Norfolk Southern Corporation has closed a $500 million (£355m) green bond offering that will be used to fund sustainable business initiatives.
The rail transportation company plans to invest in projects that reduce its carbon emissions as well as help customers cut their supply chain emissions.
That includes improving the fuel efficiency of Norfolk Southern’s locomotive fleet, investing in intermodal terminals that promote the shift to freight from trucks to trains and powering its operations with cleaner energy.
In addition, it plans to increase the use of energy efficient buildings and technologies as well as support reforestation projects that restore natural landscapes and offset carbon emissions.
Last month, Norfolk Southern committed to establish a science-based target to lower its carbon emissions in accordance with the Paris Agreement on climate change.
The company can, on average, haul a ton of freight 440 miles on a single gallon of fuel.
Rail currently moves 45% of all freight ton miles for long distance shipping in the US and produces 7% of freight carbon emissions.
It says moving freight by rail lowers overall transportation emissions, relieves highway congestion and reduces wear on the publicly-funded interstate highway system.
James A. Squires, Chairman, President and CEO of Norfolk Southern said: “Green bonds will enable us to deliver for our customers and the environment.
“In recent years, out customers have avoided 15 million metric tons of carbon emissions annually by shipping their goods and materials with Norfolk Southern. Now we are committing to do even more to help customers reduce their carbon footprint, promote cleaner air and drive long term value for shareholders.