Recent UIC Report Highlights Rail’s Sustainable Performance
The UIC's Global Report Showcases Railways' Commitment to Sustainable Development, Renewable Energy, Waste Management, and Climate Action.
On January 5th, the European Union (EU) implemented the Corporate Sustainability Reporting Directive (CSRD). This directive enhances the regulations for reporting social and environmental performance by European and international companies operating within the EU. It establishes the framework for companies with over 250 employees to disclose their performance based on the EU Sustainability Reporting Standards (ESRS), which are expected to be approved this year and gradually implemented starting from the beginning of the 2024 financial year.
In addition to regulatory bodies, investors, both current and potential, are actively considering sustainability factors when making decisions to support specific companies or projects. They often use sustainability-specific Key Performance Indicators (KPIs) to assess the viability of investments. Similarly, consumers are increasingly taking sustainability into account when choosing products, influencing their decisions between companies. Consequently, demonstrating compliance and, ideally, strong ESG performance will become an essential corporate practice in the years to come.
In 2022, the International Union of Railways (UIC) introduced the Rail Sustainability Index (RSi) as a benchmarking tool to assess sustainability performance in the rail sector. The index focuses on seven United Nations Sustainable Development Goals (SDGs) deemed relevant to rail, including gender equality, clean energy, economic growth, innovation, sustainable cities, responsible consumption, and climate action.
The UIC's 2022 Global Rail Sustainability Report, released on March 21, summarizes the results obtained from three years' worth of data (2019-2021) to analyze trends and progress. The report combines the RSi with data from established UIC databases on traction energy and railway safety. It emphasizes the role of railways in mitigating climate change and aligning with the objectives of the Paris Agreement.
According to Lucie Anderton, the UIC's sustainability director, the publication of the report signifies the rail sector's intention to standardize reporting on sustainable performance. She emphasizes the transparent methodology used, which promotes a collaborative approach to reporting.
Anderton highlights that the report provides a comprehensive showcase of the various contributions railways make to the sustainable development agenda. It goes beyond the low-carbon transportation aspect and encompasses numerous other initiatives. She believes it is beneficial for railways to have the opportunity to showcase their efforts and share their stories.
Among the standout observations is that of the participants, 59% are sourcing energy from renewables, with 61% of their lines electrified. In addition, 53% report having a target in place for sourcing energy from renewables that is constantly monitored, while more than 290GWh of energy was saved over the last three years. Anderton says the results for energy consumption reflect some “pretty impressive” action, which became particularly pertinent following the surge in energy costs in 2022.
In addition, waste recycling and reuse rates have risen from 64.9% in 2019 to 77.5% in 2021. On climate action, 56% of participants collaborate with government on policy solutions for climate change and scaling up climate action, while 56% also had an emissions target active in 2021. “Many have already smashed their own targets for this,” Anderton says.
The report reveals several noteworthy findings. Among the participants, 59% are utilizing renewable energy sources, and 61% of their rail lines are electrified. Furthermore, 53% have set renewable energy sourcing targets that are continuously monitored, and a total of over 290GWh of energy has been saved over the past three years. Lucie Anderton acknowledges the impressive actions taken by the rail sector to address energy consumption, particularly in light of the energy cost surge in 2022.
The report also highlights significant progress in waste recycling and reuse rates, which have increased from 64.9% in 2019 to 77.5% in 2021. In terms of climate action, 56% of participants collaborate with the government to devise policy solutions and scale up their efforts, while the same percentage had active emissions targets in 2021. Anderton notes that many participants have already surpassed their own targets.
The comprehensive report goes beyond energy and climate aspects, showcasing the rail industry's commitment as responsible employers, their impact on cities and communities, and their role in economic development, crisis support, and promoting peace. Anderton acknowledges the steady improvement in gender balance within rail employment.
