Sustainability Metrics

¹ Total 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 of recordable 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 not track contractor hours worked. Subsequently, CP cannot calculate a total recordable work-related injuries rate.

⁴ Lost Time Injury Frequency Rate (LTIFR) reflects an injury that results in calendar days away from work, as recommended by a physician. LTIFR is calculated as total number of injuries that result in an employee losing time away from work, multiplied by 200,000 or 1,000,000, divided by total employee-hours worked during the reporting period.

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 US$10,700 in damage and US$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 vs. Vehicle Fatalities refers to incidents involving train and road vehicle collisions that result in a fatality.

⁹ Train vs. Vehicle Injuries refers to incidents involving train and vehicle collisions that result in an injury.

¹⁰ 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.

¹¹ 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.

¹² Grade Crossing Accident Rate refers to any impact between on-track railway equipment and a highway user at a highway-rail grade crossing. Highway-rail grade crossing means: (1) a location where a public highway, road, street or private roadway, including associated sidewalks, crosses one or more railway tracks at grade; or (2) a location where a pathway explicitly authorized by a public authority or a railway carrier (dedicated for the use of non-vehicular traffic, including pedestrians, bicyclists and others), not associated with a public highway, road, street or private roadway, crosses one or more railway tracks at grade.

¹³ 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.

 

¹ 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 greenhouse gas (GHG) emissions intensity. Fuel efficiency for 2021 was 0.931 U.S. gallons/1,000 GTMs, an improvement of 1% compared to 0.942 U.S. gallons/1,000 GTMs in 2020. This improvement was due to running longer and heavier trains as a result of improvements in the operating plan.

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. In 2021, CP generated a total of 4,378 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 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.

⁸ 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. Reported Other Scope 1 GHG emissions for 2019 have been updated to include 6,000 metric tonnes of GHG emissions related to U.S. based Scope 1 emissions from stationary equipment not included in prior year reporting.

⁹ 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).

¹⁰ 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.

¹¹ 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 2020 emissions factors. Electricity usage is based on electric utility billing data.

¹² Prior to 2019, CP’s reporting on Other Indirect (Scope 3) GHG Emissions was limited to Business Travel. In 2019, CP 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, 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.

¹³ 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.

¹⁴ 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.

¹⁵ 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 and transport 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.

¹⁶ 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.

¹⁷ 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.

¹⁸ 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.

¹⁹ 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 ton-miles (RTMs) or revenue tonne-kilometres (RTKs) during the reporting period. Intensity metrics are also provided specific to locomotive GHG emissions.

²⁰ 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 our locomotives.

²¹ Non-Locomotive Emissions refers to emissions for Scope 1 Non-locomotive operations (including vehicle fleets, buildings and other facilities), and Scope 2 emissions.

²² 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 data with 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.

²³ Average Terminal Dwell is defined as the average time a freight car resides within terminal boundaries expressed in hours. The timing starts with a train arriving at the terminal, a customer releasing the car to the Company, or a car arriving at interchange from another railroad. The timing ends when the train leaves, a customer receives the car from CP, or the freight car is transferred to another railroad. Freight cars are excluded if they are being stored at the terminal or used in track repairs. A decrease in average terminal dwell indicates improved terminal performance resulting in faster cycle times and improved railcar utilization. Average terminal dwell of 7.2 hours in 2021 increased by 11% from 6.5 hours in 2020. This unfavourable increase was a result of aligning the operating plan to demand in order to maintain network efficiencies, as well as the impacts of the B.C. wildfires in the third quarter and B.C. floods in the fourth quarter of 2021. Aligning the operating plan to demand resulted in increased average train weight and average train length.

²⁴ Average Train Speed is defined as a measure of the line-haul movement from origin to destination including terminal dwell hours. It is calculated by dividing the total train miles travelled by the total train hours operated. This calculation does not include delay time related to customers or foreign railways and excludes the time and distance travelled by: i) trains used in or around CP’s yards; ii) passenger trains; and iii) trains used for repairing track. An increase in average train speed indicates improved on-time performance resulting in improved asset utilization. Average train speed was 21.6 mph in 2021, a decrease of 2%, from 22.0 mph in 2020. This decrease in speed was driven primarily by harsh winter operating conditions in the first quarter of 2021 as well as the impact of the B.C. wildfires in the third quarter of 2021.

²⁵ Main Track Inspections includes both regulatory and special track inspections.

²⁶ 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.

²⁷ 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).

²⁸ 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, and advances are made in environmental remediation technology.

²⁹ CP did not complete environmental audits in 2020 due to COVID-19 travel and work restrictions.

³⁰ The environmental penalty in 2018 was an administrative penalty for an event where waste water discharge exceeded permit limits.

³¹ 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.

³² 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. The reported value for 2019 has been updated to reflect actual annual water consumption for CP’s E. Hunter Harrison Campus (headquarters facility). In 2019, this location experienced water meter connectivity challenges which led to inconsistent data quality. This has since been resolved by the utility.

³³ 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 report on water discharge quality.

³⁴ 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 our 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.

³⁵ CP’s offsite recovery operations include deep-well injection, fuel-blending, on-site storage and other recovery methods.

³⁶ 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).

³⁷ Other Track Materials includes anchors, spikes, screw spikes, rail clip fasteners, tie plates and track bolts.

³⁸ 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 Sr. Management at CP includes all Chief, EVP, SVP, VP, AVP, General Counsel, GM, and Managing Director positions.

² Management at CP includes Director, Superintendent, Assistant Chief, General Superintendent, Manager, Assistant Superintendent, Trainmaster, Roadmaster, Assistant Trainmaster and Specialist positions.

³ Non-management – Non-union at CP includes Supervisor, Analyst, and Coordinator positions.

⁴ Non-management – Union at CP is defined as all unionized employees.

⁵ Other Diversity Metrics are based on self-identification of employee status at CP.

⁶ Indigenous is defined as all First Nations, Inuit, Métis and North American Indian peoples. This metric is not tracked in the U.S.

⁷ 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) believe that 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.

⁸ Visible Minorities are persons who self identify, other than Indigenous, who self-identify as non-White in colour.

⁹ 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.

¹⁰ Women in STEM positions is defined as women in non-union positions in Information Services, Innovation and Business Transformation, Finance and Risk and Operations Systems teams that have roles that required a background and/or education in Science, Technology, Engineering or Mathematics (STEM) as a percentage of all such positions.

¹¹ Women in management positions in revenue generating functions (i.e. sales and marketing) as a percentage of all such positions.

¹² Internal Hires is defined as an existing employee moving to a new position, including all promotions and lateral moves within the Company during the reporting year.

¹³ Total Employee Turnover refers to the number of workers who left CP during the reporting period. This includes retirements, and voluntary and non-voluntary terminations.

¹⁴ Employee Turnover Rate is calculated as total turnover by employee category divided by the total number of employees in each category.

¹⁵ Voluntary Employee Turnover Rate refers to employees who leave the Company 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.