Union Pacific allocated 100% of the bond’s net proceeds of US$590.8m to eligible projects that support the corporation’s sustainability initiatives consistent with the Union Pacific Corporation Green Financing Framework.
“The infrastructure investments funded by the green-bond proceeds underscore Union Pacific’s efforts toward building a more sustainable future and to achieving our climate-change goal of net zero by 2050,” said Beth Whited, president of Union Pacific Railroad.
The allocated projects included US$265.5m for upgrades to existing rolling stock, including locomotive modernizations to reduce greenhouse gas (GHG) emissions and diesel fuel consumption; US$220.9m to expand network capacity and promote modal shift of freight to lower-carbon rail; and US$78.1m for new rolling stock, vehicles, and equipment, including electric vehicles and battery-electric locomotives, along with associated charging infrastructure.
Other investments included US$19.9m in renewable energy, and US$6.4m in energy efficient lighting projects.
While Union Pacific is proud of the impact of these projects on reducing its environmental footprint, it is important to note railroads already are one of the most fuel-efficient means of transportation, according to the Association of American Railroads. Moving freight by rail instead of truck reduces GHG emissions by up to 75%. On average, Union Pacific moves a ton of freight 463 miles on a single gallon of diesel fuel.
To read the full, 2023 Green Bond Allocation and Impact Report, click here.