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Schneider's Commitment to Going Green

Schneider has conducted business in an environmentally responsible manner long before it was en vogue to be green. Sustainability is a part of every strategic decision we make. Hereu2019s our track record as proof, along with our future sustainability goals that will allow us to continue being one of the most energy-efficient fleets in North America.

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Schneider's Commitment to Going Green

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  1. A SHARED COMMITMENT TO GOING GREEN April 2019

  2. THE OPTIONS YOU NEED WITH THE TRANSPORTATION AND LOGISTICS EXPERTISE TO PERFORM AS PROMISED Proprietary and confidential

  3. TRANSPORTATION AND LOGISTICS WITH PURPOSE “Schneider has conducted business in an environmentally responsible manner long before it was en vogue to be green. Transportation moves today are the cleanest and most energy efficient ever because carriers, shippers and consumers are all willing to invest in more sustainable equipment and practices. Together, we’re preserving and protecting our precious natural resources and enhancing the lives of people everywhere.” • Chris Lofgren, CEO and PresidentSchneider PROPRIETARY AND CONFIDENTIAL

  4. SOME CALL IT SUSTAINABILITY, WE CALL IT GOOD BUSINESS • Delivering the goods that enhance the lives of people everywhere requires a holistic approach • Green transportation is only a first step,a triple bottom line focus makes sustainabilitya part of every strategic decision Schneider makes • Environmental considerations • Social responsibilities • Financial obligations • Shared commitment, shared investment • Carriers • Shippers • Consumers PROPRIETARY AND CONFIDENTIAL

  5. Schneider’s sustainability goals • Relentlessly work to improve MPG • Equipment • Drivers • Operations • Collaborate with customers, suppliers, government groups, research institutions and environmental groups • Industry trade groups and sustainability reporting organizations (ATA Task Force on emissions reductions, EPA SmartWay Partnership, North American Council for Freight Efficiency, American Chemical Council Responsible Care Certification) • Shipper sustainability councils • Emerging equipment testing and feedback with OEMs • Everyone wins when breakthrough technologies are discovered PROPRIETARY AND CONFIDENTIAL

  6. REDUCING OUR CARBON FOOTPRINT • Schneider continues to reduce its carbon footprint by: • Improving fuel efficiency • Reducing greenhouse gas emissions • Upgrading the energy efficiency of our facilities • Our approach to truckload transportation makes us one of the most energy-efficient fleets in the industry • Working with the most energy-efficient railroads and third-party carriers makes us one of the most energy-efficient intermodal and logistics providers • Multi-modal providers deliver maximum energy efficiencies: The more diverse the modes, the more green the supply chain PROPRIETARY AND CONFIDENTIAL

  7. BOLDLY LEADING THE INDUSTRY FOR OVER 30 YEARS PROPRIETARY AND CONFIDENTIAL

  8. BOLDLY LEADING THE INDUSTRY FOR OVER 30 YEARS PROPRIETARY AND CONFIDENTIAL

  9. BOLDLY LEADING THE INDUSTRY FOR OVER 30 YEARS PROPRIETARY AND CONFIDENTIAL

  10. CHARTER MEMBER; FIRST TRUCKLOAD/INTERMODAL CARRIER IN EPA SMARTWAY TRANSPORT PARTNERSHIP • Voluntary program to conserve energy and reduce greenhouse gas emissions • Schneider recognized by EPA with SmartWay Award of Excellence 9 times since the award’s inception in 2005 • Few other transportation companies have been recognized as often • Expectation to be an industry leader, share knowledge with smaller carriers and advance the industry as a whole “I commend Schneider for its leadership in promoting sustainable transportation practices through the SmartWay Transport Partnership. These actions demonstrate a commitment to a cleaner environment and more secure energy supply.” - Margo Oge, Former Director, Office of Transportation & Air Quality EPA PROPRIETARY AND CONFIDENTIAL

  11. 2014-17 SMARTWAY REPORT CARD Results inclusive of all Schneider lines of business. PROPRIETARY AND CONFIDENTIAL

  12. SERVING CUSTOMERS AND OUR PLANET THROUGH INDUSTRY THOUGHT LEADERSHIP AND ADVOCACY • Collaboration with customers, suppliers, associates and environmental groups to ensure we’re leading the way • Active engagement with government and industry leaders • University of Wisconsin alternate fuels research project • Shipper sustainability councils • Participant in the North American Council for Freight Efficiency (NACFE), an organization dedicated to doubling the efficiency of the North American goods movement PROPRIETARY AND CONFIDENTIAL

  13. SHIPPERS SHARE OUR COMMITMENT TO GREEN “Partnering with Schneider has been a key factor in our ability to continue finding new levels of efficiency and better environmental performance.” - Paul Snider Vice President, Transportation (Consumer Products) PROPRIETARY AND CONFIDENTIAL

  14. ONE OF THE MOST ENERGY-EFFICIENT FLEETSIN NORTH AMERICA • Through investments, operational improvements and driver behavior, Schneider has improved fuel efficiency 14.8% since 2008. • Between 2017-2018, Schneider decreased fuel consumption by 5 million gallons • Future efficiencies and continuous improvement is possible, but impact will be minimal; the heavy lifting has been done • Schneider also: • Recycles 12,000 batteries/years • Recycles 160,000 gallons of oil/year • Retreads 92,950 tire casings/year • Has trailer skirting installed on 100% of the Van Truckload fleet • Invests millions of dollars annually (an increasing amount each year) on diesel exhaust fluid (DEF), a reagent that helps clean the exhaust PROPRIETARY AND CONFIDENTIAL

  15. FLEET INTEGRATION OF NEWEST EPA-COMPLIANT ENGINES Transition to the latest clean-diesel emission compliant enginesis well underway • One of the first systems of its kind to increase fuel efficiency while reducing emissions to near-zero levels • Exhaust leaving truck smokestack of these trucks is cleaner than the air brought in through air filter in a some major metropolitan cities PROPRIETARY AND CONFIDENTIAL

  16. USING ALTERNATIVE FUELS WISELY • Schneider’s green initiatives include renewable fuels • Schneider consumes 10 million gallons of blended biodiesel/year • Active supporter of renewable fuels that are competitively priced and do not impact truck performance, durability or the ability to meet near-zero emissions standards set by the EPA • Testing Liquid Natural Gas and Compressed Natural Gas • Placed reservations to purchase new Tesla Semi trucks PROPRIETARY AND CONFIDENTIAL

  17. Overall economics of natural gas operations are not enticing carriers to expand beyond testing • Sources: BB&T Capital and FTR Associates PROPRIETARY AND CONFIDENTIAL

  18. SOCIETY OF AUTOMOTIVE ENGINEERS (SAE) PROGRAM DEPLOYED TO TEST AND DISCOVER THE NEXT BIG IDEA • For over 25 years, onsite engineers committed to improving fuel efficiency and achieving additional emission reductions by testing and validating emerging energy-efficient technologies • More than 500 trucks are in various evaluation programs • All trucks have engine-off in-cab heaters as standard equipment • Deploying battery operated, engine-off cooling solutions PROPRIETARY AND CONFIDENTIAL

  19. SCHNEIDER’S INDUSTRY LEADING ENERGY-EFFICIENCY INVESTMENTS HIT THE ROAD EVERY DAY Fuel-fired heater and Auxiliary Power Unit for cab cooling and engine-off accessory power Trailer-tracking Minimal gap with sliding 5th wheel Optimized roof fairing Smooth-side trailers Side extenders Improvedaero hood Aero mirrors 2017 GHG engines Ultra low viscosity, high-efficiency motor oil Automatic tire inflation system Ambient Air Temperature Sensors Automated Manual Transmission Lower axle ratio/ downsped engine Trailer skirting Adaptive Cruise Control Road speed limiters Optimized shifting Torque control In-cab communications (ELDs) Tire compound/tread designs Drive tire fairings Low-rolling resistance tires and aero wheel covers Aero bumper Optimized drivelines Low-friction driveline lubes Fuel tank skirts Terrain-mapping predictive technologies PROPRIETARY AND CONFIDENTIAL

  20. FUTURE OPPORTUNITIES FOR IMPROVED ENERGY EFFICIENCY Manufacturer chassis design Cameras replace mirrors Trailer tails Component electrification Cooling air flowmanagement Trailer aerodynamic enhancements Electrification of powertrain Further reduction in rear-axle ratio Automatic tire inflation system for trucks Aerodynamic under treatments Further reduction in motor oil viscosity Alternative fuels PROPRIETARY AND CONFIDENTIAL

  21. TRAINING AND ENGAGING DRIVERS EARLY AND OFTEN • Simulation-based driver training programs show drivers they are the primary managers of truck energy efficiencies • Simulation results in an average fuel savings of 335,000 gallons per year • Drivers receive bonuses for energy conservation and safety • $14 million in driver incentives paid for fuel management, safety and other efforts awarded in 2018 PROPRIETARY AND CONFIDENTIAL

  22. PROTECTING OUR VALUABLE NATURAL RESOURCES • Responsible Care® is the chemical industry’s global voluntary initiative to continuously improve health, safety and environmental performance • Schneider’s Bulk division has been a Responsible Care partner since 1995 PROPRIETARY AND CONFIDENTIAL

  23. LOGISTICS SERVICES RECOGNIZED BY EPA SMARTWAY TRANSPORT AND RESPONSIBLE CARE PARTNERSHIPS • Schneider is committed to increasing SmartWay carrier usage and is workingwith third-party carriers to implement no idle policies • Schneider’s Supply ChainManagement business hasover 1,100 SmartWay carriers in itsnetwork and continues to increaseits use of SmartWay partners PROPRIETARY AND CONFIDENTIAL

  24. SUSTAINABILITY BEGINS AT HOME • All Schneider facilities are models of energy efficiency • Green team in place to identify energy improvements including site-specific goals for energy efficiency • High-intensity discharge lighting with energy-saving bulbs; LED lighting being explored • Upgrade of data center A/C reduced energy consumption 25% at corporate office • Relamping of sites generated a 12.5% reduction in energy • Economizer systems for all HVAC equipment • Energy audits at all facilities • Corporate recycling program • Dust control methods put fewer chemicalson our yards • Sourcing environmentally friendly products PROPRIETARY AND CONFIDENTIAL

  25. INTERMODAL TRANSPORTATION PLAYS A CRITICAL ROLE IN SCHNEIDER’S SUSTAINABILITY SUCCESS • Moving freight by rail reduces highway congestion, infrastructure wear and tear and capacity constraints • Intermodal transport is, on average, two times more energy-efficient than over-the-road transport • Each railroad Schneider works with can currently move a ton of freight 474 - 500 miles on a single gallon of fuel, and are making sustainability improvements each year • (Source: Association of American Railroads) PROPRIETARY AND CONFIDENTIAL

  26. SCHNEIDER WORKS WITH MOST ENERGY-EFFICIENT RAIL PROVIDERS CSX • 4.7% reduction of energy intensity since 2011. • 5.1% reduction of greenhouse gas emission intensity since 2011. • In 2017, CSX moved one ton of freight 488 miles on a single gallon of fuel, four times as much as a truck. A single train also carries the volume of 280+ trucks. • Shipping by CSX can reduce carbon emissions by approximately 1,571 tons compared to shipping by truck. PROPRIETARY AND CONFIDENTIAL

  27. SCHNEIDER WORKS WITH MOST ENERGY-EFFICIENT RAIL PROVIDERS BNSF • Over the past decade, BNSF has: • Decreased GHG intensity by approximately 3.5 percent • Reduced its fleet’s average emission rate of nitrogen oxides and particulate matter. (2008-2017 = 34% reduction in tons of NOx and a 45% reduction in tons of PM) • BNSF’s total energy use has been reduced by 5.3 percent since 2014, with major reductions seen in locomotive diesel consumption. • BNSF customers reduced their total carbon emissions by 37.5M metric tons in 2017 by shipping with BNSF instead of moving freight entirely over the road • BNSF was the first U.S. rail carrier to install wide-span cranes. • These cranes produce zero emissions on site while generating power each time they lower a load. The wide stance design of these new cranes eliminates as many as six diesel trucks (hostlers) for shuttling containers within the intermodal facility, reducing emissions and improving fuel efficiency. We currently use this technology at our Seattle International Gateway intermodal facility, Memphis intermodal facility, and Logistics Park in Kansas City. PROPRIETARY AND CONFIDENTIAL

  28. SCHNEIDER WORKS WITH MOST ENERGY-EFFICIENT RAIL PROVIDERS KCS • Trip Optimizer Initiative: Through a complex network of onboard computers, GPS systems and advanced algorithms that make adjustments during the rail journey, each trip’s profile is updated continuously, saving approximately 1.1M diesel gallons of fuel in 2017. • Excessive Idle Reduction Initiative: Active overhaul program to install Auto Engine Stop/Start. Saved approximately 5.9M diesel gallons of fuel in 2017. • Utilized solar as an alternative power source at 90 signal locations. Of these, 43 are Positive Train Control (PTC) Wayside Interface Unit (WIU) locations • In 2017, KCS became the first American Chemistry Council (ACC) Responsible Care® partner to receive an Exceptional Merit designation for their use of the Trip Optimizer. PROPRIETARY AND CONFIDENTIAL

  29. TRANSFORMING THE INTERMODAL FOOTPRINT • Purchased 18,000 stackable containers since 2010 to enable additional freight conversion and further reduce carbon consumption • New tractor purchases have reduced average tractor age from 5.1 to 3 years • Implemented owned chassis program, which enables heavier weight capacity • Schneider’s Carbon Consumption analytical tools help shippers see impact that freight conversion to Intermodal can have on their supply chain footprint • Currently expanding Bulk Intermodal Trailer Service PROPRIETARY AND CONFIDENTIAL

  30. PEOPLE TAKE NOTE WHEN YOU DO THE RIGHT THING • SmartWay Award of Excellence Presented by: EPA • Green Supply Chain Enabler Presented by: Supply & Demand Chain Executive magazine • CaseStack Green Carrier Award • Green Fleet of the Year Presented by: Fleet Owner magazine • CSX Environmental Award • Green Supply Chain Partner Presented by: Inbound Logistics magazine • Top Green Providers Presented by: Food Logistics magazine • Eco-Enterprise Award Presented by: Oracle PROPRIETARY AND CONFIDENTIAL

  31. OUR SHARED INVESTMENT MAKES A WORLD OF DIFFERENCE • Transportation moves today are the cleanest and most energy efficient ever because carriers, shippers and consumers are working together, sharing the investment in energy efficiency • Carriers focused on sustainability have shippers’ bottom line in mind • An energy efficient supply chain drives our business and theirs • When we invest, so do shippers • When we get greener, so do shippers PROPRIETARY AND CONFIDENTIAL

  32. GOING GREEN TOGETHER We look forward to working with you to deliver a cleaner and more cost-effective tomorrow. PROPRIETARY AND CONFIDENTIAL

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