Schneider Sustainability - A Shared Commitment To A Sustainable Future

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A SHARED COMMITMENT

TO A SUSTAINABLE FUTURE

Updated: Q2 2022
We have the options you need with the transportation and logistics expertise to
perform as promised
INTERMODAL TRUCKLOAD LOGISTICS
• Bulk • Bulk • Cross-Dock Logistics
• Express Services • Dedicated • Port Dray
• North America Cross-Border • Long-Haul • Supply Chain Management
• Regional • North America Cross-Border • Transloading and Distribution
• Transcontinental • Regional • Brokerage
• Rail Dray • Team Expedited • Warehousing

Approximately Approximately Approximately Over


9,000 82,900 2,300 50,000
company tractors company-owned owner-operator qualified carrier
trailers, intermodal business relationships relationships
containers and chassis

Approximately
16,050 Operations in U.S. Operations in Mexico Operations in China
associates worldwide 1935 1992 2005

2 PROPRIETARY AND CONFIDENTIAL


We are focused on the pursuit of a more sustainable and inclusive future
Across our enterprise, Schneider has been aggressively pursuing a sustainable future for more than 40 years. We honor these commitments by acting in a
socially responsible manner with respect and integrity and giving back to the communities in which we all live and work. Some call it sustainability, but we just
call it good business.

WE ARE COMMITTED TO:

Utilizing diverse Collaborating with the most Integrating electric Working with our customers Improving miles per gallon Testing breakthrough
modes of transportation energy-efficient railroads vehicles into our fleet and to find unique, efficient through truck design, equipment, technology and equipment
and third-party carriers sharing key learnings solutions for each shipment professional drivers and operations

Using alternative Providing thought Professional driver Appointing the most qualified leadership Limit idling of Reducing the Advancing DEI
fuels leadership and training and team and Board to advance innovation main engines environmental impact throughout the company
learning to the industry engagement programs and meet ESG objectives of our facilities and its hiring practices

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Schneider’s sustainability goals

We are integrating a sustainability mindset across our entire enterprise. Moving goods as efficiently as possible means less carbon
dioxide emitted, and we are strategically investing in areas that allow us to continue to push efficiency in the near- and long-term, such as
electrification and optimization of diesel trucks.

We set four ambitious goals: We have:

Reduce CO2 emissions by 7.5% per mile by 2025. Reduced CO2 emissions per mile by 5%.

Announced that we will deploy 62 electric trucks for our intermodal


operations in Southern California.
Achieve a 60% reduction in CO2 emissions per mile by 2035.
Increased our intermodal capacity by 15%.

Reduced energy consumption at our facilities by 12.5% by


Double our intermodal business by 2030, thus reducing CO2 switching to LED light bulbs.
emissions by an additional 700 million pounds per year.
Decreased energy consumption at our HQ by 25% through facility
updates.
Achieve carbon neutrality by 2035 in all company-owned facilities.

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We are committed to operating one of the most energy efficient fleets in North
America

Schneider has been focused on operating as the most Today we are one of the most energy-efficient fleets on the
environmentally-friendly truckload carrier since 1978 — reducing road.
greenhouse gas emissions, improving fuel efficiency and
changing global operational policies to reduce our carbon
footprint. IMPROVED FUEL
WE ARE PROUD to continue investing in full-time, on-site teams
EFFICIENCY
5.2%
of mechanical engineers that have been dedicated to equipment YoY 2019-2020 SmartWay ®
performance and efficiency since 1989.

WE ARE COMMITTED of our efforts to:


• Recycle more than 7,400 batteries each year 11.8 MILLION
• Recycle more than 150,000 gallons of oil each year GALLONS SAVED
• Retread approximately 107,044 tire casings each year Reduced fuel consumption between
2019-2020.
WE ARE COMMITTED to the future of fleet electrification.

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Proud to be first in membership and recognition
At Schneider, we embedded sustainability into all aspects of our As a charter member and the first truckload/intermodal carrier in the
business before it was a requirement for many of our shippers. partnership, we are committed to being an industry leader and sharing
our working knowledge with smaller carriers as we work together to
We are a proud partner of the EPA SmartWay® program, a voluntary advance the entire transportation and logistics industry.
collaboration between the EPA and the freight industry designed to increase
energy efficiency and significantly reduce greenhouse gases and air 2019-2020 SMARTWAY REPORT CARD
pollution.
Results inclusive of all Schneider service offerings.

CO2 NOx PM
12% reduction 6% reduction 12% reduction
YoY YoY YoY

TWELVE
TIMES
RECOGNIZED
Schneider is one of only four carriers to be honored with the
SmartWay ® Excellence award every year it has been given
since its inception in 2005.

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Our industry leading energy-efficiency investments hit the road everyday
While we look ahead to solutions like electric vehicles, we also recognize that a core component of sustainability is improving what we already have. We have
taken steps to make our existing diesel fleet more efficient. Upgrading our existing fleet is an iterative process and we areconstantly innovating, making
improvements including:

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Schneider now operates one of the largest electric truck fleets in North America
At Schneider, we are committed to the future of fleet electrification,
and we are making necessary short- and long-term investments
including testing electrified powertrains, developing strategic Battery-
Electric Vehicle (BEV) adoption plans, and building relationships with
industry stakeholders.

We have long been at the forefront of technological advancements in


the logistics industry, with a strong track record of testing and
improving the vehicles of tomorrow. Schneider worked closely with
Freightliner in the development of their new eCasdcadia and our test
drivers had a lot to say. We found that on top of the primary benefit
of zero-emissions, drivers found the instantaneous acceleration of
BEVs gave them more confidence when merging onto major
roadways, the electric motors made for a quieter ride, and uphill
rides were incredibly smooth.

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Working with innovators on electric vehicles
In 2021, Schneider announced 62 Freightliner eCascadias for our Southern California
intermodal operations.

Funding for 50 of the BEVs was announced in August 2021 as part of the Joint Electric
Truck Scaling Initiative (JETSI) – a joint project of the South Coast Air Quality
Management District (South Coast AQMD), California Air Resources Board (CARB) and
the California Energy Commission (CEC). Funding for 12 more trucks was secured from
the EPA Target Airshed Grant Initiative and the Volkswagen Environmental Mitigation
Trust.

Since battery-electric trucks run on all battery power, CO2 emission production is zero no
matter the distance, making a significant cut to the carrier’s carbon footprint. However,
Southern California has particularly advanced infrastructure to support battery electric
trucking operations. Crucially, California’s energy grid is relatively clean, meaning electric
vehicles are being charged in a sustainable way. In areas where grid electricity is derived
from coal, we find that high-efficiency diesel trucks produce fewer net emissions than
would electric trucks. This dynamic tailored approach allows us to determine the most
efficient options for our customers.

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Our commitments extend beyond the road
THOUGHT-LEADERSHIP + ADVOCACY DRIVER EDUCATION + TRAINING
Schneider continues to invest in simulation-based driver
Environmental progress is a group effort, as part of our commitment to improving the training programs to help drivers understand that they
sustainability of the logistics industry as a whole, we participate in multiple industry are the primary managers of truck energy efficiencies.
councils. We strive to share our expertise and learn from others as active stewards of our
environment to achieve collective benefits for our industry and our communities.

This collaboration includes close partnerships and alignment with OEM partners, including
being a member of Daimler Truck North America’s Electric Vehicle Council.

Schneider is also a proud participant and gold-level sponsor of the North American
Council for Freight Efficiency (NACFE), an organization dedicated to doubling the
industry’s efficiency.

Schneider is a charter member of the EPA SmartWay® program, a voluntary


collaboration between the EPA and the freight industry designed to increase energy 335,000
efficiency and significantly reduce greenhouse gases and air pollution. GALLONS
The American Chemistry Council Responsible Care Management System® is a
SAVED
Resulting from simulation testing each year.
voluntary initiative intended to improve the standards of the chemical industry and prevent
dangerous incidents from occurring in the future.

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Our commitments extend beyond the road
FACILITY GREENING EXPANDING INTERMODAL CAPACITY
Schneider’s commitment to conserve energy is corporate- Schneider is a leader in intermodal, giving customers the flexibility to
wide—from our headquarters to each of our facilities. In leverage solutions to help reduce the carbon impact of their
addition to ongoing energy audits at all facilities, we’ve shipments. Intermodal offers tremendous efficiency benefits over
implemented the following: conventional truck freight, and in 2021, we increased our container
capacity by 15% to better take advantage of the efficiency
advantages rail freight offers.
High-intensity discharge lighting with energy-
saving bulbs. Schneider saves 700 million pounds of CO 2 each year by
working with the railroads. Each railroad we work with currently
Re-lamping of sites generated 12.5% can move a ton of freight up to 500 miles on a single gallon of fuel
energy reduction. and are continuing to make sustainability improvements each year.

Corporate recycling program.

Commitment to sourcing environmentally-


friendly products.

Upgraded A/C reduced energy consumption


25% at corporate office.

Corporate office window shades designed to


reduce heat gain.

Built-in capacity for future electric tractor Every day we continue to advance sustainable solutions to complex
charging. logistics problems. We have come a long way, but our work is never
done.

11 PROPRIETARY AND CONFIDENTIAL


Our investment makes a world of difference for our customers

We are enabling efficiency for our customers.

As experts in the shipping industry, we advise our customers on


how that fits into their overarching emissions reduction goals.
Schneider works one-on-one with customers to review network
optimization, reduce empty miles, consolidate freight and pick the
right mode of transportation – whether it’s dedicated, intermodal or
a mix. Schneider offers a calculator tool to help customers run
different scenarios and see the benefits.

Our Schneider FreightPower® platform is a key part of this,


providing s a single digital access point to services and solutions,
combining digital analytics and user-friendly design to make it
simple for our customers to pick the most efficient transportation
routes and modes for their needs. Customers can get price quotes,
book shipments and track progress.

12 PROPRIETARY AND CONFIDENTIAL


Our achievements are proof of our ongoing commitments

SMARTWAY AWARD OF GREEN SUPPLY CHAIN GREEN FLEET OF THE


ENABLER YEAR
EXCELLENCE Presented by: Fleet Owner magazine
Presented by: Supply & Demand Chain
Presented by: EPA Executive magazine

GREEN SUPPLY CHAIN CSX ENVIRONMENTAL TOP GREEN PROVIDERS


PARTNER Presented by: Food
AWARD Logistics magazine
Presented by: Inbound
Logistics magazine

ECO-ENTERPRISE AWARD FreightTech 100 CASESTACK GREEN


Presented by: Oracle Presented by: FreightWaves
CARRIER AWARD

13 PROPRIETARY AND CONFIDENTIAL

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