Fortescue Metals Group Limited (ASX: FMG) has bucked the wider selling trend hitting the S&P/ASX 200 Index (ASX: XJO) in the new year.
In late afternoon trade yesterday, Fortescue shares remained fractionally in the green so far in 2022 while the ASX 200 was down almost 3%.
That will come as good news for shareholders, who've watched the miner struggle since August amid slumping iron ore prices.
But Fortescue shares are supported by more than the price of iron ore.
As part of its broader global sustainability push, the company has also been actively working on developing green hydrogen production via its offshoot, green energy company Fortescue Future Industries (FFI).
In a further demonstration of its commitment to zero emissions, the company has reported a new milestone in its decarbonisation strategy.
Electrified locomotive fleet
ESG focussed investors holding Fortescue shares will welcome the company's latest announcement on its locomotive fleet.
The miner has bought 2 new Battery Electric Locomotives to transport the iron ore it mines to port. According to the release, the locomotives have an energy capacity of 14.5 megawatt hours. They'll be built at the Progress Rail facility, a Caterpillar company, based in Brazil.
Commenting on the purchase, Fortescue's CEO, Elizabeth Gaines said:
The purchase of these new battery powered locomotives marks an important milestone in the decarbonisation of Fortescue's locomotive fleet and demonstrates our commitment to achieving carbon neutrality for Scope 1 and 2 emissions by 2030, as we diversify from a pure play iron ore producer to a green renewables and resources company.
Gaines added that the battery powered trains would not only reduce the miner's operating emissions but also cut fuel costs and reduce maintenance spending.
Fortescue expects the first new locomotive to arrive on site in 2023.
How have Fortescue shares been performing?
Iron ore prices dropping from record highs in mid-2021 put pressure on Fortescue shares. Over the past year, the miner's share price is down 20% compared to a 12% gain posted by the ASX 200.
Longer-term, Fortescue is up 86% in 2 years and 229% in 5 years. At Fortescue's current share price, it pays a whopping trailing dividend yield of 18%, fully franked.
