FedEx commits to carbon-neutral operations by 2040

FedEx commits to carbon-neutral operations by 2040

FedEx, home of the world’s largest cargo airline, has announced an ambitious goal to achieve carbon–neutral operations globally by 2040.

To help reach this goal, FedEx is designating more than US$2 billion of initial investment in three key areas: Vehicle electrification, sustainable energy and carbon sequestration. 

This includes a pledge of US$100 million to Yale University to help establish the Yale Centre for Natural Carbon Capture, accelerating research into methods of carbon sequestration at scale, with an initial focus on helping to offset greenhouse gas emissions equivalent to current airline emissions.

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

Key steps toward reaching the carbon neutral goal include:

Vehicle electrification. By 2040, the entire FedEx parcel pickup and delivery (PUD) fleet will be zero–emission electric vehicles. This will be accomplished through phased programmes to replace existing vehicles. For example, by 2025, 50% of FedEx Express global PUD vehicle purchases will be electric, rising to 100% of all purchases by 2030.

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 aircraft and vehicle emissions.

Fuel conservation and aircraft modernisation. FedEx will build on its successful FedEx Fuel Sense initiatives designed to reduce fuel consumption in its aircraft. Since 2012, the FedEx Fuel Sense and Aircraft Modernisation programmes have saved a combined 1.43 billion gallons of jet fuel and avoided over 13.5 million metric tons of carbon dioxide (CO2) emissions. 

Facilities. FedEx will continue efforts to make its more than 5,000 facilities worldwide more sustainable through continued investment in efficient facilities, renewable energy and other energy management programmes.

Natural Carbon Sequestration. FedEx funding will help to establish the Yale Centre for Natural Carbon Capture to support applied research into natural carbon sequestration solutions.

The FedEx commitment builds on a history of sustainable practices. Since 2009, the company’s efforts have contributed to an approximately 40% reduction in CO2 emissions intensity across the enterprise while package volume increased 99% during that period. Recently, FedEx was ranked first in its industry on JUST Capital’s 2021 list of ‘America’s Most Just Companies’ in the environment category and first in the travel, transport and logistics sector of Newsweek’s ‘America’s Most Responsible Companies 2021’. 

“While we’ve made great strides in reducing our 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 about more than the bottom line – it’s the right thing to do,” said Mitch Jackson, Chief Sustainability Officer, FedEx Corp. “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.”

Click below to share this article

Browse our latest issue

Intelligent CXO

View Magazine Archive