Norfolk Southern's $500 million in green bonds funds low-carbon initiatives

Rhea-AI Summary

Norfolk Southern Corporation (NYSE: NSC) announced the successful allocation of $496 million from its $500 million green bonds issued in 2021, funding various low-carbon initiatives. Key projects include $275.6 million for converting locomotive power, $99.5 million for intermodal facility improvements, and $10.9 million for fuel management initiatives. The efforts aim to reduce carbon emissions by 42% by 2034 and promote ecological restoration. This initiative underscores Norfolk Southern's commitment to sustainability while enhancing its operational efficiency and long-term value for stakeholders.

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• $496 million allocated from green bonds to fund low-carbon projects.
• Improvement in fuel efficiency by 25% through locomotive conversions.
• Commitment to reduce carbon emissions intensity by 42% by 2034.

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• None.

ATLANTA, May 11, 2022 /PRNewswire/ -- Norfolk Southern Corporation (NYSE: NSC) today released a report on 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.

"Sustainability is in our company's DNA," said Mark George, Executive Vice President and Chief Financial Officer for Norfolk Southern. "Our industry-first green bond offering funds projects that align our efforts to reduce carbon emissions and advance sustainable business practices, all while delivering long-term value for our customers, communities, and shareholders."  

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. Projects include:

• $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," said Josh Raglin, Chief Sustainability Officer for Norfolk Southern. "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."

To learn more about Norfolk Southern's ongoing efforts to build a better planet and to access the full Green Bond Use of Proceeds Report, visit www.nscorp.com/sustainability.

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 sustainable 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.

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SOURCE Norfolk Southern Corporation

FAQ

What is the significance of Norfolk Southern's green bond issuance on May 11, 2022?

Norfolk Southern allocated $496 million from its green bond issuance to fund various low-carbon initiatives, emphasizing its commitment to sustainability.

How much was allocated to locomotive power conversion projects by Norfolk Southern?

$275.6 million was allocated to fund the conversion of DC to AC locomotive power, improving fuel efficiency and reducing carbon emissions.

What are Norfolk Southern's goals for carbon emissions reduction?

Norfolk Southern aims to reduce its carbon emissions intensity by 42% by 2034 as part of its sustainability initiatives.

What types of projects were funded by Norfolk Southern's green bonds?

The projects funded include locomotive power conversions, intermodal facility improvements, fuel management initiatives, and ecological restoration.