Mr. Keith Creel reprots

NEW CPKC CLIMATE COMMITMENT ALIGNED WITH SBTI BUSINESS AMBITION FOR 1.5C AND NET ZERO

Canadian Pacific Kansas City Ltd. is committed to developing a greenhouse gas (GHG) emissions reduction target aligned with a 1.5C future and supporting the global economy to achieve net-zero emissions by 2050.

With this commitment, made following the combination of Canadian Pacific (CP) and Kansas City Southern (KCS), Canadian Pacific Kansas joins the Science Based Targets initiative's (SBTi) business ambition for 1.5C global campaign, which includes alignment in supporting the global economy to achieve net-zero emissions by 2050.

"This represents an important milestone in the sustainability journey for the new CPKC," said Keith Creel, Canadian Pacific Kansas president and chief executive officer. "It comes early in our integration and reaffirms our commitment to operating sustainably as we grow our business for the future. This new commitment builds on the foundational work addressing climate change already under way, including our industry-leading hydrogen locomotive program."

While the company works toward developing a 1.5C aligned emissions reduction target, as an interim measure, Canadian Pacific Kansas has established a consolidated locomotive emissions reduction target using SBTi's sectoral-based approach for freight railways and a well-below 2C global warming scenario.

The consolidated target for Canadian Pacific Kansas, which has been recently validated by SBTi, is:

• Canadian Pacific Kansas commits to reduce scope 1, 2 and 3 well-to-wheel locomotive GHG emissions 36.9 per cent per gross ton-miles by 2030 from a 2020 base year.

This consolidated target replaces individual former CP and KCS targets to provide a single SBTi validated target while Canadian Pacific Kansas continues its continuing integration work.

"The railroad industry has an important role to play as we transition to a less carbon intensive economy," Mr. Creel added. "CPKC is proud to be playing a leading role as we work towards a more sustainable future for our customers, employees and the communities we operate in and through."

About Canadian Pacific Kansas City Ltd.

With its global headquarters in Calgary, Alta., Canada, Canadian Pacific Kansas is the first and only single-line transnational railway linking Canada, the United States and Mexico, with unrivaled access to major ports from Vancouver to Atlantic Canada to the Gulf of Mexico to Lazaro Cardenas, Mexico.

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