KiwiRail has released its first standalone
Sustainability Report, providing a transparent account of its progress, challenges and future priorities as it works towards a lower-emissions, more resilient future for Aotearoa New Zealand.
In FY26:
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KiwiRail’s rail freight customers avoided almost 144,000 tonnes CO2e emissions through their freight movements
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KiwiRail’s Steel Wheels report achieved Toitū Envirocare Carbon Compatible Reporting status for the first time
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KiwiRail achieved a 24% reduction in Scope 1 and 2 emissions compared with the FY19 baseline
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Almost 400 frontline leaders completed Shifting Mindsets safety leadership training
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KiwiRail launched its first Biodiversity Action Plan
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Increasing adverse weather impacts remain a significant challenge for the national rail network.
The FY26 report tracks progress against KiwiRail's Rautaki Whakauka Sustainability Strategy 2025-2028 and reflects the growing importance of sustainability across the organisation's operations, customers and strategic decision-making. The report follows the release of KiwiRail's Integrated Report and provides a more detailed view of sustainability performance and outcomes.
KiwiRail Chief Executive Peter Reidy says the report demonstrates meaningful progress while also acknowledging where more work is needed to meet the company’s targets.
"Rail has an important role to play in supporting Aotearoa New Zealand's transition to a lower-emissions economy, but sustainability is about much more than carbon. It is also about climate risk, adaptation, resilience, protecting our environment, creating a safe and inclusive workplace, and delivering long-term value to the communities we serve.
"This report reflects our commitment to being transparent about both our achievements and our challenges. We are making progress in several important areas, but we recognise there is still work to do as we continue to grow a more sustainable business."
One of the report's key highlights is the role rail freight continues to play in helping customers reduce transport emissions. During FY26, by moving freight by rail, customers avoided almost 144,000 tonnes of carbon emissions (CO2e). This is the equivalent of the use of 54m litres of diesel avoided.
The 24% reduction in Scope 1 and 2 emissions compared with an FY19 baseline is significant, although the main driver for the drop was the shift from a three to a two-ship Interislander fleet.
Eleven electric shunt vehicles were commissioned into service, reducing fuel consumption and improving working conditions for staff.
This year KiwiRail collaborated with the Sustainable Business Council on a campaign to showcase how Aotearoa New Zealand businesses and SBC members are using rail services to reduce emissions, strengthen supply chains and unlock wider commercial value. The first case studies will be available on the SBC’s website from next week.
To support customers with their own sustainability reporting, KiwiRail's annual Steel Wheels report achieved Toitū Envirocare Carbon Compatible Reporting status for the first time in FY26. This independent verification provides customers with greater confidence in the emissions information they use for decision-making and to meet increasingly stringent reporting requirements in domestic and international markets.
The sustainability report also highlights the introduction this year of KiwiRail's first Biodiversity Action Plan, which guides efforts to protect te taiao across the rail network.
Practical actions already underway include upskilling staff on fish passage, as well as native planting initiatives associated with major capital works.
The report highlights continued investment in safety culture across the business, with almost 400 frontline leaders completing KiwiRail's new Shifting Mindsets training programme, representing 56 per cent of the eligible workforce.
At the same time, the report acknowledges the growing challenge posed by climate change. Increasingly severe weather events continue to disrupt rail services and place pressure on infrastructure across the network.
"Climate change is already having a significant impact on New Zealand's transport networks, including rail," says Mr Reidy.
"We are taking practical steps to improve resilience and reduce disruption where possible. However, some risks cannot be eliminated across a network that spans the length of the country. Adapting to these challenges will require ongoing investment, collaboration and long-term thinking."
KiwiRail says the report establishes an important baseline for future reporting and will help customers, stakeholders and staff better understand the organisation's sustainability journey and contribution to Aotearoa New Zealand's climate transition.