What is the response of the rail industry to ESG (Environmental, Social, and Governance)? (Tony Hatch)

20161212 Tonyhatch (Cropped)

"Environmental, Social, and Governance (ESG) is here to stay" has been a recurring theme here, there (RR Q3 webcast), and everywhere. EVP Beth Whited of UNP spoke on ESG. Others noted it was important - but ONLY after transport value (price/service). But it’s a growing and thriving investment form – see, for instance, the big fund (remember them?) TCI's demands of CNI and CP (they submitted shareholder proposals on climate action pans) and it is investors that will drive this revolution. Note that all of the rails devoted a slide, out of ~10, in their Q3 webcasts to ESG. The AAR’s Ian Jeffries told RT20 that we should expect to hear more from rails on climate change in the future. Also, a major cost-focus at the end of PSR 1.0 is fuel efficiency.