Norfolk Southern aims to reduce greenhouse gas emissions intensity 42% by 2034

Rhea-AI Summary

Norfolk Southern Corporation (NYSE:NSC) has announced an ambitious target to reduce its scope 1 and 2 greenhouse gas emissions intensity by 42% by 2034 from a 2019 baseline. This commitment has been validated by the Science Based Targets initiative, aligning with the Paris Agreement goals. In recent years, Norfolk Southern's customers have reportedly avoided 15 million metric tons of carbon emissions annually by using their rail services, which are 75% more efficient than trucking. The company plans investments in better locomotives and green technologies to reach its goals.

Positive

• Commitment to a 42% reduction in greenhouse gas emissions by 2034 approved by SBTi.
• $500 million in green bonds issued to fund green projects, securing Norfolk Southern's position as a sustainability leader in the industry.
• Customers have avoided 15 million metric tons of carbon emissions annually by choosing rail over trucking, highlighting environmental benefits.

Negative

• None.

NORFOLK, Va., July 26, 2021 /PRNewswire/ -- Norfolk Southern Corporation (NYSE:NSC) today announced its science-based target to achieve a 42% reduction in scope 1 and 2 greenhouse gas emissions intensity by 2034 from a 2019 base year. This commitment is another step in the company's ongoing journey to build a more sustainable future.

"As a leading transportation provider, it is our responsibility to reduce our environmental impact and also to help our customers reduce their carbon footprint," said James A. Squires, chairman, president, and CEO. "In recent years, our customers have avoided 15 million metric tons of carbon emissions annually by shipping their goods and materials with Norfolk Southern. Shipping by rail instead of truck lowers carbon emissions by 75% on average, relieves traffic congestion, and reduces wear on public infrastructure."

Norfolk Southern's emissions reduction target has been approved by the Science Based Targets initiative (SBTi) and aligns with the goals of the Paris Agreement on climate change. Validation from the SBTi – a joint initiative of CDP, UN Global Compact, the World Resources Institute, and World Wide Fund for Nature – confirms that the company's target is consistent with reductions required to keep warming to well-below 2°C above pre-industrial levels.  

"Achieving our target will require continued investments in our locomotive fleet along with supplier engagement," said Josh Raglin, chief sustainability officer. "Our implementation of innovative technologies, sustainable operating practices, and locomotive modernizations are part of our efforts to build a more sustainable transportation network."

Locomotive fuel accounts for over 90% of the railroad's carbon emissions. Norfolk Southern set a fuel-efficiency goal as part of its 2015 strategic plan, targeting an 8.6% improvement by 2020. The company exceeded that goal with a 9.4% improvement, which resulted in savings of more than 130 million gallons of diesel fuel and avoidance of approximately 1.3 million metric tons of emissions.   

Norfolk Southern is making significant efforts to lower GHG emissions across the company.

• $500 million of green bonds were recently issued by the company to fund eligible green projects. Norfolk Southern was the first Class I railroad in North America to launch green bond financing.
• More than 700 locomotives were retired by the company in 2020, targeting older, less fuel-efficient models. Through precision scheduled railroading, the company has achieved operating efficiencies which allow for the movement of more freight with fewer locomotives, reducing fuel burn.
• A company locomotive modernization program is converting older DC traction models to more reliable and efficient AC units, providing more pulling power with fewer locomotives.
• The company is equipping locomotives with smart energy management technology that automatically matches horsepower to trailing tonnage and track terrain, maximizing fuel efficiency using the minimum horsepower.
• An innovative public-private partnership program to recycle older locomotives into low-emission "Eco" models is reducing emissions in urban communities on our rail network and enabling them to meet their Clean Air Act obligations.
• An initiative to replace diesel-powered overhead cranes with hybrid and fully electric cranes at company intermodal facilities is projected to reduce emissions at those facilities by approximately 75%.

"Our goal with all of these sustainable business initiatives is to continue creating value that generates benefits for our stakeholders, whether they be customers, employees, communities, or shareholders," Raglin said. "We are accelerating our efforts to deliver a low-carbon economy and promote cleaner air in our communities."

About Norfolk Southern
Norfolk Southern Corporation (NYSE: NSC) is one of the nation's premier transportation companies, moving the goods and materials that drive the U.S. economy. Norfolk Southern connects customers to markets and communities to economic opportunity, with safe, reliable, and cost-effective shipping solutions. The company's service area includes 22 states and the District of Columbia, every major container port in the eastern United States, and a majority of the U.S. population and manufacturing base.

http://www.norfolksouthern.com

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SOURCE Norfolk Southern Corporation

FAQ

What is Norfolk Southern's emissions reduction target for 2034?

Norfolk Southern aims for a 42% reduction in greenhouse gas emissions intensity by 2034 from a 2019 base.

How much carbon emissions have Norfolk Southern's customers avoided?

Norfolk Southern's customers have avoided 15 million metric tons of carbon emissions annually.

What funding is Norfolk Southern using for green projects?

Norfolk Southern issued $500 million in green bonds to fund eligible green projects.

What role does locomotive fuel play in Norfolk Southern's emissions?

Locomotive fuel accounts for over 90% of Norfolk Southern's carbon emissions.

Is Norfolk Southern's emissions reduction target aligned with global agreements?

Yes, it aligns with the goals of the Paris Agreement on climate change.