CPKC publishes update on low carbon transition strategy

Rhea-AI Summary

Canadian Pacific Kansas City (TSX: CP, NYSE: CP) published its Climate Insights and second Climate Mileposts reports on March 23, 2026, outlining governance, risks, and emissions-reduction strategy.

The 2026 Climate Mileposts highlights deployment of 100 new Tier 4 locomotives, expanded energy management technologies, hydrogen locomotive testing and fueling infrastructure, a network climate scenario analysis, and capacity/resilience upgrades including siding extensions and track inspections.

Positive

• 100 Tier 4 locomotives deployed to lower emissions
• Hydrogen locomotive real-world testing and fueling infrastructure expansion
• Climate scenario analysis completed for combined CPKC network
• Network resilience improvements via siding extensions and track upgrades
• Expanded energy management technologies deployed across operations

Negative

• None.

Key Figures

Tier 4 locomotives deployed: 100 locomotives

1 metrics

Tier 4 locomotives deployed 100 locomotives Low-carbon fleet and energy management initiatives in 2026 Climate Mileposts

Market Reality Check

Price: $79.46 Vol: Volume 1,909,316 is below...

normal vol

$79.46 Last Close

Volume Volume 1,909,316 is below the 20-day average of 2,643,494, suggesting a subdued pre-news backdrop. normal

Technical Shares trade above the 200-day MA, with price at 78.24 vs MA(200) at 76.58.

Peers on Argus

CP slipped 0.28% while key peers were mixed: CNI and CSX declined, NSC and UNP g...

CP slipped 0.28% while key peers were mixed: CNI and CSX declined, NSC and UNP gained, and WAB was modestly lower. With no peers in the momentum scanner and mixed moves, trading appeared more stock-specific than sector-driven.

Historical Context

5 past events · Latest: Mar 12 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Mar 12	Industrial expansion	Positive	+0.2%	Certification of 14 new Site Ready locations expanding developable rail-served land.
Mar 04	Debt offering	Negative	-1.8%	Announcement of US$1.2 billion notes issuance for refinancing and general purposes.
Mar 04	Conference appearance	Neutral	-1.1%	CEO scheduled remarks at a major industrials conference with webcast access.
Mar 03	Branding initiative	Neutral	-1.8%	Unveiling of commemorative Tier 4 locomotive livery celebrating America’s 250th.
Mar 03	Operational records	Positive	-1.8%	Record February Canadian grain volumes and strong cross-border grain carloads.

Pattern Detected

Recent news has often seen muted or negative price moves, even on seemingly positive operational updates, while the debt offering drew a clearer negative reaction.

Recent Company History

Over recent months, CPKC highlighted operational growth and capital structure activity. On Mar 12, 2026, it expanded its Site Ready industrial network with 14 new locations and more than 6,600 acres, with a modestly positive price move. A US$1.2 billion debt offering on Mar 4, 2026 and other corporate news, including conference participation and record grain volumes, were accompanied by single-day declines, showing a cautious market tone toward both financing and operational headlines.

Market Pulse Summary

This announcement details CPKC’s updated climate governance through its Climate Insights report and ...

Analysis

This announcement details CPKC’s updated climate governance through its Climate Insights report and progress tracking via the 2026 Climate Mileposts supplement. It highlights actions such as deploying 100 Tier 4 locomotives, expanding energy management technologies, and advancing hydrogen locomotive testing. Investors may relate this to prior growth, record grain volumes, and recent debt financing when evaluating how sustainability initiatives intersect with network resilience and long-term capital allocation.

Key Terms

tier 4 locomotives, energy management technologies

2 terms

tier 4 locomotives technical

"Deployment of 100 new Tier 4 locomotives and expanded use of energy..."

Tier 4 locomotives are diesel-powered trains built to meet the strictest government limits on harmful exhaust pollution, using cleaner engines and after-treatment equipment to sharply reduce soot and smog-forming emissions. For investors, the designation matters because meeting those rules changes manufacturing costs, maintenance needs, resale value and compliance risk for rail operators—similar to how a car that meets top safety and emissions ratings can cost more up front but avoid fines and attract buyers.

energy management technologies technical

"Deployment of 100 new Tier 4 locomotives and expanded use of energy..."

Energy management technologies are systems and tools that monitor, control and optimize how buildings, factories and equipment use electricity, heat and fuel to lower waste and improve efficiency. For investors, these technologies can cut operating costs, reduce regulatory and climate risk, and extend asset life—think of them as a smart thermostat and budgeting app combined for an entire facility, turning energy use into measurable savings and predictable expenses.

AI-generated analysis. Not financial advice.

CALGARY, AB, March 23, 2026 /PRNewswire/ - Canadian Pacific Kansas City (TSX: CP) (NYSE: CP) (CPKC) today published its Climate Insights report, an overview of CPKC's climate governance and strategic approach to climate change. CPKC also published its second Climate Mileposts report, providing an update on CPKC's progress toward lower carbon freight rail and stronger network resilience.  

"These reports showcase CPKC's dedication to responsible growth and leadership in climate action, reflecting our vision for a more sustainable rail network across North America through innovation and environmental stewardship," said Keith Creel, CPKC President and Chief Executive Officer.

The newly released Climate Insights report provides an overview of CPKC's climate governance and strategic approach to climate change, including the processes implemented to identify, assess and manage climate-related risks and opportunities.

Climate Insights replaces our 2021 Climate Strategy and 2023 Commitment to Climate Action, consolidating CPKC's approach to climate governance, risk management and emissions reductions within a single document.

Climate Mileposts continues to serve as our performance-focused climate action supplement, complementing the strategic direction set out in Climate Insights. The 2026 edition of Climate Mileposts highlights several advancements, including:

• Deployment of 100 new Tier 4 locomotives and expanded use of energy management technologies.
• Ongoing real-world testing and fueling infrastructure expansion for the hydrogen locomotive fleet.
• Includes the results of a climate scenario analysis for the combined CPKC network, providing deeper insights and a structured process for identifying and managing climate-related risks and opportunities.
• Network capacity and resilience improvements supported by siding extensions, track upgrades and advanced inspection technologies.

Read the full Climate Insights and Climate Mileposts reports at www.cpkcr.com.

Forward Looking Information
This news release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws in both the U.S. and Canada (collectively, "forward-looking statements"). Forward-looking statements include, but are not limited to, statements concerning expectations, beliefs, plans, goals, objectives, assumptions and statements about possible future events, conditions, and results of operations or performance. Forward-looking statements may contain statements with the words or headings such as "financial expectations", "key assumptions", "anticipate", "believe", "expect", "project", "estimate", "forecast", "plan", "intend", "target", "will", "outlook", "guidance", "should" or similar words suggesting future outcomes. All statements other than statements of historical fact may be forward-looking statements. This news release includes forward-looking statements concerning, but not limited to, plans, timelines or objectives of management for future operations, including with respect to locomotive decarbonization phases and anticipated mileposts; information regarding sustainability-related actions we plan to take in the future, including CPKC's climate strategy for reducing GHG emissions, and the impacts of existing and planned capital investments to mitigate the impacts of climate change.

The forward-looking statements contained in this news release are based on current expectations, estimates, projections and assumptions, having regard to CPKC's experience and its perception of historical trends, and include, but are not limited to, expectations, estimates, projections and assumptions relating to: changes in business strategies; North American and global economic growth and conditions; commodity demand growth; sustainable industrial and agricultural production; commodity prices and interest rates; foreign exchange rates; effective tax rates; performance of our assets and equipment; sufficiency of our budgeted capital expenditures in carrying out our business plan; geopolitical conditions; applicable laws, regulations and government policies, including, without limitation, those relating to regulation of rates, tariffs, import/export, trade, taxes, wages, labour and immigration; the availability and cost of labour, services and infrastructure; labour disruptions; the satisfaction by third parties of their obligations to CPKC; and carbon markets, evolving sustainability strategies, and scientific or technological developments. Although CPKC believes the expectations, estimates, projections and assumptions reflected in the forward-looking statements presented herein are reasonable as of the date hereof, there can be no assurance that they will prove to be correct. Current conditions, economic and otherwise, render assumptions, although reasonable when made, subject to greater uncertainty.

Undue reliance should not be placed on forward-looking statements as actual results may differ materially from those expressed or implied by forward-looking statements. By their nature, forward-looking statements involve numerous inherent risks and uncertainties that could cause actual results to differ materially from the forward-looking statements, including, but not limited to, the following factors: changes in business strategies and strategic opportunities; general Canadian, U.S., Mexican and global social, economic, political, credit and business conditions; risks associated with agricultural production such as weather conditions and insect populations; the availability and price of energy commodities; the effects of competition and pricing pressures, including competition from other rail carriers, trucking companies and maritime shippers in Canada, the U.S. and Mexico; North American and global economic growth and conditions; industry capacity; shifts in market demand; changes in commodity prices and commodity demand; uncertainty surrounding timing and volumes of commodities being shipped by CPKC; inflation; geopolitical instability; changes in laws, regulations and government policies, including, without limitation, those relating to regulation of rates, tariffs, import/export, trade, wages, labour and immigration; changes in taxes and tax rates; potential increases in maintenance and operating costs; changes in fuel prices; disruption of fuel supplies; uncertainties of investigations, proceedings or other types of claims and litigation; compliance with environmental regulations; labour disputes; changes in labour costs and labour difficulties; risks and liabilities arising from derailments; transportation of dangerous goods; timing of completion of capital and maintenance projects; sufficiency of budgeted capital expenditures in carrying out business plans; services and infrastructure; the satisfaction by third parties of their obligations; currency and interest rate fluctuations; exchange rates; effects of changes in market conditions and discount rates on the financial position of pension plans and investments; trade restrictions, including the imposition of any tariffs, or other changes to international trade arrangements; the effects of current and future multinational trade agreements on or other developments affecting the level of trade among Canada, the U.S. and Mexico; climate change and the market and regulatory responses to climate change; anticipated in-service dates; success of hedging activities; operational performance and reliability; customer, regulatory and other stakeholder approvals and support; regulatory and legislative decisions and actions; the adverse impact of any termination or revocation by the Mexican government of Kansas City Southern de Mexico, S.A. de C.V.'s concession; public opinion; various events that could disrupt operations, including severe weather, such as droughts, floods, avalanches, volcanism and earthquakes, and cybersecurity attacks, as well as security threats and governmental response to them, and technological changes; acts of terrorism, war or other acts of violence or crime or risk of such activities; insurance coverage limitations; material adverse changes in economic and industry conditions; the outbreak of a pandemic or contagious disease and the resulting effects on economic conditions; the demand environment for logistics requirements and energy prices; restrictions imposed by public health authorities or governments; fiscal and monetary policy responses by governments and financial institutions; disruptions to global supply chains; the realization of anticipated benefits and synergies of the CP-KCS transaction and the timing thereof; the satisfaction of the conditions imposed by the U.S. Surface Transportation Board in its March 15, 2023 decision; the successful integration of KCS into CPKC; the focus of management time and attention on the CP-KCS integration and other disruptions arising from the CP-KCS integration; estimated future dividends; financial strength and flexibility; debt and equity market conditions, including the ability to access capital markets on favourable terms or at all; cost of debt and equity capital; improvement in data collection and measuring systems; industry-driven changes to methodologies; and the ability of the management of CPKC to execute key priorities, including those in connection with the CP-KCS transaction. The foregoing list of factors is not exhaustive. These and other factors that could cause actual results to differ materially from those described in the forward-looking statements contained in this news release are detailed from time to time in reports filed by CPKC with securities regulators in Canada and the United States, which can be accessed on SEDAR+ (www.sedarplus.ca) and EDGAR (www.sec.gov). Reference should be made to "Part I – Item 1A – Risk Factors" and "Part II – Item 7 – Management's Discussion and Analysis of Financial Condition and Results of Operations – Forward-Looking Statements" in CPKC's annual report on Form 10-K and "Part II – Item 1A – Risk Factors" and "Part I – Item 2 – Management's Discussion and Analysis of Financial Condition and Results of Operations – Forward-Looking Statements" in CPKC's interim reports on Form 10-Q.

The forward-looking statements contained in this news release are made as of the date hereof. Except as required by law, CPKC undertakes no obligation to update publicly or otherwise revise any forward-looking statements, or the foregoing assumptions and risks affecting such forward-looking statements, whether as a result of new information, future events or otherwise.

About CPKC
With its global headquarters in Calgary, Alta., Canada, CPKC is the first and only single-line transnational railway linking Canada, the United States and México, with unrivaled access to major ports from Vancouver to Atlantic Canada to the Gulf Coast to Lázaro Cárdenas, México. Stretching approximately 20,000 route miles and employing 20,000 railroaders, CPKC provides North American customers unparalleled rail service and network reach to key markets across the continent. CPKC is growing with its customers, offering a suite of freight transportation services, logistics solutions and supply chain expertise. Visit cpkcr.com to learn more about the rail advantages of CPKC. CP-IR

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SOURCE CPKC

FAQ

What did CPKC announce in its March 23, 2026 Climate Insights report (CP)?

CPKC published a consolidated climate governance and strategy report on March 23, 2026. According to the company, Climate Insights replaces prior documents and outlines processes to identify, assess and manage climate-related risks and opportunities.

How many Tier 4 locomotives did CPKC say it deployed in the 2026 Climate Mileposts (CP)?

CPKC reported deployment of 100 new Tier 4 locomotives to reduce emissions. According to the company, this deployment is part of broader energy management technology adoption across its North American network.

What progress did CPKC report on hydrogen locomotives and fueling (CP) in March 2026?

CPKC reported ongoing real-world testing and expansion of hydrogen fueling infrastructure. According to the company, these activities support validation of hydrogen traction and future lower-carbon freight operations.

Does the 2026 Climate Mileposts include climate risk analysis for CPKC (CP)?

Yes, the report includes a climate scenario analysis for the combined CPKC network. According to the company, the analysis provides deeper insights and a structured process to identify and manage climate-related risks and opportunities.

What network improvements did CPKC highlight in its March 23, 2026 update (CP)?

CPKC highlighted siding extensions, track upgrades and advanced inspection technologies to boost capacity and resilience. According to the company, these measures support a stronger, more reliable freight network across North America.