Company: Norfolk Southern (NYSE: NSC)
Overview: Norfolk Southern is a major U.S. freight railroad operator.
ESG controversy + share price impact: After the East Palestine, Ohio derailment (Feb 2023), investors reacted negatively. Reuters reported the company’s share price fell about 9.4% between the derailment and March 3, 2023, wiping out roughly $5.4B in market value.
Bad ESG controversy score: On Yahoo Finance (ESG data provided by Sustainalytics), Norfolk Southern shows a “Significant” Controversy Level (3).
Why the company received that bad score: The derailment triggered major environmental and safety concerns, plus heightened regulatory, legal, and reputational risk. Reuters reported the derailment released over 1 million gallons of hazardous materials and pollutants. These kinds of incidents often signal weaknesses in risk controls and management systems, which is why ESG controversy assessments are used as an investor risk flag.
Sources:
- Reuters (Mar 17, 2023) — Share price fell 9.4% and market value impact. Reuters
- Yahoo Finance (NSC Sustainability; Sustainalytics data) — “Significant” Controversy Level (3). Yahoo Finanzas
- Reuters (Jun 25, 2024) — Released over 1 million gallons of hazardous materials/pollutants. Reuters
- Sustainalytics (Morningstar) — Controversies Research overview (controversies as risk signal). sustainalytics.com
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