Norfolk Southern has released a report on projects funded by the $500 million in green bonds issued by the company in 2021. The report provides a comprehensive overview of the funded projects, as well as expected environmental and social benefits.
“Sustainability is in our company’s DNA,” said Mark George, Executive Vice President and Chief Financial Officer for Norfolk Southern. “Our industry-first green bond offering funds projects that align our efforts to reduce carbon emissions and advance sustainable business practices, all while delivering long-term value for our customers, communities, and shareholders.”
Norfolk Southern is a leader in delivering the low-carbon economy and was the first Class I railroad in North America to issue green bonds. The company allocated $496 million in net proceeds from its green bonds to fund eligible projects, as defined under Norfolk Southern’s Green Financing Framework. Projects include:
$275.6 million to fund DC to AC locomotive power conversions: Modernizing an existing locomotive avoids approximately 200 tons of total carbon emissions versus producing a new AC locomotive. This also improves fuel efficiency up to 25%.
$99.5 million in Intermodal facility improvements: Will further support efforts to shift millions of tons of freight onto the railroad to decongest our nation’s highways.
$10.9 million to further locomotive fuel management initiatives: This directly supports Norfolk Southern’s science-based target to reduce carbon emissions intensity 42% by 2034.
$3.4 million to build upon the company’s nature-based solutions that restore and protect vital stream and wetland ecosystems.
“Norfolk Southern intends to build on its industry-leading position in delivering the low-carbon economy while helping customers reduce their supply chain emissions,” said Josh Raglin, Chief Sustainability Officer for Norfolk Southern. “From improved fuel efficiency of our locomotive fleet to ecological projects that restore natural landscapes, we believe these funds are driving a sustainable future and long-term value for all our stakeholders.”