High-profile killings of black men and women in 2020 highlighted the grave consequences of systemic racism in our society, sparked nationwide protests for racial justice, and prompted many companies to publicize their commitments to racial equity and diversity.

In a June 3rd statement, Union Pacific Chairman and CEO Lance Fritz announced: "Union Pacific has zero-tolerance for harassment or intimidation of this or any kind. Strengthening behavior that demonstrates respect and inclusion of culturally different employees is an ethical standard at Union Pacific. We, meaning me and my team at Union Pacific, need to stand up for our beliefs, our ethics and our fellow citizens."

We believe that demonstrable commitments to hire, equitably compensate, retain, and promote black employees, other employees of color and women can contribute not only to a more just society, but to improved company performance. A May 2020 McKinsey study found that companies in the top quartile of gender diversity on executive teams were 25% more likely to experience above-average profitability than peer company diversity laggards, and that there is an even higher likelihood of outperformance among companies with more ethnically diverse executive teams. ("Diversity Wins," at https://www.mckinsey.com/featuredinsights/diversity-and-inclusion/diversity-wins-how-inclusion-matters)

The EEO-1 Report breaks down a company's U.S. workforce by race, ethnicity and gender according to 10 employment categories, including senior management, defined to incorporate individuals within two reporting levels of the CEO. Disclosure of this Report will provide investors with critical information, including:
- Standardized, quantitative, and reliable data that is comparable across companies and industries, enabling investors to assess the representation of black employees and other employees of color and women at various levels of the corporation;
- Specific data on senior management diversity; and
- Particularized data that allows investors to assess the representation of specific racial and ethnic groups by gender, such as black female employees, in a job category - and to make meaningful, year-over-year comparisons.

Union Pacific's 2019 Building America report disclosure provides only percentages for gender, and separately, for racial/ethnic groups for all employees as well as three company-specific job categories. This extremely limited disclosure is neither comparable, nor decision-useful for investors

Disclosing its EEO 1 Report is a cost-effective means for Union Pacific to demonstrate its diversity performance - it already collects the data for submission.

Finally, the proposal neither prevents nor discourages Union Pacific from disclosing any other data or information that management believes reflect its organizational structure or demonstrates its diversity.

A majority of S&P 100 companies disclose or have committed to disclose their EEO-1 Report beginning in 2021.