BERKSHIRE HATHAWAY INC

Ensuring the safety of our Company’s railroad operations is not only a collective legal and ethical responsibility, but also a vital component of maintaining the financial health and reputation of our Company. Recent derailments in the railroad industry, including those involving BNSF, have drawn attention to the potential risks associated with these operations, necessitating a proactive approach to enhance safety measures.34 There are over 1,000 known train derailments a year in the United States — averaging three a day.35

As common carriers, railroads are required by federal law to transport hazardous materials that can result in the loss of life and environmental contamination in the event of a train derailment. In 2023, the Norfolk Southern (“NS”) train derailment in East Palestine, Ohio resulted in the release of vinyl chloride that captured national media attention and publicized the need for improved railroad safety.36 The 2023 East Palestine derailment has cost NS almost $1 billion and a similar derailment on BNSF could pose a significant financial risk to BNSF.37