Railroad company Union Pacific Corporation recently announced the completion of a $600 million green bond issuance, with proceeds aimed at funding its decarbonization and emissions reduction investments.  

The green bond offering follows the announcement late last year of a commitment to achieve net zero greenhouse gas emissions by 2050, and the publication of its climate action plan, detailing the initiatives and actions it will take to achieve its GHG emissions reduction goals.  

Some of the actions outlined in the climate action plan included improving operational efficiency through investments in a more efficient locomotive fleet and energy management technology, the promotion of rail as the environmentally preferable surface transportation solution, and the exploration of emerging supply chain circularity opportunities. 

Union Pacific recently released its Green Financing Framework,, outlining eligible categories from investment from its issuances of green bonds, including: 

• New battery-electric locomotives, 
• Locomotive modernizations that reduce GHG emissions and increase fuel efficiency, 
• Expansion of intermodal facilities, which can promote modal shift of freight to lower-carbon alternatives such as rail, 
• New sidings and siding extensions, which increase train length and reduce dwell time, 
• Investment in and/or development of onsite or offsite generation and distribution of renewable energy from solar or wind sources. 

According to the framework, the company may not use green bond proceeds for infrastructure and rolling stock for railway lines dedicated to the transportation of fossil fuels.