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9/13/2022
Union Pacific Corp. yesterday announced it issued a $600 million green bond offering to fund investments aimed at decarbonizing the company's footprint and achieving set emissions-reduction targets.
The bond transaction was finalized Sept. 9, UP officials said in a press release.
The bonds underscore UP's commitment to achieving its climate-action goals: reducing absolute Scope 1 and 2 greenhouse gas emissions and Scope 3 GHG emissions on a well-to-wheel basis from locomotive operations 26% by 2030 from a 2018 baseline, and net zero by 2050, they said.
Expenditures to be funded with proceeds from the green bond offering may include new battery-electric locomotives; locomotive modernizations that reduce GHG emissions and increase fuel efficiency; intermodal facility expansions that promote the modal shift of freight to rail; new sidings and extensions that increase train length and reduce dwell time; and the development of onsite or offsite generation and distribution of renewable energy from solar or wind sources.
"When it comes to finding ways to decarbonize 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," said Chairman, President and CEO Lance Fritz.