Union Pacific Uses Proceeds from 2022 Green Bond to Reduce Carbon Footprint in Support of Climate Change Goals
Projects funded by the $600 million in bonds are highlighted in newly published impact and allocation report
OMAHA, Neb., Sept. 5, 2023 /PRNewswire/ -- Union Pacific Corporation (NYSE: UNP) today published its 2023 Green Bond Allocation and Impact Report, which outlines how proceeds from green bonds issued in September 2022 were used to help the railroad invest in its climate action goals.
Union Pacific allocated 100% of the bond's net proceeds of $590.8 million 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:
- $265.5 million for upgrades to existing rolling stock, including locomotive modernizations to reduce greenhouse gas (GHG) emissions and diesel fuel consumption.
- $220.9 million to expand network capacity and promote modal shift of freight to lower-carbon rail.
- $78.1 million for new rolling stock, vehicles, and equipment, including electric vehicles and battery-electric locomotives, along with associated charging infrastructure.
- $19.9 million in renewable energy investments.
- $6.4 million 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.1 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.
ABOUT UNION PACIFIC
Union Pacific (NYSE: UNP) delivers the goods families and businesses use every day with safe, reliable, and efficient service. Operating in 23 western states, the company connects its customers and communities to the global economy. Trains are the most environmentally responsible way to transport ground freight, helping Union Pacific protect future generations. More information about Union Pacific is available at www.up.com.
This press release includes statements and information regarding future expectations, outcomes or results of the company that are not historical facts. These statements and information are forward looking as defined by federal securities laws. Forward-looking statements and information should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times that, or by which, such performance, targets, goals, or results will be achieved. Forward-looking statements and information are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements. Factors that could cause results or outcomes to differ, including the risk factors in Item 1A of the company's Annual Form 10-K, filed February 10, 2023, also could affect our future results and could cause those results or other outcomes to differ materially from those expressed or implied in the forward-looking statements and information. This press release should be read in consideration of these risk factors.
1 Source: Association of American Railroads Sustainability Fact Sheet June 2023.
SOURCE Union Pacific Corporation
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