
•	The Confederated Tribes of the Umatilla Indian Reservation (CTUIR) and Union Pacific have worked together on a Tribal Employment Rights agreement since 2013.
In an effort to create employment opportunities for tribal members, Union Pacific has held several on-reservation recruiting events. In 2022, Union Pacific presented to
CTUIR’s leadership about processes for tribal contractors to be approved and to compete for contracting work.

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2022 BUILDING AMERICA REPORT•	The Council of Native American Heritage (CONAH), launched in 2006, was the fifth employee
resource group at Union Pacific. CONAH’s mission is to assist Union Pacific with the recruitment,
retention and development of employees with Native American heritage and to build bridges
to the Native American community. With their mission in mind, CONAH has strengthened therelationship between employees and Indigenous communities, including:		 –	Providing necessary supplies to tribal schools
		 –	Spreading awareness to employees regarding murdered and missing indigenous women		 –	Creating awareness events and displays that highlight stories of significant indigenous
people throughout history

Collective Bargaining Agreements and Labor Practices
Union Pacific works with 13 major rail unions, representing approximately 83% of our roughly
33,300 full-time employees. Those employees are covered by collective bargaining agreementsthat determine certain terms of their employment. Our company has a long history of working
alongside unions with collective bargaining agreements that ensure fair and respectful work
conditions and labor practices, and we are committed to continuing to find ways together toenhance the quality of life for our employees through improved working conditions. For more
information, see our 2022 We Are One Report.

Local Partnerships
Union Pacific collaborates with organizations that focus on human rights issues. In 2023, Union
Pacific launched a partnership with The Set Me Free Project, a nonprofit organization whose
mission is to bring prevention education to youth and families to stop human trafficking before
it begins. Some key initiatives expected to grow from this partnership include human trafficking
awareness training for Omaha-area lodging employees, developing educational materials for
employees, and offering awareness training to employees.

CONAH Lunch and Learn participants were taught how to make Native
American beaded bracelets in the colors of the four directions by native artist
Valery Killscrow Copeland.

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2022 BUILDING AMERICA REPORT

6. Employment Practices and Development
Supporting and helping employees thrive through training and development opportunities, career progression, ongoing engagement, benefits and rewards.

E M PLOY E E S M US T FE E L VALU E D , E N G AG E D AN D IN S PIR E D
Union Pacific is committed to providing our employees with a world-class employment experience. As they help fulfill our vision to build America, we want them to feel valued,
engaged and inspired. The process begins with recruiting talented and diverse employees to join our team. We then focus on training and development, which includes programs
designed to recognize potential and help our employees grow so we can retain our talent and prepare them for future roles. The final stage is providing our team members withthe tools to achieve a successful and fulfilling retirement. For more information, see our 2022 We Are One report.

7. Diversity, Equity & Inclusion
Promoting a culture of equal opportunity, equitable employment and fairness to all irrespective of gender, race, religion, sexuality or disability.

ALL E M PLOY E E S E N G AG E D IN D E & I E FFO R TSOU R FO C US

At Union Pacific, we believe diversity, equity and inclusion is not the job of the DE&I
department, nor Workforce Resources. It is the responsibility of every Union Pacificemployee. To further our mission of better reflecting the diverse communities weserve, Union Pacific set aggressive diversity goals in 2020: Increase our peopleof color population from 29.4% to 40% and double our female population to 11%
by 2030. We made steady progress in 2022 to increase our people of color
representation by 1.5 percentage points. Progress toward our female representation goal remains more challenging – we gained 0.2 percentage points, driven
primarily by increased hiring along with improved retention. For more information,see our 2022 We Are One report.

VISIONWe Are One
Our Diverse Heritage – Compels us to stand for opportunity.
Our Desired Future – Demands we stand for equity.
Our Shared Humanity – Implores us to stand for justice.

MISSION

As America’s railroad, Union Pacific has an innate responsibility
to speak out against all forms of discrimination while creating
an environment where all can see themselves belonging andsucceeding.

STRATEGY

Permeate Union Pacific’s four pillars – People, Practices,
Philanthropy, Procurement – with the best Diversity and Inclusion
thinking of the day. Each day, we start anew to ever-evolve what wedo and ever-educate why we’re doing it.

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2022 BUILDING AMERICA REPORT

8. Emissions & Energy Use

9. Climate Change

Reducing Union Pacific’s direct environmental footprint through carbon
reduction initiatives and use of energy-efficient technologies.

Taking a proactive approach toward environmental management,
considering our climate change impacts and risks, and implementing
effective solutions.

OU R C LI M ATE A M B ITI O N: N E T Z E RO E M IS S IO N S BY 2 0 5 0
Today, railroads are the most environmentally responsible way to move freight on land, cutting greenhouse gas (GHG) emissions by up to 75% compared to commercial trucks. In
2021, we set our science-based target to reduce absolute Scope 1 and 2 greenhouse gas (GHG) emissions and GHG emissions on a well-to-wheel basis from locomotive
operations 26% by 2030 from a 2018 base year. In 2022, we formally committed with the Science Based Target Initiative (SBTi) to revise our near-term emissions reduction
target to support a 1.5ºC climate ambition, as well as set and validate a net-zero emissions target.
Locomotive operations represent our greatest source of GHG emissions. Accordingly, our major focus in reducing our carbon footprint is on our locomotive operations.
We are investing in several avenues to decrease emissions from our locomotive operations including operating efficiencies, biofuels and battery-electric locomotives.
However, looking only at our locomotive operations will not get us to net zero by 2050. We must also decrease emissions across our value chain. As part of our SBTi revalidation initiative currently underway, we are reassessing our existing Scope 3 value chain emissions data sources and inventory methodologies to reflect our total GHG emissions,
including those of our extended supply chain. We are also engaging with our upstream suppliers to better understand their emissions reduction activities so that we can bettermeasure reductions in our Scope 3 emissions. For more information, see our 2022 Climate Action Plan.

GHG Reduction Goals Get a Liftfrom Hybrid Cranes
Union Pacific finalized contracts to purchase and test
four hybrid cranes for use in its intermodal yards, with thefirst crane expected to be operational this fall and all four
cranes in place by the end of 2024. The cranes will be
powered by both diesel and batteries. They will operate
on battery, but when the battery packs are low, the diesel
generator will kick in to charge the battery and power the
crane. Three of the cranes will be used at Union Pacific’s
intermodal terminals in the Chicago area. The cranes
will arrive in sections and will be assembled on sitewith the first crane operational by late summer or earlyfall. The fourth crane will be used in Los Angeles.

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2022 BUILDING AMERICA REPORT10. Waste Management & Recycling
In 2022, Union Pacific recycled:

Diverting waste from landfills and enhancing recycling and waste
management initiatives.

~161,000>200,000>3,400,000

pounds ofelectronic waste

R E S P O N S IB LE WA S TE M AN AG E M E NT R E QU IR E S
SO PH IS TI C ATE D A PPROAC H

tons of metal

Union Pacific moves the goods that families and businesses use every day. As demandfor products and services continues to grow, responsible waste management andmaterial stewardship is becoming increasingly important. Union Pacific implements
a sophisticated approach for managing waste, which follows three principles:
1.	minimizing resource requirements;
2.	diverting waste from landfills;
3.	managing waste responsibly and in full compliance with regulations.

pounds ofbatteries

tons of solid waste

gallons of oil and diesel fuelPutting “Repair and Re-Use” in Action
For more than 20 years, Union Pacific has identified repairable parts from ourlocomotive, freight car, and maintenance of way equipment, and worked with
suppliers to repair the parts and return them to service via our repair shops. Many
parts can be repaired multiple times prior to being replaced. In 2022, we repaired
over 132,800 individual parts on over 1,500 unique components, avoiding over$400 million in purchasing costs for new parts and helping our suppliers to avoid
the use of over 22,500 tons of new steel.

Union Pacific is partnering with outside companies to implement waste stream
recovery methods, using sustainable circular measures to reduce landfill impact
and lower our carbon footprint. Examples include:•	We are implementing changes to facility lighting to reduce our electricity usage.
•	We have worked to reduce paper consumption, watering practices, and theconsumption of other resources.

Advancing Plastics Recycling Makes Impact•	At locations where we provide drinking water for employees, we minimize
resource use where practical and have worked with other water suppliers to
reduce the volume of plastic used in packaging.

Union Pacific joined the Cyclyx consortium in 2022 to lend our expertise indeveloping supply chain solutions for increasing plastic recycling rates. Cyclyx isa plastic feedstock management company whose goal is to increase plastic
recycling rates from 10% to 90% by working with industry partners to source,collect and pre-process large volumes of waste and redirect it to be recycled.

•	We replace nearly 300,000 tons of railroad ties annually and divert approximately 93% of the total for energy recovery.
Union Pacific uses relatively little water for its operations. Primary uses are locomotive coolant, washing equipment, vegetation protection to minimize fire risk, anddrinking water. We conserve water by analyzing accounts, researching irregularities
and making changes and repairs to eliminate unnecessary use. Our team focuses
on using data to identify and address consumption changes, which might suggest aleak or other issue.

UNION PACIFIC~1,500,000>56,000

Chemical Approval Process Improves
Union Pacific has taken steps to improve its internal chemical approval procurement process to ensure that the chemicals used at UP sites are safe for use by
employees and that normal use will not cause harm to the environment. Following
this process also helps us reduce our hazardous waste as we control hazmat at
the procurement step of the acquisition process.

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2022 BUILDING AMERICA REPORT11. Responsible Sourcing
Collaborating with partners and vendors to develop mutually beneficial relationships and apply our ethical standards throughout the value-chain,including sourcing goods and services responsibly.

E N G AG IN G W ITH OU R S U PPLI E R S FO R A S US TA IN A B LE FUTU R E
Each year, Union Pacific spends billions of dollars across its network of nearly 5,000
suppliers who support the railroad’s operations with fuel, engineering services,
construction materials and more in the 23 states where it operates. This spending
represents a significant portion of the economic impact our business generates.

Union Pacific performs category risk assessments intended to identify risks attributed
to specific categories of suppliers across our supply chain. In 2023, the risk assessment process was remodeled to include additional sustainability issues, including
human rights, and environmental risks. On-site audits are also performed with selectsuppliers to verify the quality of the products we purchase and to better understandtheir safety processes. In 2023, we anticipate adding sustainability metrics to specificon-site supplier audits to better understand our supplier’s sustainability initiatives
and goals.

Union Pacific is committed to working with economically, socially and environmentally
responsible suppliers. In 2022, we published our Sustainable Procurement Statement
written in accordance with ISO 20400, Sustainable Procurement – Guidance, andwith the UN Sustainable Development Goals in mind. Through this statement, we
aim for improving sustainability within our operation through Human Rights & Labor
Practices, Environmental Stewardship and Business Ethics. Our Supplier Code of
Conduct, which is reviewed annually, outlines the same expectations for our supply
chain. We expect all suppliers to abide by our Supplier Code of Conduct, thisexpectation is outlined in our supplier Terms & Conditions.
In 2022, we took supplier engagement a step further by requesting our top Criticaland Strategic* suppliers to submit responses to a sustainability questionnaire (“thequestionnaire”). The questionnaire covered 6 key topics: Safety, Ethics, Cybersecurity,
Climate Action, Human Rights and Diversity. Once the questionnaire responses werereceived, the data was analyzed and suppliers were placed into one of the followingtiers based on their responses: Top-Tier, Mid-Tier, Bottom-Tier and Lowest-Tier.

Supply Chain Due Diligence2022

Supplier Quality Audits

30

Strategic Supplier Inspections

42

Strategic Supplier Reviews

17% of Targeted Suppliers who Participated in Supplier Questionnaire100%

Supply Chain Managers Trained on Sustainability

95%

Subsequently, suppliers received notification of their tier placement, as well as action
items outlining how they might improve their sustainability practices going forward.
Starting in 2023, our strategic supplier reviews include a review and discussion of
their responses to the questionnaire. Important action items necessary to improvesustainability in the supplier’s operations are explained, resources are provided, andan open dialogue with Q&A is encouraged.

* “Critical Suppliers” provide materials or services that are difficult to obtain from other suppliers and whose failure would impact UP operations. “Strategic Suppliers” provide critical materials or services
that are difficult to obtain from other suppliers, whose failure would impact UP operations, and have a high capacity to add value through product innovation or Total Cost of Ownership improvement.

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2022 BUILDING AMERICA REPORTS U PPLI E R D I V E R S IT Y C AN D R I V E P OS ITIV E BUS IN E S S R E S U LTS
The benefits that come with having a diverse supplier base are numerous and meaningful.
Supplier diversity programs and activities can introduce new products, services and solutions to our company thatmight otherwise be overlooked. It can be an effective way to promote innovation while also driving price and service
competition amongst suppliers. In many cases, supplier diversity can bring our investment to the very communities inwhich we operate, promoting job creation at a local level. Supplier diversity can drive positive results for our company
and our stakeholders.

In many cases, supplier diversity can bring our investment to the very communities in which
we operate, promoting job creation at a local level. Supplier diversity can drive positive resultsfor our company and our stakeholders.

$813M
spent with363

diversesuppliers
across37

states$42M

Native American
suppliers$589M

Women-owned
businesses$85M

African American
suppliers

In 2022, Union Pacific purchased approximately $813
million in goods and services from 363 diverse suppliers in
37 states. Our spending with diverse suppliers grew 56%
from 2021 to 2022 and has more than tripled since 2017,from $239 million. We are working to increase our yearover-year spend on diverse suppliers by 5% to $850 million
by the end of 2023.
Of the $813 million spent in 2022, nearly $589 million (72%)
was with women-owned businesses and $42 million (5.2%)
with Native American suppliers.
Spend with African American suppliers increased more thanfour times to $85 million, thanks to Hightowers Petroleum, aBlack-owned business based in Ohio that was awarded the
management of our vehicle fleet fuel purchasing card program.

Union Pacific Celebrates 40 Yearsof Supplier Diversity
In 1982, Union Pacific became the first U.S.
railroad to establish a formal supplier diversity
program. That first year, the railroad spent $10
million with diverse businesses.
To mark the anniversary, Union Pacific hosted its
first Supplier Diversity Symposium April 26, 2022,
in Omaha. More than 30 suppliers participated,gathering to hear from railroad leadership, networkwith peers and celebrate 40 years of developing,
cultivating and promoting diverse suppliers.

In 2022 we began capturing, for the first time, our Disability
Owned Business Enterprises (DOBEs) annual spend accounted
for $1.6 million. All our strategic suppliers reported purchasing
goods and services from diverse suppliers, demonstrating theirsupport for our diversity initiative.

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2022 BUILDING AMERICA REPORT12. Socio-Economic Impact
Creating long-term value for customers, shareholders and society through sustainable growth, job creation and economic contribution.

PRO D U C TIV E E M PLOY M E NT H E LP S BO L S TE R LO C AL E C O N O M I E S AN D C O M M U N ITI E S
Throughout our rail network, we reach millions of people living in diverse communities across North America. We transport millions of goods annually, from consumer
goods and automobiles to forest products and grain. Creating long-term value forcustomers, shareholders and society is a core part of Union Pacific’s strategy.

We are hiring new workers to support our business operations and the growing U.S.
economy. In 2022, we accelerated our recruitment efforts and exceeded our goalof hiring nearly 4,000 employees despite post-pandemic labor market challenges.
We will continue evolving our recruiting practices, including expanding our industry
leading Second Chance Hiring Program, award-winning intern programs, and moreto achieve our hiring and 2030 diversity goals of reaching 11% women and 40%
people of color representation. For more information on our hiring practices, see our2022 We Are One report.

In 2022, we accelerated our recruitment efforts and exceeded ourgoal of hiring nearly 4,000 employees despite post-pandemic labormarket challenges.

The Manufacturing InstituteUnion Pacific is proud to lead the industry with our inclusionary hiring practices.
In 2022 we partnered with The Manufacturing Institute to grow our successful
Second Chance Hiring Program, which provides job opportunities for people who
were previously incarcerated.

We promote sustainable growth through full and productive employment and economic
contribution. We create economic opportunities for local communities through direct
employment with us, as well as through spending by local employees. Each American
freight rail job supports multiple jobs elsewhere in the U.S. economy.

A pilot program began in Houston connecting candidates with community
support and resources. In its first three months, the program brought in nearly
100 new applications. By the end of the year, we expanded the program to 16
locations within Arkansas, California, Colorado, Illinois, Iowa, Louisiana,
Minnesota, Missouri, Nebraska, Oregon, Texas and Washington – and hired
nearly 100 Second Chance candidates.

Union Pacific’s capital investments create economic opportunity through supply chain
activity and represent investments in building a rail network that supports sustainable economic growth for generations to come. In 2022, across our 23-state network,
Union Pacific’s in-state purchasing totaled nearly $8.7 billion.

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2022 BUILDING AMERICA REPORT13. Infrastructure Investment and Protection
Investing in and protecting our network infrastructure and working with regulatory officials to align our business with the country’s infrastructure
requirements and needs.

IN V E S TIN G IN OU R N E T WO R K TO P OW E R OU R FUTU R E
From apps managing train systems to enhanced track inspection systems, we continually invest in new technologies that enhance safety, efficiency and service. We believe themore we invest in building a safer and more efficient railroad today, the better our infrastructure can serve communities going forward.
2021

2022

New Ties Installed (thousands)

4,058

3,712

Track Miles of Rail Replaced

502

542

Track Miles Surfaced

10,441

9,502

Track Miles of Rail Capacity Expansion

70

44

Frequency of Internal Integrity Inspections*

5,574

6,027

*	Weekly inspections multiplied by the miles of track onwhich the inspections took place, divided by total main
track miles.

Engineering Construction Team 8460 worked injury-free throughout the Oscuro, New Mexico, siding extension project – adding
to the team’s more than one-and-a-half year injury-free record.

IMPROVING OUR INFRASTRUCTURE’S RESILIENCY TO WEATHER IMPACTS
In 2022, we conducted an extensive climate scenario analysis to better understand the risks to and opportunities
for our operations, infrastructure and supply chains from specific climate scenarios. The climate scenario analysis
identified nine climate-related driving forces that impact our business, including physical risks related to chronic
and acute climate change. The analysis is being used to evaluate and develop strategies to better mitigate acuteand chronic weather impacts, such as flooding, drought, and wildfire. For a detailed discussion of our climate
scenario analysis, please see our 2022 Climate Action Plan.

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27

2022 BUILDING AMERICA REPORT

Innovative Technology Powers Operational Efficiency and Resiliency
We are investing in new technologies our employees can use every day to maintain safe, efficient, and resilient rail operations.
Intelligent Terminal is a suite of Artificial Intelligence (AI) planning tools used byyardmasters to optimize decision making, from yarding to departure. It reduces dwelland missed connections, and improves fluidity. The suite of tools includes:

Precision Train Builder (PTB) simulates the physics of a train consist over a given
geographic route to predict – and therefore prevent – physical forces that mightcause a safety incident, such as a derailment. New PTB functionality now recommends
where locomotives should be placed in the train, further increasing operational safety
and protecting infrastructure.

• Class Planner – An AI optimizer that creates a hump sequence for inboundtrains and schedules necessary re-humps. Benefits include minimized car dwell,minimized missed connections, automation of manual procedures, and enhanced
communication between yardmasters and switching crews.

Mobile Locomotive Shops – We are redesigning locomotive shop applications toleverage mobile friendly devices to record work completions, replacing use of centralized kiosks and large laptops. This will reduce duplicate entries and allow employees
to complete reporting tasks more quickly, which will improve the scheduling availabilityof locomotive power. More locomotive availability means that we can respond more
quickly demand for locomotives, improving our operations’ fluidity.

Integrated Transportation Planner is a suite of tools used for plan modeling,
optimization, and monitoring of Union Pacific’s Transportation Plan. It supports
higher variability in the planning process, ensuring rail assets are used as efficiently
as possible.
•	Terminal Dashboard is integrated into UP Vision and provides real-time terminal
performance visibility. It conveys leading indicators that allow terminal management
to identify potential problem areas before they become an issue.

UNION PACIFIC

Above: A screen from the Precision Train Builder program. Users can compare theoreticaltrain consist designs over actual train routes. Factors like weather, track adhesion and moreare calculated.

28

2022 BUILDING AMERICA REPORT14. Stakeholder Engagement
Engaging with our stakeholders, which includes employees, customers, investors, suppliers, representatives, and community leaders, to build strong
relationships and provide excellent customer service to meet and exceed their needs.

C O M M ITM E NT R E FLE C TE D IN RO BUS T S TA K E H O LD E R C O M M U N I C ATIO N E FFO R TS
Our four key stakeholders are at the heart of ourongoing sustainability efforts.

Employees

Technology and Innovations Positively Impact Employee Work Environment

Union Pacific’s more than 33,000 employees work
24/7 across our 23-state service area. We support andengage employees through the following channels:•	Employee clubs and resource groups•	Employee Engagement Survey and focus groups togather direct employee feedback that informs
policy decision-making•	Annual ethics training and regular ethics bulletins•	A Values Line, allowing employees to anonymously
report concerns 24/7
•	Employee electronic newsletters•	Portal communications•	Social media•	DE&I Listening Sessions•	Operating Excellence meetings•	Senior management town halls with question-andanswer sessions•	CEO communication, such as online and in-person
town halls with question-and-answer sessions;videos covering key issues, including safety andemployee engagement; a blog highlighting observations from field visits and topics impacting thecompany; and monthly employee virtual lunches•	Information Television Network•	Microsoft Outlook emails and Teams communities•	Home mailings, including quarterly newsletters•	Annual Leadership Conference

DigiCrew moves TEY crew reporting from a paperbased, end-of-shift process to a digital, real-timeprocess. Employees use a mobile device for real-time
information and reporting. That means better informed
decision making, fewer trips to the crew room, and lessradio chatter for basic information gathering. DigiCrew
is deployed across 7,300 devices across 7 service
units. Nearly 14,000 devices have been assembled anddistributed through 2022.

UNION PACIFIC

Intermodal Vision is a visual management tool thatprovides real-time visibility into the health of Union
Pacific intermodal terminals. The tool consolidates
information found in dozens of disparate systems,
screens, reports, and analytical tools into a seamlessly
integrated product, custom-tailored to the unique needs of UP’s Intermodal network. Intermodal Vision will
identify potential operational issues before they arise, enabling quicker response and resolution times. Users
include ramp contractors, employees and managers.
UP Vision 3.0 is an all-in-one network surveillance tool that identifies issues and provides tools and information
to handle them. UP Vision tracks active trains anywhere on the UP system and provides train length, equipment
count, train timeliness, crew availability and cars released from industry.
Terminal Work List Mobile NX leverages UP’s mobile capabilities with the Mobile NX (eNtrance/eXit)
product, which allows switchmen and mechanical employees to align routes, derails and retarders. The system
can automate inventory moves, as well as make one-click signal asset maintenance requests. This increases
productivity, reduces work events, improves safety and replaces obsolete hardware.

29

2022 BUILDING AMERICA REPORTCustomers

Technology Powers Improved Customer Experience

Union Pacific has strong relationships with its customers.
At the heart of those relationships are multi-faceted
communication efforts, enabling us to develop solutions
that meet their changing needs and support growth.
We engage customers through the following channels:

Here are some examples of the technology Union Pacific is either developing or using every day to improve its
customers’ overall experience.

•	Email and calls to actively keep customers updated
and notified•	Face-to-face, teleconference and virtual meetings•	Webinars•	Customer website and secure customer portal,
including a Virtual Assistant (chat feature) and
Online Self-Help Library to assist customers withdoing business with Union Pacific•	Shipment Notifications, with more than 40 types
available to subscribe to, customers customize theinformation they want to see on their shipments•	Smartphone apps and mobile-friendly services•	API integration•	Track Record, our online magazine designed to helptransportation and logistics professional secureaccessible, cost-effective and reliable solutions, andTrack Record eNewsletter•	Social media•	Shipment notifications•	Rail operation announcements and commercial
updates from the executive vice president –Marketing and Sales•	Customer surveys and forums for evaluations andsuggestions•	Our 24/7 Customer Care and Support team

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APIs for Supply Chain Customer Integration – UP leverages our cutting-edge microservices architecture
to deliver APIs (application programming interface) for seamless customer and supply chain integration. Our
daily API volume of 5.4 billion calls (tasks performed) has increased by 233% in the last 2 years and will groweven more as we connect with more customers and partners across our ecosystem. Current customer volumes
are more than 700,000/day. Additionally, we are expanding to push APIs for more timely data delivery and exploring
analytics connectivity to enable customers to easily tie UP data into their internal reporting systems. Union
Pacific’s advanced API ecosystem and capabilities was a key enabler in the successful onboarding of theSchneider intermodal business.
Customer Onboarding is becoming digital. We are redesigning the onboarding experience with:•	automation to reduce onboarding time,•	integration to eliminate duplicate data entry, and•	new/improved interfaces and notifications to increase visibility.
For customers, this means less waiting and more visibility to start shipping sooner.
Invoicing enhancements will improve our customers’ visibility to freight and accessorial invoices while simplifying their ability to pay, remit, dispute and manage their account. This also provides the foundation to connect
invoicing to our customer engagement platform.
Proactive Notifications provide concise, up-front information to customers who may be impacted by maintenance planned by UP. Notifications are sent ahead of time to those affected so customers can move traffic orcommunicate the impacts to their business partners. Customers can sign up to receive broad, monthly messages
or more concise on-demand messages.
Unit Train Visibility application provides bulk customers enhanced visibility into their shipments, as UP
continues to streamline its services via longer trains and combination trains. This effort, as a part of the larger
Unit Train Customer Interface effort, and in tandem with Shipment Management, returns this visibility andallows customers to act on trains they care about.
Shipment Management is our one-stop shop for customers to manage their shipments. This application
serves each business line (Intermodal, Manifest, and Unit Train) and shortline partners in a unique way,
matching their specific needs.

302022 BUILDING AMERICA REPORTCommunities

Shareholders

Union Pacific’s business positively impacts communities, through proactive engagement with community leaders, creating economic growth and development opportunities for local businesses, investing in workforce development, providing career
opportunities and reducing roadway congestion to improve air quality. We support
communities through the following channels:

Clear communication with shareholders is important to Union Pacific. We engage
them through the following channels:•	Proxy statements and other SEC filings•	Annual Shareholders meeting•	Our Investor Relations site, featuring upcoming events, public filings, weekly
industry reports, shareholder resources and answers to frequently asked questions•	Building America Report•	Climate Action Plan•	We Are One Report•	Materiality Assessment•	Fact Book•	Participation in voluntary sustainability disclosure, such as CDP, and engaging
with sustainability ratings firms such as the Dow Jones Sustainability Index(DJSI), EcoVadis, MSCI, Sustainalytics, and JUST Capital.
•	Face-to-face, teleconference and virtual shareholder meetings with management
and investor conferences•	A local public affairs team who regularly engages with elected officials, economic
development alliances, civic groups and other community leaders to address community concerns and identify opportunities to collaborate on issues of mutual interest.
•	Community event sponsorships and employee volunteer opportunities.
•	The Community Ties Giving Program, which builds safe, prosperous, vibrant andinclusive communities focused on safety, workforce development, enhanced
community spaces and environmental sustainability projects.
•	The UP CARES program to promote rail safety education and law enforcement
partnerships.
•	Free railroad safety presentations for community members, drivers, students andother users of public and private crossings.
•	Active participation in community forums and advisory groups to provide input on
public-private infrastructure projects, including grade separations of roads andrailroad tracks, highway rail crossing evaluations, and rails-to-trails conversions.
•	Free hazardous materials safety and response training for first responders.
•	Inside Track, our website dedicated to sharing news, photos and video about
Union Pacific, our employees and the communities where we live and work.
•	Social media platforms, including Facebook, LinkedIn, Twitter, Instagram andYouTube to share company news of interest.

•	Quarterly earnings reports and conference calls

In addition to our local employees and public affairs team members, we provide
mechanisms for community members to engage directly with Union Pacific. Our
national 24/7 emergency hotline and online reporting tool allow community leadersand members of the public to report emergencies, safety concerns, vehicles
stopped on railroad tracks, hazardous material releases, criminal activity in progress,
fires, and other incidents requiring immediate response. Data from these calls is
logged and distributed within our company for resolution. In addition, our publicaffairs team reviews these reports to identify opportunities to further engage with
communities, bringing our internal departments together with external stakeholders
to collaborate on solutions that benefit the communities we operate through.

Union Pacific employees volunteer at a Special Spaces event.

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31

2022 BUILDING AMERICA REPORTOTH E R K E Y AU D I E N C E S
Policymakers

Suppliers

Union Pacific works closely with federal and state lawmakers as well as regulatory
officials to align our business investments with the country’s infrastructure requirements, shaping a responsible and sustainable operating environment through thefollowing channels:

Suppliers are an important part of Union Pacific’s business, helping us serve ourcustomers and provide quality materials. We manage suppliers through our Supplier
Code of Conduct and Quality program, engaging them through the following channels:•	Electronic commerce capabilities•	Supplier performance tracking system•	Supplier diversity program•	Face-to-face, teleconference and virtual meetings•	Annual Performance Review with Strategic Suppliers•	Site visits to ensure quality and performance•	Annual Supplier Diversity Symposium•	Transparent compliance reports, voluntary agreements and in-person meetings•	Ongoing dialogue via staff in Washington, D.C., and across our network•	Participation in the Association of American Railroads (AAR) and U.S.
Environmental Protection Agency’s (EPA’s) SmartWay Transport Partnership•	Employee and corporate regulatory and legislative advocacy•	Union Pacific Environmental Management team regulatory engagement•	Collaboration with the Federal Railroad Administration, Surface Transportation
Board, U.S. Customs and Border Protection (CBP) and other government agencies

Business and Industry Affiliations
Union Pacific participates in a number of trade associations, industry groups andnonprofits across North America. There is a wide array of benefits to being involved
with these organizations, including the development of policy recommendations andrail safety protocols, infrastructure investment, and shared knowledge and research.
With such a diverse set of members within each organization, it is unlikely that Union
Pacific will agree with the specifics of every policy position taken. However, we mustevaluate the nature and extent of our disagreements and weigh that against thebroader value of our continued participation in each organization.
Union Pacific plays a leadership role in these organizations, where we use our
influence to advocate for policy positions that align with Union Pacific’s goals, values,
and policy aims. We are also engaged in the appropriate committees and working
groups of trade associations to best exercise leadership and influence relevant policy
positions. Union Pacific reviews its participation in these organizations on an ongoingbasis, including in the Climate Lobbying Alignment Assessment.

Maqui Parkerson, vice president-Labor Relations, left, was among those who met with
President Biden at the conclusion of last year’s national labor negotiations.

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32

2022 BUILDING AMERICA REPORT15. Community Engagement
Going beyond Union Pacific’s direct business activities to support communities through charitable giving, event participation and volunteering.

COMMUNIT Y TIE S GIVINGPROGR AM BUILDS VIBR ANTCOMMUNITIE S
Union Pacific’s charitable giving programs havehelped thousands of nonprofit organizations achieve
their missions since 1959. Funding allocated by theCommunity Ties Giving Program ranges from $2,500$25,000 for organizations receiving local grants, andup to $4 million for multi-year national key partnerships.
The ethical treatment of others is important to Union
Pacific. Our Anti-Discrimination Policy reflects ourdedication to work only with nonprofit organizations
that do not discriminate based on a person’s race, color,
sex, ethnicity, national origin, age, disability, religion,
past or present military service, sexual orientation,
gender identity and or/expression, genetic information,
pregnancy, political affiliation, marital or familial status,or any other status protected by law. Organizations
must be willing, if asked, to attest that they prohibit
discrimination on these grounds.
Union Pacific understands each community has
unique challenges and opportunities. The programs
we support align with one or more of our social
impact goals related to safety, workforce development,
community spaces and the environment. Together,
our work in these areas builds safe, prosperous andvibrant communities – places people want to be.

Community Spaces

Workforce Development

$5.8M

$3.6M

206

283,230

Community buildings built or enhanced

Career-related class/program hours delivered

466

38,141

Parks/greenspaces created or enhanced

Individuals trained in job skills$24.1M

526

Public space “clean-ups”

Community Investment
2,500 Organizations Reached

SafetyMatching Gifts$2.7M
244,560

Individuals trained in safety procedures

24,199Safety-related class/program hours delivered

322

Emergency response equipment procured

10,506

Personal safety equipment distributed to citizens

UNION PACIFIC

7,319

Job placements made

33

$2.8M
Local
Community Support

$9.2M
45M

Individuals served

14M

From underserved populations

2022 BUILDING AMERICA REPORTE N V I RO N M E NTAL S US TA IN A B ILIT Y B E C O M E S FOU R TH PILL A R O F G IV IN G PRO G R A M
Union Pacific’s Community Ties Giving Program was originally built on three pillars: Safety, Workforce Development and Community Spaces. In November 2022, Union Pacificadded Environmental Sustainability as its fourth pillar, extending the company’s bold commitment to reduce impacts of climate change, building a more sustainable economy.
Adding Environmental Sustainability as a priority funding area supports our overall Sustainability strategy. Our company is deeply committed to reducing our impact on theenvironment including through several internal and external initiatives outlined in our 2022 Climate Action Plan. Extending this commitment to community investments willallow Union Pacific to make an even bigger impact in communities across its 23-state footprint.

Environmental Sustainability

SafetyThe future of our business, communities and planet depends on bold action to
reduce the impacts of climate change while building a more sustainable economy
for the next generation. We are committed to supporting leading environmental
non-profits and community-based organizations to advance the health of ourenvironment. We prioritize funding for programs that support the following objectives:

Communities thrive when residents feel safe. Union Pacific is committed tohelping communities prevent and prepare for accidents and emergencies, helping
everyone go home safely at the end of each day. This reflects our commitment toemployee safety and the communities we serve. We prioritize funding for programs
that achieve the following objectives:•	Reserve and restore nature, including programs focused on natural habitats,ecosystems, and biodiversity.

•	Encourage safe behaviors and prevent accidents through education
and awareness, particularly projects focused on rail, driver, bike andpedestrian safety.

•	Protect and enhance water or air quality through innovative and proactive
solutions that seek to improve clean air and water, including water conservation and emission reduction programs.

•	Eliminate risks and improve safe access to community spaces throughinfrastructure improvements. Examples include signage, proper lighting andpublic trail upgrades.

•	Reduce waste through initiatives focused on promoting recycling and circularity throughout the community, including recycling and composting programs
and other efforts that reduce waste.

•	Prepare and equip residents and emergency responders to effectively
respond to incidents and emergencies, if or when they occur.

•	Develop environmental stewards through youth programs focused on fostering
environmental appreciation, responsibility, and leadership.

•	Prevent crime and violent incidents through efforts addressing the root
causes and seeking to mitigate their occurrence.

•	Advance a green economy by helping communities accelerate their transition
to green jobs and renewable energy, as well as helping nonprofits and small
businesses build their own capacity to operate more sustainably.

•	Provide unhoused and at-risk populations access to safe shelter and services
that ameliorate and prevent homelessness.

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2022 BUILDING AMERICA REPORTWorkforce Development

Community Spaces

For more than 160 years, Union Pacific has helped stimulate economic growthin cities and towns across the nation by training and providing employment tothousands of workers. We believe a skilled workforce and access to jobs paying
good wages are essential elements for a prosperous community. We prioritize
funding for programs that support the following objectives:

Vibrant communities attract businesses, tourists and skilled workers. We seek
to ensure residents within our communities have access to special placescelebrating cultural diversity, artistic expression, our natural environment andthe social interactions enriching their lives. We believe such community spaces
contribute to the distinct identity of cities and towns. We prioritize funding for
programs and projects that meet the following objectives:•	Putting youth on the right track by creating awareness of family-supporting
jobs, such as those offered by Union Pacific, and building foundational skills,
specifically in the Science, Technology, Engineering and Mathematics-related
fields, as well as necessary technical and life skills to begin a trajectory
toward these careers.

•	Creating, sustaining or expanding upon artistic and cultural experiences
offered to a broad and diverse audience. For example, museums, theaters,
libraries, concerts and lectures.
•	Preserving and sharing a local community’s unique history, including projects
related to trains and/or Union Pacific history.

•	Raising awareness of educating and preparing young adults for middle-skills
jobs through community colleges, vocational and career training programs,
workforce readiness initiatives and programs assisting with job placement
and/or on-the-job experience.

•	Providing clean, safe and positive outdoor recreational and/or educational
opportunities fostering an appreciation for our natural environment.

•	“Upskilling” the existing workforce by providing training and resources enabling
workers to reach the next level in their careers.

•	Beautifying neighborhoods and main street areas to improve livability, promotecommerce and, ultimately, attract more residents, businesses and visitors.

•	Providing training and mentorship for nonprofit professionals, helping themgrow and advance their organizations.

•	Planning for, creating or enhancing unique spaces reflecting a community’s
character, and diverse needs and desires.

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2022 BUILDING AMERICA REPORTK E Y PA R TN E R S H IP S PROV I D E M E A S U R A B LE C O M M U N IT Y I M PAC T
From local grants to key partnerships, our philanthropic outreach aligns with Union Pacific’s long-standing commitment to Building America. Key regional and national partnerships provide large-scale, targeted grants intended to achieve significant, measurable and sustainable impact in our communities, while supporting Union Pacific’s key areas ofgiving in safety, workforce development, community spaces and environmental sustainability.

National Partners
Union Pacific is proud to partner with these world-class nonprofit organizations, empowering communities to create safer places for children and families, bring economic prosperity
and well-being to our neighborhoods, preserve and restore nature, and explore boundless opportunities through one of our country’s greatest treasures – national parks.
Safe Kids Worldwide – Union Pacific has partnered with Safe Kids Worldwide to reach a full continuum – from pre-schoolers and K-12 youth to parents – with researchbased education and messaging designed to reduce risky behaviors that lead to rail-related incidents.
The Manufacturing Institute (MI) – Our partnership with The Manufacturing Institute, the workforce development and education partner of the National Association of
Manufacturers, will help shrink the gender gap in the workforce by inspiring more women and young people to pursue modern industry careers.
National Park Foundation (NPF) – As an early supporter of the National Park System, Union Pacific is proud to join the National Park Foundation as the premier partnerof NPF’s Youth Engagement and Education mission. The partnership supports the Open OutDoors for Kids program, providing national park experiences for thousands ofstudents across UP’s 23-state network. National Park field trips encourage students to develop a sense of adventure while educating youth about science, history, conservationand their role in protecting national and local treasures.
The Nature Conservancy (TNC) – A nonprofit dedicated to conserving the lands and water on which life depends, has been selected to help further the mission of the newenvironmental sustainability pillar for the next three years. TNC was selected because its work aligns closely with the railroad’s goals and objectives, which are to: preserve andrestore nature; protect and enhance water or air quality; reduce waste; develop environmental stewards; and advance a green economy.

Safe Kids Worldwide

National Park Foundation

Union Pacific and nonprofit Safe Kids Worldwide teamed
up to drive home an important message for families in a
new rail safety video: Model rail safety, because ‘Nothing’ isworth more than your child’s life. UP is proud to partnerwith Safe Kids Worldwide through a second multiyear
partnership demonstrating the railroad’s commitment tothe safety and wellbeing of communities within its operating footprint. Safe Kids coalitions conduct transportation
safety education programs nationwide regarding childpedestrian, school bus, bike, railroad and passenger safety.

A trip to a national park can change the way
a student views the world for the rest of
their life, providing Union Pacific wants to
help foster that admiration and respect. With
the help of UP’s sponsorship, the National
Park Foundation called Open Outdoors
for Kids, expects to reach over a million
students in the next four years, creating aunique opportunity for fourth graders tolearn about and explore national parks.

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2022 BUILDING AMERICA REPORTRegional Partners
Regional partnerships are granted by invitation only, and like our national partnerships, are often multi-year commitments, designed to provide long-term impact in our communities. We want to work with organizations where we can explore big ideas, build powerful momentum within our communities, and achieve significant, lasting impact acrossUnion Pacific’s network. Among them are:
• Associated Industries of Arkansas• Local Initiatives Support Corporation (LISC) Chicago• Boys & Girls Club of Placer County• Mosaic Templars Cultural Center – Little Rock• Chicago Cook Workforce Partnership• Nebraska Museum of Art• City of Villa Grove• Oregon Museum of Science & Industry• Creighton University• Portland Community College• Denver Zoo• Pottawattamie Arts, Culture, and Entertainment Center• Destined for Empowerment Community Development Corporation – Houston• Salt & Light Works – Visalia• Doña Ana Community College – Santa Teresa• San Antonio Zoological Society• Golden Spike Foundation• Southwest Texas Junior College -- Eagle Pass

• Hemisfair – San Antonio• Street Soccer USA – Sacramento• Jefferson City Parks & Recreation• Texas A&M Transportation Technology Institute• Junior Achievement of Utah
• Twin Cities Public Television

D I V E R S IT Y, E QU IT Y & IN C LUS I O N C O M M ITM E NT
Union Pacific is committed to the goal that 100% of Community Ties Program giving will support programs or organizations which demonstrate a commitment to advancing
diversity, equity and inclusion. DEI-aligned grants are defined as meeting one (or more) of the following:•	The purpose of the grant is to advance the interests of an underrepresented or underserved population as they relate to Union Pacific’s priority cause area.
•	The grant will primarily serve an underrepresented population.
•	The organization is taking actions to instill DEI internally and/or within its programs.
Last year, 89% of our local grantees met our DE&I goals.

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2022 BUILDING AMERICA REPORT16. Land Rights & Management
Working closely with relevant stakeholders to ensure effective management of land and consideration of biodiversity and environmental land management.

BIODIVE RSIT Y S TATE ME NT, NATURE CONSE RVANCY PARTNE RSHIP UNDE RSCORE COMMITME NT
Our wide reach across the United States means it’s important that we act as conscientious stewards to protect the biodiversity we encounter through our operations. In 2022,
Union Pacific took two major actions to demonstrate the importance of protecting biodiversity. First, we published a Biodiversity Statement outlining our commitment to preserve
the land our operations touch. Second, we partnered with The Nature Conservancy to support three separate nature-based solutions projects based in Nebraska, California
and Texas. Project goals include grassland and wetland restoration, groundwater recharge, threatened species habitat conservation, and community education.
We know the importance of protecting and managing biodiversity and lands near our rail network. We implement habitat conservation plans to protect ecosystems andendangered species in various locations. When our operations are in close proximity to critical biodiversity, we apply the following mitigation hierarchy: 1) avoid impacting,2) minimize impact, 3) rehabilitate / restore impact, 4) offset the impact elsewhere.
Union Pacific also engages with community partners and nonprofit organizations working to protect our natural resources or reinvigorate specific ecosystem needs. We review
our construction and maintenance projects to understand potential environmental impacts and minimize impacts to the extent possible. We also proactively work to avoid
and minimize impacts to wetlands and other aquatic resources as part of our capital projects. Where impacts are unavoidable, we fund the replacement of wetland or
aquatic resources lost due to our impacts, or purchase credits in approved mitigation banks.

In California, a field is monitored to assess the cover crop on
fallowing farmland.

UNION PACIFIC

Near the upper Elkhorn River in Nebraska, teams focus on
keeping grassland areas intact.

38

The Nature Conservancy has managed Parkhill Prairie in
Collin County, Texas, for 25 years.

2022 BUILDING AMERICA REPORT

Looking Forward
We are proud of our progress on sustainability initiatives. Just as important, we believe we are weaving sustainability into our company processes, goals and culture. We believe
the actions we are taking now will Build America, and contribute to a sustainable world for our workforce, our customers, and our communities for generations to come.
Throughout the year, we will keep you informed as we continue to take necessary, bold actions to reach our aggressive sustainability goals. We also will keep you updated on
our progress toward meeting those goals by reporting our outcomes at the Sustainability section of UP.com and through our storytelling efforts at our Inside Track news
website and in media releases posted on UP.com.
We look forward to keeping you updated on our continued progress.

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39

2022 BUILDING AMERICA REPORTKey Performance Indicators
NETWORK MAINTENANCE

2019

2020

2021

2022

INCIDENTS

2019

2020

2021

2022

New Ties Installed (thousands)

3,475

4,671

4,058

3,712

Train-Related Incidents & Accidents

632

451

430

498

Track Miles of Rail Replaced

534

468

502

542

Train-Related Accidents Involving the Release ofHazardous Materials

11

15

7

5

Miles of Track Surfaced

7,741

10,414

10,441

9,502

Non-Accident Release of Hazardous Materials

148

128

130

118

Track Miles of Rail Capacity Expansion

55

83

70

44

Trespassing Accidents

319

336

415

434

Frequency of Internal Integrity Inspections(weekly inspections multiplied by miles of track on which they
took place) / (total main track miles)

5,496

5,655

5,574

6,027

Crossing Accidents (per million train miles)

2.72

3.04

3.51

3.58

Reportable Equipment Incident Rate(# accidents/million train miles)

4.28

3.54

3.80

4.30

FATALITIES

2019

2020

2021

2022

Number of Federal Railroad Administration (FRA)
Recommended Violation Defects*

1,385

1,335

1,817

1,472

Employee Fatalities

2

1

2

5

Contractor Fatalities

1

1

4

3

0.000054

0.000031

0.000062

0.000150

Employee Fatality Rate(employee work-related fatalities / total number of FTEs)

UNION PACIFIC*	These figures are based on FRA inspectors writing inspection reports with recommended
violations, Union Pacific did not receive violations on all of these.

402022 BUILDING AMERICA REPORTWASTE

2019

2020

2021

2022

CYBERSECURIT Y

Total Waste Generated (Tons)

1,433,365

2,107,755

1,077,503

1,182,181

Hazardous Waste Generated (Tons)

2,246

1,603

114

2,221

Non-Hazardous Waste Generated (Tons)

1,431,119

2,106,152

1,077,389

1,179,960

Total Waste Diverted (Tons)

977,714989,339

604,801

627,327

Hazardous Waste Diverted

561

401

0

0

Preparation for Reuse (Tons)

0

0

0

0

Recycled (Tons)

0

0

0

0

Recovery for Energy (Tons)

0

0

0

0

Non-Hazardous Waste Diverted (Tons)

975,468

987,736

604,687

625,106

Preparation for Reuse (Tons)

30,96891,998025,201

Recycled (Tons)

665,815592,942

287,648333,274

Recovery for Energy (Tons)

45,10437,71046,19237,024

Total Waste Disposed (Tons)

455,651

1,118,416

472,702554,854

Hazardous Waste Disposed (Tons)

1,685

1,202

114

2,221

Incinerated (Tons)

0

0

0

25

Landfilled (Tons)

0

0

114

2,197

Non-Hazardous Waste Disposed (Tons)

453,405

1,116,813

472,588552,633

Incinerated with Energy Recovery (Tons)

235,265

266,282

242,386

231,829

Incinerated without Energy Recovery (Tons)

0

0

0

0

218,140

850,531230,202

320,804

Landfilled (Tons)

UNION PACIFIC

2019

2020

2021

2022

Number of Information Security Breaches or Incidents*

0

0

0

0

Total Number of Customers and Employees Affectedby Data Breach

0

0

0

0

Total Amount of Fines/Penalties Paid in Relation
to Information Security Breaches or Other
Cybersecurity Incidents

0

0

0

0

Number of Substantiated Complaints – Breaches of
Customer Privacy

0

0

0

0

*	Union Pacific defines a breach as a penetration of the system in which the attacker obtains
confidential information.

41

2022 BUILDING AMERICA REPORTSUPPLIERS

2019

2020

2021

2022

ETHICS

2019

2020

2021

2022

Number of Suppliers

5,314

4,672

4,828

4,937

Total Values Line Reports

1,260

1,271

1,222

1,342

Diverse Suppliers

3030

286

287

363

Substantiated Values Lines Reports

29%

26%

27%

27%

Diverse Supplier Spend (millions)

$328

$423

$522

$813

Number of Confirmed Corruption Incidents

0

0

0

0

Local Supplier Spend (millions)$107.8$88.1$103.2$114.3

20%

17%

98%

99%

Strategic Suppliers

21

19

16

17

% of Employees Completing The How Matters
Ethics Training

Strategic Supplier Audits

96%

41%

100%

100%

Number of Internally Published Compliance
Connections

2

2

3

12

In-State Purchasing (millions)$6,766$5,427$6,192$8,696% of Required Employees Reporting Whether or not They Had a Conflict of Interest*

100%

100%

% of Required Employees Reporting Whether or not They Made Gifts or Payments
to Public Officials Disclosure*

100%

100%

% of Required Employees Completing Sexual Harassment Training**

99%

99%

% of Required Employees Completing Foreign and Corrupt Practices
Act Training (FCPA)***

88%

84%

% of Required Employees Completing Anti-Trust Training***

96%

98%

COMMUNIT Y GIVING

2019

2020

2021

2022

Investment in Capital Expenditures (millions)$3,453$2,927$2,936$3,620Community Ties Giving Program (millions)

$22.2

$26.8

$22.5

$24.1

Employee Volunteer Hours*

6,532

4,028

3,821

3,907

*	Only reflects employee volunteer hours greater than 40 hours per employee.

UNION PACIFIC*	Required for management and American Railway and Airway Supervisors Association(ARASA) employees.
** Required for specific location, not entire employee population (CA, NY, IL).
*** Required for certain management employees only.

422022 BUILDING AMERICA REPORTC AUTIO N A RY IN FO R M ATIO N  
Our 2022 Building America Report provides additional explanatory information regarding Union Pacific that may not be available, included or directly derived from informationin the company’s Annual Report. Information included in this document, and any issues identified as important for the purposes of this document, may not be consideredmaterial for SEC reporting purposes. Materiality and/or the term “material” in the context of this document is distinct from and should not be confused with, such terms as
defined for SEC reporting purposes. This report includes statements and information regarding future expectations, outcomes or results of the company that are not historicalfacts. These statements and information are forward looking as defined by federal securities laws. Forward looking statements and information can be identified by use of
forward-looking terminology (and derivations thereof), such as “believes,” “expects,” “may,” “should,” “will,” “would,” “intends,” “plans,” “estimates,” “anticipates,” “strives,” “seeks,”“aspires,” “endeavors,” “target,” “projects” and other words or phrases of similar intent.
Forward-looking statements and information generally include the following: the company’s expectations, goals, forecasts, targets, and aspirations with respect to sustainability and corporate responsibility matters, including related risks and opportunities; demand for the company’s rail service; enhancing profitability; volume and revenue growth;
efficiency improvements and increasing returns; the effectiveness or growth of new and newer services; management of network volumes; increasing shareholder value; total
amount of capital investments;; returns on capital investments; improvements regarding the sustainability, emissions, and safety of our operations and equipment; preserving
the environment and communities where the company operates; and effectiveness of plans, programs and initiatives related to our workforce. Forward-looking statements andinformation should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times that, or by which, such performance, targets, goals, or results will be achieved. Forward-looking statements and information are subject to risks and uncertainties that could cause actual performance or
results to differ materially from those expressed in the statements. Forward-looking statements and information reflect the good faith consideration by management of
currently available information and may be based on underlying assumptions believed to be reasonable under the circumstances. However, such information and assumptions(and, therefore, such forward-looking statements and information) are or may be subject to variables or unknown or unforeseeable events or circumstances over which
management has little or no influence or control and may be derived from internal controls and processes that continue to evolve and standards are measuring progress thatare still developing. Factors that could cause results or outcomes to differ, including the risk factors in Item 1A of the company’s Annual Form 10-K, filed February 10, 2023,
also could affect our future results and could cause those results or other outcomes to differ materially from those expressed or implied in the forward-looking statements andinformation. This report should be read in consideration of these risk factors. To the extent circumstances require or the company deems it otherwise necessary, the company
will update or amend these risk factors in subsequent Annual Reports, periodic reports on Form 10-Q or current reports on Form 8-K.
Forward-looking statements speak only as of the date the statement was made. We assume no obligation to update forward-looking information to reflect actual results,changes in assumptions or changes in other factors affecting forward-looking information, regardless of any past practice of doing so. If we do update one or more forwardlooking statements, no inference should be drawn that we will make additional updates with respect thereto or with respect to other forward-looking statements. Website
references and/or hyperlinks have been provided for convenience only, and the contents therein are not incorporated into, nor do they constitute a part of, this document.

UNION PACIFIC

43

2022 BUILDING AMERICA REPORT