Norfolk Southern Funds Nearly $500 Million In Sustainability Projects

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Norfolk Southern funded nearly $500 million for sustainability-related projects in 2021 through the issuance of its green bonds.

The projects, some directly related to sustainability and some that include sustainability as an end result, include:

• $275.6 million to fund DC-to-AC locomotive power conversions, which NS says improves fuel efficiency by up to 25%. It also reduces carbon emissions from existing locomotives by about 200 tons, when compared to producing a new AC locomotive.
• $99.5 million in intermodal facility improvements aimed at converting volumes from truck to rail. 
• $10.9 million to further locomotive fuel management initiatives, which will support NS' efforts to reduce carbon emissions intensity by 42% by 2034 and help NS meet its science-based target.
• $3.4 million to build upon company initiatives to restore and protect vital stream and wetland ecosystems.

The $496 million in funding for these projects came from NS' NSC issuance of green bonds in 2021. An overview of the funded projects is available here.

"Sustainability is in our company's DNA. 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," said NS CFO Mark George.

The publication of the report follows other recent sustainability-related initiatives at NS. In March, the railroad revamped a carbon calculator that helps customers and shippers gauge the carbon emissions their shipments produced, and in December 2021, the company said it would be partnering with railcar manufacturer Greenbrier GBX and U.S. Steel to work on producing a more sustainable gondola car in anticipation of the eventual retirement of the existing fleet.

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Related links:

• FRA wants rails to commit to climate change targets

• Net-Zero Carbon recap: Collaboration is key for the rails

• Norfolk Southern, Wabtec to modernize 330 NS locomotives

• Norfolk Southern revamps online carbon calculator
• This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.