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The factors are social / demographic, technological , economic, environmental/geographic and political/ legal/ governmental segments to understand the general environment facing union pacific. Union Pacific Railroad is the principal operating company of Union Pacific Corporation. Protecting the environment is a guiding principle at Union Pacific, whether it's by increasing fuel efficiency, reducing air emissions and energy consumption, or recycling used materials. Union Pacific has been part of the country's fabric for more than 150 years.
We Must Manage Fluctuating Demand for Our Services and Network Capacity
If there is significant demand for our services that exceeds the designed capacity of our network, we may experience network difficulties, including congestion and reduced velocity, that could compromise the level of service we provide to our customers.
Affected by Economic Conditions
Prolonged severe adverse domestic and global economic conditions or disruptions of financial and credit markets, including the availability of short and long-term debt financing, may affect the producers and consumers of the commodities we carry and may have a material adverse effect on our access to liquidity and our results of operations and financial condition.
Required to Transport Hazardous Materials
Federal laws require railroads, including us, to transport certain hazardous materials regardless of risk or potential exposure to loss could involve significant costs and claims for personal injury, property damage, and environmental penalties and remediation, which could have a material adverse effect on our results of operations, financial condition, and liquidity.
Significant Governmental Regulation
We are subject to governmental regulation by a significant number of federal, state, and local authorities covering a variety of health, safety, labor, environmental, economic. Many laws and regulations require us to obtain and maintain various licenses, permits and our failure to comply with applicable laws and regulations could have a material adverse effect on us. Governments or regulators may change the legislative or regulatory frameworks within which we operate without providing us any recourse to address any adverse effects on our business
Affected by Climate Change and Market or Regulatory Responses to Climate Change :
Climate change, including the impact of global warming, could have a material adverse effect on our results of operations, financial condition, and liquidity. Restrictions, caps, taxes, or other controls on emissions of greenhouse gasses, including diesel exhaust, could significantly increase our operating costs.
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