Union Pacific has issued a 600 million USD green bond offering to fund investments that will decarbonise its footprint and reduce its emissions.
This will help the company achieve its goal of reducing 2018 well-to-wheel greenhouse gas emissions by 26% by 2030 and to net zero by 2050.
“Today’s announcement emphasises the importance of our commitment to building a sustainable future for generations to come. When it comes to finding ways to decarbonise our footprint, every idea is on the table. We are acting now on our most promising avenues to make progress toward reducing greenhouse gas emissions and investing in technology to support future initiatives.”
Railways are already are one of the most fuel-efficient means of transportation, but to make operations more sustainable, Union Pacific will use the proceeds from the green bonds to fund green investments.
The company’s Green Financing Framework states that the investments may include:
- New battery-electric locomotives
- Locomotive modernisations that reduce emissions and increase fuel efficiency
- Expansion of intermodal facilities to promote modal shift of freight to lower-carbon alternatives such as rail
- New sidings and siding extensions, which increase train length and reduce dwell time
- Investment in onsite or offsite generation and distribution of renewable energy from solar or wind sources
The bond transaction was finalised on 9 September 2022.
Infrastructure and rolling stock dedicated to the transportation of fossil fuels will not qualify for proceeds from the green bonds.
