1. E NVI RONM E NTAL.
S OCI AL.
G OVE RNANCE .
2022
2. Moving Ahead… Together
LETTER FROM THE PRESIDENT
Texas Howard
It is with great pleasure that I share AITX’s inaugural Environment, Social, and Governance (“ESG”)
Report. This ESG Report will be updated periodically as we discover new ways to implement and
improve ESG initiatives in our business. We are striving for transparency in our communications about our
ESG efforts.
AITX is committed to sustainability through environmental stewardship, health and safety of its
employees, serving our communities, and delivering innovative and quality workmanship to our valued
customers. This focus is founded on a culture that encourages diversity, inclusion, and empathy. As
evidenced by our industry leading safety statistics, our employees are passionate about their work and
dedicated to delivering best-in-class customer service.
Already the most sustainable mode of transportation, the rail industry continues to develop innovations
and solutions that decrease environmental impact while building greater efficiencies that support the
growth of the economy.
With our passionate, dedicated, and experienced employees across railcar repair, leasing, and fleet
management, I look forward to celebrating and sharing more successes by our team in the future.
We provide railcar services with integrity so our customers, co-workers, and communities trust AITX to
keep them moving ahead.
3. Commitment
to ESG Policies
In 2021, we conducted a materiality assessment to better understand
how our business delivered on core ESG priorities that align with our
values. We found strong alignment around our commitment to safety,
developing environmental best practices, and prioritizing efforts to
support our employees and the communities where they live.
Our relationship with our employees and the communities where we
operate is the foundation of AITX’s long history of success. Employee
safety and community participation are a core priority and where we
plan to continue to focus in the years ahead.
We set a high bar in our approach to environmental stewardship
taking the necessary steps and building the right infrastructure to
ensure we are continuing to improve and build for a sustainable
future.
This is just the beginning of a dedicated and deliberate approach to
integrating strong ESG principles into everything we do.
4. Rail is the most efficient mode of
transportation
*According to the U.S. Environmental Protection Agency (EPA)
GREENHOUSE GAS EMISSIONS
Railroads account for 40% of US
Freight but only 1.9% of US transport-
related greenhouse gas emissions.*
GREENHOUSE GAS REDUCTION
75% - the reduction of greenhouse
gas emissions when moving freight
by trains instead of trucks.
HIGHWAY CONGESTION
Reduction of highway pollution, wear
& tear, and ultimately lost productivity
due to traffic for other motorists. A
single Freight train can replace over
300 heavy trucks.
FREIGHT EFFICIENCY
One train can move, on average 1
ton of freight 480+ miles on 1 gallon
of fuel.
FUEL EFFICIENCY
~4x more fuel efficient than trucks.
5. AITX is taking a comprehensive
approach to building ESG principles into
our business and what we do every day
in service of our clients.
Our approach to measuring, managing,
and reporting the specific policies and
strategies in these categories will allow
us to accomplish our short-and-long term
goals.
EMPLOYEE HEALTH
& SAFETY
DIVERSITY, EQUITY,
INCLUSION, & BELONGING
COMMUNITY
DEVELOPMENT
ENVIRONMENTAL
SUSTAINABILITY
GOVERNANCE
& ETHICS
2022 ESG Report
CHARTING OUR PATH FORWARD
6. Our People
HEALTH & SAFETY IS OUR #1 PRIORITY
We have a strong track record and one of the best
safety records in the business, because we prioritize
training and the processes that ensure team safety.
This begins with an onboarding training program
focused on preparation and skill accumulation in
designated areas of focus. The AITX culture is one that
reinforces safety and attention to protecting our people
and our environment.
THE BEST TEAMS ARE THE SAFEST TEAMS
Four of our operations, including multiple mobiles sites, have
celebrated 1 million hours without a lost time injury.
7. Safety Record
GUIDED BY A COMMITMENT TO PERFORMANCE METRICS
In 2021, AITX’s rates were significantly lower than industry averages:
• TRIR rate: 1.36 is nearly 70% lower than the industry average (2.3)
• DART rate: .17 is over 157% lower than the industry average (1.8)
In 2021, AITX achieved our lowest ever recordable
incident rate safety performance in our history.
DART
TRIR
1.32
1.77
1.38
1.46
1.36
0.73
0.89
0.69 0.65
0.17
0
0.4
0.8
1.2
1.6
2
2017 2018 2019 2020 2021
OSHA safety performance metrics.
•TRIR = Total Recordable Incident Rate
•DART = Days Aways, Restricted, or Transferred
8. Our Covid-19 Response
Despite the challenges of Covid-19, AITX safely continued operations,
responsible for delivering the essential goods that kept our Nation running.
In doing so, AITX prioritized the health and safety of employees above all
else and developed Covid-19 protocols and extended premium pay for
hourly and salaried employees, plus paid-time-off for those who had to
quarantine.
“Appreciation” pay for employees who continued working
as essential workers.
Clear Covid-19 protocols that isolated positive individuals
and provided days paid time off for quarantining.
Implementation of temperature taking at all repair
facilities and office locations.
Expanded heavy duty cleaning protocols and sanitization
procedures for AITX locations and provided workers PPE.
Instituted social distancing procedures for essential
workers and introduced plexiglass dividers where
necessary.
Consistent virtual communication that fostered awareness
of the efforts AITX was taking to protect our employees.
9. Dedicated & Experienced
Workforce
30 – 49
years
16%
18%
12%
8%
10 – 19
years
20 – 29
years
<5 years 46%
5 – 9
years
AITX believes in developing its people and allowing them to achieve their
professional goals. Employees have access to AITX tuition reimbursement as
well as a wide range of training that encourages them to build their long-term
careers at AITX.
When looking at our workforce, AITX reflects the communities where we operate
as well as the industry. The Company’s strong culture has resulted in nearly 40%
of the AITX diverse workforce having been the Company for 10+ years.
YEARS AT AITX BY EMPLOYEE
NEARLY 40% HAVE BEEN
AT AITX FOR 10+ YEARS
10. People Move Us Ahead
DIVERSITY, EQUITY, INCLUSION, & BELONGING
AITX believes that a diverse workforce is essential for our business to achieve its long-term goals. The diverse
perspective and experiences foster a culture that serves both our clients and the communities. AITX is going
beyond its DEI initiative and focusing on DEI&B. When employees feel comfortable bringing their authentic
selves to work, we, as a Company, thrive culturally.
AITX is committed to identifying and understanding site-specific challenges and circumstances relating to
gender and diversity. This, coupled with a more focused approach on recruiting and outreach, demonstrates the
Company’s commitment to emphasizing representation across the AITX workforce.
11. Community Development
STRONG COMMITMENT TO THE LOCAL COMMUNITY
AITX is committed to supporting and enriching the
communities where we operate. The Company has a long
tradition of contributing to local organizations, schools, and
charities that ensure a prosperous and growing local
community. Whether that is supporting local festivals, high
school sports teams, or veteran initiatives, our repair
facilities support organizations that give back to their local
communities.
The AITX ESG Committee will proactively evaluate the
needs of our local communities to establish and support
programs that help address local needs.
AITX’s Corporate office supports Youth in Need to provide
the resources and foundation for kids to thrive. AITX
received The Spirit of Philanthropy Award in 2019.
For the 2nd year
running, AITX Tennille,
GA was named “Best
Manufacturing
Company” by the
Sandersville Scene’s
Reader’s Choice.
Named Brookhaven –
Lincoln County 2021
“Industry of the Year”
by the Chairman of the
Industrial Development
Foundations.
12. Environmental
Sustainability
AITX believes that environmental stewardship is
essential to the long-term health of our Company,
industry, and the world. Our business is essential to
the global supply chain and contributes to an
efficient transportation infrastructure of intermodal
delivery of essential goods.
AITX is collecting and reviewing our energy, water,
and waste usage across our repair network and
corporate offices. This allows AITX to identity and
develop initiatives that reduce emissions and fortify
our long-term approach to growth with an eye
towards the environment and local operational
communities.
Our Longview Facility is
consistently honored with the
Pretreatment Excellence Award
for the City of Longview.
13. Sustainability
Initiatives
WATER AIR QUALITY RECYCLING ELECTRICITY
Developing a formal
Company-wide recycling
program to reduce waste.
LED lighting retrofit being
assessed and
implemented where
feasible.
Select repair facilities
utilizing new roto jet
heads to reduce water-use
in the cleaning process,
resulting in a 10% water
reduction.
Effort to utilize paint &
coating materials with
reduced Volatile Organic
Compounds (VOCs) and
Hazardous Air Pollutants
(HAPs); working with
vendors to identify better
materials that reduce
pollutants.
14. Reporting &
Governance
We are establishing an AITX ESG Committee consisting of subject
matter experts from across the Company. This team will work
autonomously to develop the Company’s ESG priorities and the
long-term strategy that aligns with the Company’s values.
The AITX ESG Committee will report directly to the President and
receive Board support.
In the years ahead, AITX will build broader engagement with our
internal and external stakeholders to ensure we focus on the ESG
principals that are important to them. This process will foster
greater transparency to ensure employee feedback and broader
adoption.
The AITX ESG Committee will continue to periodically ensure the
Company is establishing, tracking, and delivering on its stated
ESG objectives and goals.
15. DIVERSITY,
EQUITY,
INCLUSION, &
BELONGING
EMPLOYEE
HEALTH &
SAFETY
ENVIRONMENTAL
ESG Goals for 2023-2024
• Incorporate ESG criteria into annual performance management process to raise awareness
at all levels of the Company.
• Focus recruiting to be more representative across diverse populations.
• Provide plant managers with an ESG Roadmap that highlights the programs and
initiatives in order to identify and build them into operations.
• Build on our successes and achievements in safety with industry leading statistics.
• Implement tracking for emissions with a long-term objective to reduce our
carbon footprint.
• Implement waste management tracking to increase recycling in our shops.
• Continue to assess our shops and corporate offices for the ability to switch to
LED lighting and reduce power usage.
16. PEOPLE
COMMUNITY
DEVELOPMENT
GOVERNANCE &
ETHICS
• Develop and implement new trade school outreach programs.
• Expand mentor programs to encourage employees to grow their long-term careers at AITX.
• Enhance Company onboarding and retention programs with a focus on expanding training.
• Develop Company-wide charitable giving programs that allow employees to give back
to their designated local or national charitable organizations.
• Develop a new Company-wide volunteer time off program.
• Increase Company communication and transparency for our employees
through more frequent updates.
• Provide periodic updates on our ESG program explaining how we are
effectively taking steps to reach our ESG objectives and impacting our
stakeholders (employees, clients, and local communities).
ESG Goals for 2023-2024