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Second-Party Opinion Download

Project Details

Project

Norfolk Southern Green Financing Framework (2021)

Client

Norfolk Southern Corporation

Project Type

Green Bond/Loan

Industry Group

Transportation

Use of Proceeds

Clean transport; Renewable energy; Energy efficiency; Green buildings; Pollution prevention and control; Natural resources/land use management;

Location

U.S.

Evaluation Date

Apr 2021

Evaluation Summary

Sustainalytics is of the opinion that the Norfolk Southern Green Financing Framework is credible and impactful and aligns to the four core components of the Green Bond Principles 2018. This assessment is based on the following: 

USE OF PROCEEDS 

The eligible categories for the use of proceeds —Clean Transportation, Renewable Energy, Energy Efficiency, Green Buildings, Pollution Prevention and Control, and Environmentally Sustainable Management of Living Natural Resources and Land Use — are aligned with those recognized by the Green Bond Principles 2018. Sustainalytics considers that investments in the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals (“SDGs”), specifically SDGs 7, 9, 12, and 15.

PROJECT EVALUATION / SELECTION 

Norfolk Southern Corporation’s Treasury Department, along with its Chief Sustainability Officer, will be responsible for evaluating and recommending the potentially Eligible Projects to its Green Finance Working Group, comprising members from its Finance Division, and Law, Sustainability, and Internal Audit departments, which will provide the final approval. Sustainalytics considers the project selection process to be in line with market practice. 

MANAGEMENT OF PROCEEDS 

Norfolk Southern Corporation’s Finance Division will be responsible for the allocation and management of the bond proceeds. Norfolk Southern Corporation intends to allocate majority of the proceeds within 36 months from the date of bond issuance. The unallocated proceeds will be managed per the Issuer’s normal liquidity practices. This is in line with market practice. 

REPORTING 

Norfolk Southern Corporation intends to publish Allocation Reports on its website on an annual basis until full allocation. The allocation reporting is expected to include category-level allocations made to Eligible Projects, and the balance of unallocated proceeds. In addition, Norfolk Southern Corporation intends to report on relevant quantitative impact where feasible and has provided indicative metrics within the Framework. Sustainalytics views Norfolk Southern Corporation’s allocation and impact reporting as aligned with market practice. 

https://mstar-sustops-cdn-mainwebsite-s3.s3.amazonaws.com/docs/default-source/spos/norfolk-southern-corporation-green-financing-framework-second-party-opinion.pdf?sfvrsn=a6539257_1