Trinity Industries : Environmental Statement

Environmental Statement

Introduction

Trinity is committed to providing transportation solutions for our customers and communities while also improving our stewardship of the natural environment. At Trinity, our core mission of Delivering Goods for the Good of All includes protecting the environment and doing everything we can to minimize our impact. Trinity believes that innovation is critical to enhancing rail safety, efficiency, and sustainability. As such, we are continually identifying and implementing innovative environmental approaches to ensure the safety and longevity of our business and the planet. This statement has been approved by senior management and applies to all employees.

Table of Contents:

Air Emissions

Energy

Climate Change and GHG Emissions

Environmental Stewardship

Product Stewardship

Water and Waste Management

Air Emissions

Trinity remains focused on our commitment to improving emissions controls. We continue to evaluate the emissions from our facilities and strive to reduce them. We promote the use of clean fuels across our enterprise, taking into consideration emerging regulatory requirements, cost-effective technologies, and the engagement of sound business opportunities.

Air quality is a priority in our railcar manufacturing and maintenance facilities. Our key air emissions processes include painting, abrasive blasting (prior to painting), railcar cleaning, and furnaces for heat treating and metalworking. We employ the use of several technologies in our painting operations that include the evaluation, testing, and use of new or reformulated low solvent/waterbase/100%-solids coatings where possible. We have also deployed regenerative thermal oxidizer (RTO) technologies to reduce solvent emissions for applications where low-solvent coatings are not feasible.

We continue to work with paint manufacturers to evaluate and substitute solvent formulations with less environmentally impactful alternatives. We have successfully reduced air emissions at six of our existing U.S. facilities from EPA-defined Major Source levels to EPA Minor Source levels. We are focused on reducing an additional facility to Minor Source levels through investment in additional controls, and our two newest U.S. facilities were constructed with air emission controls in place and operate as Minor Sources.

Abrasive blasting of railcars prior to painting is done in booths controlled with high-efficiency filters to control particulate matter. We promote a rigorous preventative maintenance program striving to ensure that the blast booths and filter systems are operating at optimum levels to capture and control efficiency. We use thermal control systems to process volatile vapors and remove residual heel from railcars prior to conducting maintenance operations, and we use clean-burning natural gas as the fuel source for process heat needs, including heat treat ovens, boilers, and stress relief ovens.

Energy

Trinity Industries remains committed to improving our energy consumption across the enterprise and to conducting business in a manner that demonstrates responsibility for our impact on the environment. The Company continually evaluates and assesses its operations and business processes with the goal of reducing adverse environmental impacts and meeting or exceeding environmental standards in the locations where we operate. We work hard to comply with all applicable environmental regulatory requirements as well as company environmental policies. We are committed to reducing our energy consumption from non-renewable sources and are focused on increasing our utilization of renewable energy sources across our operations and have established a renewable energy working group that explores viable alternative energy options for the Company.

Climate Change and GHG Emissions

Trinity Industries recognizes climate change risks as a challenge facing our business, industry, and communities today. We are committed to contributing to a more resource-efficient economy and embedding climate change mitigation into our business strategy. Our commitment is underscored by our goals to continue reducing GHG emissions across our business. While we have made progress, Trinity is committed to continuing the exploration of ways to reduce our GHG emissions and our total carbon footprint across the enterprise. Trinity is focused on improving our GHG emissions reporting in accordance with the GHG Protocol and will disclose any relevant targets or GHG reduction initiatives that are put in place.

Environmental Stewardship

At Trinity, we are committed to preserving natural resources and protecting the environment. We recognize that our industry faces specific environmental challenges including energy management, fuel economy and efficiency, and materials sourcing. Trinity operates an environmental management system in accordance with and certified to ISO 14001 to review the organization’s environmental goals, analyze environmental impacts, set objectives and targets, and monitor and measure progress. Our environmental management system seeks to:

• Operate our businesses in a way that minimizes our impact on natural resources and the environment.
• Maintain a management system across all our operations to meet applicable regulatory requirements and support the guiding principles of the American Chemistry Council’s Responsible Care® Management System.

• Actively engage and consult with our stakeholders in our environmental, health, and safety (EHS) initiatives.
• Continually improve our processes, practices, and systems, by setting goals and objectives, to advance EHS initiatives and performance.
• Inform all employees and suppliers of their role and responsibility to fulfill and sustain Trinity’s environmental policy; and
• Support our customers’ products at each stage of the product lifecycle, from incorporating eco- design considerations during the R&D process to facilitating recycling procedures at the end of the product life.

In addition to the environmental management system described above, Trinity is committed to continually monitoring the company’s performance and regularly reporting on any environmental issues affecting our operations. We are also consulting with our stakeholders on key environmental issues that are central to the company’s performance and overall environmental stewardship.

Product Stewardship

Trinity understands that energy and transport efficiency are important to improving our everyday lives and our communities. We believe sustainable progress is made possible by developing systems that maximize life cycle benefits and improve the sustainability performance of Trinity’s products. This is one of the reasons that the environmental impact of our products is among our chief considerations at all stages of the product life cycle – from product development to end-of-life recycling, we strive to apply innovation and technology to improve the sustainability performance of Trinity’s products.

Our commitment to environmental product stewardship begins as a principal element of our R&D process. New innovations and products that we develop and revise are done so with light weighting and efficiency among the top design considerations.

Well over half of the material used in the building of a new railcar is recycled steel. Our railcars are also at least 95% salvageable when converted to scrap steel at the end of their 40 to 50-year life.

We are committed to maintaining strong standards around quality assurance, continually striving to deliver safe, efficient, and high-quality railcars to our customers. In addition to our certifications in Responsible Care®, our rail operations are certified to the AAR Specification for Quality Assurance, M- 1003, as well as to ISO 45001 (Occupational health and safety).

Our program emphasizes:

• Managerial commitment and responsibility for product/service safety;
• Operations management accountability;
• Product/service safety risk assessment and hazard review processes;
• Regular employee training on product/service safety;
• Self-inspectionsand emergency response procedures;

• Assessment and management of risks or hazards associated with the inclusion of harmful chemicals in products;
• Employee Hazard Reporting System.
• Tracking of injury rates including incident investigation and corrective action;
• Monitoring of product/service safety performance;
• Product/service objectives or targets; and
• Program evaluation and verification by third-parties.

Through these processes, we strive to identify potential quality and safety issues earlier and respond with appropriate actions.

Water and Waste Management

Trinity promotes waste reduction efforts as a key opportunity to reduce our environmental impact. Trinity is committed to reducing waste generation moving forward through our Environmental management systems and practices.

Trinity recognizes the risk caused by neglecting water and wastewater management, including water consumption costs and risks associated with disruptions to water supplies. Clean freshwater is becoming increasingly scarce and can affect production processes that rely on large volumes of water. We are committed to reducing our water usage through a systematic effort to monitor and improve the efficient use of water. Trinity, for example, maintains water recycling and reuse tanks for pressure and volume testing at our tank car manufacturing facilities. Through multi-stakeholder collaboration and tracking, we remain committed to improving the impact our operations have on the environment.

We take responsibility for our Company’s impact on the natural environment. At Trinity, we are committed to reducing emissions, wastewater releases, and waste throughout our operations.