SUSTAINABILITY

REPORT

2010
 1 C E O ME SSAG E 5 OUR ECONOMIC PERFORMANCE SUSTAINABILITY
2 C S O ME SSAG E 7 OUR ENVIRONMENTAL PERFORMANCE REPORT
3 A KE Y G OA L 11 OUR SOCIAL PERFORMANCE
2010
Read our complete sustainability report at www.nssustainability.com

CEO MESSAGE

Our 2010 sustainability report thoroughly describes progress toward our

corporate objective to achieve transportation industry leadership in fuel
conservation, emissions reduction, efficient energy use, recycling, use
of renewable materials, and environmental partnerships. This booklet
highlights selected material. I invite you to read the full report, available
exclusively on our environmental website at www.nssustainability.com.

A highlight of the report is our first-ever goal for reducing our carbon
footprint. We have committed to a 10 percent reduction in greenhouse
gas emissions per revenue ton-mile by 2014, using 2009 as the base year.

We plan to achieve the goal through continuing investments in more fuel-

efficient locomotives and technology, innovative information systems,
and public-private partnerships to meet the rising demand for freight
transportation services that keep America’s economy competitive while
reducing fuel consumption and greenhouse gas emissions.

As you click through our 2010 sustainability report, you will read about
how our people have embraced responsible business practices that will
help ensure the ongoing strength of our company, the livability of their
communities, and the quality of their lives. At Norfolk Southern, working
toward sustainable economic, environmental, and social performance is
more than a corporate goal: It’s a way of living.

Wick Moorman
CEO

1 SUSTAINABILITY 2010
CSO MESSAGE

In the three years since Norfolk Southern gave me the opportunity to serve
as corporate sustainability officer, we have made significant progress on our
sustainability journey. We are committed to industry leadership on a path
toward achieving best practices in responsible economic, environmental,
and social performance.

Looking ahead to 2011, we will focus on four priorities.

First, we will dedicate ourselves to making gains toward accomplishing our

five-year goal of reducing greenhouse gas emissions. At the same time,
we will redouble our efforts to improve energy efficiency in our facilities.
Also, we will empower our employees more than ever before to initiate
and implement recycling and other programs that improve the company’s
sustainability performance. Our fourth priority in the coming year will be
to continue engaging the communities we serve, looking for ways to have
impact in the areas of conservation, volunteerism, and civic leadership.

With our people and our communities marching hand-in-hand along the
sustainability path, Norfolk Southern will remain focused on the journey.

Blair Wimbush
Vice President Real Estate and Corporate Sustainability Officer

2
 A KEY GOAL

Reducing greenhouse gas emissions

A year ago, Norfolk Southern began publicly disclosing greenhouse gas

emissions generated by our business operations—from diesel-burning
locomotives to electricity consumed at rail yards and office buildings.

Now, we are committing to an aggressive five-year goal to lower those emissions. By

2014, our goal is to reduce our carbon footprint by 10 percent per revenue ton-mile
of freight we haul, compared with the railroad’s 2009 emission levels.

Based on emissions generated by our business operations in 2009, a 10 percent

reduction would result in 475,000 fewer metric tons of greenhouse gases going into
the atmosphere annually by 2014.

Setting a goal to reduce emissions is a public statement to show our commitment to

environmentally responsible business practices and to transparency in operations.

22%

TRUCKS U.S. Greenhouse Gas Emissions: Trucks vs. Trains TRUCKS U.S. Greenho

TRUCK
TRUCKING INDUSTRY
22% perce
22% percent of emissions from transportation related sources
TRUCK
TRUCKING INDUSTRY 6% perce
6% percent of total U.S. emissions
RAILR
RAILROADS 2.4% perce
2.4% percent of emissions from transportation related sources
RAILR
RAILROADS 0.6% perce
6%
0.6% percent of total U.S. emissions TRUCKS

TRUCKS
Source of in
greenhouse
Source of information: U.S. Environmental Protection Agency report on U.S. 2.4% RAILROADS
greenhouse gases in 2008
RAILROADS 0.6% RAILROADS

3 SUSTAINABILITY 2010
RAILROADS
A look at our carbon footprint in 2009

Diesel locomotives, the railroad’s workhorses, were the single largest source of greenhouse gases produced
by Norfolk Southern’s business operations in 2009. They generated 4.07 million metric tons of emissions, or
about 86 percent of the railroad’s total 4.7 million metric tons of carbon dioxide equivalents.

Part of that total includes approximately 318 metric tons of methane and 103 metric tons of nitrous oxide,
accounting for about 90 percent of the company’s emissions of those greenhouse gases.

To put our railroad’s emissions into perspective, all modes of fossil fuel-based transportation, including
trucks and automobiles, produced 1.8 billion metric tons of carbon dioxide equivalents in 2008, according
to the U.S. Environmental Protection Agency. Of that, railroads emitted around 44 million metric tons—
2.4 percent of transportation-related emissions, and just 0.6 percent of total U.S. emissions.

Norfolk Southern sources of greenhouse gas emissions

Norfolk Southern’s total emission of carbon dioxide

equivalents in 2009 = 4.7 million metric tons

DIESEL FUEL (for locomotives, and fuel oil/off-road diesel)

91% 4.3 million metric tons

ELECTRICITY
5% 243,357 metric tons

GASOLINE
2% 101,093 metric tons

OTHER (coal, jet fuel, natural gas, and propane)

2% 83,302 metric tons

4
 OUR ECONOMIC
PERFORMANCE

Better ways of doing business

Many people think of sustainability in terms of protecting the health

of our natural environment. At Norfolk Southern, we look for ways to
sustain business that are both green and good for the bottom line.

Economic performance is a key component of our sustainability efforts. Our aim is

to lower costs, improve customer service, and increase profitability. Often, we find new
or smarter ways of operating that are more economical and help us and our customers
work greener.

During 2009, our employees launched various initiatives that highlight what we mean
by economic sustainability. Just a few examples:

• Our paper, clay, and forest products group and a major paper customer developed
an innovative solution that improved use and flow of rail cars moving paper product
across our supply chain while enhancing the production of recycled paper.

• Our e-commerce division and customer service group introduced new online
tools that provide customers with real-time information on shipments, including
text-message alerts sent to their cell phones.

• Our transportation planning group and GE Transportation pioneered a train-

movement technology that will expedite train performance across the railroad’s
22-state network and potentially save hundreds of millions of dollars in annual
capital and infrastructure expenses.

5 SUSTAINABILITY 2010
Engine of the future: As recovery from recession continues,
Norfolk Southern is prepared to handle the transportation
needs of a growing economy, creating green jobs moving
freight by energy-efficient, environmentally friendly rail.

Heartland Corridor opening heralds success of public-private partnerships

One of the most extensive railroad engineering projects in modern times, Norfolk Southern’s
Heartland Corridor opened Sept. 9, 2010, after three years of construction to raise vertical
clearances of 28 tunnels and remove 24 overhead obstacles to make room for double-
stacked container trains.

The Heartland Corridor is a template for public-private partnerships that strengthen the
nation’s transportation infrastructure. It sets the stage for an even more ambitious project,
the Crescent Corridor, now in the works. Both of these projects and other public-private
partnerships will create jobs, reduce fuel consumption and greenhouse emissions, take
trucks off congested highways, and generate economic development.

For more information on these and other public-private partnerships to enhance America’s
rail freight transportation network, go to www.thefutureneedsus.com.

6
 OUR ENVIRONMENTAL
PERFORMANCE

Innovation propels our quest to stay ahead

Encouraging employees to think out of the box is integral to Norfolk

Southern’s success. It has helped us lower costs, improve customer service,
boost performance, reduce our footprint on the environment, and bring
new products to the rail industry.

Innovation is a core corporate value for us, included in our SPIRIT values—Safety,
Performance, Integrity, Respect, Innovation, and Teamwork.

• Our willingness to experiment is reflected in our development of NS 999, a prototype

switcher locomotive powered entirely by lead-acid batteries and featuring ground-
breaking energy-storage technology. NS 999 represents a significant benchmark in
our quest for alternative fuel sources to power our locomotives.

• We are exploring a range of alternatives in addition to batteries. We are in a yearlong

trial to evaluate biodiesel blends, a renewable fuel derived from vegetable oils. We
are an advisor to a firm trying to develop an ethanol locomotive equipped with high-
performance engines similar to race-car motors. We’re intrigued by the possibility
of converting coal into cleaner-burning synthetic liquid fuel. For the past year, we’ve
run tests on a dual-engine road locomotive under development by Progress Rail that
aims to reduce fuel use and emissions.

• We have invested heavily in locomotive engine upgrades and other initiatives to

improve fuel efficiency and our environmental performance. By the end of 2010,
more than 88 percent of our locomotives will meet or exceed recent, more stringent
federal emissions standards.

7 SUSTAINABILITY 2010
The power of green: Norfolk Southern is committed to being an industry
leader in environmental responsibility. Strong sustainability practices are
good for our business, the economy, and the environment—benefiting
our people, communities, customers, and shareholders.

8
 Material Recycled
Material Recycled
2007 2008 2009 That’s a lot of crossties, rail, and ballast
2007 2008 2009
CROSSTIES UTILIZED FOR ENERGY RECOVERY Norfolk Southern is a major provider of trans-
1.1 million 1.4 million 1.8 million
CROSSTIES UTILIZED FOR ENERGY RECOVERY portation services in North America and
1.1 million
CROSSTIES 1.4LANDSCAPING
SOLD FOR million 1.8 million operates approximately 21,000 route miles.
868,000
CROSSTIES SOLD
626,000
FOR LANDSCAPING
563,000 Maintaining this infrastructure requires us to
868,000
CROSSTIES USED IN 626,000
INTERNAL 563,000
CASCADING EFFORTS procure significant amounts of crossties, rail,
201,000 314,000
CROSSTIES USED IN INTERNAL CASCADING EFFORTS
301,000 and stone ballast.
201,000
TONS OF METAL 314,000
RECYCLED 301,000
179,000 167,440 92,590 Throughout our system, we use recycled materials,
TONS OF METAL RECYCLED
179,000 167,440 92,590 such as paper and packaging. Approximately
TONS OF SCRAP STEEL RECYCLED
225,000 214,000 210,069
15 percent of the paper, packaging, and office
TONS OF SCRAP STEEL RECYCLED
supplies we purchase includes recycled or
225,000
POUNDS OF 214,000
BATTERIES RECYCLED 210,069
recovered materials. Before we dispose of
923,500 779,724
POUNDS OF BATTERIES RECYCLED
1,060,120
oil filters, we crush them to remove the oil for
923,500 779,724 1,060,120
recycling and to reduce deposits in landfills.
We also recycle used oil from our major
Battery recycling resulted in the following
locomotive shops.
quantities
Battery not being
recycling deposited
resulted in theinfollowing
landfills:
quantities not being deposited in landfills:
2007 2008 2009
Transporting freight by rail is more
2007 2008 2009
POUNDS OF LEAD
465,164 566,920 709,592 fuel-efficient and less carbon-intensive
POUNDS OF LEAD
465,164
POUNDS OF CADMIUM566,920 709,592 than transporting freight by truck.
61,766
POUNDS OF CADMIUM
47,398 21,447
61,766
POUNDS OF NICKEL 47,398 21,447
83,510 72,607 24,762
POUNDS OF NICKEL
Getting the most out of rail’s
83,510 72,607 24,762
energy efficiency

Norfolk Southern consumes diesel fuel to operate

our trains and electricity to power our buildings
Energy Consumption and systems.

2007 2008 2009 Transporting freight by rail is more fuel-efficient,

and therefore less carbon-intensive, than trans-
GALLONS OF DIESEL FUEL porting freight by truck. In 2009, Norfolk Southern
500.4 million 483.8 million 397.3 million moved an average of 404 revenue ton-miles (one
GALLONS OF GASOLINE ton of freight moved one mile) of freight on a
11.3 million 13.1 million 11.4 million gallon of diesel fuel. By contrast, average truck
fuel economy is 110 ton-miles per gallon.
GALLONS OF PROPANE AND HEATING OIL
1.5 million 2.2 million 2.0 million

KILOWATT-HOURS OF ELECTRICITY
480.7 million 512.0 million 468.8 million

CUBIC FEET OF NATURAL GAS 1

372.6 million 404.0 million 622.9 million

1 2009 increase attributable to temporary switch from coal to natural gas

at Juniata Locomotive Shop

9
Partners in sustainability

Norfolk Southern is a partner in the federal Environmental Protection Agency’s “SmartWay Transport”
program. As part of the partnership, Norfolk Southern and other freight transporters have committed
to develop and implement plans to improve fuel efficiency and reduce carbon emissions in coming years.

Norfolk Southern is the first railroad member of SEE Change (Society, Environment, Economy), launched
in 2005 by Business Roundtable, www.businessroundtable.org.

Norfolk Southern in 2009 became the first Class 1 railroad to join the U.S. Green Building Council, a nonprofit
organization committed to a prosperous and sustainable future for the nation through cost-efficient and
energy-saving green buildings.

Energy Efficiency

2007 2008 2009

REVENUE TON-MILES PER GALLON DIESEL FUEL

394 405 404

DIESEL FUEL PER MILLION DOLLARS OF REVENUE

53,053 gallons 45,380 gallons 49,860 gallons

GASOLINE PER MILLION DOLLARS OF REVENUE

1,198 gallons 1,227 gallons 1,430 gallons

PROPANE & HEATING OIL PER MILLION DOLLARS OF REVENUE

164 gallons 206 gallons 248 gallons

ELECTRICITY PER MILLION DOLLARS OF REVENUE

50,965 kWh 48,029 kWh 58,826 kWh

NATURAL GAS PER MILLION DOLLARS OF REVENUE 1

38,000 cu.ft. 37,987 cu.ft. 78,173 cu.ft.

FUEL OIL & NONLOCOMOTIVE DIESEL PER MILLION DOLLARS OF REVENUE2

No data 641 gallons 2,926 gallons

1 2009 increase attributable to temporary switch from coal to natural gas at Juniata

Locomotive Shop
2 2009 increase attributable to improved data collection procedures rather than to large

increase in consumption
10
 OUR SOCIAL
PERFORMANCE

Employees make things happen

Employee workplaces across our 22-state rail system are fertile ground
for brainstorming ways to reduce waste, cut costs, and improve
operating efficiencies.

Employee buy-in has been key to achieving gains in sustainability. We encourage

employees to offer suggestions on how to make the railroad greener, safer, and
more efficient.

With corporate backing, employees at our Harrisburg, Pa., terminal in 2009 launched
an initiative to recycle paper, bottles, and cans. Within six months, the collection of
recycled material in two rail yards had increased by nearly 2,000 pounds a month.
Efforts are under way to spread recycling across the five-state Harrisburg Division,
including distribution of a “how to” tool kit developed by the group.

An employee-sponsored consumer electronics recycling event in Atlanta resulted in

more than 1 ton of electronics being collected over a two-day period, and spurred
employees in Norfolk and Roanoke to hold similar events.

Roanoke employees, among other things, recycled and sold aluminum cans and
printer cartridges, using proceeds to assist local schools.

“Recycling is important because it’s good for the environment, it’s good for our
business, and it’s good for our communities,” said Karin Stamy, a Norfolk Southern
general attorney who serves on our corporate sustainability team.

11 SUSTAINABILITY 2010
Sharing the sustainability vision: Norfolk Southern employees embrace
the corporate commitment to foster a safe work environment, treat
everyone with respect, cultivate diversity as a strength of the organization,
and enhance quality of life in the communities the company serves.

12
 Norfolk Southern sets industry safety standard

Norfolk Southern takes special pride in its employee safety record. For 21 consecutive
years, the people of Norfolk Southern have earned the rail industry’s top award for
employee safety, the prestigious E.H. Harriman Gold Medal Award. Norfolk Southern’s
strong safety culture has set the standard for railway workplace safety.

Norfolk Southern is committed also to public safety efforts to eliminate injuries and
deaths resulting from collisions between motor vehicles and trains at highway-rail grade
crossings, as well as from trespassing on railroad property.

Others recognize us as a leader

Norfolk Southern strives to be the industry leader in every area of the rail business,
whether safety, customer service, community involvement, or as an employer of
choice. We are honored and gratified when others recognize our efforts.

13 SUSTAINABILITY 2010
Here are examples of recognition that Norfolk Southern
and our employees received during the past year:

• For an unprecedented 21st consecutive year, we won the E.H. Harriman

Gold Medal Award for having the best employee safety record among
North America’s largest railroads.

• In 2009, for the 10th time overall and the eighth consecutive year, the
railroad earned a TRANSCAER National Achievement Award for our
commitment to safe handling of hazardous materials. TRANSCAER—
Transportation Community Awareness and Emergency Response—is
a voluntary, nationwide outreach effort that helps communities prepare
for and respond to transportation incidents involving the release of
hazardous materials.

• Inbound Logistics magazine named our railroad to its inaugural list

of 25 green supply chain partners, identified as companies “on the
cutting edge of green.” The magazine cited fuel-efficiency upgrades to
our locomotives and our “Green Machine,” a carbon footprint analyzer
that allows shipping companies to estimate emissions savings by
choosing rail instead of highway.

• BusinessWeek magazine named us one of the 50 best places to launch

a career.

• For the seventh time, Toyota Logistics Services awarded us its

President’s Award for overall logistics excellence among rail carriers,
based on overall performance in customer service, on-time performance,
and quality.

• Black Enterprise magazine named us to its sixth annual list of 40 Best

Companies for Diversity.

• The American Council of Engineering Companies of Tennessee presented

us with an Engineering Excellence Honor Award for using sustainable
design materials to construct a wastewater treatment plant at our
Sheffield Yard in Alabama, including glass blocks, recycled masonry
walls, and other features to lower energy costs.

• Midtown Transportation Solutions in Atlanta recognized 10 of our

employees as Clean Air Commuter Champions for carpooling, vanpooling,
walking, biking, or riding transit instead of driving to and from work.

14
Norfolk Southern Corporation is one of the nation’s premier transportation companies. Its Norfolk
Southern Railway subsidiary operates approximately 21,000 route miles in 22 states and the District
of Columbia, serves every major container port in the eastern United States, and provides efficient
connections to other rail carriers. Norfolk Southern operates the most extensive intermodal network
in the East and is a major transporter of coal and industrial products.

www.nssustainability.com