Norfolk Southern Corporation today closed a $500 million green bond offering to fund investments to reduce the company’s carbon emissions and help customers reduce their supply-chain emissions. Norfolk Southern is the first Class I railroad in North America to issue green bonds.

Norfolk Southern last month committed to establish a science-based target to lower its carbon emissions in accordance with the Paris Agreement on climate change. Today’s announcement is an important step in the company’s plans to reach that goal.

Norfolk Southern today can, on average, haul a ton of freight 440 miles on a single gallon of fuel. Rail currently moves 45% of all freight ton miles for long-distance shipping in the US and only produces 7% of freight carbon emissions. Moving freight by rail lowers overall transportation emissions, relieves highway congestion, and reduces wear on the publicly funded interstate highway system.

As outlined in the company’s Green Financing Framework, projects that can be funded with proceeds from the green bond offering include:

• Improving the fuel efficiency of Norfolk Southern’s locomotive fleet;
• Investing in intermodal terminals that promote the shift of freight from trucks to trains;
• Powering company operations with cleaner energy;
• Increasing the use of energy-efficient buildings and technology; and
• Supporting reforestation projects that restore natural landscapes and offset carbon emissions.

“Green bonds challenge us to reduce our environmental impacts and evaluate not only where we have been, but where we want to go,” said Josh Raglin, chief sustainability officer. “Through innovation and collaboration with our many partners, we aim to be the transportation industry leader delivering the low-carbon economy.”

-via Press Release