Norfolk Southern has funded nearly $ 500 million for sustainability-related projects in 2021, through the issuance of its green bonds.
Projects, some of which are directly related to sustainability, and some of which include sustainability as an end result, include:
- $ 275.6 million to fund the conversion of power locomotives from DC to AC, which, according to NS, increases fuel efficiency by up to 25%. It also reduces carbon emissions from existing locomotives by about 200 tons compared to the production of a new AC locomotive.
- $ 99.5 million for the improvement of an intermodal facility aimed at converting volumes from trucks to rail.
- $ 10.9 million for further locomotive fuel management initiatives that will support NS’s efforts to reduce carbon emissions by 42% by 2034 and help NS achieve its science-based goal.
- $ 3.4 million based on the company’s initiatives to restore and protect vital streams and wetland ecosystems.
Funding for these projects of $ 496 million came from the issue of NS green bonds (NYSE: NSC) in 2021. Overview of funded projects: available here.
“Sustainability is in the DNA of our company. Our first green bond in the industry to offer project financing that combines our efforts to reduce carbon emissions and promote sustainable business practices while providing long-term value to our customers, communities and shareholders, ”said NS Chief Financial Officer Mark George.
The publication of the report follows from other recent sustainability initiatives in NS. In March the railway updated carbon calculator which helps customers and shippers estimate the carbon emissions that produced their supplies, and in December 2021 the company stated that It will be a partnership with carmaker Greenbrier (NYSE: GBX) and US Steel to work on producing a more sustainable gondola car pending the final demolition of the existing fleet.