Norfolk Southern plans to invest money from its green bond to convert locomotives from DC to AC power.
The money is part of 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.
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.
- $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,” Norfolk Southern Chief Sustainability Officer Josh Raglin said in a news release. “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.”