FedEx commits to carbon-neutral operations by 2040

FedEx has announced ambitious plans for carbon-neutral operations by 2040 with a $2 billion investment.

To help reach this goal, FedEx is initially investing $2 billion into three key areas: vehicle electrification, sustainable energy and carbon sequestration.

“We have a responsibility to take bold action in addressing climate challenges,” said Frederick W. Smith, Chairman and CEO, FedEx Corp.

FedEx investments includes a $100 million pledge to Yale University to help establish the Yale Center for Natural Carbon Capture, which will accelerate interdisciplinary research across the natural sciences and engineering in an effort to accelerate the development of new strategies for removing and storing Earth’s excess carbon.

Smith added, “This goal builds on our longstanding commitment to sustainability throughout our operations, while at the same time investing in long-term, transformational solutions for FedEx and our entire industry.”

Recently ranked first in its industry on JUST Capital’s 2021 list of “America’s Most Just Companies” in the environment category, this commitment builds further on FedEx’s history of sustainable practices. Since 2009, there has been approximately a 40% reduction in CO2 emissions intensity across the enterprise, while package volume increased 99% during this same period.

Key steps towards reaching the 2040 carbon-neutral goal include:

• Vehicle electrification: By 2040, the complete FedEx parcel pickup and delivery fleet will be zero-emission electric vehicles. This will be made possible through phased programmes to replace existing vehicles. 
• Sustainable Customer Solutions: FedEx will work with customers to offer end-to-end sustainability for their supply chains, through carbon-neutral shipping offerings and sustainable packaging solutions.
• Sustainable Fuels: FedEx will continue to invest in alternative fuels to reduce emissions from aircrafts and vehicles.
• Fuel Conservation and Aircraft Modernisation: FedEx will develop upon its successful FedEx Fuel Sense initiatives, designed to reduce fuel consumption in its aircrafts. Since 2012, the FedEx Fuel Sense and Aircraft Modernisation programmes have already saved 1.43 billion gallons of jet fuels, and avoided over 13.5 million metric tonnes of CO2 emissions.
• Facilities: FedEx will continue its efforts to increase the sustainability of its more than 5,000 facilities globally. This will be done through continued investments in efficient facilities, renewable energy and other energy management programmes.
• Natural Carbon Sequestration: FedEx will help to establish the Yale Center for Natural Carbon Capture, to support and accelerate applied research into natural carbon sequestration solutions.

Researchers as the Yale Center for Natural Carbon Capture will develop methods to build on natural carbon storage systems, and where possible, improve how quickly carbon can be absorbed, how much can be contained, and how long it can be stored. These efforts aim to create a portfolio of carbon removal strategies that have impacts on a global scale.

Mitch Jackson, Chief Sustainability Officer, FedEx Corp, said: “While we’ve made great strides in reducing out environmental impact, we have to do more. The long-term health of our industry is directly linked to the health of the planet, but this effort is more than the bottom line – it’s the right thing to do.”

“At FedEx, we are committed to connecting people and possibilities resourcefully and responsibly The steps we are taking today will contribute a positive impact for generations to come.”