US-based Union Pacific has rolled out a $600m green bond offering to support investments aimed at cutting down its carbon footprint and reaching emission reduction goals.
The green bonds align with the company’s strategy to attain its climate-action objectives.
Its targets include reducing absolute Scope 1 and 2 GHG emissions, as well as Scope 3 GHG emissions on a well-to-wheel basis from locomotive operations by 26% by 2030 from the 2018 baseline. The firm has also set a 2050 net zero target.
As defined in the firm’s Green Financing Framework, proceeds from the green bond offerings will be used for the acquisition of new battery-electric locomotives and the modernisation of locomotives to lower GHG emissions and improve fuel efficiency.
Furthermore, the proceeds will be used to expand intermodal facilities and encourage a modal shift of freight to lower-carbon alternatives.
The company will also use the funding for new sidings and siding extensions to increase train length and lessen dwell time.
It will invest in the development of on-site or off-site generation and supply of renewable energy from solar or wind sources.
Union Pacific chairman, president and CEO Lance Fritz said: “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.”
This July, Wabtec won more than $1bn worth of contracts from Union Pacific to upgrade its locomotives.