Greenbrier's 2024 Sustainability Update: A Beacon of Progress

As an investor, I've always been drawn to companies that balance profitability with sustainability. Greenbrier Companies, Inc. (NYSE:GBX) has recently published its 2024 Sustainability Update, titled "On Track Together," and I must say, it's a breath of fresh air in the world of corporate responsibility. Let's dive into the key takeaways and explore what this means for investors.

Firstly, Greenbrier's commitment to waste reduction is commendable. The company reused, reclaimed, or recycled 25,000 tons of materials through its programmatic railcar restoration activities. This not only contributes to a cleaner environment but also demonstrates a forward-thinking approach to resource management. I can't help but wonder if other companies in the industry are taking similar steps to minimize waste.

Another standout aspect is Greenbrier's increased use of recycled steel in new railcar manufacturing, now at 56%. This shift towards sustainability can lead to significant long-term cost savings. According to a 2021 study by the Steel Recycling Institute, using recycled steel can reduce production costs by up to 70% compared to using virgin steel. If Greenbrier maintains this level of recycled steel usage, they could potentially save around $140 million annually, based on their 2023 revenue of $2.5 billion and an average savings of 40% per ton of recycled steel used.



Greenbrier's commitment to renewable energy is also noteworthy. In 2024, 35% of the company's U.S.-based electricity usage came from renewable sources. This shift can significantly impact energy costs and sustainability efforts. By relying less on fossil fuels, Greenbrier reduces its exposure to volatile energy prices, enhancing operational stability. Moreover, renewable energy sources often come with long-term fixed pricing, providing predictability in energy costs.

As an investor, I'm particularly interested in Greenbrier's external recognitions, which strengthen its market position and can lead to increased business opportunities. The company received multiple sustainability recognitions from industry stakeholders and media, including Canadian National Railway's EcoConnexions Partner, Union Pacific's Sustainability Partner, and Norfolk Southern's Thoroughbred Sustainability Partner. These recognitions signal to customers, investors, and the public that Greenbrier is committed to sustainable practices, which can lead to improved revenue streams.

In conclusion, Greenbrier's 2024 Sustainability Update is a testament to the company's commitment to environmental responsibility and social responsibility. As an investor, I'm encouraged by the progress made and the potential long-term benefits for the company and its stakeholders. While external market pressures remain a concern, Greenbrier's dedication to sustainability sets it apart and positions it for enduring success. I, for one, will be keeping a close eye on this company as it continues to make strides in the sustainability arena.