Union Pacific Issues $600 Million in Green Bonds to Fund Investments Aimed at Reducing Carbon Footprint
Omaha, Neb., September 12, 2022
Union Pacific Corporation (NYSE: UNP) issued a $600 million green bond offering to fund investments aimed at decarbonizing the company’s footprint and achieving set emissions reduction targets. The bond transaction was finalized Friday, Sept. 9.
The bonds underscore Union Pacific’s commitment to achieving its climate-action goals: reducing absolute Scope 1 and 2 GHG emissions and Scope 3 GHG emissions on a well-to-wheel basis from locomotive operations 26% by 2030 from a 2018 baseline, and net zero by 2050.
“Today’s announcement emphasizes the importance of our commitment to building a sustainable future for generations to come,” said Lance Fritz, chairman, president and CEO. “When it comes to finding ways to decarbonize our footprint, every idea is on the table. We are acting now on our most promising avenues to make progress toward reducing greenhouse gas emissions and investing in technology to support future initiatives.”
While Union Pacific works to further reduce its environmental footprint, it is important to note railroads already are one of the most fuel-efficient means of transportation. 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.
“Union Pacific helped shape our nation’s history and we’re excited to be a leader on the path to a more sustainable future,” said Beth Whited, Executive Vice President – Sustainability and Strategy.
As outlined in the company’s Green Financing Framework, expenditures to be funded with proceeds from the green bond offerings may include, but are not limited to:
- 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.
Infrastructure and rolling stock for railway lines dedicated to the transportation of fossil fuels do not qualify for proceeds from the green bonds.
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 4, 2022, 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 report should be read in consideration of these risk factors.
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 move freight, helping Union Pacific protect future generations. More information about Union Pacific is available at www.up.com.
The statements and information contained in the news releases provided by Union Pacific speak only as of the date issued. Such information by its nature may become outdated, and investors should not assume that the statements and information contained in Union Pacific's news releases remain current after the date issued. Union Pacific makes no commitment, and disclaims any duty, to update any of this information.