2022 SUSTAINABILITYDATA REPORTSUSTAINABLY DRIVENTABLE OF CONTENTS
About This Report

CPKC | 2022 Sustainability Data Report

Forward-Looking
Information

About CPKC

Message from theBoard Chair

A Discussion with Our
Board Chair

3

4

5

6

7

Sustainability at CPKC

9GovernanceAwards and Recognitions

9

Our Approach

17

Sustainability Performance Highlights

10

Committed to Sustainability Reporting

17

Participation in the United Nations
Global Compact (UNGC)

17

Cybersecurity and Information Security

17

Environment11

Our Approach

11

60,000 Tree Challenge Monarch
Boxcar Tour

11

Appendix

Carbon Emissions Calculator

11

CP 2022 Sustainability Metrics

19

Hydrogen Locomotive Program

11

KCS 2022 Sustainability Metrics

40

Our Commitment to
Climate Action

12

Social16

Our Approach16

Staying on Track Thanks to Our Veterans 16

2

17

Our Holiday Trains Ride the Rails Again

16

Driving a Strong Safety Culture

1618

CPKC | 2022 Sustainability Data Report

ABOUT THIS REPORT

3This report is the inaugural Sustainability Data
Report for Canadian Pacific Kansas City Limited
following our acquisition of control of Kansas
City Southern and subsequent name change
from “Canadian Pacific Railway Limited.” The
combination of our two companies was completed
on April 14, 2023 (the Control Date). In thisreport, we use “CPKC”, the “Company” or “we”
to mean Canadian Pacific Kansas City Limited
and its subsidiaries as they exist following theControl Date. We use “CP” to mean the historical
Company and its subsidiaries as they existed prior
to the Control Date. We use “KCS” to mean thehistorical Kansas City Southern and its subsidiaries
as they existed prior to the Control Date.
Unless indicated otherwise or the context otherwise
requires, this report discusses the sustainability
highlights and performance of CP and KCS,
respectively, from Jan. 1 to Dec. 31, 2022. Because
CP and KCS operated as separate entities during
the reporting period, sustainability information ispresented separately for each company.
We are presenting this report to provide our
stakeholders with a performance summary of CP’sand KCS’s individual sustainability developments
in 2022. This report is not intended to serve as acomprehensive report of all sustainability initiatives
undertaken by either CP or KCS. In addition, unlessindicated otherwise or the context otherwise
requires, we are not reporting on the sustainability
initiatives of the combined CPKC.

As we integrate the operations of KCS and CP, we
are evaluating the environmental, social, governanceand sustainability priorities, policies, practices,
programs, goals and objectives of the combined
Company. Although we have taken initial steps,
we are still in the early stages of our sustainability
integration process. In general, we believe that wewill need to undertake additional data-gatheringand other analyses before we provide sustainability
reporting and establish other sustainability initiatives,in each case, for the combined Company.
• The methodologies, data and assumptions
underlying our sustainability strategy, analysis andother information included in this report (including
those used to calculate greenhouse gas [GHG]
emissions and other climate-related data) continue
to develop and remain subject to evolution overtime. In addition, this report includes and relies
upon sustainability information prepared by oron behalf of KCS, which information may havebeen prepared using methodologies, data andassumptions that are different than those usedby us. Therefore, information we include in thisreport with respect to KCS may not be directlycomparable to the corresponding CP information.
As we continue our sustainability integration
efforts, including enhancing our ability to assess
GHG emissions along the historical KCS rail
network, we may update the methodologies,
data and assumptions used to gather, verify,
analyze and report sustainability information
related to the historical KCS rail network.

• As a result of such updates to our methodologies,
data and assumptions (including in connection
with our sustainability integration efforts),
information disclosed in this report might differ
from those contained in prior disclosures (including
prior KCS disclosures). In future disclosures, we
may change or update information contained inthis report or include disclosures that otherwise
differs from those contained in this report. We
undertake no obligation to update the informationin this report or prior disclosures, except to theextent required by law.
• Our disclosures have been developed withreference to the Global Reporting Initiative(GRI) Standards and Sustainability AccountingStandards Board (SASB) Rail Transportation
framework.
• Currency-related values for CP are reported in
Canadian dollars ($) unless otherwise stated andin U.S. dollars (U.S.$) for KCS.
• Additional resources that include disclosure ofsustainability-related information can be found in:º CPKC 2023 Management Proxy Circularº CP 2022 Annual Report
For more information or questions regarding thisreport or sustainability at CPKC, visit our website orcontact sustainability@cpkcr.com.

CPKC | 2022 Sustainability Data Report

FORWARD-LOOKING INFORMATIONThis report contains certain forward-looking
information and forward-looking statements(collectively, “forward-looking information”) within
the meaning of applicable securities laws, including
with respect to the environmental, social, governanceand sustainability priorities, policies, practices,
programs, goals and objectives of CP and KCS. Anystatements about our expectations, beliefs, plans,
goals, targets, predictions, forecasts, objectives,
assumptions, information and statements about
possible future events, conditions and results ofoperations or performance are not historical facts
and may be forward-looking. Forward-looking
information in this report includes, but is not limited
to, plans or objectives of management for future
operations; information regarding sustainabilityrelated actions we plan to take in the future,including CP’s Climate Strategy for reducing GHG
emissions, our Commitment to Climate Action orother sustainability-related commitments; plans
and expectations regarding the integration andalignment of CP’s and KCS’s climate objectives;
fuel efficiency of railways and our operations;future investments in and the availability of carbon
emissions-reduction tools and technologies including
through our fleet modernization program andtechnology upgrades; the impacts of existing andplanned capital investments and our ability to workwith governments and third parties to mitigate

1

4

See About This Report.

the impacts of climate change; and assumptions
underlying or relating to any of the foregoing.
Forward-looking information is often, but not always,
made through the use of words or phrases such as“anticipates”, “aims”, “believes”, “can”, “could”,“may”, “predicts”, “potential”, “should”, “will”,“estimates”, “plans”, “projects”, “continuing”,“ongoing”, “expects”, “intends” and similar words
or phrases suggesting future outcomes.
Forward-looking information is based on current
assumptions about our business and our strategy as
well as economic, political, regulatory, market andenvironmental conditions affecting them. Although
we believe the assumptions reflected in theforward-looking information presented in this report
are reasonable as of the date hereof, there can be
no assurance that they may prove to be correct.
Readers should not put undue reliance on forwardlooking information, as it is not a guarantee of
future performance. Forward-looking information
involves many inherent risks and uncertainties that
could cause actual results to differ materially fromthe forward-looking information. This includes
risks such as: changes in business strategies,
general North American and global economic,
credit and business conditions, changes in theavailability and price of commodities and energy;
the effects of competition; industry capacity; shifts

in demand; changes in laws and regulations;natural or other disasters, including earthquakes,
wildfires, pandemics or acts of terrorism affecting
the markets in which we operate; the adverse
effects of climate change on our business, investors,
customers, suppliers and counterparts; our ability
to successfully execute on initiatives relating tosustainability; cost increases; claims and litigation;
labour disputes; liabilities arising from derailments
and the pandemic created by the outbreak of
the novel strain of coronavirus (and the disease
known as COVID-19) and its variants; satisfactionof the conditions imposed by the U.S. Surface
Transportation Board (STB) in its March 15, 2023
decision and successful integration of KCS into theCompany, among other things. The foregoing list ofrisks is not exhaustive.

In addition, our environmental, social, governanceand sustainability priorities, policies, practices,
programs, goals and objectives (including CP’s
Climate Strategy and our Commitment to Climate
Action) remain under development as we continue
to refine our analysis of and response to potential
future climate and other risks and opportunities,
and as the science, data and methodology
underlying our analysis and strategy continue
to evolve over time. Further, as we continue tointegrate the operations of KCS into ours, we areconducting additional data-gathering and intend tofurther assess the climate and other environmental,social, governance and sustainability strategies
and initiatives for the combined company, andmay make changes to our existing strategies andinitiatives as a result.1

These and other factors are detailed from time totime in reports we file with the securities regulators
in Canada and with the U.S. Securities andExchange Commission (SEC) in the United States.
Readers should refer to Item 1A – Risk Factors,
Item 7 – Management’s Discussion and Analysisof Financial Condition and Results of Operations
and Forward-Looking Information in our 2022
annual report on Form 10-K and to our risk factor
and forward-looking information disclosure in
our annual and interim reports filed on SEDAR(www.sedar.com) and EDGAR (www.sec.gov).

For these reasons, in future disclosures, we may
include information that differs from information
contained in this report. Unless indicated otherwiseor the context otherwise requires, forward-looking
information in this report speaks only as of the datehereof. We undertake no obligation to update orotherwise revise any forward-looking information,
unless we are required to by applicable law.

CPKC | 2022 Sustainability Data Report

ABOUT CPKC

5With global headquarters in Calgary, Alta., Canada,
CPKC delivers transportation solutions acrossthe only single-line transnational railway linking
Canada, the United States and Mexico. Stretchingapproximately 20,000 route miles, CPKC provides
North American customers freight transportation
services, logistics solutions and supply chain
expertise. Our industry-leading transportation
services and supply chain solutions provide
unparalleled rail service and network reach to keymarkets across the continent for our customers
and are an essential service for the North American
economy. Visit cpkcr.com to learn more about therail advantages of CPKC.

20,000-mile
network of
combined track

MESSAGE FROM THE BOARD CHAIR

CPKC | 2022 Sustainability Data Report

On behalf of the Board of
Directors, I am pleased topresent our initial CPKC
Sustainability Data Report.

This 2022 report provides highlights of the individual
achievements of CP and KCS for the year, and prior
to the combination of the two companies. While
we are still in the early stages of our sustainability
integration process, we also hope that this report willoffer preliminary insights into CPKC’s approach to the
CP KCS integration from an Environmental, Socialand Governance (ESG) perspective.
Although we continued to see the effects of global
events on supply chains over the past year, I’m
proud to say we were able to rise to the challenge,
maintaining operational efficiency and our focus onsafety, meeting our customers’ transportation needs
and supporting communities across our network.
With the U.S. Surface Transportation Board’s (STB)
approval in March 2023, the historic combinationof CP and KCS created North America’s first andonly single-line transnational railway, extending ourreach to ports around the continent and connecting
Canada, the United States and Mexico. The Control
Date on April 14, 2023, a month after the STB’s
decision marked the start of a transformative
period for management and the entire CPKC familyof railroaders.
As we move forward together, we are guided by
our foundations that ground us in the principles
of Precision Scheduled Railroading, our strong
corporate governance practices, and our values ofaccountability, diversity, pride and respect.

The Risk and Sustainability Committee continues
to assist the Board in its oversight responsibilities
with respect to risk management, safety,
environmental and sustainability matters at CPKC.
The Committee’s work includes overseeing the
integration of ESG and sustainability policies,priorities, programs and disclosure practices acrossthe combined Company – a process which willcontinue in the months ahead. The four KCS
Directors who joined our expanded Board following
the completion of the combination bring theirexperience and expertise in overseeing KCS’s
multinational operations and the Board’s oversightof the integration process, including with respect to
ESG and sustainability.
We also remain focused on increasing diversity
throughout the company, including at the Board
level where current Directors include 38 percent
women and 23 percent visible minorities.
The Board of Directors looks forward to supporting
and actively engaging with executive leadership
throughout the integration process and in thedevelopment of CPKC’s corporate strategies forestablishing our newly combined company as anindustry and sustainability leader.

Isabelle Courville
Chair of the Board

6

CPKC | 2022 Sustainability Data Report

A DISCUSSION WITH OUR PRESIDENT AND CEO
Keith Creel, CPKC President
and CEO, answers questions
about our expectations
regarding CPKC and thecreation of a rail networkthat will seamlessly connect
the continent.

The combination of CP and KCS creates the first andonly single-line Canada-U.S.-Mexico rail network andbrings together two exceptional teams of railroaders.
Today, our collective strengths position us well to
respond to opportunities and challenges as we build
the premier freight railroad in North America. For
shippers, CPKC offers an expansive network witha global reach, a competitive transportation option
and industry-leading service. We’re excited about
what the future holds and expect the joining ofthese two great companies into a truly continental
railroad will generate significant socio-economicand environmental benefits for our customers,
employees, shareholders, and the communities we
operate in and through.

What do you anticipate being the key
impacts of CPKC for the North American
supply chain?
The North American freight rail industry playsa critical role in moving essential goods andcommodities to markets around the world. As
global events have demonstrated in recent years,
building resilient supply chains has become
increasingly important to maintaining economic
growth and stability. A combined CPKC network
presents greater capacity and offers shippers directconnections to new markets and premier ports on all
coasts in North America. By expanding competitivetransportation options and efficiencies, we expect

1

7What do you find most compelling about
the potential of CPKC?

United States–Mexico–Canada Agreement.

CPKC to contribute to a more resilient North
American supply chain, further USMCA1 trade flows
and enhance competition in the U.S. rail network.
The recent launch of our Mexico Midwest Express(MMX) Series premium intermodal service is one
example of how CPKC is already changing themarket. As the only dedicated intermodal trains
operating daily between the U.S. Midwest and
Mexico, the MMX Series provides the fastest
transit times in the rail industry with seamless,expanded reach to more markets. The MMX is also
the continent’s first regular single-line rail service
offering for refrigerated shippers from the Midwest
to Mexico, which is currently served by trucks. We
believe this represents the meaningful progress on
one of our first ESG-related goals for the CPKC
combination, which is to divert long-haul truck
shipments to rail thus lowering GHG emissions andpromoting safer highways.
For us, being resilient also means integrating
sustainability into our business consistent with arespect for universal human rights. With that inmind, CPKC will continue to participate in the
United Nations Global Compact (UNGC), and weare committed to upholding and annually reporting
our progress on integrating the 10 principles of the
UNGC with respect to human rights, environment,labour and anti-corruption.

How can CPKC maintain strong safety
practices across its operations?

CPKC | 2022 Sustainability Data Report

Safety is foundational at CPKC. When it comes tomaintaining the safety of our people, communities
and the environment, our work is never done. CPKC
brings together two strong-performing Class I railways
whose combined operational expertise, leading safety
cultures and practices, and deployment of technology
will underpin our efforts to ensure that safety remains
top of mind in everything we do. To drive results, oursafety performance will continue to be tied to shortterm executive and employee compensation.

How is CPKC supporting global action toaddress climate change?
Since CP released its first Climate Statement in
2020, the need for climate action has become more
pronounced. The transportation sector will continue
to play an integral role in the transition to a lower
carbon economy and our goal is to be an industry
leader in this transition. As we strategically growour book of business, we’ll continue to focus on
curtailing our own GHG emissions while supporting
collaboration and innovation that will benefit thebroader transportation sector. To guide us throughthis process, we’re developing an integrated
approach to reduce our GHG emissions across our
combined business. We’ve still got a lot of work to
do to establish sustainability strategies and initiatives
for the combined company, including a CPKC
climate strategy, but this work is already underway.
A significant step on this journey is our newly
released Commitment to Climate Action,1 which
includes a science-based GHG emissions reduction
target for CPKC’s locomotive operations for 2030
and a commitment to develop a CPKC emissions
reduction target aligned with a 1.5˚C future within
the next two years. These commitments will guide
1
2

8

CPKC’s approach to climate change. They also
complement the actions CP has already been
taking, including expanding our industry-leading
Hydrogen Locomotive Program, maintaining an
ongoing focus on enhancing fuel efficiency andsupporting the advancement of lower carbon fuels
and emerging technologies to contribute to further
decarbonization in our operations.
Concurrently, we’ve updated our carbon emissions
calculator to provide estimates of the GHG
emissions of freight by CPKC rail transportation
along the combined CPKC rail network.2 With thistool, our customers have the ability to estimate
the GHG emission reductions they may potentiallyachieve using CPKC’s rail services compared tolong-haul trucking alternatives.

What does the road ahead look like at CPKC
from a sustainability perspective?
We’re focused on harmonizing our approach tosustainability issues across CPKC’s operations. This
work involves carefully reviewing and adapting thetwo legacy companies’ respective policies, practices
and sustainability priorities to ensure consistency,
while also integrating our sustainability data collection
and management systems. There is still a lot of work
ahead, but these efforts will give us an opportunity tocontinue to integrate sustainability into how we build
our business for the future. We’re also benefitingfrom a history of sustainability practices and expertise
within both legacy companies.
Since the Control Date, the leadership team andI have been visiting the CPKC team across North
America. I am truly heartened by the commitment
and enthusiasm of our people about the potentialof what we can accomplish together, including
maintaining our leadership on sustainability.

See Our Commitment to Climate Action.
The carbon emissions calculator provides estimates using 2022 fuel efficiency data prepared separately by CP and KCS.

CPKC | 2022 Sustainability Data Report

SUSTAINABILITY
AT CPKCAwards and Recognitions
Both CP and KCS were recognized for sustainability achievements in 2022.
CP:• Named to the CDP Climate Change A List
(A rating)• Keith Creel, CEO & President of CP, wasrecognized as a 2022 Railroader of the Yearby Railway Age magazine

KCS:• Named to the S&P Global Dow Jones
Sustainability World Index (DJSI World)
for the first time and the North American
Index (DJSI North America) for the third
consecutive year
• Recognized as one of Canada’s Top 100
Employers for 2023

1

9Operating sustainably is imperative to CPKC’s future growth and long-term successas an organization. From a legacy of innovation, responsible business practices
and commitment to excellence, we aim to build a new future that incorporates
sustainability into our business over the long term to create value for our businessand our stakeholders.

• Received an A- rating on Climate Change
from CDP• Patrick Ottensmeyer, CEO of KCS, wasrecognized as a 2022 Railroader of the Year by
Railway Age magazine• Received ISO 14001 and 45001 Certification
for its Shreveport, LA railyard operations• Placed sixth among Transport and Logistics
companies on Newsweek Magazine America’s
List of Most Responsible Companies• Kansas City Southern de México, S.A. de C.V.
was recognized with the Empresa Socialmente
Responsible certification from Cemefi for theeighth consecutive year1

Centro Mexicano para la Filantropía, A.C., or Cemefi, is a Mexican non-profit organization founded in 1988. which promotes the philanthropic, committed and socially responsible participation of citizens and their organizations, to achieve a more equal and prosperous society.

SUSTAINABILITY PERFORMANCE HIGHLIGHTSCPKC | 2022 Sustainability Data Report

2022 Highlights

2022 Highlights

12,754

7,031

Number of employees

12,822

Total main track miles

0.955

Fuel efficiency (U.S.
gallons of locomotive
fuel consumed /1,000 GTMs)

Number of employees$8,814

Total revenue (millions)

269,134
Gross ton-miles(millions)

2,782

Carloads transported(thousands)

28,899Train miles travelled(thousands)>$6.7

Total corporate giving(millions)
10

7,131

Total main track miles

U.S.
$3,3702,383

105,626

16,071

Total revenue (millions)

1.26

Fuel efficiency (U.S.
gallons of locomotive
fuel consumed /1,000 GTMs)

Gross ton-miles(millions)

Carloads transported(thousands)

Train miles travelled(thousands)>U.S. $2.9
Total corporate giving(millions)ENVIRONMENTCPKC | 2022 Sustainability Data Report

OUR APPROACH
We conduct our operations in amanner that aims to minimize adverse
impacts on the environment and thecommunities in which we operate.
CPKC also recognizes the importantrole the transportation sector plays inaddressing climate change. We aretaking action to reduce our own GHG
emissions and support the transition toa lower carbon future.

60,000 Tree Challenge
Monarch Boxcar Tour

Carbon Emissions
Calculator

Hydrogen Locomotive
Program

KCS and CP were among several partners involvedin the “Save the Monarch Butterfly 60,000 Tree
Challenge North American Boxcar Tour.” This
collaborative fundraising initiative was designed
to help the monarch population by purchasing
and planting 60,000 oyamel fir trees at El Rosario
Monarch Butterfly Sanctuary in Michoacán,
Mexico. The CPKC rail network aligns with themonarch butterfly’s migration route, and theboxcar tour provided an ideal forum to raise publicawareness about this recently declared endangered
species and the issues it faces today. More than
U.S. $120,000 was raised under this initiative.

We’ve updated our carbon emissions calculator
to provide estimates of the GHG emissions offreight by CPKC rail transportation along the
combined CPKC rail network, based on 2022 fuelefficiency data prepared by CP and KCS,
respectively. Although the results are subject to anumber of assumptions, we believe this calculator
is helpful to our customers because it provides
users with the ability to estimate the GHG emission
reductions they may potentially achieve using
CPKC’s rail services compared to long-haultrucking alternatives.1

Through CPKC’s industry-leading Hydrogen
Locomotive Program, we’re developing North
America’s first line-haul freight locomotives
using hydrogen fuel cells and batteries to power
the locomotive’s electric traction motors. In
2022, the program completed one hydrogen
locomotive conversion and advanced production
on two additional units. The Company has alsocommenced installation of hydrogen production
and fueling facilities. The program also passed
a significant milestone in 2022, completing a
successful movement and freight service testwith our first converted hydrogen locomotive.
Through these efforts, we’re now testing hydrogen
locomotives’ technical performance in a varietyof real-world operating scenarios and generating
critical industry knowledge and experiencethat is informing future commercialization anddevelopment activities.

1

11T o learn more about and use our carbon calculator,
visit www.cpkcr.com/en-ca/sustainability.

OUR COMMITMENT TO CLIMATE ACTION
CP’s acquisition of KCS marks a pivotal moment for our company, a unique opportunity to evaluate ourpractices and advance our commitment to sustainable, long-term growth. As a Sustainably Driven company,
we strive to combine forward-thinking planning with concrete measures and practices aimed at addressing
climate change. We are proud to support a lower-carbon future for North America and recognize thepivotal role that rail freight transportation could play in this transition.

CPKC | 2022 Sustainability Data Report

CPKC Climate Commitment Aligned with SBTi Business Ambition
for 1.5ºC and Net Zero
Implementing meaningful action on
climate change involves continuallyassessing our progress against our climate
objectives. As we integrate the operationsof CP and KCS, we are striving to enhance
our sustainability approach, programs,
objectives and reporting of the combined
CPKC. While we are in the early stages ofour sustainability integration process, weare making the following commitment
with respect to climate action at CPKC:

The operation of our locomotive fleet
represents CPKC’s largest source of emissions.
Both CP and KCS had previously adopted SBTi
validated targets to reduce GHG emissions by
2030 and 2034 respectively. As part of oursustainability integration, we made it an earlypriority for CPKC to replace those two different
targets with a single CPKC GHG emissions
reduction target. As a result, the new sciencebased emissions reduction target for the
combined CPKC, recently validated by SBTi, is:

CPKC has joined the Science Based
Targets initiative’s (SBTi) Business
Ambition for 1.5ºC global campaign
and is committed to developing a
CPKC emissions reduction targetaligned with a 1.5ºC future within
the next two years.

CPKC will reduce our well-to-wheel(WTW) locomotive emissions by
36.9% per gross ton-mile by 2030
from a 2020 base year.1

Joining SBTi’s Business Ambition for 1.5ºC
campaign and setting a combined CPKC GHG
emissions reduction target reflect the importancewe place on addressing climate change across ourbusiness. Together, these commitments serve as acompass, mobilizing our carbon reduction efforts
to 2030 and beyond.”
Gordon Trafton
Chair of the Risk and Sustainability Committee

112

 ur locomotive emissions target covers 76% of CPKC’s GHG emissions footprint and is aligned with SBTi’s only sectoral-based approachO
for freight railroads and a well-below 2ºC global warming scenario.

CPKC 2020 GHG Emissions Inventory
We recognize the importance of addressing emissions from all aspects of our business, not just locomotives. While non-locomotive operations such as our vehicles, equipment fleet, buildings and infrastructure account fora relatively small portion of our overall GHG footprint, they are important to our efforts to reduce emissions. Monitoring and reporting of our emissions performance are critical to tracking the progress of our efforts. As
we continue to implement solutions to reduce scope 1 and 2 emissions from our business, we are also working to enhance emissions data accuracy by integrating the energy data from thousands of CPKC utility metersand data points across our network.1
Historical GHG Emissions Reduction Targets

CPKC Emissions Reduction Target

76%
CPKC | 2022 Sustainability Data Report

Of GHG Emissions
Covered By Target

Of GHG Emissions
Covered By Target

CP will reduce our well-towheel GHG emissions intensity(grams per revenue ton-mile)from locomotive operations by
38.3% by 2030.

CPKC 2020
Emissions

CPKC 2020
Emissions

KCS commits to reduce scope
1 and 2 GHG emissions by
42% per million gross tonmiles by 2034 from a 2019base year.

1

13

76%

Scope 1

Scope 1
62%

62%

Scope 2 - Electricity

Scope 2 - Electricity
1%

1%

Scope 3 - Value Chain

Scope 3 - Value Chain
37%

37%

As we improve our access and integration of metered data from the KCS network, we expect that our ability to assess GHG emissions along the historical KCS rail network will improve.

CPKC | 2022 Sustainability Data Report

Climate Leadership
We believe in transparency to our stakeholders andhave established a clear governance approach toeffectively communicate and respond to relevant
ESG topics, while progressing our sustainability
commitments and implementing sustainable practices
into our business. Our approach is led by senior-levelstewardship at the board and executive levels.1

sustainability priorities, including climate change, areguided by a cross-functional executive Sustainability
Steering Committee. The Sustainability Steering
Committee regularly reports progress, and advances
recommendations on the Company’s sustainability
objectives, policies and management approach to the
Risk and Sustainability Committee of the Board.

The Board of Directors, through its committees,
is responsible for monitoring, measuring andoverseeing the Company’s key risks, strategies andsustainability topics. The Risk and Sustainability
Committee is responsible for reviewing performanceagainst sustainability objectives, plans to improvesustainability practices and reporting, and strategicplans and opportunities to align sustainability
objectives with long-term climate strategy. With
oversight from the Company’s President andCEO, decisions on day-to-day implementation of

We established a Carbon Reduction Task Force (CRTF)
in 2022, composed of the Company’s industry-leading
engineers and operations experts. Reporting to the
Sustainability Steering Committee, the CRTF evaluates,
recommends and implements climate action measures
to reduce GHG emissions and drive performanceon our science-based targets. Work is underway
to engage with subject matter experts across theextended CPKC family to support the objectives of
the CRTF.

Our Climate-Related Initiatives
CPKC recognizes the work that lies ahead to developing a target aligned with a 1.5°C future.
We have a strong foundation of existing low carbon and fuel efficiency initiatives to build on,
including:• Industry-leading Hydrogen Locomotive
Program to develop North America’s first linehaul freight locomotives using hydrogen fuelcells and batteries to power the locomotive’s
electric traction motors• Development of hydrogen generation
capacity at our facilities, including via
renewably generated electrolysis at our
corporate headquarters in Calgary

114See our 2023 Management Proxy Circular for more information.

• Deployment of advanced fuel efficiency
technologies including automatic engine
start and stop (AESS) technology, Trip
Optimizer (TO) technology, horsepower per
trailing ton guidelines and locomotive fleet
modernization programs• Technology trials on a range of fuel sources,
including plant-based diesel (biodiesel),battery technology and hydrogen fuel cells• Investing in electric vehicles and charging
infrastructure to reduce emissions from ourvehicle fleet• Installation of a five megawatt solar energy
farm generating more power than consumed
annually by the main headquarters buildingin Calgary

The Path Forward

CPKC | 2022 Sustainability Data Report

CPKC is committed to thoughtfully planning and preparing our business for a lower-carbon future. Building on the Climate Strategy we adopted for CP in 2021, we are working to develop a CPKC climate transition planto guide the Company’s long-term objectives and practices. Preparing a credible transition plan requires the completion of substantial foundational tasks currently in early implementation at CPKC, including:Updating our climate scenario analysis

Integrating our data management systems
and harmonizing emissions inventories

Engaging with our extended value
chain on potential carbon mitigation
opportunities

Working with SBTi to establish a 1.5°Caligned emissions reduction target

Assessing climate risks andopportunities impacting our business

Updating our external reporting practices
and public disclosures (CDP, TCFD, GRI, SASB,etc.), including to encompass the legacy
KCS operations

Reporting on our progress

Climate transition plan

Achievement of our climate goals is only possible with collaboration, partnerships and engagement with
our stakeholders, including our customers, investors, employees, suppliers and governments. We strive toalign our approach with recognized global initiatives on climate change.

15

As we work to chart our path toward decarbonization, we recognize that progress will be marked by bothchallenges and successes along the way. Throughout this journey, we intend to provide updates on our
progress to our stakeholders by reporting on our climate-related performance, verifying our results andseeking stakeholder feedback on our approach to climate change, including through our annual nonbinding advisory, “say on climate” vote. By doing so, we aim to remain accountable and transparent in ourefforts to support a more sustainable future.

SOCIAL

CPKC | 2022 Sustainability Data Report

OUR APPROACH

16

CPKC is committed to being a
responsible corporate citizen and ameaningful contributor to society.
We actively invest in our employees’
growth and development, promoting
respect for human rights throughout ouroperations. We are also driving business
partnerships and supporting local
economies and our community partners
through our community investment
programs. CPKC recognizes that our
success is directly linked to building andmaintaining relationships that create
value for our stakeholders.

Staying on Track
Thanks to Our Veterans

Our Holiday Trains
Ride the Rails Again

Driving a Strong
Safety Culture

In 2022, KCS proudly employed more than
400 veterans, representing ten percent of KCS’s
total U.S.-based employees while former military
service members comprised seven percent ofCP’s total hires. In keeping with our core value of
diversity, we recognize the invaluable skills andexperience veterans have gained from serving theircountry. Leadership, teamwork and the ability to
thrive in a fast-paced, dynamic environment witha strong focus on safety are among the many skills
that veterans bring to railroading. We strive to be
the first choice for military service members in a
new career outside the military, and CP is proud tobe named a Top 10 Military Friendly® employer in
the United States for 2023.

After a two-year, COVID-19-related hiatus, CP
and KCS welcomed the return of their holiday
train programs. In 2022, these festive trains wereback on track, making the rounds in Canada, theU.S. and Mexico to collect food and raise funds
for local community organizations. ThroughCP’s Holiday Train Program, more than $1.3 million
was raised and 121,000 pounds of food collected
for local food banks in communities across the
CP network. In the U.S. and Mexico, KCS’s Holiday
Express and KCSM’s Tren Navideño were met
by over 50,000 visitors in 26 communities. The
Holiday Express raised more than U.S. $215,000 to
benefit The Salvation Army in communities acrosseight states.

Front-line KCS leaders got the chance to enhancetheir safety skills and knowledge with in-depth
training at one of 20 Safety Management
Workshops in 2022. Participants sharpened
their analytical skills, were assessed on theirunderstanding of safety and operating rules
and took part in a critical evaluation of KCS’s
safety culture. CP held regular system-widesafety walkabouts in 2022, providing leaders,management, employees and members of local
health and safety committees the opportunity toengage in meaningful discussions on workplacesafety. Held every quarter, this longstanding
practice is used by management and employees
to share observations and provide and receive
feedback while practicing their leadership skills,
leading to a strengthened safety culture.

GOVERNANCE

CPKC | 2022 Sustainability Data Report

OUR APPROACH
At CPKC, we believe that good corporate
governance practices are essential to effective
management, the protection of our organizationand to earning the trust of our stakeholders. We
foster a culture of integrity through robust policies,
operating standards, and training to establish
expectations for ethical business conduct, highbusiness standards, integrity and respect – from theboard to our employees.
The Board of Directors, through its committees,
is responsible for monitoring, measuring andoverseeing CPKC’s key risks, strategies, andsustainability practices. The Risk and Sustainability
Committee reviews sustainability performanceagainst our short- and long-term sustainability
objectives and evaluates the results of stakeholder
engagement to ensure alignment with ourstrategic planning.
With oversight from the President and CEO,decisions on the day-to-day implementation of
CPKC’s sustainability priorities are guided by across-functional executive Sustainability Steering
Committee. This Committee regularly reports
progress and advances recommendations on oursustainability objectives, policies and management
approach to the Risk and Sustainability Committeeof the Board.
Sustainability metrics have been embedded into
performance measures for executive and employee
short-term compensation to help incentivize strong
ESG outcomes.
17

Committed to
Sustainability Reporting
In 2022, CP and KCS released annual Corporate
Sustainability Data Supplements containing
ESG performance data. CPKC is committed
to maintaining the longstanding practice oftransparent reporting on ESG issues and topics.
Through our annual sustainability reporting, we
continue to strive for alignment with globally
recognized frameworks and standards including
GRI, TCFD and SASB.

Participation in the United
Nations Global Compact(UNGC)In 2022, CP became the first freight rail company
in North America to participate in the UNGC, a
voluntary initiative encouraging businesses aroundthe world to adopt responsible business practices.
CPKC remains committed to participation in the
UNGC and upholding and annually reporting
progress on 10 Principles in the areas of humanrights, environment, labour and anti-corruption,and to acting on the United Nations Sustainable
Development Goals.

Cybersecurity andInformation Security
In 2022, CP and KCS continued to work towards
enhancing their cybersecurity systems and practices
with tools that continually monitor perimeter
defenses for vulnerabilities, automatically block
malicious or atypical behavior and scrutinize
account usage to detect unusual behavior. Security
training and awareness continue to be a hallmark
of our cyber program with mandatory courses,
regular communications and mock phishingcampaigns. With assets and offices throughout
North America, the security of CPKC’s proprietary
information, operating systems and customer
data are of paramount importance and a criticalcomponent of our safety culture. Consequently, we
remain focused on enhancing the resiliency of ourassets and network.

CPKC | 2022 Sustainability Data Report

APPENDIX

18

For more information or questions regarding historic CP metrics reports orsustainability at CPKC, visit www.cpkcr.com/en-ca/sustainability or contact
sustainability@cpkcr.com.

CP 2022 SUSTAINABILITY METRICS
Information in this section of the report is with respect to CP on a standalone basis (see “About This Report”). In this section, currency-related values for CP are reported in Canadian dollars $ unless otherwise stated.

GOVERNANCE AND BUSINESS ETHICS

CPKC | 2022 Sustainability Data Report

Board of Directors Composition

Units

2018

2019

2020

2021

2022

GRI

SASB

Number of Directors# Directors

10

11

11

11

9

2-9

–

Board Independence1% Directors

90.0

90.9

90.9

90.9

88.9

2-9

–

Average Tenure

Years

3.5

3.6

4.7

5.7

6.5

2-9

–

Visible Minorities2% Directors

10.0

9.1

9.1

9.1

11.1

405-1

–

Canada% Directors

50.0

54.5

54.5

54.5

55.6

405-1

–

U.S.

% Directors

50.0

45.5

45.5

45.5

44.4

405-1

–

Women

% Directors

40.0

45.5

45.5

45.5

44.4

405-1

–

Men

% Directors

60.0

54.5

54.5

54.5

55.6

405-1

–

Years

61

61

62

63

62

405-1

–

< 30 Years Old% Directors

0.0

0.0

0.0

0.0

0.0

405-1

–

30–50 Years Old% Directors

20.0

9.1

0.0

0.0

0.0

405-1

–

Over 50 Years Old% Directors

80.0

90.9

100.0

100.0

100.0

405-1

–

Region3

GenderAge
Average Age

The Board has adopted standards for director independence based on criteria of the New York Stock Exchange (NYSE), U.S. Securities and Exchange Commission (SEC), and Canadian Securities Administrators (CSA). The Board reviews director independence continually and annuallyusing director questionnaires as well as by reviewing updated biographical information, meeting with directors individually, and conducting a comprehensive assessment of all business and other relationships and interests of each director with respect to CP and its subsidiaries.
2
For Board of Directors Composition, “Visible Minorities” refers to persons who self-identify as a “Visible Minority” (Canada), or a “Minority” (U.S.). A Visible Minority is defined as “persons, other than Indigenous, who are non-Caucasian in race or non-white in colour.” Minorities
are persons who self-identify as African American, Hispanic, Native American, Asian Pacific, or Asian Indian, or one or more minorities.
3
Canada and U.S. metrics are calculated based on each director’s country of residence.
1

19

Business Ethics

Units

2018

2019

2020

2021

2022

GRI

SASB

# Employees

2,773

2,969

3,202

3,240

3,607

205-2

–

Alert Line Calls2# Calls

22

28

32

100

73

205-2

–

CEO to Employee Pay Ratio

Units

2018

2019

2020

2021

2022

GRI

SASB

CEO to Employee Pay Ratio3

Ratio

*4

130:1

145:1

117:1

2-21

–

223:15
135:1

CPKC | 2022 Sustainability Data Report

CP Code of Business Ethics Training1

The figures presented represent training completed by non-unionized employees; however, the Code of Business Ethics (the Code) applies to everyone at CP and its subsidiaries: directors, officers, employees (unionized and non-unionized) and contractors who do work for CP.
Directors, officers and non-union employees must acknowledge every year that they have read, understood and agree to comply with the Code. Code of Business Ethics training in 2022-2023 achieved 100 percent sign-off from non-union employees. Since 2021, non-unionizedemployees have also completed online scenario-based training. Certain unionized employees were provided with online training for the first time in 2023 and all other unionized employees were provided with a copy of the Code. The Code is part of the terms and conditions of
employment for non-unionized employees, and contractors must agree to follow principles of standards of business conduct consistent with those set out in CP’s Code as part of the terms of engagement.
2
CP’s independently managed Alert Line (A-Line) is a tool that allows employees to report an instance anonymously. All employees are obligated to report any known or suspected violations of the Code, or any instance that may violate CP’s commitments to ethics and integrity. The
A-Line is available 24/7 by phone or online to all employees and stakeholders. Translation services are available as well, if required. All reports to the A-Line are handled confidentially and investigated in accordance with CP’s Business Ethics Reporting Policy.
3
To identify the median employee, CP conducted an analysis of the total compensation of its employee population in Canada and the United States (U.S.), other than the CEO, who were employed by CP on December 31 for each of the years disclosed. We have determined thatusing the taxable income reported on the T4 box 14 employment income and W-2 box 1 income for employees in Canada and the U.S. provides a reasonable and consistent estimate for evaluating annual total compensation. The pay ratio is a reasonable estimate calculated ina manner consistent with SEC rules based on CP’s payroll and employment records and the methodology described above. The SEC rules for identifying the median compensated employee and calculating the pay ratio based on that employee’s annual total compensation allow
companies to adopt a variety of methodologies, to apply certain exclusions and to make reasonable estimates and assumptions that reflect their compensation practices. As such, the pay ratio reported by other companies may not be comparable to the pay ratio reported above, as
other companies may have different employment and compensation practices and may utilize different methodologies, exclusions, estimates and assumptions in calculating their own pay ratios.
4
The asterisk (*) indicates that a reporting of this data is not available for earlier reporting period(s).
5
The 2020 to 2021 increase in the CEO pay ratio is, in large part, attributable to the special upfront stock option grant awarded to Mr. Creel on March 27 and does not take into account the corresponding reduction to Mr. Creel’s future annual long-term incentive plan compensation.
Without including this one-time upfront stock option grant in the CEO pay ratio calculation, the 2021 pay ratio would be 135:1, which is aligned with the pay ratios of the prior two years. This supplemental ratio is not intended to replace the above ratio calculated in accordancewith SEC rules, but is provided to normalize for Mr. Creel’s one-time special compensation award, which we do not believe is helpful in evaluating compensation for comparative purposes. As further disclosed in the 2021 long-term incentive awards, the upfront stock option will
reduce the value of Mr. Creel’s annual long-term incentive plan by U.S. $2.1 million in each year of 2022, 2023, 2024 and 2025 (an aggregate of U.S. $8.4 million) pursuant to the amendments to his executive employment agreement.
1

20

CPKC | 2022 Sustainability Data Report

ECONOMIC IMPACT
Operational Performance Metrics

Units

2018

2019

2020

2021

2022

GRI

SASB

Revenue Ton-Miles1

Millions

154,207

154,378

151,891

149,686

148,228201-1

TR-RA-000.D

Gross Ton-Miles2

Millions

275,362

280,724

272,360

271,921269,134

201-1–

Carloads Transported

Thousands

2,740

2,766

2,708

2,736

2,782

201-1

TR-RA-000.A

Intermodal Units Transported3

Thousands

1,026

1,046

1,050

1,063

1,185

201-1

TR-RA-000.B

Train Miles Travelled

Thousands

32,312

32,92430,32429,39728,899201-1

TR-RA-000.C

Economic Value Generated

Units

2018

2019

2020

2021

2022

GRI

SASB

Total Revenue4$ Millions

7,316

7,792

7,710

7,995

8,814

201-1

–

Canada$ Millions

5,232

5,675

5,829

5,992

6,423

201-1

–

U.S.

$ Millions

2,084

2,117

1,881

2,003

2,391

201-1

–

Economic Value Distributed

Units

2018

2019

2020

2021

2022

GRI

SASB

Total Operating Expenses5$ Millions

4,485

4,668

4,399

4,789

5,485

201-1

–

Canada$ Millions

3,199

3,314

3,209

3,648

4,009

201-1

–

U.S.

$ Millions

1,286

1,354

1,190

1,141

1,476

201-1

–

Compensation & Benefits6$ Millions

1,468

1,540

1,560

1,570

1,570

201-1

–

Capital Expenditures7$ Millions

1,574

1,664

1,688

1,551

1,565

201-2

–

Revenue Ton-Mile (RTM) refers to the movement of one revenue-producing ton of freight over a distance of one mile. RTMs measure the relative weight and distance of rail freight moved by CP.
Gross Ton-Mile (GTM) refers to the movement of one ton of train weight over a distance of one mile. GTMs are calculated by multiplying total train weight by the distance the train moved. Total train weight comprises the weight of the freight cars, their contents and any inactive
locomotives. An increase in GTMs indicates additional workload.
3
Intermodal Units Transported is a subset of carloads transported.
4
Total Revenues includes all freight and non-freight revenues. Freight revenues are generated from goods or property transported. Non-freight revenues are generated from leasing certain assets; other arrangements, including logistical services and contracts with passenger service
operators; and switching fees. CP’s Total Revenues increased by 10% to $8,814 million in 2022 from $7,995 in 2021, driven primarily by higher fuel surcharge revenue as a result of higher fuel prices and higher freight rates.
5
Changes in freight volumes generally contribute to corresponding changes in freight revenues and certain variable expenses, such as fuel, equipment rents and crew costs.
6Compensation & Benefits includes employee wages, salaries, fringe benefits and stock-based compensation.
7
Capital Expenditures are additions to properties. Capital Expenditures include expenditures to expand and enhance the rail network, rolling stock and other infrastructure. These expenditures are aimed at improving efficiency and safety of CP’s operations, including projects andinitiatives aimed at mitigating environmental and climate-related impacts to CP’s infrastructure. Such investments are also an integral part of CP’s multi-year capital program and support growth initiatives.
1
2

21

CPKC | 2022 Sustainability Data Report

Payments to Entities

Units

2018

2019

2020

2021

2022

GRI

SASB

Payments to Providers of Capital1$ Millions

1,890

1,964

2,367

908

1,316

201-1

–

Payments to Government2$ Millions

442

639

708

680

541

201-1

–

Supply Chain

Units

2018

2019

2020

2021

2022

GRI

SASB

Total Supplier Spend$ Millions

4,042

4,269

3,005

3,117

5,207

204-1

–

Spending on Local Suppliers – Canada$ Millions

2,234

2,406

1,867

2,053

3,311

204-1

–

Spending on Local Suppliers – U.S.

$ Millions

1,696

1,850

1,138

1,056

1,896

204-1

–

*

*

*

72

72

204-1

–

Total Critical Tier 1 Suppliers3

Total Number

Payments to Providers of Capital includes dividends paid to shareholders, interest paid and payments for share repurchases less issuance of shares. CP did not have any payments for share repurchases in 2021 or 2022.
Payments to Government includes income tax paid and property tax.
3
Critical Tier 1 Suppliers include vendors whose goods or services (G&S) have significant impact upon CP operations or performance, who are a primary provider of specific G&S, or whose G&S are difficult to replace or substitute. These suppliers typically have a high level of spend,high profitability impact and account for a large portion of overall supplier spend. An example of a typical Critical Tier 1 supplier for CP would be a vendor who supplies locomotive fuel.
1
2

22

SAFETY
Work-Related Incidents

Units

2018

2019

2020

2021

2022

GRI

SASB

Thousands

28,15130,30026,557

26,876

27,415403-9–

Total Recordable Injury Rate1

Injury Rate

3.18

2.83

2.59

2.13

2.27

403-9

TR-RA-320a.1

FRA Personal Injury Rate Frequency2

Injury Rate

1.47

1.42

1.11

0.92

1.01

403-9

TR-RA-320a.1

Women

Injury Rate

0.92

0.93

0.68

0.67

0.79

403-9

TR-RA-320a.1

Men

Injury Rate

1.52

1.47

1.15

0.95

1.03

403-9

TR-RA-320a.1

Contractor Injuries3# FRA Injuries

3

3

8

6

4

403-9

TR-RA-320a.1

Lost Time Injury Frequency Rate
(Per 200k employee hours worked)

Injury Rate

0.97

0.90

0.77

0.64

0.85

403-9

TR-RA-320a.1

CanadaInjury Rate

0.87

0.82

0.72

0.51

0.69

403-9

TR-RA-320a.1

U.S.

Injury Rate

1.37

1.23

0.93

1.21

1.58

403-9

TR-RA-320a.1

Women

Injury Rate

0.67

0.55

0.47

0.54

0.48

403-9

TR-RA-320a.1

Men

Injury Rate

1.00

0.93

0.80

0.65

0.89

403-9

TR-RA-320a.1

Employee Fatalities# Fatalities

3

4

0

0

1

403-9

TR-RA-320a.1

Contractor Fatalities# Fatalities

0

0

0

0

0

403-9

TR-RA-320a.1

Hours Worked

CPKC | 2022 Sustainability Data Report

Reportable Injuries

FatalitiesT otal Recordable Injury Rate (TRIR) is a measure of recordable injuries resulting from a discernable work-related event, to an on-duty employee and is a physical injury in nature (not incident stress or psychological in nature), including fatalities. TRIR is calculated as total number ofrecordable cases multiplied by 200,000, divided by total employee hours worked during the reporting period. Recordable incidents include all safety-related events reported by employees regardless of incident severity.
2
The Federal Railroad Administration (FRA) Personal Injury Rate Frequency reflects the frequency of personal injuries, multiplied by 200,000, divided by total employee hours. FRA Personal Injuries are limited to personal injuries that require employees to lose time away from work,
modify their normal duties or obtain medical treatment beyond minor first aid. FRA Personal Injury employee hours are the total hours worked, excluding vacation and sick time, by all employees, excluding contractors.
3
Contractor Injuries was updated for 2017-2019 to reflect only injuries categorized as FRA Injuries which is limited to personal injuries that require employees to lose time away from work, modify their normal duties or obtain medical treatment beyond minor first aid. CP does nottrack contractor hours worked. Subsequently, CP cannot calculate a total recordable work-related injuries rate.
1

23

Train Incidents

Units

2018

2019

2020

2021

2022

GRI

SASB

Train Accidents1# Accidents

670

694

603

555

671

–

TR-RA-540a.1

FRA Train Accidents2# Accidents

39

38

32

36

30

–

TR-RA-540a.1# Accidents/
Million Train Miles

1.10

1.06

0.96

1.10

0.93

–

TR-RA-540a.1

Train Accidents Involving the Releaseof Hazardous Materials4# Accidents

3

5

2

2

1

–

TR-RA-540a.2

Non-accident Release of Hazardous Materials5# Accidents

24

17

20

11

7

–

TR-RA-540a.2

Units

2018

2019

2020

2021

2022

GRI

SASB

Main Track Inspections6

Total Number

83,832

86,72391,503

100,721109,297–

TR-RA-540a.4

Main Track Miles Inspected7

Total Number

1,793,249

1,855,173

1,923,379

2,070,085

1,972,799–

TR-RA-540a.4

Total Main Track Miles

Total Number

12,46912,683

13,046

13,046

12,822–

TR-RA-540a.4

Ratio

2.77

2.81

2.84

3.05

2.96

–

TR-RA-540a.4

CPKC | 2022 Sustainability Data Report

FRA Train Accident Rate3

Asset and Network Resiliency

Frequency of Internal Railway Integrity Inspections8

Train Accidents refers to any event that causes damage to mobile on-track equipment during the course of railway operations and excludes crossing accidents.
FRA Train Accident refers to a subset of reported train-related incidents and includes only those events involving damage exceeding a specific monetary value set by the FRA. The reporting threshold for 2018–2020 was U.S. $10,700 in damage, U.S. $11,200 in damage for 2021,
and U.S. $11,300 in damage for 2022.
3
FRA Train Accident Rate reflects the number of train accidents resulting in damage exceeding a specific monetary threshold (set by FRA), multiplied by 1,000,000, divided by total train miles travelled during the reporting period.
4
Train-Related Accidents Involving the Release of Hazardous Materials refers to incidents involving the release of hazardous materials (U.S.) or dangerous goods (Canada) from a means of containment during transportation by rail.
5
Non-accident Release of Hazardous Materials refers to an unintentional release of hazardous materials (U.S.) or dangerous goods (Canada) from a means of containment during transportation. These events do not involve a train-related accident and can result from equipment failure
or improperly secured materials.
6
Main Track Inspections includes both regulatory and special track inspections
7
Main Track Miles Inspected includes both regulatory and special track inspections. Inspections that take place at a single identifiable location, such as a turnout, do not have a cumulative mileage associated with the inspection, and are therefore excluded from the total inspection
mileage.
8Frequency of Internal Railway Integrity Inspections is calculated as the number of inspections per week, weighted for the number of main track miles on which those inspections took place; these values are calculated as (weekly inspections × miles of track on which they took place) /(total main track miles).
1
2

24

ENVIRONMENT
Energy Efficiency and Emissions
Energy

Units

2018

2019

2020

2021

2022

GRI

SASB

Million U.S. Gallons

263

270

258

256

258

–

–

Million Litres

995

1,021

978

968

977

–

–

U.S. Gallons/1,000 GTMs

0.953

0.955

0.942

0.931

0.955

–

–

RTMs/U.S. Gallons

586

572

588

586

575

305-4

–

Energy Consumption

Units

2018

2019

2020

2021

2022

GRI

SASB

Total Energy Consumption3

1,000 MWh

11,384

11,625

11,073

10,909

11,143302-1–

Locomotive Diesel

1,000 MWh

10,533

10,745

10,288

10,177

10,286302-1–

Locomotive – Renewable Fuel4

1,000 MWh

157

163

161

156

157

302-1

TR-RA-110a.3

Other Liquid Fuel5

1,000 MWh

364

373

309

264

339

302-1

–

Natural Gas and Propane

1,000 MWh

139

150

131

129

168

302-1

–

Electricity

1,000 MWh

192

194

184

180

189

302-1

–

Self-Generated Renewable Electricity6

1,000 MWh

*

*

*

3

4

302-4

–

Energy Costs7$ Millions

945

908

677

880

1,432

–

–

Energy Intensity – Total Company

kWh/1,000 GTMs

41.3

41.4

40.7

40.1

41.4

302-3

–

Energy Intensity – Locomotive Fuel

kWh/1,000 GTMs

38.8

38.9

38.4

38.0

38.8

302-3

–

Fuel
Total Locomotive Fuel
Locomotive Fuel Efficiency1
Freight Efficiency

CPKC | 2022 Sustainability Data Report2

Locomotive Fuel Efficiency is defined as U.S. gallons of locomotive fuel consumed per 1,000 GTMs. Fuel consumed includes gallons from freight, yard and commuter service but excludes fuel used in capital projects and other non-freight activities. An improvement in fuel efficiency
indicates operational cost savings and CP’s commitment to corporate sustainability through a reduction of GHG emissions intensity. The fuel efficiency decrease from 2021 to 2022 was due to harsher winter operating conditions, higher volumes of Intermodal, which has lower
horsepower utilization, and lower locomotive productivity defined as the daily average GTMs divided by average operating horsepower.
2
Freight Efficiency represents the number of route miles one ton of revenue generating freight can be transported by a CP train on a single U.S. gallon of fuel.
3
Total Energy Consumption includes all liquefied gas, fuel and electricity consumed inside the organization during the reporting year.
4
All diesel fuel supplied to the Canadian marketplace must contain an annual average of 2 percent renewable content. Locomotive – Renewable Fuel is estimated to be equivalent to 2 percent of all locomotive diesel fuel consumed in Canada during the reporting year.
5
Other Liquid Fuel includes all liquid and gaseous fuel, excluding locomotive diesel, consumed by the organization during the reporting period. Common fuel reported here includes gasoline, diesel, heating oil and liquid biofuels.
6
CP began generating renewable electricity in April 2021 from CP’s solar energy farm at the E. Hunter Harrison campus located in Calgary, Alberta, Canada. In 2022, CP generated a total of 4,937 MWh of renewable electricity with a portion returned to the grid. Self-Generated
Renewable Electricity Consumption reflects the total self-generated renewable electricity generated less the amount of electricity returned to the grid.
7
The increase from 2021 to 2022 in energy cost is attributed to the increased cost for fuel. This increase is primarily due to the unfavorable impact of higher fuel prices and decrease in fuel efficiency due to harsher winter operating conditions, higher volumes of intermodal which has
lower horsepower utilization, and lower locomotive productivity defined as the daily average GTMs divided by the daily average operating horsepower and the unfavorable impact of the change in foreign exchange rate.
1

25

Emissions

Units

2018

2019

2020

2021

2022

GRI

SASB

Total Direct & Indirect Greenhouse Gas (GHG)
Emissions: Scope 1 & 21

1,000 Metric Tonnes CO2e

3,102

3,185

3,031

2,991

3,050

–

–

Direct (Scope 1) GHG Emissions

1,000 Metric Tonnes CO2e

3,052

3,136

2,988

2,952

3,009

305-1

TR-RA-110a.1

Locomotive

1,000 Metric Tonnes CO2e

2,936

3,013

2,887

2,861

2,891

305-1

TR-RA-110a.1

Other Scope 12

1,000 Metric Tonnes CO2e

116

123

101

91

118

305-1

TR-RA-110a.1

CO21,000 Metric Tonnes CO2e

2,782.71

2,857.96

2,722.01

2,682.20

2736.34

305-1

TR-RA-110a.1

CH41,000 Metric Tonnes CO2e

4.38

4.50

4.27

4.19

4.25

305-1

TR-RA-110a.1

N2O

1,000 Metric Tonnes CO2e264.68273.87260.01

264.37267.30305-1TR-RA-110a.1

HFC4

1,000 Metric Tonnes CO2e

0.08

0.08

0.04

1.39

2.52

305-1

TR-RA-110a.1

CPKC | 2022 Sustainability Data Report

Direct Scope 1 Emissions3

Values reflect a combined total of Direct (Scope 1) GHG emissions from CP-owned or controlled sources (primarily locomotives for CP) and Indirect (Scope 2) GHG emissions from the generation of purchased energy (CP’s electricity consumption). Since 2019, Other Indirect (Scope 3)
GHG emissions relating to Business Travel are no longer aggregated with Direct (Scope 1) and Indirect (Scope 2) GHG Emissions. Other Indirect (Scope 3) GHG emissions from Business Travel are reported separately.
2
Other Scope 1 GHG emissions include GHG emissions related to off-road vehicles, vehicle fleet, work equipment and stationary sources such as propane and natural gas for heating facilities.
3
Direct (Scope 1) GHG Emissions are calculated following The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition). Total gas emissions are presented as 1,000 Metric Tonnes CO2e and have been converted following global warming potentials
from IPCC Fifth Assessment Report (AR5).
4
Prior to 2021, CP’s reporting on HFC GHG Emissions was limited to stationary equipment only. In 2021, CP expanded GHG tracking and reporting systems to capture HFC emissions from CP’s fleet of refrigerated containers.
1

26

Emissions

Units

2018

2019

2020

2021

2022

GRI

SASB

CPKC | 2022 Sustainability Data ReportIndirect Emissions Scope 2 & 3
Indirect (Scope 2) GHG Emissions1

1,000 Metric Tonnes CO2e

50

49

43

39

41

305-2

–

Other Indirect (Scope 3) GHG Emissions2

1,000 Metric Tonnes CO2e

*

1,734

1,700

1,695

1,627

305-3

–

Purchased Goods & Services and Capital Goods3 1,000 Metric Tonnes CO2e

*

631

620

599

525

305-3

–

Fuel and Energy-Related Activities4

1,000 Metric Tonnes CO2e

*

917

860

850

843

305-3

–

Upstream Transportation and Distribution5

1,000 Metric Tonnes CO2e

*

142

181

205

214

305-3

–

Waste Generated in Operations6

1,000 Metric Tonnes CO2e

*

5

4

5

5

305-3

–

Business Travel7

1,000 Metric Tonnes CO2e

16

21

18

20

19

305-3

–

Employee Commuting8

1,000 Metric Tonnes CO2e

*

18

17

16

20

305-3

–

Indirect (Scope 2) GHG Emissions consist of emissions from the generation of electricity purchased by CP. Canadian emissions are based on emissions factors used for Canada’s National Inventory Report. U.S. emissions are based on the U.S. EPA eGRID 2021 emissions factors.
Electricity usage is based on electric utility billing data.
2
Prior to 2019, CP’s reporting on Other Indirect (Scope 3) GHG Emissions was limited to Business Travel. In 2019, CP expanded GHG emissions reporting to include additional relevant Scope 3 emissions categories of Purchased Goods & Services and Capital Goods, fuel and energyrelated activities, upstream transportation and distribution, and waste generated in operations for 2019. The asterisk (*) indicates that a reporting of these categories of Other Indirect (Scope 3) GHG Emissions relevant to CP is not available for earlier reporting periods.
3
An estimate of GHG emissions related to Purchased Goods & Services and Capital Goods was derived following an economic input-output (EIO) model developed by Carnegie Mellon University. EIO categories by spend were totaled and converted into GHG emissions using factors
consistent with this approach.
4
Fuel and Energy-Related Activities include upstream emissions associated with the fuel that CP uses to operate, from fuel combusted for generation of electricity purchased by CP and transmission and distribution losses from electricity consumed.
5
Upstream Transportation and Distribution refers to GHG emissions related to the transport of purchased material, truck transport of intermodal containers, and postage and couriers. Emissions from transport of purchased material were calculated using each order’s weight andtransport distance with tonne-mileage emissions factors for trucks. For all other Upstream Transportation and Distribution, an economic input-output (EIO) calculator was used to estimate emissions from purchased transportation services.
6
Waste Generated in Operations refers to GHG emissions associated with annual waste generated by CP, which are derived using factors from the U.S. EPA Center for Corporate Climate Leadership.
7
Business Travel refers to GHG emissions associated with business travel, including hotel stays, vehicle rentals and flights. Emissions factors for hotel stays from DEFRA were used to calculate GHG emissions. Emissions factors for vehicle rentals and passenger flights from the U.S. EPA
Center for Corporate Climate Leadership were used to calculate GHG emissions.
8
Employee Commuting emissions were estimated using average commuting time, transportation mode and distance statistics from census data in the U.S. and Canada. For 2020-2021, a work from home adjustment factor was applied to adjust annual emissions due to an increased
number of employees working from home due to the COVID-19 pandemic. GHG emissions were calculated following emissions factors from the U.S. EPA Center for Corporate Climate Leadership.
1

27

CPKC | 2022 Sustainability Data Report

GHG Emissions Intensity1

Units

2018

2019

2020

2021

2022

GRI

SASB

Company (Scope 1 and 2)

kg CO2e/1,000 GTMs

11.3

11.4

11.1

11.0

11.3

305-4

–

Locomotive (Scope 1)

kg CO2e/1,000 GTMs

10.7

10.7

10.6

10.5

10.7

305-4

–

Company (Scope 1 and 2)

kg CO2e/1,000 GTKs

7.7

7.8

7.6

7.5

7.8

305-4

–

Locomotive (Scope 1)

kg CO2e/1,000 GTKs

7.3

7.4

7.3

7.2

7.4

305-4

–

Company (Scope 1 and 2)

kg CO2e/1,000 RTMs

20.1

20.7

20.0

20.0

20.6

305-4

–

Locomotive (Scope 1)

kg CO2e/1,000 RTMs

19.0

19.5

19.0

19.1

19.5

305-4

–

Company (Scope 1 and 2)

kg CO2e/1,000 RTKs

13.8

14.2

13.7

13.7

14.1

305-4

–

Locomotive (Scope 1)

kg CO2e/1,000 RTKs

13.0

13.4

13.0

13.1

13.4

305-4

–

Revenue (Scope 1 and 2)

MT CO2e/$ Million Revenue

424

409

393

374

474

305-4

–

Employee (Scope 1 and 2)2

kg CO2e/Employee

238,000

247,000

255,000

253,000

239,000

305-4–

GHG Emissions Intensity values represent those most commonly presented or publicly requested within the freight rail sector. Company GHG Emissions Intensity includes total Scope 1 and 2 emissions divided by gross ton-miles (GTMs), gross tonne kilometres (GTKs), revenue tonmiles (RTMs) or revenue tonne-kilometres (RTKs) during the reporting period. Intensity metrics are also provided specific to locomotive GHG emissions.
2
Restatement: Reported values did not correspond to stated units in prior reporting periods.
128

Science-Based Emissions Targets
Locomotive Well-to-Wheel GHG Intensity(Scope 1, 2 and 3)1

Locomotive GHG Science-Based Target Progress

CPKC | 2022 Sustainability Data Report

Non-Locomotive Emissions (Scope 1 and 2)2

Locomotive Air Emissions4

Units
SBTi Approved
2030 Target

2018

2019

2020

2021

2022

GRI

SASB

CP is committed to reduce our well-to-wheel GHG emissions intensity (grams per revenue ton-mile)of locomotive operations by 38.3% by 2030 from a 2019 base year. CP’s 2030 emissions intensity
target for locomotive operations target is 15.53 gCO2e/RTM.

305-5

TR-RA-110a.2

gCO2e/RTM

*

25.17

24.42

24.55

24.89

305-5

TR-RA-110a.2% of 2030
Target Achieved

*

*

8

6

3

305-5

TR-RA-110a.2

As we continue to implement solutions to reduce scope 1 and 2 emissions from our business, we are also
working to enhance emissions data reporting accuracy by integrating CPKC energy management systems.3

305-5

TR-RA-110a.2

2030 Target

Units

2018

2019

2020

2021

2022

GRI

SASB

Nitrous Oxide (NOx)Kilotonnes

34.52

35.00

34.05

32.96

35.68

305-7

TR-RA-120a.1

Sulfur Oxide (SOx)

Kilotonnes

0.02

0.02

0.03

0.02

0.02

305-7

–

Particulate Matter (PM)Kilotonnes

0.70

0.69

0.68

0.65

0.70

305-7

TR-RA-120a.1

Hydrocarbons

Kilotonnes

1.51

1.44

1.33

1.28

1.41

305-7

–

Carbon Monoxide (CO)Kilotonnes

7.17

7.06

6.69

6.60

6.90

305-7

–

Well-to-wheel emissions include all emissions related to fuel production, processing, distribution and use including (where applicable) Scope 1, 2, and 3 emissions. This metric effectively captures the entire energy process, from mining of the fuel source to powering the locomotives.
Non-Locomotive Emissions refers to emissions for Scope 1 Non-locomotive operations (including vehicle fleets, buildings and other facilities), and Scope 2 emissions.
3
As part of ongoing due diligence associated with annual GHG emissions reporting, CP has identified changes in energy data that may have an impact on year-over-year performance for the non-locomotive emissions target over the respective reporting periods.
4
Locomotive Air Emissions refers to common contaminants associated with the combustion of fuel by CP’s locomotive fleet. Calculations are specific to each locomotive’s corresponding EPA emissions tier class. Air emissions are derived by combining CP active locomotive fleet datawith EPA tier class emissions factors, total fuel consumed and nature of locomotive use (line haul or switching). This methodology is consistent with practices of the Canadian rail sector and Railway Association of Canada – Locomotive Emissions Monitoring Program.
1229

CPKC | 2022 Sustainability Data Report

Environmental Footprint
Environmental Footprint

Units

2018

2019

2020

2021

2022

GRI

SASB

Annual Spend on Remediation$ Millions

7

7

7

11

9

2-25

–

Provision for Environmental Remediation Programs1$ Millions

83

81

83

80

86

2-25

–

Environmental Audits Completed2# Audits

9

10

0

5

8

2-25

–

Number of Environmental Fines# Fines

1

0

0

0

1

2-27

–

Environmental Fines3$ Total Spent

31,50000043,845

2-27–

Environmental Liability for Fines Accruedat Year-End4$ Total Accrued

0

0

0

0

0

2-27

–

Spill Events5# Spills

34

35

38

43

45

Water

Units

2018

2019

2020

2021

2022

GRI

SASB

Water Consumption6

ML

503

813

768

742

733

303-5

–

Canada

ML

466

566

666

583

559

303-5

–

U.S.

ML

36

40

87

159

174

303-5

–

Water Discharge7

ML

84

134

135

95

111

303-4

–

–

Provision for Environmental Remediation Programs refers to an estimate of probable future obligations and includes both asserted and unasserted claims, without reduction for anticipated recoveries from third parties. Although the recorded accruals include CP’s best estimate of
all probable costs, CP’s total environmental remediation costs cannot be predicted with certainty. Accruals for environmental remediation may change periodically as new information about previously untested sites becomes known, environmental laws and regulations evolve, andadvances are made in environmental remediation technology.
2
CP did not complete environmental audits in 2020 due to COVID-19 travel and work restrictions.
3
The environmental penalty in 2018 was an administrative penalty for an event where waste water discharge exceeded permit limits. The 2022 environmental penalty was a civil penalty for U.S. $33,727; negotiated with the Minnesota Pollution Control Agency for a 2021 locomotive
diesel release at CP’s St. Paul Yard which has been converted to $43,845 in the data table based on CP’s average FX rate of 1.30 for fiscal year 2022.
4
Environmental Liability for Fines Accrued at Year-End includes the dollar amount of any outstanding or expected environmental fines or penalties not paid by CP by the end of the annual reporting period.
5
Spill Events includes all reported incidents involving CP employees or contractors, which result in the unintentional release of hazardous materials or materials which may adversely impact the environment. Spills include events involving an accidental release, spill or leak, or result
from the failure of means of containment. Reported values are limited to significant releases where a material has been released in excess of local regulatory reporting thresholds.
6
Water Consumption volumes are based on metered service connections to municipal water treatment and distribution systems supplied to CP facilities across the network. These values do not reflect a small amount of unmetered water supplied by local wells at remote
operating locations.
7
CP discharges industrial wastewater in a responsible manner according to local regulations and permits. All wastewater discharges are planned. Where applicable, CP processes industrial wastewater through treatment plants, including oil water separators, dissolved air flotation,
chemical injection and activated carbon systems. Treated effluent is typically discharged to publicly owned sewage treatment works for further treatment. Currently, treated effluent from CP wastewater treatment plants is not reused for other purposes. CP does not currently reporton water discharge quality.
130

Waste

Units

2018

2019

2020

2021

2022

GRI

SASB

Total Waste Generated1

Metric Tonnes

104,325

90,112

114,680

119,690

68,602306-3–

Hazardous Waste

Metric Tonnes

2,623

3,274

6,723

4,160

3,891

306-3

–

Non-Hazardous Waste Generated

Metric Tonnes

101,70286,838

107,957

115,530

64,711

306-3–

Total Hazardous Waste Diverted

Metric Tonnes

2,605

3,269

5,238

3,283

3,513

306-4

–

Offsite Recycled

Metric Tonnes

2,588

2,715

108

79

441

306-4

–

Other Offsite Recovery Operations2

Metric Tonnes

17

554

5,130

3,204

3,072

306-4

–

Total Hazardous Waste Disposed

Metric Tonnes

18

5

1,485

877

378

306-5

–

Offsite Incineration (with energy recovery)

Metric Tonnes

2

0

68

10

5

306-5

–

Offsite Landfilling

Metric Tonnes

16

5

1,417

867

373

306-5

–

Total Non-Hazardous Waste Diverted

Metric Tonnes

2,323

2,198

2,275

3,437

2,222

306-4

–

Offsite Recycled

Metric Tonnes

2,268

2,164

1,302

1,615

1,098

306-4

–

Offsite Compost

Metric Tonnes

55

34

68

136

464

306-4

–

Other Offsite Recovery Operations

Metric Tonnes

0

0

904

1,686

660

306-4

–

CPKC | 2022 Sustainability Data Report

Hazardous Waste Diversion

Hazardous Waste Disposal

Non-Hazardous Waste Diversion

Definitions of hazardous and non-hazardous waste are aligned with Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal. Waste disposal methods and associated quantities are provided to CP by third party waste disposal
contractors, and tracked by CP’s third party consultant. CP works collaboratively with its third party waste contractors to identify beneficial reuse and recycling options for CP’s industrial waste streams. The increase in total waste in 2020 is attributed to improved data management
through CP’s third party consultant.
2
CP’s offsite recovery operations include deep-well injection, fuel-blending, on-site storage and other recovery methods.
131

Waste

Units

2018

2019

2020

2021

2022

GRI

SASB

Total Non-Hazardous Waste Disposed

Metric Tonnes

99,37984,640105,682

112,093

62,489306-5–

Offsite Incineration (with energy recovery)

Metric Tonnes

92,95077,75599,336106,286

54,971

306-5–

Offsite Landfilling

Metric Tonnes

6,429

6,885

6,346

5,807

7,518

306-5

–

Non-Hazardous Waste Disposal

CPKC | 2022 Sustainability Data Report

Other Waste
Rail Ties Sent to Cogeneration Facility1# Ties

1,125,619

941,615

1,202,724

1,282,953

657,700

306-5–

Rail Ties Sent to Cogeneration Facility2

Metric Tonnes

92,97677,75599,317

105,942

54,310306-5–Resource Consumption

Units

2018

2019

2020

2021

2022

GRI

SASB

Total Steel Products Purchased

Metric Tonnes

73,101

81,591

95,58475,45595,368301-1–

New Rail Purchased

Metric Tonnes

51,29360,741

69,82854,18343,143

301-1–

Other Track Materials3

Metric Tonnes

21,80820,84925,756

21,27252,225

301-1–

Total Crossties Installed

1,000s Rail Ties

1,015

1,122

1,417

1,222

1,215

301-1

–

The decrease in year over year in 2022 Rail ties sent to Cogeneration is due to the limited railcar availability which was used for transport of material for new track.
Annual volumes of rail ties sent to cogeneration facilities are also included in the non-hazardous waste disposal table, reported as Offsite Incineration (with energy recovery).
3
Other Track Materials includes anchors, spikes, screw spikes, rail clip fasteners, tie plates and track bolts.
1
2

32

SOCIAL IMPACT
Workforce Diversity and Inclusion
Workforce Composition

Units

2018

2019

2020

2021

2022

GRI

SASB

Total Workforce1

Total Number

12,866

12,732

11,904

11,872

12,824

2-7–

Total Employees2

Total Number

12,84012,694

11,89011,834

12,754

2-7

TR-RA-000.E

Canada% Employees

78.0

78.2

79.1

78.2

78.3

2-7

–

U.S.

% Employees

22.0

21.8

20.9

21.8

21.7

2-7

–

Women

% Employees

9.5

9.7

10.0

9.6

9.3

2-7

–

Men

% Employees

90.5

90.3

90.0

90.4

90.7

2-7

–

< 30 Years Old% Employees

17.9

17.2

15.7

16.0

18.4

405-1

–

30–50 Years Old% Employees

56.5

58.2

56.9

57.9

57.6

405-1

–

Over 50 Years Old% Employees

25.6

24.7

27.4

26.2

24.0

405-1

–

CPKC | 2022 Sustainability Data Report

Total Workforce by Region

Workforce Representation by Gender

Workforce Representation by Age

1
2

33

Total Workforce refers to all CP employees, contractors and consultants as of December 31 of each reporting year.
Total Employees refers to individuals currently engaged in full-time, part-time or seasonal employment with CP as of December 31 of each reporting year.

Workforce Composition

Units

2018

2019

2020

2021

2022

GRI

SASB

Unionized% Employees

74.9

74.0

72.2

73.2

74.6

2-7

–

Non-Unionized% Employees

25.1

26.0

27.8

26.8

25.4

2-7

–

Total Full-Time Employees# Employees

12,782

12,643

11,844

11,798

12,6802-7–

CPKC | 2022 Sustainability Data Report

Contract Type

1
2

34

Women

% Full-Time Employees

9.5

9.6

9.9

9.5

9.3

2-7

–

Men

% Full-Time Employees

90.5

90.4

90.1

90.5

90.7

2-7

–

Total Temporary Employees# Employees

57

49

44

33

72

2-7

–

Women

% Temporary
Employees

10.5

12.2

36.4

24.2

20.8

2-7

–

Men

% Temporary
Employees

89.5

87.8

63.6

75.8

79.2

2-7

–

Total Part-Time Employees# Employees

1

2

2

3

2

2-7

–

Women

% Part-Time Employees

100.0

50.0

50.0

33.3

50.0

2-7

–

Men

% Part-Time Employees

0.0

50.0

50.0

66.7

50.0

2-7

–

Total Contractors1

Total Number

26

38

14

38

70

2-7

–

Employee Level

Units

2018

2019

2020

2021

2022

GRI

SASB

Sr. Management2# Employees

88

88

94

103

105

Women

% Sr Management

18.2

17.0

17.0

21.4

17.1

405-1

–

Men

% Sr Management

81.8

83.0

83.0

78.6

82.9

405-1

–

< 30 Years Old% Sr Management

0.0

0.0

0.0

0.0

0.0

405-1

–

30–50 Years Old% Sr Management

63.6

61.4

55.3

56.3

52.4

405-1

–

Over 50 Years Old% Sr Management

36.4

38.6

44.7

43.7

47.6

405-1

–

CP only tracks total number of contractors and does not currently track detailed workforce-related breakdown for contractors. The count is based on total number of contractors as at December 31 of the reporting year.
Sr. Management at CP includes all Chief, EVP, SVP, VP, AVP, General Counsel, GM, and Managing Director positions.

CPKC | 2022 Sustainability Data Report

Employee Level

Units

2018

2019

2020

2021

2022

GRI

SASB

Management1 – Non-Union# of Employees

2,541

2,615

2,100

2,038

2,052

Women

% Management– Non-Union

18.3

18.2

21.6

21.5

21.9

405-1

–

Men

% Management– Non-Union

81.7

81.8

78.4

78.5

78.1

405-1

–

< 30 Years Old% Management– Non-Union

8.4

8.0

5.1

5.6

5.6

405-1

–

30–50 Years Old% Management– Non-Union

65.0

66.7

63.6

64.1

64.4

405-1

–

Over 50 Years Old% Management– Non-Union

26.6

25.3

31.3

30.3

30.0

405-1

–

Non-Management – Non-Union# of Employees

593

601

1,109

1,051

1,117

Women

% Non-Management
Non-Union

37.3

37.4

24.0

20.9

22.4

405-1

–

Men

% Non-Management
Non-Union

62.7

62.6

76.0

79.1

77.6

405-1

–

< 30 Years Old% Non-Management
Non-Union

19.1

18.5

16.2

16.4

18.0

405-1

–

30–50 Years Old% Non-Management
Non-Union

54.6

56.9

62.6

62.3

59.9

405-1

–

Over 50 Years Old% Non-Management
Non-Union

26.3

24.6

21.2

21.3

22.1

405-1

–

# of Employees

9,618

9,390

8,587

8,642

9,480

Women

% Non-Management– Union

5.5

5.4

5.3

5.2

5.0

405-1

–

Men

% Non-Management– Union

94.5

94.6

94.7

94.8

95.0

405-1

–

< 30 Years Old% Non-Management– Union

20.5

19.8

18.4

18.6

21.4

405-1

–

30–50 Years Old% Non-Management– Union

54.4

55.9

54.6

55.9

56.0

405-1

–

Over 50 Years Old% Non-Management– Union

25.1

24.3

27.0

25.5

22.6

405-1

–

Non-Management – Union

1

35

Management at CP includes Director, Superintendent, Assistant Chief, General Superintendent, Manager, Assistant Superintendent, Trainmaster, Roadmaster, Assistant Trainmaster and Specialist positions.

Other Diversity Metrics

Units

2018

2019

2020

2021

2022

GRI

SASB

Women

% Cdn Employees

10.8

11.0

11.2

10.9

10.7

405-1

–

Indigenous1% Cdn Employees

4.2

4.5

4.2

4.4

4.3

405-1

–

Persons with Disabilities2% Cdn Employees

2.4

2.8

2.9

3.0

3.2

405-1

–

Visible Minorities3% Cdn Employees

11.8

12.8

13.2

14.4

15.9

405-1

–

Women

% U.S. Employees

4.8

5.0

5.2

4.9

4.2

405-1

–

Persons with Disabilities3% U.S. Employees

1.6

1.6

1.7

2.0

2.5

405-1

–

Minorities4% U.S. Employees

12.5

11.8

11.6

12.9

14.5

405-1

–

American Indian or Alaskan Native% U.S. Employees

0.4

0.4

0.4

0.6

0.6

405-1

–

Asian

% U.S. Employees

1.2

1.2

1.3

1.2

1.2

405-1

–

Black or African American% U.S. Employees

5.6

5.2

5.0

5.6

6.4

405-1

–

Hispanic or Latino% U.S. Employees

3.8

3.9

3.7

4.0

4.2

405-1

–

Native Hawaiian or Other Pacific Islander% U.S. Employees

0.1

0.1

0.1

0.1

0.1

405-1

–

Two or More Races% U.S. Employees

1.4

1.4

1.2

1.5

1.9

405-1

–

Caucasian% U.S. Employees

87.5

87.7

88.4

87.1

85.5

405-1

–

Women in STEM Positions5% Women in STEM
Positions

15.5

17.1

18.2

18.8

21.9

405-1

–

Women in Revenue Generating Functions6% Women in Revenue
Generating Functions

29.5

30.7

33.9

33.3

34.7

405-1

–

CanadaCPKC | 2022 Sustainability Data Report

U.S.

Indigenous is defined as all First Nations, Inuit, Métis and North American Indian peoples. This metric is not tracked in the U.S.
Persons with Disabilities is defined as individuals who have self-identified as having a long-term or recurring physical, mental, sensory, psychiatric or learning impairment and who (a) consider themselves to be disadvantaged in employment by reason of that impairment, or (b) believethat an employer or potential employer is likely to consider them to be disadvantaged in employment by reason of that impairment, and includes persons whose functional limitations owing to their impairment have been accommodated in their current job or workplace.
3
Visible Minorities are persons, other than Indigenous who self-identify as non-White in color.
4
Minorities are persons who self-identify as African American, Hispanic, Native American, Asian Pacific, or Asian Indian, or minorities not included elsewhere, including one or more minorities.
5
Women in STEM positions is defined as women in non-union positions in Information Services, Railway Technology, Operations (Engineering, Mechanical and Support) and Corporate Risk (Regulatory & Environmental) teams that have roles that require a background and/or
education in Science, Technology, Engineering or Mathematics (STEM) as a percentage of all such positions.
6
Women in management positions in revenue generating functions (i.e. sales and marketing) as a percentage of all such positions.
1236

New Hires

Units

2018

2019

2020

2021

2022

GRI

SASB

Total Positions Hired# Positions

4,181

3,871

2,312

2,463

4,291

401-1

–

Total New Hires# Employees

2,402

1,756

1,166

1,610

3,164

401-1

–

Internal Hires1# Employees

1,779

2,115

1,146

853

1,127

401-1

–

% Total Positions
Hired

42.5

54.6

49.6

34.6

26.3

401-1

–

Women

% New Hires

9.6

11.2

10.5

10.2

9.7

401-1

–

Men

% New Hires

90.4

88.8

89.5

89.8

90.3

401-1

–

< 30 Years Old% New Hires

44.7

52.6

46.6

41.9

44.3

401-1

–

30–50 Years Old% New Hires

48.3

41.5

44.6

51.9

49.0

401-1

–

Over 50 Years Old% New Hires

7.0

6.0

8.8

6.2

6.7

401-1

–

Canada% New Hires

78.6

86.0

84.0

73.3

76.6

401-1

–

U.S.

% New Hires

21.4

14.0

14.0

26.7

23.4

401-1

–

Rate of Internal Hires

CPKC | 2022 Sustainability Data Report

GenderAge

Region1

37Internal Hires is defined as an existing employee moving to a new position, including all promotions and lateral moves within CP during the reporting year.

Employee Turnover

Units

2018

2019

2020

2021

2022

GRI

SASB

Total Employee Turnover1# Employees

1,785

1,705

1,446

1,951

2,750

401-1

–

Employee Turnover Rate2% Total Employees

14.0

13.6

12.2

16.5

21.6

401-1

–

Voluntary Employee Turnover Rate3% Total Employees

7.0

7.0

5.8

9.8

14.2

401-1

–

Women

% Women Employees

15.7

15.3

12.0

18.8

21.2

401-1

–

Men

% Men Employees

13.8

13.4

12.2

16.2

25.0

401-1

–

< 30 Years Old% Age Group

16.4

19.1

15.6

21.8

30.7

401-1

–

30–50 Years Old% Age Group

10.0

8.9

8.4

13.1

17.9

401-1

–

Over 50 Years Old% Age Group

20.0

20.7

18.1

20.8

23.3

401-1

–

Canada% Region

13.7

13.7

11.7

15.6

21.1

401-1

–

U.S.

% Region

15.2

13.2

13.8

19.5

23.1

401-1

–

CPKC | 2022 Sustainability Data Report

GenderAge

RegionTotal Employee Turnover refers to the number of workers who left CP during the reporting period. This includes retirements and voluntary and involuntary attrition.
Employee Turnover Rate is calculated as total turnover by employee category divided by the total number of employees in each category.
3
Voluntary Employee Turnover Rate refers to employees who leave CP of their own volition, and does not include departures due to retirement. These values are calculated as total voluntary turnover divided by total number of employees.
12

38

Employee Training and Development1

2018

2019

2020

2021

2022

GRI

SASB

Union Employees

Avg. Hours / Employee

41

65

30

50

52

404-1

–

Non-union Employees

Avg. Hours / Employee

67

55

46

46

40

404-1

–

Women

Avg. Hours / Employee

*

*

28

35

34

404-1

–

Men

Avg. Hours / Employee

*

*

42

48

53

404-1

–

$ Millions

51.2

58.5

29.7

56.6

61.9

–

–

$

4,006

4,657

2,497

4,786

4,856

–

–

Units

2018

2019

2020

2021

2022

GRI

SASB

Total Training Cost2

CPKC | 2022 Sustainability Data Report

Units

Average Spend on Training
per Full-Time Employee

Community Investment
Investments and Donations
CanadaCommunity Investments by CP$

4,000,947

3,531,458

4,018,341

4,232,459

5,499,332––

Monetary Donations by CP$

3,617,418

3,447,379

3,698,021

3,816,220

5,307,108––

In-kind Donations by CP$

383,529

84,079320,320

416,239

192,224––

Community & Employee Donations – CP Led$

1,367,233

1,930,783

1,671,521

2,541,584

2,210,022––

Community Investments by CP

U.S.$

415,086

553,676

2,174,680

1,055,841

962,997––

Monetary Donations by CP

U.S.$

415,086

553,676

2,170,280

1,054,841

962,997––

In-kind Donations by CP

U.S.$

0

0

4,400

1,000

0

–

–

Community & Employee Donations – CP Led

U.S.$

303,459

321,261

570,530

306,754

169,056

–

–

U.S.

Training Hours include training related to in-class training provided by internal trainers; CP’s web-based learning management system; and external consultants. Hours do not include on-the-job employee training. The decrease in CP’s training-related metrics from 2019-2021 islargely a result of the impacts from the COVID-19 pandemic on in-person training and the associated reduction in hiring.
2
Training Costs include expenses related to the management of CP’s Training and Learning and Development departments; costs for internal trainers; CP’s web-based learning management system; external consultants; online learning platforms such as Harvard ManageMentor; andcompensation for employee time while training. Costs do not include field-based or on-the-job employee training.
1

39

KCS 2022 SUSTAINABILITY METRICS
Information in this section of the report is with respect to KCS on a standalone basis. This report includes and relies upon sustainability information prepared by or on behalf of KCS, which may have been prepared using
methodologies, data and assumptions that are different than those used by CP. Therefore, information we include in this report with respect to KCS may not be directly comparable to the corresponding CP information(see “About This Report”). In this section, currency-related values for KCS are reported in U.S. dollars (U.S.$) unless otherwise stated.

GOVERNANCE AND BUSINESS ETHICS

CPKC | 2022 Sustainability Data Report

Board of Directors Composition1

Units

2018

2019

2020

2021

2022

GRI

SASB

Number of Directors# Directors

12

10

10

10

10

2-9

–

Board Independence2% Directors

92

90

90

90

90

2-9

–

0-5 years

6

6

6

6

1

2-9

–

6-10 years

2

2

2

0

5

2-9

–

11+ years

4

2

2

4

4

2-9

–

Mexico# Directors

1

1

1

1

1

405-1

–

U.S.

# Directors

11

9

9

9

9

405-1

–

Hispanic% Directors

2

2

2

2

2

405-1

–

Black or African American% Directors

1

0

0

0

0

405-1

–

Caucasian% Directors

6

5

5

5

5

405-1

–

Women

% Directors

25%

30%

30%

30%

30%

2-9

–

Men

% Directors

75%

70%

70%

70%

70%

2-9

–

Average Tenure

Region3

Race or Ethnicity4

GenderBoard of Directors Composition is reported as of December 31 for all reporting years.
KCS refers to directors who meet the NYSE independence standards as “Independent Directors.” All directors of KCS (other than Mr. Ottensmeyer, KCS’s President and Chief Executive Officer) are Independent Directors. The KCS Board has affirmatively determined that each
Independent Director has no material relationship with KCS and is independent in accordance with applicable NYSE listing standards.
3
Regional metrics are calculated based on each director’s country of residence.
4
For Board of Directors Composition, Race and Ethnicity refers to persons who self-identify. Minorities are persons who self-identify as African American, Hispanic, Native American, Asian Pacific, or Asian Indian, or one or more minorities.
1
2

40

Board of Directors Composition1

Units

2018

2019

2020

2021

2022

GRI

SASB

Years

63

63

64

65

66

405-1

–

< 30 Years Old% Directors

0%

0%

0%

0%

0%

405-1

–

30–50 Years Old% Directors

8%

10%

10%

10%

0%

405-1

–

Over 50 Years Old% Directors

92%

90%

90%

90%

100%

405-1

–

Business Ethics

Units

2018

2019

2020

2021

2022

GRI

SASB

Age

CPKC | 2022 Sustainability Data Report

Average Age

1
2

41

Confirmed incidents of corruption2

Total number

0

0

0

0

0

205-3

–

Incidents in which employees were dismissed
or disciplined for corruption

Total number

0

0

0

0

0

205-3

–

Incidents when contracts with business partners
were terminated/not renewed due to violations
related to corruption

Total number

0

0

0

0

0

205-3

–

Board of Directors Composition is reported as of December 31 for all reporting years.
Corruption is defined as “abuse of entrusted power for private gain” which can be instigated by individuals or organizations. Corruption includes practices such as bribery, facilitation payments, fraud, extortion, collusion, and money laundering. It also includes an offer or receipt ofany gift, load, fee, reward, or other advantage to or from any person as an inducement to do something that is dishonest, illegal, or a breach of trust in the conduct of the enterprise’s business.

CPKC | 2022 Sustainability Data Report

ECONOMIC IMPACT
Operational Performance Metrics

Units

2018

2019

2020

2021

2022

GRI

SASB

Revenue Ton-Miles1

Millions

50,233

51,33648,26552,54954,438201-1

TR-RA-000.D

Gross Ton-Miles2

Millions

100,457

101,819

94,434

101,890105,626

201-1–

Carloads Transported

Thousands

2,305.6

2,291.0

2,153.4

2,266.2

2,382.6

201-1

TR-RA-000.A

Intermodal Units Transported

Thousands

1,030.4

979.8

924.5

952.8

1,034.1

201-1

TR-RA-000.B

Train Miles Travelled

Thousands

17,091

16,72013,75014,801

16,071

201-1

TR-RA-000.C

Economic Value Generated

Units

2018

2019

2020

2021

2022

GRI

SASB

Total Revenue3$ Millions

2,714

2,866

2,632.6

2,947.3

3,370.4

201-1–

Economic Value Distributed

Units

2018

2019

2020

2021

2022

GRI

SASB

Total Operating Expenses$ Millions

1,727.7

1,979.7

1,629.6

2,063.5

2,143.3

201-1–

Capital Expenditures4$ Millions

512.3

584.3

410.2

489.4

505.3

201-2

–

Revenue Ton-Mile (RTM) refers to the movement of one revenue-producing ton of freight over a distance of one mile. RTMs measure the relative weight and distance of rail freight moved by KCS.
Gross Ton-Mile (GTM) refers to the movement of one ton of train weight over a distance of one mile. GTMs are calculated by multiplying total train weight by the distance the train moved. Total train weight comprises the weight of the freight cars, their contents and any inactive
locomotives. An increase in GTMs indicates additional workload. GTMs exclude locomotive gross ton-miles.
3
Total Revenue includes all freight and non-freight revenue. Freight revenues are generated from goods or property transported. Non-freight revenues are generated from leasing certain assets; other arrangements, including logistical services and contracts with passenger service
operators; and switching fees.
4
Capital Expenditures are additions to properties. Capital Expenditures include expenditures to expand and enhance the rail network, rolling stock and other infrastructure. These expenditures are aimed at improving efficiency and safety of KCS’s operations. Such investments are also
an integral part of KCS’s multi-year capital program and support growth initiatives.
1
2

42

Supply Chain

Units

2018

2019

2020

2021

2022

GRI

SASB

Total Supplier Spend$ Millions

1,166

1,277

907

1,102

1,639

204-1

–

KCSR

$ Millions

594

670

493

488

1,039

204-1

–

KCSM

$ Millions

572

607

414

614

600

204-1

–

Hispanic/Latino-owned Enterprises% Diverse
Suppliers

51%

56%

61%

75%

72%

–

–

Woman-owned Enterprises% Diverse
Suppliers

21%

27%

15%

18%

17%

–

–

Woman-owned Non-Minority BusinessEnterprises% Women-owned
Enterprises

68%

81%

83%

95%

92%

–

–

Woman-Owned Minority Business Enterprises% Women-owned
Enterprises

32%

19%

17%

5%

8%

–

–

Disadvantaged-owned Enterprises% Diverse
Suppliers

2%

3%

1%

0.3%

1%

–

–

Veteran/African-American/Native-American/
Asian-American Owned Enterprises% Diverse
Suppliers

26%

14%

23%

7%

10%

–

–

CPKC | 2022 Sustainability Data Report

Supplier Diversity1143

Supplier diversity refers to enterprises that self-identify as diverse. Diverse suppliers are enterprises owned by individuals who self-identify as African American, Women, Hispanic, Native American, Asian Pacific, Asian Indian, Disadvantaged or one or more minorities.

SAFETY
Work-Related Incidents

Units

2018

2019

2020

2021

2022

GRI

SASB

Thousands

16,994.2

16,914.4

15,463.1

15,682.8

16,217.6

403-9

–

#

228

208

139

133

145

403-9

–

Injury Rate

2.68

2.46

1.80

1.70

1.79

403-9

–

High-consequence Injuries3

#

*

*

22

25

13

403-9

–

High-consequence Injury Frequency Rate

Rate

*

*

0.28

0.32

0.16

403-9

–

Employee Fatalities

#

*

*

1

0

1

403-9

–

Fatality Frequency Rate (per 200,000 employee hours)

Rate

*

*

0.01

0.00

0.01

403-9

TR-RA-320a.1

Train Incidents

Units

2018

2019

2020

2021

2022

GRI

SASB

Accidents and Incidents5# Accidents

635

605

465

464

507

–

TR-RA-540a.1

FRA Train Accidents6# Accidents

82

60

59

54

44

–

TR-RA-540a.1# Accidents/
Million Train Miles

4.34

3.20

3.78

3.30

2.48

–

TR-RA-540a.1

Train Accidents Involving the Releaseof Hazardous Materials8# Accidents

*

*

2

3

3

–

TR-RA-540a.2

Non-accident Release of Hazardous Materials9# Accidents

*

*

7

162

71

–

TR-RA-540a.2

Hours Worked
Reportable Injuries
KCS Reportable Injuries1

CPKC | 2022 Sustainability Data Report

FRA Reportable Injury Frequency Rate2

Fatalities4

FRA Train Accident Rate7KCSR on-duty injuries are reportable to the FRA per 49 C.F.R. Section 225.19(d). KCSM on-duty reportable injuries are those that involve lost time and are otherwise reportable to the Mexican Institute of Social Security (IMSS). Commuting injuries are excluded.
The Federal Railroad Administration (FRA) Personal Injury Rate Frequency reflects the frequency of personal injuries, multiplied by 200,000, divided by total employee hours. FRA Personal Injuries are limited to personal injuries that require employees to lose time away fromwork, modify their normal duties or obtain medical treatment beyond minor first aid. FRA Personal Injury employee hours are the total hours worked, excluding vacation and sick time, by all employees, excluding contractors.
3
High-consequence injuries are defined as work-related injury that results in a fatality or in an injury from which the worker cannot, does not, or is not expected to recover fully to pre-injury health status within six months (>180 days). High-consequence injury rate refers to highconsequence injuries as defined divided by 200,000 employee work hours.
4
KCS began reporting this data in 2020 but did not track previously.
5
Train-Related Incidents and Accidents refers to any event that causes damage to mobile on-track equipment during the course of railway operations.
6
FRA Train Accident refers to a subset of reported train-related incidents and includes only those events involving damage exceeding a specific monetary value set by the FRA. The reporting threshold for 2017–2020 was U.S. $10,700 in damage and U.S. $11,200 in damage for 2021.
7
FRA Train Accident Rate reflects the number of train accidents resulting in damage exceeding a specific monetary threshold (set by FRA), multiplied by 1,000,000, divided by total train miles travelled during the reporting period.
8
Train-Related Accidents Involving the Release of Hazardous Materials refers to incidents involving the release of hazardous materials (U.S.) from a means of containment during transportation by rail.
9
Non-accident Release of Hazardous Materials refers to an unintentional release of hazardous materials (U.S.) from a means of containment during transportation. These events do not involve a train-related accident and can result from equipment failure or improperly secured
materials. Reported 2020 data was lower as we only reported U.S. data. In 2021, we included KCSM accident releases and non-accident releases (NARs). NARs are out of the operational control of KCSR and KCSM, and are directly related to KCS’s customers’ business practices,not that of the railroad’s.
1244Asset and Network Resiliency

Units

Total Main Track Miles

Miles

Frequency of Internal Railway Integrity Inspections

Ratio

Number of Federal Railroad Administration (FRA)
Recommended Violation Defects

Total Number

2019

2020

2021

2022

GRI

SASB

KCSM: 3,819

KCSM: 3,820

KCSM: 3,834

KCSM: 3,867

KCSM: 3,869

201-1

KCSR: 3,397

KCSR: 3,397

KCSR: 3,285

KCSR: 3,262

KCSR: 3,262

201-1

2 inspections
per week(per FRA
requirements)

2 inspections
per week(per FRA
requirements)

2 inspections
per week(per FRA
requirements)

2 inspections
per week(per FRA
requirements)

2 inspections
per week(per FRA
requirements)–

TR-RA-540a.4

See Safety
SectionSee Safety
SectionSee Safety
SectionSee Safety
SectionSee Safety
Section–

TR-RA-540a.3

TR-RA-000.C

CPKC | 2022 Sustainability Data Report

1

2018

1

45

The FRA requires twice-weekly inspections, with at least one calendar-day interval between inspections if the track has carried passenger trains, or more than 10 million gross tons of traffic during the preceding calendar year. KCS inspects all track at the FRA regulatory levels basedon million gross ton-miles and class of track operated. The majority of KCS tracks do not run passenger trains.

ENVIRONMENT
Energy Efficiency and Emissions
Energy

Units

2018

2019

2020

2021

2022

GRI

SASB

Total Locomotive FuelMillion U.S. Gallons

135.8

134.2

116.5

125.9

133.2

–

–

Total Locomotive FuelMillion Litres

514.2

507.8

441.0

476.5

504.3

–

–

Locomotive Fuel Efficiency1

U.S. Gallons/
1,000 GTMs

1.35

1.31

1.23

1.23

1.26

305-4

–

Energy Consumption

Units

2018

2019

2020

2021

2022

GRI

SASB

Total Energy Consumption2

1,000 MWh

5,606

5,593

4,860

5,245

5,615

302-1

–

Locomotive Diesel

1,000 MWh

5,470

5,402

4,690

5,068

5,363

302-1

–

Locomotive – Renewable Fuel1,000 MWh

0

0

0

0

0

302-1

TR-RA-110a.3

Other Liquid Fuel3

1,000 MWh

70

112

96

110

184

302-1

–

Natural Gas and Propane

1,000 MWh

3.5

2.6

1.8

2.7

4.8

302-1

–

Electricity Consumption

1,000 MWh

63

77

72

64

63

302-1

–

Self-Generated Renewable Electricity

1,000 MWh

0

0

0

0

0

302-4

–

Energy Intensity – Total Company

kWh/1,000 GTMs

55.8

54.9

51.5

51.5

53.0

302-3

–

Energy Intensity – Locomotive Fuel

kWh/1,000 GTMs

54.4

53.1

49.7

49.7

50.7

302-3

–

CPKC | 2022 Sustainability Data Report

Fuel

Fuel efficiency is calculated by taking locomotive fuel consumed in gallons divided by thousand gross ton miles (GTMs) net of detours with no associated fuel gallons. GTMs are the movement of one ton of train weight over one mile calculated by multiplying total train weightby distance the train moved. GTMs exclude locomotive gross ton-miles.
2
Total Energy Consumption includes all liquefied gas, fuel and electricity consumed inside the organization during the reporting year.
3
Other Liquid Fuel includes all liquid and gaseous fuel, excluding locomotive diesel, consumed by the organization during the reporting period. Common fuel reported here includes gasoline, diesel, heating oil, and jet fuel.
1

46

Emissions

Units

2018

2019

2020

2021

2022

GRI

SASB

Total Direct & Indirect Greenhouse Gas (GHG)
Emissions: Scope 1 & 21

1,000 Metric
Tonnes CO2e

1,441.8

1,451.3

1,262.0

1,369.1

1,450.2––

Direct (Scope 1) GHG Emissions

1,000 Metric
Tonnes CO2e

1,409.4

1,412.3

1,225.8

1,339.2

1,421.4

305-1

TR-RA-110a.1

Locomotive

1,000 Metric
Tonnes CO2e

1,391.2

1,382.8

1,200.7

1,297.5

1,375.3

305-1

TR-RA-110a.1

Other Scope 12

1,000 Metric
Tonnes CO2e

18.2

29.5

25.1

41.8

46.1

305-1

TR-RA-110a.1

CO21,000 Metric
Tonnes CO2e

1,396.3

1,398.7

1,214.0

1,314.1

1,407.6

305-1

TR-RA-110a.1

CH41,000 Metric
Tonnes CO2e

0.04

2.90

2.54

2.74

2.89

305-1

TR-RA-110a.1

N2O

1,000 Metric
Tonnes CO2e

0.11

10.60

9.21

10.11

10.83

305-1

TR-RA-110a.1

HFC

1,000 Metric
Tonnes CO2e

*

0.11

0.05

0.06

0.12

305-1

TR-RA-110a.1

CPKC | 2022 Sustainability Data Report

Direct Scope 1 Emissions3

Values reflect a combined total of Direct (Scope 1) GHG emissions from KCS owned or controlled sources (primarily locomotives) and Indirect (Scope 2) GHG emissions from the generation of purchased energy (KCS’s electricity consumption.)
Other Scope 1 GHG emissions include GHG emissions related to off-road vehicles, vehicle fleet, work equipment and stationary sources such as propane and natural gas for heating facilities.
3
Direct (Scope 1) GHG Emissions are calculated following The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition). Total gas emissions are presented as 1,000 Metric Tonnes CO2e and have been converted following global warming
potentials from IPCC Fourth Assessment Report (AR4).
1
247

CPKC | 2022 Sustainability Data Report

Air Emissions1

Units

2018

2019

2020

2021

2022

GRI

SASB

NOx

Metric Tons

16,773

14,126

11,734

11,96911,999305-7

TR-RA-120a.1

SOx

Metric Tons

12.4

14.4

11.6

12.9

14.8

305-7

–

Carbon monoxide (CO)Metric Tons

3,528

3,856

3,326

3,581

3,779

305-7

–

Ozone Depleting Substances (ODS)2Metric Tons

0

0.05

0.02

0.0

0.01

305-6

–

Volatile Organic Compounds (VOC)

Metric Tons

571

587

460

572

590

305-7

–

Hydrocarbons

Metric Tons

824

604

489

504

506

305-7

–

Particulate matter (PM)Metric Tons

484

357

282

286

276

305-7

TR-RA-120a.1

Indirect (Scope 2) GHG Emissions3

1,000 Metric Tonnes CO2e

32.4

39.0

36.1

29.9

28.8

305-2

–

Other Indirect (Scope 3) GHG Emissions4

1,000 Metric Tonnes CO2e

*

946.1

782.5

891.4

972.6

305-3

–

Purchased Goods & Services and Capital Goods5

1,000 Metric Tonnes CO2e

*

591.0

448.8

537.8

598.9

305-3

–

Fuel and Energy-Related Activities

1,000 Metric Tonnes CO2e

*

310.2

279.2

306.7

328.7

305-3

–

Upstream Transportation and Distribution7

1,000 Metric Tonnes CO2e

*

4.1

3.3

4.8

3.4

305-3

–

Waste Generated in Operations8

1,000 Metric Tonnes CO2e

*

1.6

15.3

12.9

14.0

305-3

–

Business Travel9

1,000 Metric Tonnes CO2e

*

5.3

4.0

4.3

4.5

305-3

–

Employee Commuting10

1,000 Metric Tonnes CO2e

*

33.9

32.0

25.0

23.1

305-3

–

Indirect Emissions Scope 2 & 3

6

Locomotive Air Emissions refers to common contaminants associated with the combustion of fuel by KCS’s locomotive fleet. Calculations are specific to each locomotive’s corresponding EPA emissions tier class. Air emissions are derived by combining KCS active locomotive fleet
data with EPA tier class emissions factors, total fuel consumed and nature of locomotive use (line haul or switching).
2
Ozone Depleting Substances (ODS) are not considered GHG emissions and are not included in the Kyoto list of gases. ODS are reported separately from Scope 1 emissions.
3
Indirect (Scope 2) GHG Emissions consist of market-based emissions from the generation of electricity purchased by KCS. U.S. emissions are based on the U.S. Green-e Residual Mix emissions factors and Mexico emissions are based on the National Registry of RENE Emissions
Electricity emission factor for 2022. Electricity usage is based on electric utility billing data.
4
Prior to 2019, KCS’s Other Indirect (Scope 3) GHG Emissions was not calculated. In 2019, KCS expanded GHG reporting to include additional relevant Scope 3 emissions categories of Purchased Goods & Services and Capital Goods, Fuel and Energy-Related Activities, upstream
transportation and distribution, waste generated in operations, business travel, and employee commuting for 2019.
5
An estimate of GHG emissions related to Purchased Goods & Services and Capital Goods was derived from using the GHG Protocol Scope 3 Evaluator Tool. Emissions are highly estimated based on simplified approaches acceptable by the GHG Protocol.
6
Fuel and Energy-Related Activities include upstream emissions associated with the fuel that KCS uses to operate, from fuel combusted for generation of electricity purchased by KCS and transmission and distribution losses from electricity consumed.
7
Upstream Transportation and Distribution refers to GHG emissions related to the transport of purchased material, truck transport of intermodal containers, and postage and couriers. Emissions from transport of purchased material were calculated using each order’s weight andtransport distance with ton-mileage emissions factors for trucks. For all Upstream Transportation and Distribution, U.S. EPA Center for Corporate Climate Leadership Emission Factor Hub emission factors for transportation and distribution were used.
8
Waste Generated in Operations refers to GHG emissions associated with annual waste generated by KCS, which are derived using factors from the U.S. EPA Center for Corporate Climate Leadership Emission Factor Hub. KCS waste management data reported may include
operational, office, incidents, construction, and other factors. KCS is always striving to improve its data completeness and in 2019 began introducing KCSM waste data (used oil and batteries). In this way, KCS has also included additional waste data sources and further
separated out components where it is possible.
9
Business Travel refers to GHG emissions associated with business travel including vehicle rentals, personal travel miles, crew shuttle services, and flights. Emissions factors for vehicle rentals, personal travel miles, crew shuttles and passenger flights from the U.S. EPA Center for
Corporate Climate Leadership were used to calculate GHG emissions.
10
Employee Commuting emissions were estimated using employee home and work zip codes data in the U.S. and Mexico. GHG emissions were calculated following emissions factors from the U.S. EPA Center for Corporate Climate Leadership.
148

CPKC | 2022 Sustainability Data Report

GHG Emissions Intensity1

2018

2019

2020

2021

2022

GRI

SASB

Company (Scope 1 and 2)

kg CO2e/1,000 GTMs

14.4

14.3

13.4

13.4

13.7

305-4

–

Locomotive (Scope 1)

kg CO2e/1,000 GTMs

13.8

13.6

12.7

12.7

13.0

305-4

–

Company (Scope 1 and 2)

kg CO2e/1,000 RTMs

28.7

28.3

26.1

26.1

26.6

305-4

–

Locomotive (Scope 1)

kg CO2e/1,000 RTMs

27.7

26.9

24.9

24.7

26.6

305-4

–

Revenue (Scope 1 and 2)

MT CO2e/$ Million Revenue

531.3

506.4

479.4

464.5

430.3

305-4

–

Employee (Scope 1 and 2)

kg CO2e/Employee

200,004

206,261

193,492

197,594

206,261

305-4

–

Units

2018

2019

2020

2021

2022

GRI

SASB

GHG Intensity (Scope 1 and 2)

SBTi Approved
2034 Target –metric tonnes
CO2e/MGTM

*

14.25

13.36

13.44

13.70

305-5

TR-RA-110a.2

GHG Science-Based Target Progress% of 2030
Target Achieved*

Base Year

14.9%

13.5%

9.3%

305-5

TR-RA-110a.2

Science-Based Emissions Targets

1

49

Units

GHG Emissions Intensity values represent those most commonly presented or publicly requested within the freight rail sector. Company GHG Emissions Intensity includes total Scope 1 and 2 emissions divided by gross ton-miles (GTMs), revenue ton-miles (RTMs), revenue, andtotal number of employees during the reporting period. Intensity metrics are also provided specific to locomotive GHG emissions.

CPKC | 2022 Sustainability Data Report

Environmental Footprint
Environmental

Units

2018

2019

2020

2021

2022

GRI

SASB

Environmental Audits Completed1# Audits

0

1

2

1

3

2-27

–

Number of Environmental Fines# Fines

0

1

0

2

0

2-27

–

Environmental Fines$ Total Spent

0

0

0

$23,892

0

2-27

–

Environmental Liability for Fines Accruedat Year-End2$ Total Accrued

0$15,204$15,024$127,704$127,7042-27–

Significant Spills3# Spills

0

0

0

0

0

–

–

Water

Units

2018

2019

2020

2021

2022

GRI

SASB

Water Discharge4

ML

358.5

430.8

507.2

497.4

260.30303-4–Discharge to Surface Water

ML

*

*

314.9

272.9

74.7

303-4

–

Discharge to POTW’s

ML

*

*

192.3

224.5

185.6

303-4

–

Environmental audits are defined as self-audits or third-party internal audits performed on behalf of KCS (e.g., Responsible Care, ISO, pre-audit for certification).
Environmental Liability for Fines Accrued at Year-End includes the dollar amount of any outstanding or expected environmental fines or penalties not paid by KCS by the end of the annual reporting period.
3
Significant spills are defined as a spill that is included in the organization’s financial statements, for example due to resulting liabilities, or is recorded as a spill by the organization.
4
KCS discharges industrial wastewater in a responsible manner according to local regulations and permits. All wastewater discharges are planned. Where applicable, KCS processes industrial wastewater through treatment plants, including oil water separators, dissolved air
flotation, chemical injection and activated carbon systems. Treated effluent is typically discharged to publicly owned sewage treatment works for further treatment. Currently, treated effluent from KCS wastewater treatment plants is not reused for other purposes. KCS does not
currently report on water discharge quality.
1250

Waste1

Units

2018

2019

2020

2021

2022

GRI

SASB

Total Waste Generated2

Metric Tonnes

43,43990,73545,921

49,12655,000306-3–

Hazardous Waste Generated

Metric Tonnes

1,185

796

1,108

1,961

1,582

306-3

–

Non-Hazardous Waste Generated

Metric Tonnes

42,25489,93944,812

47,16553,418306-3–

Diverted

Metric Tonnes

1,185

759

653

510

694

306-4

–

Recycled

Metric Tonnes

1,185

*

8

2

2

306-4

–

Recovered/Energy Recovery

Metric Tonnes

*

759

645

507

692

306-4

–

Other Offsite Recovery Operations3

Metric Tonnes

*

*

*

*

*

306-4

–

Disposed

Metric Tonnes

*

37

455

1,452

888

306-5

–

Incinerated

Metric Tonnes

63

37

69

80

27

306-5

–

Landfill

Metric Tonnes

*

*

*

1,372

862

306-5

–

Diverted

Metric Tonnes

34,231

23,44527,44332,14338,986306-4–

Other Offsite Recovery Operations

Metric Tonnes

13,594

7,144

3,475

6,847

18,900306-4–Recycled

Metric Tonnes

11,634

7,299

21,371

16,655

16,481

306-4–

Recovered/Energy Recovery

Metric Tonnes

9,003

9,003

2,597

8,640

3,605

306-4

–

Disposed

Metric Tonnes

8,023

66,494

17,37015,022

14,432306-5–

Incinerated

Metric Tonnes

19

*

*

*

*

306-5

–

Landfill

Metric Tonnes

8,004

66,494

17,37015,022

14,432306-5–

CPKC | 2022 Sustainability Data Report

Hazardous Waste

Non-Hazardous Waste

KCS waste management data reported may include operational, office, incidents, construction, and other factors. KCS is always striving to improve its data completeness and in 2019 began introducing KCSM waste data (used oil and batteries). In this way, KCS has also
included additional waste data sources and further separated out components where it is possible. All KCS waste is diverted or disposed of offsite unless specifically noted.
2
Definitions of hazardous and non-hazardous waste are aligned with Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal. Waste disposal methods and associated quantities are provided to KCS by third party waste disposal
contractors and tracked by KCS’s third party consultant.
3
KCS’s offsite recovery operations include deep-well injection, fuel-blending, on-site storage and other recovery methods.
151

SOCIAL IMPACT
Workforce Diversity and Inclusion
Workforce Composition1

Units

2018

2019

2020

2021

2022

GRI

SASB

Full-time Employees

Total Number

7,209

7,036

6,522

6,929

7,031

2-7

–

Women

Total Number

368

365

333

374

422

2-7

–

Women

% Workforce

5%

5%

5%

5%

6%

2-7

–

Men

Total Number

6,841

6,673

6,189

6,555

6,609

2-7

–

Men

% Workforce

95%

95%

95%

95%

94%

2-7

–

Non-Agreement Employees

Total Number

1,706

1,712

1,614

1,801

1,844

Women

Total Number

316

317

299

322

351

2-7

–

Women

% Non-Agreement
Workforce

19%

19%

19%

18%

19%

2-7

–

Men

Total Number

1,390

1,395

1,315

1,479

1,493

2-7

–

Men

% Non-Agreement
Workforce

81%

81%

81%

82%

81%

2-7

–

KCSR

% Workforce of KCSR

28%

29%

30%

30%

30%

2-7

–

KCSM

% Workforce of KCSM

21%

21%

21%

23%

24%

2-7

–

CPKC | 2022 Sustainability Data Report

Total Employees2

1
2

52

Demographics data sourced from the KCS December 2022 mid-month payroll headcount.
Total Employees refers to individuals currently engaged in full-time employment with KCS. The count is based on employees as of December 2022 mid-month payroll headcount.

CPKC | 2022 Sustainability Data Report

Workforce Composition

2018

2019

2020

2021

2022

GRI

SASB

Agreement Employees

Total Number

5,503

5,324

4,908

5,128

5,187

Women

Total Number

52

46

34

52

52

2-7

–

Women

% Agreement Workforce

1%

1%

1%

1%

1%

2-7

–

Men

Total Number

5,451

5,278

4,874

5,076

5,135

2-7

–

Men

% Agreement Workforce

99%

99%

99%

99%

99%

2-7

–

KCSR

% Workforce of KCSR

72%

71%

70%

70%

70%

2-7

–

KCSM

% Workforce of KCSM

79%

79%

79%

77%

76%

2-7

–

< 30 Years Old% Workforce

14%

13%

11%

12%

12%

405-1

–

30–50 Years Old% Workforce

59%

60%

61%

60%

60%

405-1

–

Over 50 Years Old% Workforce

27%

27%

28%

28%

28%

405-1

–

Units

2018

2019

2020

2021

2022

GRI

SASB

American Indian or Alaskan Native% U.S. employees

1.1%

1.2%

1.1%

1.2%

1.5%

405-1

–

Asian or Asian-American% U.S. employees

1.2%

1.2%

1.4%

1.3%

1.4%

405-1

–

Black or African-American% U.S. employees

21.1%

21.1%

20.7%

21.0%

20.2%

405-1

–

Hispanic or Latino(a)% U.S. employees

8.0%

8.7%

9.1%

9.5%

10.0%

405-1

–

Native Hawaiian or Other Pacific Islander% U.S. employees

0.1%

0.1%

0.1%

0.1%

0.1%

405-1

–

Two or More Races% U.S. employees

0.9%

0.9%

0.9%

0.7%

0.9%

405-1

–

Full-time Employees by Age

Employment Equity
Minorities1 U.S.2

1
2

53

Units

Minorities are based on self-identification of employee status at KCS.
Employee diversity is only reported for the U.S.

New Hires

Units

2018

2019

2020

2021

2022

GRI

SASB

Total New Hires

Total Number

515

540

146

883

757

401-1

–

U.S. Management Women & People of Color% New Hires

44%

46%

57%

34%

49%

401-1

–

Mexico Management Women% New Hires

15%

16%

28%

16%

30%

401-1

–

< 30 Years Old% KCSR New Hires

37%

39%

21%

19%

36%

401-1

–

30-50 Years Old% KCSR New Hires

55%

52%

67%

56%

54%

401-1

–

Over 50 Years Old% KCSR New Hires

8%

9%

12%

25%

10%

401-1

–

< 30 Years Old% KCSM New Hires

49%

35%

35%

28%

36%

401-1

–

30-50 Years Old% KCSM New Hires

49%

52%

56%

68%

52%

401-1

–

Over 50 Years Old% KCSM New Hires

2%

13%

9%

4%

12%

401-1

–

Attrition Rate

%

7.0%

9.5%

8.0%

8.8%

8.5%

401-1

–

Average Employee Tenure

Years

11.9

12.0

12.6

12.4

12.5

401-1

–

Employee Turnover1

Units

2018

2019

2020

2021

2022

GRI

SASB

New Hires by Age & Country

CPKC | 2022 Sustainability Data Report

KCSR

KCSM

Tenure and Attrition

Total Turnover Rate2% Total Employee Population

*

*

8.1%

8.7%

8.5%

401-1

–

Voluntary Turnover Rate3% Total Employee Population

*

*

5.8%

5.9%

5.7%

401-1

–

Involuntary Turnover Rate4% Total Employee Population

*

*

2.3%

2.8%

2.8%

401-1

–

Total Employee Turnover refers to the number of workers who left KCS during the reporting period. This includes retirements and voluntary and non-voluntary terminations.
Employee Turnover Rate is calculated as total turnover by employee category divided by the total number of employees in each category.
3
Voluntary Employee Turnover Rate refers to employees who leave KCS of their own volition and does not include departures due to retirement. These values are calculated as total voluntary turnover divided by total number of employees.
4
Involuntary Employee Turnover Rate refers to employees who are terminated from KCS. These values are calculated as total involuntary turnover divided by total number of employees.
12

54

Employee Turnover

Units

2018

2019

2020

2021

2022

GRI

SASB

Voluntary Turnover Rate by Gender
Women% Total Voluntary Terminations

*

*

9%

10%

6%

401-1

–

Men

% Total Voluntary Terminations

*

*

91%

90%

94%

401-1

–

Women

% Total Involuntary Terminations

*

*

3%

8%

4%

401-1

–

Men

% Total Involuntary Terminations

*

*

97%

92%

96%

401-1

–

< 30 Years Old% Total Voluntary Terminations

*

*

10%

15%

15%

401-1

–

30–50 Years Old% Total Voluntary Terminations

*

*

33%

40%

43%

401-1

–

Over 50 Years Old% Total Voluntary Terminations

*

*

57%

45%

42%

401-1

–

< 30 Years Old% Total Involuntary Terminations

*

*

21%

19%

19%

401-1

–

30–50 Years Old% Total Involuntary Terminations

*

*

65%

59%

57%

401-1

–

Over 50 Years Old% Total Involuntary Terminations

*

*

14%

23%

24%

401-1

–

KCSR

% Total U.S. Employee
Population

*

*

7.5%

8.6%

7.5%

401-1

–

KCSM

% Total Mexico Employee
Population

*

*

4.4%

3.8%

4.4%

401-1

–

KCSR

% Total U.S. Employee
Population

*

*

2.6%

4.1%

4.2%

401-1

–

KCSM

% Total Mexico Employee
Population

*

*

2.0%

1.9%

1.8%

401-1

–

CPKC | 2022 Sustainability Data Report

Involuntary Turnover Rate by Gender

Voluntary Turnover Rate by Age

Involuntary Turnover Rate by Age

Voluntary Turnover Rate by Region

Involuntary Turnover Rate by Region

55

Community Investment
Investments and Donations

Units

2018

2019

2020

2021

2022

GRI

SASB

Total Contributions

U.S.$

2,492,519

1,195,671

1,536,047

1,267,674

2,943,805––

KCS Discretionary Contributions1U.S.$

1,319,875

328,850

500,250

623,655

2,218,417––

KCS Matching Gifts Program

U.S.$

1,121,178

822,133

635,877

604,954

689,061––

United Way

U.S.$

51,46644,68849,92039,06536,327––KCSR COVID-19 Relief Efforts

U.S.$

*

*

350,000

*

–

–

–

Holiday Express Fundraising Campaign

U.S.$

175,256

170,450

277,924

290,078

217,571––

CPKC | 2022 Sustainability Data Report

KCSR

1

56

Restatement: Value was reported incorrectly for 2020; KCS Charitable Fund has been updated to reflect the accurate figure.

CPKC GLOBAL HEADQUARTERS
7550 Ogden Dale Road S.E. Calgary, AB
Canada T2C 4X9
www.cpkcr.com/en-ca/sustainability

OTHER CONTACTS
Report any suspicious activity or
emergencies as soon as you see them.
Canadian Pacific (CP):
1-800-716-9132
Kansas City Southern (KCS):
U.S.: 1-877-527-9464
MX: 011-52-82-8305-7911

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