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.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

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.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

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.