FedEx recently announced that it will spend $2 billion to reach global carbon-neutral operations by 2040. The Memphis, Tennessee-based delivery services giant explained in a press release that to achieve this target it will focus its initial investment in three areas: sustainable energy, vehicle electrification, and carbon sequestration.
FedEx is revving up to electrify its entire parcel pickup and delivery (PUD) vehicle fleet by 2040. The company plans to accomplish this by deploying phased programs to replace its current majority gas-powered fleet. By 2025, the corporation says that 50 percent of its FedEx Express global PUD vehicle purchases will be electric, with 100 percent electric purchases by 2030. FedEx has 43,000 motor vehicles in operation – 118 are all-electric trucks and 364 are commercial hybrid trucks, according to The Verge.
“We have a responsibility to take bold action in addressing climate challenges,” said Frederick W. Smith, Chairman, and CEO, FedEx Corp in the release. “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.”
Also part of the company’s plan is a pledge to donate $100 million to Yale’s Center for Natural Carbon Capture – an organization dedicated to “developing collaborative and innovative solutions to pull carbon dioxide from our atmosphere and mitigate the effects of greenhouse gas emissions.”
“Through the creation of the Yale Center for Natural Carbon Capture, we aim to develop measurable carbon capture strategies to help offset carbon emissions globally,” said Dr. Ingrid C. “Indy” Burke, the Carl W. Knobloch, Jr. Dean of the Yale School of the Environment.
Other integral steps to FedEx reaching its carbon-neutral goal include offering sustainable customer solutions, making sustainable fuel investments, practicing fuel conservation, and moving to modernize its fleet of aircraft. Additionally, the logistics titan says in the release that it will be boosting the sustainability of its more than 5,000 global facilities “through continued investments in efficient facilities, renewable energy, and other energy management programs.”
FedEx employs some 600,000 people and reported $69.2 billion in revenue for the 2020 fiscal year. The corporation’s average daily package volume is 18 million.
According to FedEx, its pledge to reach carbon-neutrality by 2040 “builds on a history of sustainable practices.” The company says its already existing efforts have resulted in a 40 percent decrease in CO2 emissions intensity company-wide since 2009 – this as package volume has surged 99 percent since that year.
“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.”
FedEx joins companies like PepsiCo and Uber, which have pledged carbon neutrality. Ford and General Motors have also committed to being carbon neutral by 2050 and 2040, respectively.